New-York tribune., 1908-01-25
TELL OF THOMAS DEAL.
BLOCK Proficient FUNDS.
Conferees Sag Society's Checks
Uere Held UD.

according TO officials of the society, Henry e.
Lewis. treasurer of the Hudson Trust Company,
told them, when they asked why that company
refused to honor the socety's check for the
amount OF Its deposit, that O. F. Thomas, then
president of the society and also president of
the Hudson Trust Company. of which E r.
Thomas was then vice president. had promised
the board of directors of the Hudson Trust Com
pan! that the society would not withdraw its
deposit until loan the company had made Mr.
Ihoinas was paid The officials also testified
that the check was honored only when Mr. Gill
pert, the Provdent's counsel advised Mr.. Lewis
that such an agreement was not legally binding.
According to these minutes officials the
ciety also testified that Mr. Baur. treasurer of
the Italian American Trust Company. had told
them when his company did not want to honor
the Societys check for the amount of its de-
posfts. that when O +. Thomas opened Prov
promised that it would not be Withdrawn until
a loan which the company had made to the
Thomas -MacLay Company was paid
These minutes were turned to District
Attorney Jerome and the special grand jury
which is investigating financial institutions in
Manhattan for their use in the inquiry that the
grand jury is making into the Provident Saw
ings Life Assurance Society At least in
dictments will, it is said, be handed down by
vestigation.
WHO ATTENDED CONFERENCE
AT the conference in question were Otto Kel
sey, State Superintendent of Insurance E. E.
RIttenhouse, the Colorado Insurance Commits
sioner: S II. Wolfe, a consulting actuary
ployed by Mr. Rittenhousa to conduct exam
ination of the Provdent society: William T.
Gilbert counsel for the Provident society; E. r.
Thomas, o. F. Thomas. Ralph X Hubbard
rl,a lfoir
its actuary.
Deposits of the society's money in these two
trust companies noted were as follows:
In the Italan-Americsn Trust Company 500 81 s21 81
Mr.. Gilbert said that he Mr. Wolfe and Mr..
Hubbard had visited the Offices of the Hudson
Trust Company: that they had Mr.. Lewis.
the treasurer of the company. and asked him
why the check was not honored- Mr. Lewis, Mr..
Gilbert said, explained the agreement which Mr..
Thomas had made.
Mr. Gilbert said that Mr.. Lewis informed him
that Mr. Thomas would deny that he had
made such an agreement, because he had made
1t in the presence Of every member of the board
of directors of the Hudson Trust Company. Mr..
Wolfe and Mr.. Hubbard were present when Mr..
Lewis made this statement.
Commissioner Rittenhouse asked Mr.. Wolfe
and then Mr.. Hubbard to tell what they knew
of the Hudson Trust Company transaction,
they gave substantially the account of it
Mr.. Gilbert had.
Superintendent Kelsey then asked if Mr..
Lewis had said that Mr.. Thomas had promised
that the deposit should remain until some loan
had been repaid MIR. Hubbard answered af-
f1rmatively.
Turning to Mr.. Thomas. Mr Kelsey asked him
what he had to say about the truth of Mr.. Lew
ISIS statement He replied that he did not
care rely his memory but that he thought
the books Of the company would show that Mr..
Lewis was mistaken if he had really made such
a statement.
THE ITALIAN-AMERICAN TRANSACTIONS
Mr. Rittenhouse then dropped the matter of
the Hudson Trust Company deposit and turn
ing to Mr.. Gilbert asked him TO explain SINH
lar transaction in connection with the Italian
American Trust Company.
Mr.. Gilbert said that the society had decided
10 withdraw its deposit from that company and
that it had drawn a check for that amount
which went to the Chemical Bank. He said that
he had received a telephone message from some
one lin regard TO a check that had been drawn
on his institution by the society, which check
had Just been presented for payment by the
Chemical Bank Mr.. Gilbert said that the man
who called him I'D then explained that he was
Mr. Baur treasurer OF the Hudson Trust Com
pany, and said that he had held the matter up
until l. or ] O'clock when representative Of
the Chemical Bank to call again.
The result of this telephone conversation
that Mr. Baur called on Mr.. Gilbert at the lat
ter's office and explained the Thomas agreement
regarding the loan made to Thomas, Maclay &
Co Mr.. Gilbert said that he told Mr.. Baur also
that any such agreement illegal
Whereupon said Mr. Gilbert Mr. Baur begged
and pleaded" for delay, and then proposed to pay
one-quarter of the deposit that day. and quar-
ter the next MIR. Gilbert told him that he could
agree to no such arrangement, that but that
he would see Mr. Coyle. the head of the Phiia-
delphia syndicate, which attempted to purchase
control of the Provident Society from the
Thomases and see what he had to say about it.
This was done, Mr.. Gilbert said. Mr.. Coyle
refused absolutely to consider such a scheme OF
payment, and insisted the ItaIian-American
Trust Company honoring the check Mr.. Gil
bert said he told Mr.. Baur Mr. Coyles decision
and that he left his office, and when the repre-
sentative Of the Chemical Bank returned to the
trust company the check promptly paid.
Mr. Wolfe corroborated this statement, and
said that according his recollection tIr. Baur
told him that Mr. Thomas had made this agree
ment with Mr. Sullivan. of his company Mr..
Moir said that Mr. Baur had told him of the
Thomas agreements.
O f. THOMAS'S STATEMENT.
o. F Thomas. after this. said that he would
like to make a statement. Permission was
granted and Mr. Thomas then said that far
rs he knew he had never seen Mr. Baur and GER
tainly did not know him He said that he made
no such agreement as Mr.. Baur reported as
saying he had made with Mr. Sullivan or any
one else connected with the Italian American
Trust Company and denied that there was
or had been such agreement
For some time the grand jury, under the guild
fet t.