New-York tribune., 1907-12-10
HAMILTON BANK DEALS.
REPORT OF RECEIVER.
Sous Montgomery OUerdrew -
Heinzes and Thomases InUolued.

attorney General Jackson made public yester-
a., the report of Frank White, receiver for the
-Ta,,ilton Bank OF Manhattan. In one transac-
80, william r. Montgomery, the banks present
.-osident and one Of its directors. is involved.
The last sworn quarterly statement to the
,,,rs Department was made by the Hamilton
ponk after business August %, 1907" On
,bet date says the report, Mr.. Montgomery had
a,,or5rsvn his account s2,O12 1s. yet no mention
.s made of this. although included in the re-
-, ,yas a sworn list of depositors who had
yvn their accounts. z. r. Thomas, who.
;,b = Augustus Heinze and O. F. Thomas,
cd 70 resign official connection with the bank,
md who was one of its directors, also, accord
Sc IN the receiver, overdrew his account from
ioe 70 time his overdraft at one time amount
ing 10 s2,2s1 %
william R. Montgomery said late last night:
., have never overdrawn my account. and have
,o,er owed the Hamilton Bank a cent, either
a;-ectIv or indirectly. 1 defy the Attorney Gen.
al frank White or any one else to prove that
1baye / did not overdraw my account, and any
statements to that effect false, absolutely
false"
The Hamilton Bank was one of the Heinze-
,,orse-Thomas circuit, and closed its doors on
October o. F. Augustus Heinze is declared
rioble 10 il as maker, indorser or guarantor OF
otes in the sum of $4,000. Similarly. T. H.
srbomss is said to be liable in the sum OF
ess15n and O. F. Thomas, also director, IN
the sum of s51, ,as6 SIS. Other directors are also
sais 10 be liable in different amounts.
The receiver reports that the E. r. Thomas
.na 2 Augustus Heinze loans are among those
.nadeouately secured, as is loan OF sIo"'VoV
"a Otto Heinze, brother of T. Augustus Inc
...;o-itv of directors having accounts with the
4f,o
heir deposits during the week preceding Its
closing and especially during the last two days
of business.
BIG INTEREST CHARGED.
Another thing brought out in the receivers
,enort is the system of making loans III use
81 the Hamilton Bank. 1t appears to have
been the custom Of the bank TO make loans 10
which there was attached a certified check for
she loan This kind of transaction was carried
IN in this way: A person would apply Tor
,oan of saw $500. The bank would agree 10
lend him rot that amount but more than thal-
sav $4,000 or s., 800 Then it would take oacR
g certified check for the difference, sooo OF
Sos0 This certified check would be charged
.ro,ns- his account the result being that he was
forced to pay interest the entire amount
In this connection Mr.. Montgomery, before the
-eoeiver testified. in part: Whenever we got
& certified check loan d IllcIl he l4oo ~ "'SA
this agreement before a notary public, so that
he could not afterward bring a charge OF
usury" The receiver reports: II have found In
the above class of loans q number where the
borrower was actually paying interest on ooupie
the amount of money he borrowed.
Loans were made amounting to more thah
$4,000 600 without collateral and were secured
cnly by the indorsed names. and OF this amount
.sesz27 80 was single name paper
The receiver says that at the close OF ousl-
ness on October % the total loans and discounts
we're S5.677445 IS; amount secured by real estate
.2212 2s3 ss amount secured by collateral othef
than real estate. 81 s23 422 90; amount of paper
with two or more names without other security,
81 ga ali So: amount of single name paper with
on, other security, s496,427 30. OF the ABOVE
leans s7no 543 80 were call or demand loans and
g s7s eo2 SIS were time loans. Since oc'opef 20
g. ss1 2n7 50 of these loans have become due ana
s2o7040 "a have been paid
There is now due the hank on Tune hote'
slsa7Iae ga or if the amounts in the bank 10 'iie
credit of the makers and indorsers of the notes
are allowed as offsets, s1,o19,204 3e. No de-
nasnd for the payment of the demand no'eS He'o
by the bank has been made.
WHAT DIRECTORS DREW OUT
The following table is given TO show the amount
each director having an account in the Hamilton
pank withdrew during the week of OCTOBER 10
20 % and the amount still remaining 10 MS
credit: