New-York tribune., 1907-11-21

tool for his superiors. Maxwell speculated in
his name without his (CampbelPs) knowledge
He bought property on behalf of the bank in Mr.
Campbells name without the latters knowledge
When the directors began TO inquire into the
affairs OF the bank Campbell told frankly all
he knew.
CAMPBELL DID NOT QUESTION ORDERS.
He took orders from those on whom he was
dependent for his position He did not suppose
that he had any right TO question the orders OF
his superiors, and he simply carried out the
orders which We're given him Besides he gave
every cent he had in the world to secure the
bank. This amount included his house MS IL
brary and his automobile. 1t has been SAID that
he had an account with New York brokerage
concern There was an account in his name but
he had nothing to do with it"
Most OF the testimony so far taken before the
grand jury has been mainly of a documentary
character Besides the books and papers Of the
Borough Bank the minutes Of directors meet
ings in which acknowledgment of overdrafts ana
unsecured loans was written have been laid be
fore the Jury 1t has been necessary to call dlf-
ferent directors to confirm these. David 10.
Hutton. who acted as secretary at the meetings
after the disclosures were made was called 10
testify for this purpose. Mr. Hayes testlhed 10
the discoveries he had made in examining the
books of the bank. Mr.. Hes was suppehaeu
that he might tell the grand jury what entries
he had made and what orders he had received
in his work as assistant receiving teller
Mr.. Adams. cashier of the Oriental Bank tes-
tilted about the S25O.O0O collateral note that was
signed by President Maxwell OF the Borough
Bank and used by William Cow as part OF the
81 600 capital stock of the international trust
Company This note deposited in the OrI-
entail Bank with two other notes of $lSSooo IN
dorsed by Nelson Burr and John S. Jenkins 10
secure it. Regarding the s25oOO0 note ). 3
Menkin, attorney for the Oriental Bank made
the following statement:
ABOUT THE MAXWELL NOTE.
The note was signed by Nelson Burr and John
s. jenkins and offered 10 the Oriental BANK
for redscount President Maxwell and Director
William Cow brought over the note, together
with a certified set of resolutions passed py 1e
directors empowering the president 10 leul9-
count.
AS the Borough Bank of Brooklyn had be
Oriental Bank and collateral was offered, to-
gether wSh the fact that we had some general
information that Mr. Cow had an income of
S2J0000 a year, there appeared to be no reason
why the note should not be redscounted,
The Oriental Bank now holds $4,000 Of
present prices SiSO 600 We have demanded
more collateral, and 1 think we will get IT.
Collateral including deposits of S2S4Oo0 for
a note of $3.50 900 is fair but we believe We
ought 10 have collateral of $35OoO in these
times.
The note has about thirty days to run The
! John 6. Jenkins who signed the note is a law
yer and not connected with the Jenkins Trust
Company family
Frank Jenkins president Of the Jenkins Trust
| Company, not IN his office yesterday after
noon. 1t has been said that Mr.. Jenkins. his
| father and brother together borrowed over
| $1,0OOO0O from the Williamsburg and the Jen-
| kins Trust companies. and that Bank Superin-
tandaut Williams has evidence OF improper
| banking done by both institutions Mr. jenkins
! has put up extra collateral to secure his loans
Mr.. Moffett counsel for the Jenkins Trust
Company. said yesterday; The investigation
! is still going on. No evidence Of improper
banking has been found except the overloans
made 10 the Jenkinses. Plans for resumption
| of business are still on. but we have not yet
| been able to secure the S1o00O00 in cash that
| is necessary. There will be meeting Of de-
| positors tonight 10 consider plans for opening
the bank again"
! There was a report yesterday that Controller
| Metz had withdrawn his own private account
! from the Borough Bank the day before it closed
| acting presumably private tip" but had
| left the city's money on deposit. This was alb
! solutely denied. Controller Metz. officials of the
| bank said had deposited in II from $4,000 to
| $4,000 the day before it closed to take up two
notes. one of which, for $4,000, fell due that
! day, and another, for smaller amount the
| next day.
The depositors of the Williamsburg Trust
! Company met last night in SchWaben Hall and
| agreed to pledge themselves not to draw more
| than 10 per cent Of their deposits within three
| months This action was taken to assist the
| directors who are trying to reopen the bank
and resume business.
| Counsel for the banks for which receivers
| have been appointed will make every effort 20
| have the receiverships vacated and will argue
| for vacating them when the subject comes be-
| fore Justice Belts November 30. From all
indications yesterday it seems that the deposltors
will workNwth the directQrs and officials to ac-
! complish this.
| Attorney General Jackson Yielded yesterday TO
! the requests of officials OF the closed Brooklyn
! banks that he name Brooklyn and not Man