New-York tribune., 1907-12-02
NEW JURYAFTER BANKS
WORK GOES ON IN KINGS.
December Body to Continue In0esti-
cation TO-dGg.

The Kings County Grand jury for December Will
start its work of investigating the affairs of the
closed Brooklyn banking institutions to-day. Dur
ing the week the jury viii look into the affairs OF
the Borougs and Brooklyn banks and the jenkins
and Williamsburg trust companies To-day it viii
especially into the affairs of the Borough Bank
Assistant District Attorney Elder, who has charge
Of this inquiry, will push it with greater vim
and vigor than heretofore. He will take up to-day
the withdrawal of money from the Borough Bank
after banking hours. The receivers for the bank
reported that directors and their friends had with
drawn more than $500 600 in this manner
Fourteen witnesses have been subpenaed 10 ap-
pear before the grand jury to-day. and many of
these Will be examined as possible. Among the
fourteen several directors. it is said.
two officials of the bank. The Assistant District
Attorney and the receivers will insist the return
of all the money withdrawn after banking hours,
No indictments will be handed by the grand
jury before Wednesday, il is understood. But be
fore the week IS out larger number than has yet
been hanoed down Will, il is thought. have been
issued These indictments viii be against directors
Of at least three Of the four banking institutions
mentioned and probably against officials of some of
the Others Controller Metz viii be suhpanaed
explain certain things TO the grand jury and other
depositoTs viii also appear before the jury.
The depositors' Committee of Twenty-Five of the
Borough Bank held meeting last night in the
Assembly Paul Grout and S. S. WhitehoUse made
an official statement, in which they criticised most
severely the report made by the banks temporary
rate and false The statement contains the follow
ing paragraph:
Naturally, these temporary receivers are fever
tshfy anxious TO be made permanent receivers. for
Of very profitable employment al the expense of
the depositors. And it would mean to Mr.. Shearn.
bank account TO the serious reduction and i'm
paiTInent OF the bank accounts Of the Borough
Bank depostoTs-
At this meeting. it is understood. Vice-President
Hurley. az the request of those present. gave
through IS counsel an explanation Of his actions
in referenye the closing of the bank The de-
positors then gave him a vote Of confidence.
The of the receivers Of the closed institu-
tions have fairly aroused Brooklyn. The greatest
indignation the conduct OF the officials and
directors seems 10 be felt. Depositors who had
willingly worked cooperate with plans Of the
directors and stockholders are now determined TO
employ counsel protect their interests and TO do
nothing without legal sdvice-
Ex-Judge William Kramer, counsel for the de-
postors Of the Williamsburg Trust Company. said:
'My clients simply taken aback dunn
founded by the receivers report. Former reports
sf the directors and of the State Banking Depart
ment and Bank Examiner have grossly exaggerated
the strength Of the bank. The sdepositors have
entirely lost confidence in the directors. They
will decide later some plan for reopening the
bank
The Williamsburg T<Ist Company had seven
thousand depositors and SI.009Ge0 in deposits.
H. r. Latson, attorney for the depositors Of the
Jenkins Trust Company. spoke hopefully of re-
opening TIE bank Eighty per cent Of the depos-
ftors," he said, have agreed put their bank
books in the hands of the Guardian Trust Com
pany depositary for the Jenkins company They
have agreed this part Of the following plan:
After everything possible has been paid, the COM
pany will issue negotiable certificates of de
post depositors each representing 10 per cent of
the amount on deposit and maturing the second,
fourth sixth, eighth and tenth months after
issue It Will also issue five other certificates of
deposit 10 per cent Of the amount on de-
posit will mature the first. third, fifth
seventh ninth months after issue BY this
plan all depOsitors will be paid in full within ten
months Small depositors those having $50 or less
out at once The banks capital stock Of $4,000 is
uninpared. and it has surplus Of $l9lepe. We
hope to have it reopened within two weeks
This company has six thousand depositors and
deposits OF 81 lssa. esar
Attorney rtsenerals jackson did not William
Travers Jerome yesterday or have any cornmunca-
tion with him on fhe subject the International
Trust Company. which he wishes the District At
torney TO investigate Mr Jackson took no action
on the banking situation yesterday. He had State
Bank Examiner Hayes and one Of his deputies go
over the receivers report the Williamsburg
Trust Company and got IL in concrete form to pre-
sent to the Kings county Grand Jury to-day.
The Attorney General VIII wait several days 70
see i Mr. Jerome will take action in the case. Il
he does not at the end of that time Mr.. Jackson
write him asking him to take action and
should e decline 10 DO he viii then appoint a
man 10 conduct the investigation himself. 1t is
said that FIR Jackson holds he has this power, and
will not ask the Governor TO appoint. but will make
the appointment himself