Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-08-15
STOCK DEAL IS F|SHY
Broker Persch in T0mbS and
No Bail.
$4,000 LOAN Is INVOLVED
Windsor Trust Company in the
Mix-Up.
ACTS AS AGENT FOR LENDER
Head of Loan Department Dis
missed-May Be a Man
"Higher Up"
ACTS AS AGENT FOR LENDE

NEW YORK. August 14-Sterling Bir-
mlngham. head of the loan department
of the Windsor Trust Company of this
city, was discharged today. according to
an announcement by the board of direct
ors OF that institution. Birmingham is
alleged TO have accepted a bonus for ne
gotlat1ng loan of $4,000 to an agent for
r. Augustus Heinze, who believed that
the money was being furnished by the
trust company. But the collateral was
turned over to Donald Persch, a young
note broker, who is under arrest, charged
with larceny.
concerning Birmingham the trust COM
pany issued the following statement:
SterEns birmingham is no longer con-
nected with the Windsor Trust Company.
having been discharged when it was as
certalned that he had accepted a COM
mission OF $3.50 in connection with the
loan supposedly made by Charles Katz.
president Of the Eastern Brewing Com
pany, to NJ. M. Joyce
"Inasmuch as the Office Of the district
attorney has under consideration the act
of Mr.. Birmingham in accepting a COM
mission, it is manifestly improper that
this company should comment further
upon Mr.. Birmingham's relation to the
case
President Young's Version.
Special Dispatch to The Star.
NEW YORK, August 14.-This is Presi-
dent John Alvin Young's version of the
Windsor Trust Company's part in the
NEUTRALITY-SUSPICIOUS. swindling transac-
tons:
Sterling Birmingham, manager of the
company's loan department, came to
President Young with letter written by
Richard Kaufman, a note broker of "A
Broadway In this letter Kaufman said
that he had a client. Charles Katz presi-
dent of the Eastern Brewing Company
of Brooklyn, who wanted to place a loan
of $4,000 on Heinze copper stocks
kaufman asked the Windsor Trust Com
pany to act as agent in placing this loan
and offered commission Of 81 600. Kauf-
man explained that KatZ was willing to
pay this large commission because he
was interested in getting the copper
stocks up as collateral. and thus keeping
them out of the market.
President Young says he read this
Kaufman letter and told Birmingham to
go ahead with the transaction. When the
negotiations were actually under way
there was another talk between Young
and Manager Birmingham. The president
or the trust declares that he warned Biz
mingham to be very particular to see
that the man who got the loan under
stood that the Windsor Trust Company
was not making it direct, but was only
acting as an agent
Young's Warning.
BE sure you don't make any mistake
about this: make it clear that the COM
pany is acting for third party" were
Young's instructions to the manager of
the loan department according to
Young's story.
He says that he added:
ITO be sure that there won't be any
mistake in the matter l want you, when
themoney is passed. to have the lender, or
his agent, together with the borrower or
his agent, here in the Office, and / want
you to see that the money really is hand
ed over to the borrower by the lender
Birmingham admits that he got these
instructions from President Young. and
he admits also that he did not follow
them. So far as the district attorney S
investigation has gone there Is nothing
tangible against any officer employee
of the trust company. with the possible
exception Of Birmingham. 1t is certain,
however. that the district attorneys Of
flee will ask for the Windsor Trust Com
pany's books Monday, and go to the bot
tom of the trust company's connection
with the sWindle.
L. j. Field. head of the curb brokerage
firm of L. j. Field & Co.. also will be
asked to produce some of his books
Monday. The acting district attorney
will want to find where the $4,000 that
he advanced in the Windsor Trust Com
pany loan transaction came from,
whether 1t was from his. own account
or came from other sources.
Persch in the Tombs.
Donald l.. Persch is still in the Tombs,
with every prospect of Sundaying there.
The bail which John +. Mcintyre, his
counsel. has practically arranged for
did not materialiZe today Perscl con-
tinued to throw out his threats about
exposing a head devil and a imam
higher up if the S5O,Om was not forth
coming, but apparently the head devil
is not greatly concerned. Persch, d
matter of fact, is ready and willing now.
to tell the district attorney all he knows,
but Mcintyre, his lawyer, won't let him.
PerSch has told his entire story to Nc
Jntyre, and the lawyer does not want
| TO go to the district attorney with it
| until he has had time to verify some of
the statements. Ii Mcintyre finds what
Persch says is true he will probably take
his client over to Acting District At
torney Motifs Office Monday morning and
instruct him to tell everything. Persch
still insists to his counsel that there is
a stock exchange broker who has been
identified with Standard Oil interests be-
hind the Windsor Trust Company trans
action.
Mr.. Mcintyre had long conference
with the acting district attorney this
| morning. He tried to get Mr.. Mott to
accept $4,000 instead of $4,000 bail, but
Mr.. Mott refused.
The Man "Higher Up"
The district attorneys investigators
ave not been able to connect any man
higher up with the plot as yet. They
are inclined to believe that Richard Kauf-
man, who first approached the Windsor
Trust Company in regard to the loan had
actually been led by Clark to believe that
it was Charles katz, who wanted to make
the loan. Now that the fog is lifting the
transaction stands out about like this:
Kaufman. acting on Information re-
ceived from Clark, prepared the Windsor
Trust Company to act as agent for
Charles KATE in making loan to NJ NJ.
Joyce. Clark himself went to Joyce and
told him the Windsor Trust Company
was prepared to make a loan to him d.
rect on the copper stocks. Persch. from
the same Office with Clark, went to John
+. Sherwood, Fields former clerk and
got him to borrow $4,000 from Field &
Clark, representing Joyce. the borrower,
and Sherwood representing the Windsor
Trust Company, say the agent of
katz. the lender met at the trust COM
pany. Joyce passed in his $4,000 of
stocks to Birmingham. Sherwood handed