The sun., 1907-12-01
PROSECUTION In THIS COUNTY
SUGGESTED BY JACKSON IN IN
TERNATION.AL TRUST 90. CASE.

SUGGESTED BY JACKSON IN IN
TERNATION.AL TRUST 90. CASE.
Report or Temporary Receiver To ne Laid
Before .leFsme-PresIdent ana Cashier
Of Oriental Bank Borrowers From the
Newly Established Trust Company.
Attorney-General jackson will submit to
District Attorney Jerome on Monday the
reports Of the temporary receivers for the
International Trust Company. the Brooklyn
Bank and the Borough Bank Of Brooklyn.
These concerns were closely allied and Mr..
jackson says he believes that there is ma
terial for criminal prosecutions in this
county because Of the management OF the
International Trust Company. the concern
that opened with a capital and surplus
largely provided at the expense of the
Borough Bank.
Mr.. jackson made public in this city
yesterday the report OF Goodwin Brown.
temporary receiver for the International
Trust Company. which was prepared for
submission to Justice Belts at Albany
yesterday.
At the outset Mr. Brown says that tho
book value of the demand loans Of the trust
company on October "a was s43. $50. Mr.
Brown says:
"Of this amount the sum of S3225 Is
doubtful II is due from r. W. Jones, Jr.,
president OF the Oriental Bank. since
resigned. and is wholly unsecured. AT
= ~ g,t
indebtedness has not been secured or
adjusted. Mr.. Jones is i'll. but his at
torney has promised to confer with me
in reference to the matter
The time loans were $50. $50. and of this
sum Mr. Brown says that sl4 $50 is secured
by stock which he is informed has no value.
Mr.. Brown says he could find no records
Of directors meetings. He was informed
that John s. Jenkins acted as secretary Of
one of the meetings of the board. but he
could not find that any minutes were kept.
Howard Man well: the president of the
Borough Bank was president Of the Inter
national Trust Company.
The dealings of William Cow who was
director. with the trust company come in
for considerable comment from Mr.. Brown.
who says:
As 10 IlreCLO1 NtOW, " ~ well hnoNn tndl ut
dominated the affairs Of the company. Jen-
kins and Maxwell owned / .22t shares of the
stock out Of 5000 shares. Cow owned $500
shares, jenkins 509 shares and Maxwell 625
shares. In another part of my report have
called attention to Cow Withdrawing from
the company s323. .s52 so on October "a. 1907.
This covered the credit he received from the
transfer OF the leasehOld OF the building 306
Broadway at "a total cost to the company Of
sS57 ,545 55, which. however, included mort
gage for 5000 900 which Cow gave to the Hen
derson trustees at the time he purchased the
lease from them He, by taking out the
amount he did realized profit of Slj0,OOO
in disposing of the lease to the company.
On the OF ler hand. however. is to be noted
the fact that ON October Fl Cow also turned
over to the company stocks and bonds Of the
value 81 aI50!0OO. 40 that as n result of the
entire transaction the company had balance
left OF about sS2, ,203 If weaTe TO cOncede the
full value paid by the company for the lease
hold. and that. as pointed out In another part
OF my report, Ia extremely doubtful In my
opinion Cow originally had no intention of
transferring the lease to the company. Hav-
ing paid SlO7 900 ia cash on ACCOUNT OF the
purchase price paid by him to the Henderson
trustees, the rentals exceeded the charges of
operating the buildng by a substantial
amount. IL was good investment for him.
hut on October ~ he evidently needed money
Bank BY turning the lease over to the com
pany on that date at the price of S251 ,5A5.55
over and above the existing mort gage for
$500 900 and also turning over to the company
stocks and bonds of the stated value of Sl51 900
he was enabled thereby to take on the same
day from the company = cash at the Oriental
Bank the sum of 1926. so.
In support of my opinion that Cow had no
intention originally of transferring the lease
20 the international Trust Company 1 call
attention to the fact that the lease itself is
not dated. although il was duly acknowledged
on October u. 1907. The original lease made
by the Church Corporation contained a clause
that in the event OF an assignment OF the
lease being made without their consent the
Church Corporation could then reenter.
This consent was not obtained by Cow, and
the Church Corporation had no knowledge of
the assignment until informed by me.
Mr.. Brown made up a table Of the deposits
made by the International Trust Company
with the Borough Bank He points out that
the International Trust Company closed its
=. doors on October 25. This is the way the