New-York tribune., 1908-03-09
DENIAL BY HAVEMEYER.
Bank Head Says Directors 4nthor-
:.ed No Stock Deals.

William = fiavorleyer. president Of the suspend
% National Bark of North America. when seen at
bis home night and asked about the suit TO col
lec over s7eeooo fied against the banks directors
fv Charles \ Hanna, the receiver, in which II IS
,s- -eed .at the bark suffered heavy losses through
speculafions in Ice Trust and other stocks. salo
.hat to his knowledge no stock specuiations were
ever authorized by the board of directors.
v7her7 IL was called TO Mr.. Havemeyers at1ehtoh
tina, the complaint in the suit seemed 10 point to
81. hank having been heavily involved in various
STOCK transactions Of which had turned ou'
oisastrously he replied that carefu pefusaf o' '''
oo,nrlaint seemed to him TO show confusion as TO
whether the deals enumerated were N 'He ia'uiS
Of stock transactions merely loans
Asked concerning the alleged loans 10 duini'iieS'
ss enumerated I'm the complaint. Mr. HaVemeEei
ssjd ernphatically that no dummy loans Hdu
ever passed the board Of directors lie poll'en
ont in ADDITION that IL WAS the duty OF the ci4O
tors Of a bank TO pass the collateral oheIeu
.or 9 loan snd not TO look up the family history
Of the would-be borrower This statement "a9
made in reply 10 question as to the loans e Iua
70 Leslie e Whiting, Il clerk in the once OF frlIl-
rose & Braun. bankers and brokers for Charies
W Morse The complaint chafseS t""' ~
dummy loans.
NJ EIsvenleyer succeeded Alfred H. curtis as
president of the bank last October when MI morse
was forced to resign He had been director lor
the six years
Charles W. Morse, when asked "Ha' ne h"u ~
saw about the suit. said
II think the directors would be very glad to as
sumo the transactions in question. as they VIII
show a very handsome pFont-
According TO the figures Of Mr.. Hanna as ou'
lned in the bill OF complaint there is JOSS 10 Ie
hank of upward Of 100000 at present market prices
Henry Chaplin, jr.. director Of the Natiohai
Bank Of North America. issued a statement last
night in which he said:
SEQ notices to the effect that the board OF Oh
.-tors of the National Bank of North America re
Attendants in A suit brought against them pS
lest through speculation IN stock for account OF
Tho bank from May. 1895. and for aoout one yea
ensuing and that my name is mentioned as one ol
the directors concerned .. -., ,o
be- 70 state that in March. 1875 resigned from
-a hoard of directors make room Tor eetie-
man vvsloIn Nr Morse desired. and from that time
--rtE November 1907. ] not director OF lllS5
,1ank f5 not attend any of the board meetings ana
lad 70 knowledge of the speculative purchases.
The r7srne of gentleman who took my place Is
-r,nrjoDed together with mine hsoth OF Us coulu
NO; he liable for not directors al the SAME
time
Section 17s Of federal banking laws makes II
,ois6ernesnor for any officer of national bank 10
mako any unauthorized changes the hooks OF the
hank 10 shift or up loans The punishment Is
five years IN prison
The bill Of complaint charges conceailIS anu
towering ur nf purchases of stock by the neoiu'h
,r dummy loans There seems 10 be nossibiii'E'
-.reore Of more investigation into the affalrs OF
.ta Ha+ona, Bank Of North America by the federai