The sun., 1908-03-05
ARREST OF NATHAN VIDAVER
MARKED MONEY PAID TO AT
TORNEY-GENERALS AIDE.

dents House and CompIAlnAnt's Lawyer
FurnIshInESS 900 CashBaII for VIdayer.
Nathan A. Vidaver. who was appointed
special Deputy Attoney-General to
prosecute the KisSenR Park invest CATION
befors the Queens county Grand Jury and
did not get President Bernel indicted.
and who 10 now getting a special retainer
nom Attorney General jackson in Mr.
Iscksons action to dissolve the charter
Of the New York City Raj way Company.
vas arrested yesterday on a charge OF at
t4mptng TO extort $500 from william r.
Montgomery. who was president OF the
Hamilton Bank and who is under indict-
nent for making overdrafts on the bank.
vidaver is an active Hearstite. having
been put forward as a candidate for the
supreme Court in the Murphy Hearst
tuaon in 1905 and being nomir A5ed last
year for the Court of General Sessions
m the Independence League Republican
scket. He says that ha accepted the money
from Montgomery as a retainer and that
q had nothing TO do with his connection
with the Attorney Generals ONCE. At
t1rney-General Jackson says he 10 conf
dsnt that Mr.. vidAver would do no wrong
Mr.. vidaver was arrested at O'Clock
yesterday afternoon in the Astor House
'fter he had luncheon with Montgomery.
rho passed $500 in marked bills 20 him.
The plant waS made with the knowledge
oH the District Attorneys Office and one
- "a
arrested vidaver. He was arrai gned before
Magistrate Herman in the Centre street
police court and after he had made a hot
speech denouncing HE arrest and the Dis
,rict Attorney he was held in IS 5000 bail
for hearing this morning Lawyer Moses
=. Groesrnan Of House, Grossman a Vor-
naus put up with the City Chamberlain
the necessary cash for Vdavers release
and Vidaver left the court after he had
kicked his heels there for about two hours
District Attorney Jerome declined last
evening to 60 into all Of the details leading
up 70 Vidaver's arrest until the statements
~ all the witnesses had been taken. As
siStant District Attorneys Kresel and Smyth
we're taking them last night. A Grand Jury
investigation has been begun and Attorney
General jackson will be a witness this
morning for the purpose OF explaining to
the Grand Jury that Mr.. Vidaver is not
connected with his Office now and couldn't
have attempted to extort money as a public
officer.
Montgomery was president of the Hamil-
fon Bank when II closed its doors on October
20 and the Attorney-General had a receiver
OF HE own selection put In. Frank White Of
BuKalo, who GfterwArd publicly accused
Montgomery Of making ovardrafts In No
vember, According to the District Attorneys
information, Montgomery felt that he had
the bank In such shape that It could reopen
il theTe was no opposition from the At
orney-Generals ONCE. About that time
lie is said to have had a conference with
\idaver, but Whether it was sought by
VidAver or Montgomery is not disclosed.
vldaver, it 10 alleged. said that for 81 500
hs would stop all criticism Of the bank
and Montgomery that might come from
the Attorney Generals Office and that the
newspapers, not having information from
he Attorney-0eneral about the bank and
ts affairs. would drop the subject, Vidaver
was not then q jackson deputy.
Moses H. Grossman was counsel for
Montgo and he sent his personal check
for $500 TO vidaver. The District Attorney
hGs that check and there 10 said TO he some
the money for services for the Hamilton
Rank After that, IL Is said, Montgomery
consulted with others and decided that he
wouldn't pay any more money and 40
lar he has not paid the $500 to Grossman.
In tho latter part OF December Justice
retts terminated the temporary receiv ership
'nd the bank opened. A great crowd OF
depositors formed a parade and serenaded
Montgomery at his homo, but he was not
Included in the new directorate. Two
veaks later he was indicted by the special
county Grand Jury on two counts charging
llr, with making oyerdrafts amounting to
aOout $4,000
10 far as could be learned yesterday there
l. no evidence that Mr.. Montgomery had
any further dealings with Mr.. Nidaver
nntiI two or three weeks ago. Then heLhad
~ mind the opening Of a new bank in upper
eventh avenue. IL 10 known that there
we're several conversations between Mont
zonnery and vidaver, and GTossman took
aayt n soma 0f them. Mr.. Jerome said
Yesterday that there was nothing TO show
that oroastnAn had done anything wrong
or that he contemplated doing anything
ilSsEsl. AnnkRomery spoke 10 orossman
and Is vac suggested that Vidaver should be
4onsultsd. While these negotiations were
N progress some ona lAid information be-
FORE the District Attorney pt what was
going on. In order, Mr.. jerome says. TO
.lbatantiate certain statements that %sre
made 10 him Il was arransod that Gross
nan should have q talk With Montgomery
either on Tuesday night or yesterday morn
ng. The object Of tho talk was to have
orought out just what Grcssman under
,tood vidaver had agreed TO do
On Tuesday evening Lieut.. Beery and
Detective Fitsslmmnns Of the District At
rorney's ONCE went 20 Montgomery's home
4, 1887 Anthony avenue. The Bronx They
lsd With them q stsnographer from Mr..
I'rome's cdloe. They waited all night. but
o-ossrnan did not appear Until yesterday
morning. Lieut.. Beery was In hiding be-
lird q screen. DotectlvO FitEsimmons and
me- srenoRrAphOr wSTS IN clothes press