New-York tribune., 1908-03-06

| submitted to Mr. Jackson yesterday and after
| stating that cursory examination of the assets
| of the bank has revealed most amazing
| state of affairs says:
50 serious does the condition of this bank ap-
vfsed Immediately of the results of our exan1lns-
It, eo'. = ne rank has been conducted IN mos. @
defaicston attributed to the employees Of the for
ceinher 81 1901 Another defalcation IS attributed
70 William Heri1ancess com teller OF nc pslk.
; 1907. Still another defalcation occurred and Yet
bank suspended
The. accounts of the hank have been jusgled.
ttapsfers being made from one account 10 another
Without any seeming right in law to DO So aqa ada
n b h VcT1d % by 6fceTs OF Of ne strd eanf rre
Of the condition of The banks affairs to the
ton in the newspapers
Large loans were made by the directors at The
directors in some Of the Brooklyn banks which
e 25 5e h BoronFb Of he BANK Of o
S?50"" we're on November last cancelled ana dis
cause Of the fnterreIations existing between the
Two banks and this Transaction was WIN n re re
Oriental: yet little later this TRANSACTION vas
cause a. that time it Vas feared that this relin-
qushment Of the assets of the Oriental would IN,
ge on S ansr b b3srd @n9 asan Toed to once
more cancel and relinquish all claim 70 the S25oHo
COMPLICATED RELATIONS
The affairs Of the hank are yet more comp-
Gated hy perfect maze tying i up Wit with ne ne
Borough Bank Of Brooklyn and several dr Gther
has claim Of $500 400 age1nst the Borough Bsnk;
ana YET it IS now proposed to cancel the indebtSd
Less between the Borough and Int Ilternat21aI a. nal
mtted. will make the collateral 10 the loans made
value.
The report tells of Immense loans carried
on the Oriental books as due from Ludwig Ms
sen. one of its directors. the head OF
jew elry house, and of the covering UP Of loans
TO directors made in the names of their rela-
tives Loans also made. it says 10 CharieS
Levy on Cotton Compress bonds. which have
not sufficient value to be easily marketable and
are not good collateral" Then follows this
paragraph: Some of the leading men who have
been active in trying 70 put through the pro-
posed plan with the Metropolitan Trust Com
pany. to wit. Charles E, Levy. Stein and Men
ken are all indebted to the bank for loans, some
of which have no collateral Whatsoever.
The report continues
In the assets Of the bank there are bonds Of
publishing companies the interest on which las
have never been detached because they could
eSfdr 6 the 6sn 6an dm Cow 10 1Sn q BuT
Maxwell and Darlington, and within a few months
thousands and notwithstanding this there are sui
loans against The same men counted as goea ,, ne
fam Cow SIS 30s 20: Jenkins Gov Burr and Max
S73 Borough Bank S7pCI0: Darlington and Jenkins.
$4,000.
FOREIGN EXCHANGE "KITING.'
The bank is further charged by the receivers
with 'Iziting" foreign drafts to raise temporary
credits in order to keep the bank open a little
longer" They allege that in the last two
months Of its administration foreign drafts were
drawn against securities held collateral by
he
bank and deposited with other banking institu-
tions in this city as security. that these foreign
drafts would be paid. the aggregate OF these
drafts. they say, is S750OO0.
Charles c. Dickinson said that the adminis-
trati0n Of the bank transferred values from one
set Of securities to another, thereby giving
entirely wrong impression TO the State Banking
Department of the real condition of the bank.
He charged that the Oriental carried its books
loans made TO men dead several years past loans
to a horse show association which had not held
show for six Years. a lean put in by some OF
its directors the Quito 6 Guayaquil Railway
Company. taking car equipment bonds which
have never been issued-that is never have been
sold and for which there is nothing TO determine
their value He also said that 1t holds-and has
not charged off-as collateral securities OF de-
funCt corDOrations and bonds whose coupons
have not been cut for years.
Mr. Mepken said he had got loan OF $4,000
from the Oriental. but had put up collateral
which he thought was worth 81 600 TO secure it
Mr. Nissen said that the Oriental had lent him
his firm S290 600 and that this loan was also
amply secured by good collateral p W Jones'
if, former president of the bank. said he thought
its present president was the proper person to
comment on the receivers report. and had moth
ing to say about il
Hugh Kelly made the following reply 10 the
receivers report: IT is impossible 70 go into
4 detailed answer TO the charges in a news
paper article but we would say. as 10 the
general condition of the bank. that il was ex-
amined by a prominent bankers committee at
the time it received permission to issue Clearing
House certificates who stated. after examining
every asset. that they considered The same in a
thoroughly sound condition. The bank on De
carnber 81 last charged off s470o00 which
charges are in the opinion of the directors and
other competent judges ultra conservative.
As to the defalcstions. these are small mat
tors. the total amount Of possible loss is less
than S200oo. 4 TO the loans to directors they
were all made in the ordinary course of banking
business and properly secured.
BY way of further refutation he gave out the
report of the State Banking Department on the
OrientaI's condition after an examination made
on January 80. 1905.
The report shows the following Oriental Bank
figures: Stocks and bonds, main branch, s2S1-
ii 20, bank valuation: departments valuation
S374820: stocks and bonds in Bowery branch
S13S.721 40, banks valuation; departments vaIu-
alton. same; overdraft. both branches. s53-
sac -. banks valuation; departments valuation
s52.5o6 "a
GOV FORT PRAISES THE PRESIDENT.