New-York tribune., 1908-03-04
FRAUD" SAYS JACKSON
Continued from first page.

/ extend the period for the payment thereof for
| such time as said committee shall in its sole
| discretion deem proper"
/ POWER OF LIQUIDATINC COMMITTEE
/ Tho tenth clause gives absolute power to the
/ liquidating committee as TO the time and meth
| Cd Of the liquidation of the banks assets. That
/ committee is empowered to employ a secretary.
| who IS also to be paid salary agreed upon by
! the committee and the bank committee.
| Clause i reads.
The fiquidating committee shall oe held harmless
! from anz- responsibility for their acts except
v.fIf,JI 7a1faas4rrr ana shall furthermore have the
nriy-fIago 70 71Ircnsso for and on account of tho
bank any securities held As col lateral by the trust
/ datiou ANY amount so expended Shall 4 proper
charge against the hank and interest thereon shall
/ he paid the trust company
| This committee may also employ clerks. and
/ may incur other expenses. to be determined by
/ its members. and may charge the same against
! the bank The last clause provides that so
far as possible the influence Of the banks Off
| GERS shall be directed TO secure the trust
! company such accounts the latter may desire
for its benefit. and that the bank shall change
the location of it's offices TO such place as the
trust company may designate. subject TO the
approval Of the Superintendent of Banks
The bank committee. consisting of Hugh Kelly,
| Charles E. Levy and r. ". Jones jr., has fun
power to act for and on behalf of the bank and
the specific power ito vary or alter the terms of
this agreement from time TO time as they may
deem fit and proper This power gives the com
mittee. in the Attorney Generals opinion. all the
powers possessed by the banks stockholders
and directors
SALARY OF $1,000, JACKSON SAYS.
Mr.. Jackson says each member Of the Iiqui-
dating committee is receive q salary Of
S15. .O00 a year. This statement is Cenied by Mr.
Ives who said last night that their salaries
had not vet been determined on He wouldn't
sav whether ne considered $4,000 year fair
remuneration Mr.. Menken also denied this
statement. The whole scheme is Illegal. in my
judgement said the Attorney General in his
final comment upon IT.
one Of the temporary receivers for the ORR
entail said last night that the bank could
,,a thought nav over 80 cents the dollar. 1t
hos q 0O00 600 in loans to directors said he.
"and for the last eighteen months has been
having dividends out Of its surplus. II has not
earned a cent during that time. and there are
instances where loans have been made on no
hotter security than protest notes three or four
wears old There are also $750,000 in loans to
the Maxwell Cow Jenkins crowd The value
of the security for these loans cannot now be
ascertained as the security is being examined
bv the District ATTORNEY Of Kings County
REPLY FROM Mr.. MENKEN.
Nj Mengen said last night: i have heard
the Attorney Generals statement and ! am glad
he has at last come out in the open What he
saws about my great admiration for him is
amusing but what ne says about the $4,000 a
year salary liquidating committee Is false
we we're not considering the Stockholders
-,ntinued Mr. Neuken. when this agreement
was drawn up we were considering the depos
,torz We wanted them paid and the banks
other creditors paid in full and at once, and If
we could only accomplish this The stockholders
we're willing TO sacrifice some of their own
money it, indeed .; should prove to be a sacri-
nee"
Reca ardinl, the cost OF liquidation MIR Menken
! said: Mr. Jackson Is mistaken when hc says
the minimum cost of this plan OF liquidation