New-York tribune., 1908-01-19
BROOKLYN BANK CASES.
Justice Denies Mrs. CampbeHs Ap-
pLication-Efrontery, Shea1n Hints

Kingston n Y Jan. 1S.-Justice Belts. or the
Supreme Court had his time occupied with
Brooklyn bank cases again to-day Mgs. Char-
Iotte L. Campbell, wife of Arthur tafnpoeli'
former cashier of the suspended Borough Bank,
applied for leave to sue Messrs. Cox and Powell
the temporary receivers. to set aside a deeo 10
property at No. 4O1A Hancock street. Brooklyn,
which she executed after disclosure or the
banks affairs resulted in its suspension. Mrs
Campbell alleged the deed obtained from ner
under duresS, the banks directors had
made promises to her and her husband that ne
would have immunity from prosecution for al
legged irregularity III his accounts provided the
deed given. and threatening prosecution II
refused. Since his Indictment she feels
under no moral obligation to abide by the
deed.
Clarence J. Shearn, for the receivers. opposed
the application and said that if the petitioner
not he would characterize the
act brazen effrontery. The irregularities
had been called serious crimes by the Kings
County grand jury.
Paul Csrout counsel for the bank, denied that
any promise of immunity had been given he
said that Campbell President Maxwell of the
Borough Bank who afterward committed sui
eide. and William Cow, q director of the in
stitution. had voted with the trustees for resti-
tuition and had made it as far as possible
statement of the bank accounts of Campbell
and his wife showed that she had bought the
Hancock street property with the proceeds 0f
a note discounted by her husbands bank. for
which the property was given security. This
note was reduced by So monthly payments
made by Campbell to S1.925 and the balance
maid by him from funds received from fortu-
nate speculations with banking funds Justice
Belts decided the house was paid for by tn"
bank and belonged to it. He denied the appli-
cation An automobile formerly owned by
Campbell. which the bank seized. was directed
to be sold by Receivers Cox and Powell
The Jenkins Trust Company case again came
before Justice Belts. when counsel for the bank
and depostors asked that ;he temporary re-
ceiver be discharged and Deputy Attorney Cen
eraI Mackey asked that his appointment be
made permanent.
On behalf of the bank and dopositors Hugo
Irsh and Allnet Reed Latson urged that they
had complied with the conditions imposed by
Clark Williams. State Superintendent of Banks
before the bank could resume business. James
Moffett vice-president of the bank before Il
suspended had been elected president: some
directors had been elected, and some va
cances remained untitled.
The organization was only temporary. the
new officers agreeing to serve for only four
weeks. IN view OF the present situation and the
ina abIIity Of the reorganizers TO offer induce
ments that not more than tentative new
organizers would prefer could not be secured
until the bank sure Of resumption They
asked that the injunction order be vacated. the
receiver all assets. the bank he
strained from receiving deposits making pay
ments until February 10 until which time
organization he continued under direction of the
Superintendent of Banks after which the re-
cever he discharged and the suit brought by
Attorney General Jackson be discontinued
Who knows that Noffett will resisn? -"
asked Deputy Attorney General Mackev. Tie Is
elected legally. the other directors some
Of whom should not he connected with the bank
TO put II mildly. They have allowed the bank 10
be looted. They have not been eliminated from
the directorate The same old crowd is still in
promises. The receiver should he made per-
manent. Are tney afraid Of assisting the receiv-
or 70 collect the call loans thry promised would
be paid because he might get fees on them"
Yes. yes. said Mr Latson and Mr Hrsh
Then he Will waive his fees" said Mi
Mackey-
The court viii attend to compensation" said
Justice Belts,
We will accept the offer" said Mr. Hirsh
Justice Belts said he would not turn bacl,
the affairs of the bank without proper exarni-
nation. and would not act merely upon the
report OF the Banking Superintendent ANYTHING
looking 10 rehabilitation he would do He re-
reports and other papers.