New-York tribune., 1907-11-26
MORE BANK MEN SLATED
FIVE NEW INDICTMENTS.
WW Be Handed Dozen Today
MGr5CeU Gets Bail.

Five more indictments will be handed down TO-
day by the grand jury Of Kings County which mas
been investigating affairs of the Borough BANK OF
Brooklyn. These indictments will charge either
feonies misdemeanors or both. One OF them
will be a charge of perjury before the grand jury
itself during the present investigation IL is pos
sible that before the day is over another indict-
ment will be handed down against a Manhattan
man.
Captain Cooney OF the Brooklyn detective force.
was closeted for over an hour yesterday with AS
sistant District Attorney Elder. After leaving Mr..
Elders office Captain Cooney called several other
detectives. and the party started out. They had
not returned TO headquarters up to midnight, and
the supposition is that they ere 'shadowing the
men to be indicted to-day.
Howard Maxwell. cx-presdent OF the Borough
Bank who arrested three indictments, was
released on bail at $50 o'clock last night. He
locked UP in the Raymond street Jail last Thursday
afternoon. and until last night his counsel
unable TO obtain the necessary $4,000 bail.
Twenty thousand dollars bail furnished yes
teraay morning. Mr.. Maxwels sisters providing
half of that amount Isaac r. Oeland. his counsel.
made arrangements with the Illinois Surety Com
pany furnish the remaining $1,000.
Attorney General Jackson met the temporary re-
revers of the Williamsburg and Jenkins Trust
companies and the Borough and Brooklyn banks
yesterday afternoon. He told them that If he saw
that the banks or companies could be reopened
without injury TO the interests OF the depostors
intended to cooperate In plans their rehabilita-
tlon otherWlSe ne would try TO have the receivers
made permanent. II this should be the ultimate
result he told the receivers that he would like them
10 agree. with the approval of the court, first
pay the depositors substantial sum at once and
second TO wind up the receivershps with the pos
sibe exception of the slow assets within g year
eighteen months.
The receivers agreed with the suggestion of tho
Attorney General to put experts TO work on the
books to determine at the possible criminal
and civil liability of all directors and officers.
of which Indicated
foUoS=.ng transactions: Misleading reports TO
bank ofi3eis. heavy Withdrawals prior to suspen-
by frenLs and relStives OF directors, Illegal
overloans and overdrafts. changing of demand
loans -. tina loans" They said they thought the
depostors could be paid in full AS soon as the
examination of the books by experts is finished
whatever evidence of Illegal transactions Is fouho
will be presented TO the grand jury.
The District Attorneys Office sent doctor TO
the home OF Richard w. Jones jr. president of the
Oriental Bank who has been subpPnaed oy the
grand jury inquire into his condition Mr.. Jones
is ill., suffering from pleurisy with touch OF pheu-
monia and has been unable to appear before the
grand jury.
Mr.. Beekman of counsel for the Oriental Bank
appeared before the grand jury yesterday ana tes-
tilted as to the $4,000 Borough Bank note signed
by Maxwell which the Oriental Bank discounted
He told the grand jury that Mr.. Jones had oeen
told that the board Of directors of the Borough
Bank had approved the note. and that that was
one reason why he discounted it. The Oriental
Bank directors say tnat INC DAMN VIII hON i"SS
cent this note on other Cow notes which the
bank holds.
Charles NJ. Stafford counsel for the depositors of
the Brooklyn Bank and the international Trust
Company. said: From examination of the BOOKS
these institutions find that er6sures ana alters-
tions In the books have been made. find evidence
of fraudulent real estate transactions, OF illegal
agreements executed by bank officials, and OF Jug
Cling and manipulation Of ts funds in the interest
OF stockholders in control Ny investigation re-
eulte ed IN ofh hat will
stockholders and directors heavy liability"
S. S. Menken, OF counsel for the Oriental and
Brooklyn banks and the International Trust Com
pany, said yesterday that Cow and Maxwell had
taken s544 900 out of the International Trust Com
paHy just before it closed and deposited 1t in the
Borough Bank in effort to save that institution.
This money was taken from the surplus and capital
of the company. THE Brooklyn Bank and the In
ternationa Trust Company have good assets" he
said. The Brooklyn Bank has in loans about
Si,5no00. All Of these be collected. with the
exception of or per cent. The depositors will
be paid in full Cow and Maxwell the two
niggers in the woodpile They paid $4,000 for
the Post Building. then sold it TO the International
Trust Company for 100000"
It also found out yesterday that the Inter
national Trust Company assumed control OF the
assets of the Brooklyn bank October IL Natu-
rally after the withdrawal of s5AeoO the COM
pany went under. Mr.. Hutchinson, president of
the Brooklyn bank. Mr. Stafford thinks was made
tool of by Cow. The latter able to use
nm 10 Iurther MS own plans and transactions.
Harry +. Shirk, a lawyer has written the State
Banking Department asking that a full list with
values, of the securities turned over by Maxwell
Cow and Campbell be sent him. He says he still
believes these men wealthy, and have held
back many Of the most valuable Of their assets
Edward NJ. Shepard was retained by the direc.
tors OF the Borough Bank TO argue against MAX
ing permanent the temporary receiver on satur-
day. It is said that each director contributed 500
his fee.
The grand jury began its investigation Of the
affairs of the Jenkins Trust Company yesterday
about o'clock Six witnesses were examined
District Attorney Clark and A. c. Judson bank
examiner went the books for nearly three
hours. The grand jury will its work this
morning. There a rumor that gained some