New-York tribune., 1909-09-04
BOND CLERK BLAMED
ACT ON SHONTS REPORT.
Windsor Trust Directors ErOnerate
officers IN joyce Loan Deal.


bear all the blame for the affair especially as it
Is known that he had a statement prepared for the
directors early August II which. he said,
would clear the company and him from ell crit-
clsrn. Some of the directors known 10 feel a
great deal of sympathy for him. and these circum-
stances are expected TO have their weight in the
interview this morning
Birmingham 10 the Windsor Trust from
the offices of George W. Young & Co. in whose
oond department he highly esteemed en-
pioye George w. Young owns q per cent Of the
capital stock OF the Windsor Trust
The special meeting of the board Yesterday was
called TO consider the report Theodore p Shonts
and August Heckscher. who were appointed spe-
cial committee TO investigate the loan transaction
After the meeting the following statement
given out:
After hearing and considering the report of the
special committee, consisting of Messrs. Shonts
directors of the windsor Trust Company. held this
Resolved That from '''ti1ouSy tb o+ d ,as+t,o
submitted, the evidence is wholly convincing that
any officer or employe of the trust COMPANY un-
nf tSS hi II were the & acceptance by Mr birmingham
ton II was. however the conclusion of the board
LLnat the joyce transaction. so-called. should not
nave been entertained by the company any
FULL REPORT SUPPRESSED.
George w Young said after the meeting that the
resolution was drafted by him. Mr.. Shonts and Mr.
Heckscher. In the original draft, which was in
pencil the words the evidence IS wholly con-
vincing that there was no actual wrongdoing on
he part of any officer wsre crossed out After
the edoption Of the resolution Mr. Shonts and Mr..
Heckscher LEFT the board room. and Jordan j
Rollins went to his Office another foor OF the
Mutual Life building, and had copies OF the reso-
/ luton prepared for the press. They were given
out by Mr. Rollins about half an hour after Mr.
! Shonts and Mr.. Heckscher had LEFT the Windsor
/ Trust Offices
There was considerable disappointment that the
/ full report of Mr Shonts and Mr. Reckscher was
not made public. Some Of the directors were asked
after the meeting why it had been suppressed. and
one of them said IL had been kept from the public
through the influence OF George W. Young. When
he asked why the directors did object he
said
If they had thought all right if they had
not been convinced by the report that the company
was all right they might have taken some other
action"
George W. Young said after the meeting that it
had been harmonious and that the resolution had
| been adopted unanimously. 1t was suggested 70
| him that he had arrived Thursday the Lusi-
tana just time for the meeting. To this he r.
/ piled:
My passage was taken the Lnsitanla two
months ago. I did not know anything about this
affair until three days ago"
He was asked then why he spent all yesterday
! forenoon and large part OF the afternoon with
Mr.. Shonts
Mr.. Shonts and have been friends for years."
he said. He went on the Windsor Trust board at
my request. We were going over the report. so
! that I could get familiar with the affair
Were you discussing the recommendations to
/ be made?" he was asked.
NO RECOMMENDATIONS MADE
There were no recommendations, he answered.
/ Were there no recommendations originally?
/ Weren't they stricken out at your request2"
! No" he said. there never were any recommen-
/ dations,"
viii there be any changes in the officers of the
| company as a result of the report?" he was asked
will your brother John Alvin Young, continue to
| be PRESIDENT"
That Is for the board of directors TO decide"
| Mr. Young said
''Wiu Jordan !. Rollins remain counsel for the
/ company"
! Mr. Young laughed heartily Yes" he said
| Mr. Young was asked If, in view of the last SEN
tence in the resolution restitution would be made
TO Heinze. He replied that he could not say.
that matte for the board of directors TO de-
eide.
Mr.. Shonts said there had been unpleasant
ness or dssension at the meeting. He asked
I if any changes had been made in the report the
/ request Of George ". Young
No he replied. We made a few changes in
the phraseology. but they unimportant. The
spirit and substance Of the report were unchanged
One of the changes he explained. had been made
to show that the officers had acted the advice
OF counsel instead OF merely after consultation with
counsel. the original phraseoIogy had it.
Any changes of officials. he said, would be for
the board of directors 10 determine we made no
recommendations. he said. "Our report was sim
ply statement OF facts
HAD JEROME's RECORDS
Asked what witnesses the committee examined
Mr. Shonts said:
The only witnesses we had before us were the
officers and employees of the Windsor Trust Com
pany. We not the prosecuting counsel. you
| know. We did not have Clark katz Kaufman
or Blair or Joyce before We had Birmingham
up. ne was formerly employe of the com
pany."
From another source it was learned that the COM
mtttee had access TO the records Of the District
Attorneys Office. II learned also that a state
ment from Richard S Kaufman was presented to
the committee, and that when Birmingham
witness he said that Kaufnanns statement
wrong. Birmingham, II is understood, Kauf-
mann in the street afterward and accused him of
misstatements. Kaufman it is said. replied that
he had not said what Birmingham charged he had
and that his statement must have been changed.
Those present at the special meeting yesterday
II. Ward Ford. A. Gordon Norrie. John Al
vim Young. George W Young. Jordan J Rollins
Theodore p. Shonts. August Heckscher Robert II
MCCurdy. Archibald l. White, August Belmont jr.,
oscar L. Gubeman and Clarence W. Watson.
George ". Young made an earnest defence of his
brother He said that the attraction in the trans
action had been the fee of $1,000 The president
had implicit confidence In Birmingham ne said and
had told him to consult with Rollins and put the
deal through. birmingham. Mr.. Young said had
consulted with Mr.. Rollins in the final stages
of the deal and went ahead on his response |
bilty
Jordan J. Rollins entered the employ of the |
Windsor Trust Company through the medium OF
George W Young and the United States Mort |
gage and Trust Company. of which George ". |
Young formerly president He recon- |
mended to Mr.. Young by Clark Williams. State Su-
pernteudent of Banks. Mr.. Young said yesterday
that he Mr.. Rollins both intimate friends
OF Clark Williams.
TICKET ScALPERs ENJOlNED.