New-York tribune., 1908-07-30
COL. E. E. BRITTON HELD
ARREST T. III. SCHROEDER.
Eagle Sauings and Loan Co. OFFICIALS
admit Shortage of Nearly $4,000.

Excitement ran high in Brooklyn yesterday
when IL became known that Colonel Edward f.
Britton and Quarantine Commissioner Frederick H.
Schroeder had been arrested on the charge of haV-
Eng appropriated their own use almost s4s,eoo
from the Eagle Savings and Loan Company OF
which they president and second vice-presi-
dent. respectively. The arrests followed an ex-
animation of the company on SATURDAY by an ex-
anliner from the State Banking Department VINO
appeared before the scheduled time. The def
cheney detected, the board of directors IN
formed and at a special meeting Tuesday their
designations We're handed in and accepted.
No word of the trouble became public until the
two arrested by detectives from the Of
fee Of Assistant District Attorney Elder. They
were taken Immediately before Judge Dixie. and
later released on SO 000 bail each. Both readily
admitted that the money had been obtained from
the company worthless checks 10 finance Da
kota mining enterprise through the late panic
Their pec1ations cid not affect in any way the
solvency Of the institution. according TO
nlents made by the State Bank Examiner and El-
win s Piper vice president Of the loan company
Both OF the men arrested well known in
Brooklyn Colonel Britton until recently as
sistant adjutant general Of the Second Brigade OF
the national guard having been appointed by Gov
ernor Roosevelt. He has been an officer of the
Eagle Savings and Loan Company since 1t or
sanzed. than ten years ago. Frederick H.
Schroeder is the Republican leader of the 9Th
Assembly District He has been Quarantine Com
missioner for time. but not reappointed
by Governor Hughes when his term expired
Gently. though he is retaining the office until
successor is appointed
The statements of Commissioner Schroeder and
Colonel Britron regarding the misrepresentation of
the money were complete and agree in every par
ticular. Each said that the panic last fall caused
trouble TO the Homestake South Extension Min
ing Company which had been organized by them
about three years ago. Bills for machinery
cue. with money on hand 10 them.
I'VE were unable 10 meet the expenses from
own private resources said Mr. Schroeder, and
we had 10 choose between closing down the min
ing operations keeping them going by using the
loan company's money. We knew II would just
about ruin the mining company If we closed down
We thought the business furry would blow
over. and that would be able 10 raise money,
so we decided 10 tide over the emergency by using
some Of the Eagle Savings and Loan Company's
money. which we intended 10 replace soon
possible The first money We got in that way was
in November. I drew the check on the Merchants
Branch of the Mechanics and Traders and II was
handed 10 Mr. Wood. treasurer Of the Eagle com
pany- with instructions carry it as cash. and
under no circumstances 10 send 1t to the Mechanics
Branch or anywhere else for collection
Colonel Britton corroborated everything Commits
rioner Schroeder saiL. adding that all the money
taken was used for the mining enterprise with the
exception of about s2coo which he personal
expenses.
Z am not trying TO cover up the fact that
knew we were doing wrong" declared Colonel Brit
ton yesterday. after describing how conditions be-
came worse and worse. and one check after
other signed by Mr.. Schroeder was cashed by him
as president Of the Eagle company. II knew il
was wrong and ] regretted to do II. but ! knew
Il was wrong that would and could right. Com
missioner Schroeder is honest a
lived, and neither he I ever thought for
moment Of defraudng any one
The examination OF the Eagle Savings and Loan
Company was begun last Saturday by Examiner
H J. Young. The discrepancy discovered in the
cash amounted sf7 .9Ss 81. which President
Britton admitted responsibility for ses4 Y and Mr..
Schroeder sss SO. Colonel Britton immediate
ly made restitution Of s.os 2s. As the surplus Of
the company exceeds the amounts taken by S2o,
90. the State Banking Department and Vice-Presi-
dent Elwin s Piper. who made acting presi-
dent by the directors on Tuesday, announced yes
terday the corporation was entirely solvent and
would continue business without interruption.
The arraignnent Of Colonel Britton and Com
missioner Schroeder before County Judge Dixie
ar unusual measure, indictments not having been
formally handed down against them. They both
pleaded not guilty, but freely admitted TO the
Judge of having taken the money from the bank
IN the manner they explained. According TO the
grand jury record four indictments for grand
larceny were voted against them. The prisoners
were not represented by counsel. and their ex-
animation was SET for tomorrow morning at 10
O'clock supplied for Colonel Britton by
Alderman John DIemer. Of No. 43 Enery street and
Morris Calm. of No. 665 Willoughby avenue. Law
renee F. Carroll. OF No 26s Bedford avenue gave
bail for Commissioner Schroeder.
Colonel Rritton returned his former office. at
the Eagle Savings and Loan Company, for only
short time after being released. and then went
Immediately, II said, 10 his summer home al
Bsyshore.