New-York tribune., 1907-12-10
HAMILTON BANK DEALS
Continued from first page.

certified check type of loan" In commenting
On these loans the receiver says:
1t will appear that in all real estate transac-
tions the bank received bonus OF D per cent
for the loan, and in all the transactions repre-
sented by certified checks the bank was Tecei
ing greater amount of interest than that al
lowed by law, in many instances interest a.
the rate of II per cent. and in connection with
this item. if said of $352,624 is the yearly
average of the certified check TRANSACTIONS unre
defendant has been receiving annually sum
approxnating $4,000 as interest on funos 'ha'
were never loaned.
From an examination of the individual ledger
of the fremont branch of the Hamilton Bank
the receiver concluded that Mr. Montgomery had
repeatedly overdrawn his account from Soo
TO as much as s34,261 %. and an examina-
ton of the ledger in the main offices of the bank
indicated that z. r. Thomas had overdrawn
mis- account from s125 sc to s2.2s1 90. Mr. White
adds. there is no mention upon the minute
hooks of the board of directors or of the fnahce
committee of either of the above overdrafts
In regard to these overdrafts, attention was
called at the offices of the Attorney General 10
Section 600 of the Penal Code, which proVlueS
that amy official. bank officer, director agent
teller or clerk or employe of any oahk over
drawing his account in said bank ana thereoy
obtaining notes or funds of said bank Is guilty
Of misdemeanor" A misdemeanor may be
punishable by one year in prison. or a hne OF
$500, both.
HEINzE LOANS INADEoUATELY SECURED
The report continues: There appear on the
hooks of the bank the following loans. the COL
lateral to secure which is inadequate:
To = Augustus Heinzs ssoo'o
Loan TO Henze & Co said Otto Aeihze 100 NO
Two SSps Ieans to Robert MclT1y oS0"o
,ae Sote 10 Sf l. Ared T II lewis indorsed by E.
Thomas .........-....,. oo'
To secure the Heinze loan the bank has col
lateral which the receiver values at soo'oo"' anu
in connection with this loan there appears on
the papers of the bank the following;
Order On Mechanics and Traders Bank for
excess of collateral in their loan to T. Angus
rus Heinze of october II. 1907. estimated by
President Sullivan as about S2ooVoo-
According to the statement of the president Of
the Mechanics and Traders Bank to Mr. White.
Mr. Henze owed that bank S366.S1S 20 and
had his loans secured by collateral valued at
that time December 6. 1907. at Si15.130 The
loan TO Otto Henze was secured by 300 shares
of Mercantile National Bank. 300 shares of
Utah National Bank and 100 shares of italian
American Trust Company stock petition in
involuntary bankruptcy has been filed against
the firm and receivers have been appointed who
are in possession OF the assets of the firm.
The first Robert Maclay & Co loan of s50.000
is secured by collateral valued by the receiver
at s41,4s5. and the second by collateral valued
by him at s47,o65 The s50o00 Thomas note
is one Of the series Of notes given the Thomases
by the Philadelphia syndicate which attempted
purchase from them control of the Provident
Savings Life Assurance Society. Most OF the
makers of this note are non-residents OF the
state.
The note OF Alfred H Lewis. indorsed by e. r.
Thomas. is secured by $500 shares of the Hee-
man Life Publishing Company This collateral
Mr.. White states ''is worthless"
The receivers report closes with the following
statement:
AS a part of the collateral to the notes
of +. Augustus Heinze, Otto HeinZe & Co. and
Robert Macay & Co, above mentioned, there
are 1107 shares Mercantile National Bank, 500
shares Italian American Trust Company. 200
shares Mechanics & Traders Bank and 32l shares
of the defendant the value of which Is prob
lematical. l have endeavored TO obtain quota
tions on such stock and have been informed
that there is no market for the same