New-York tribune., 1909-06-24
DIDN'T KNOW OF LOANS
n REPUBLIC TRUST co.
Charles F. Brooker, Director, Ign0-
rant of It's Business.

Saratoga. n. Y June 23-AIthough Charles F.
BROKER, of Ansonia. Conn. member of the Re
publican National Committee, was director of
the Trust Company of the Republic and a mem
of its executive committee during the period in
1902 in which II engaged in financing the
United States Shipbuilding Company. he had
knowledge of the loans which made TO vari-
Gus persons with Shipbuiding securities coat-
eral He testified this effect to-day in the trial
of the suit of Charles H. Kavanaugh against the
directors of the trust company.
Mr. Brooker became a director of the company
in April but testified that he had knowledge of
its dealings with the ShipbuiIding company until
he was advised on october II at meeting of the
executive committee held in the office Of Stuyvesant
Fish.
Although he was present at meeting of the
executive committee July p after various loans
had been made to John W Young, Lewis Nixon and
others interested in promoting the Shipbuflding
COMPANY he did not know that these loans had
been made. Except in a general way Mr. Brooker
said he unfamiliar with the company's loans
and could rame a single loan made at that
time
MI Brooker said that at the October meeting in
Mr. Fish's office he learned first that sums running
into the millions had been advanced to the ship
building concern, and that the trust company had
guaranteed loans made by other institutions to
Nixon and Dresser amounting to $2550,000, which
were used in promoting the shipbuilding project.
Had he known of these various transactions Mr.
Brooker said woud have protested against
making loans of over A,0JUFD 10 Lewis Nixon,
against the guaranteeing Of the S255000 Nixon and
Dresser loans. against the investment of ship
building securities and against the loans made to
John W. Young and others
Mr.. Brooker said he was president of the Ameri-
can Brass Company president Of the Torrington
Comm Savings Bank, a director in the Ansonia
National Bank and a director of the New York,
New Haven & Hartford Railroad Company.
Mr Dresser had asked him originally to become
a member of the trust company and 20 serve as q
director. He was told that Perry Belmont,
Stuyvesant Fish, Herbert L. SatterIee and other
reputable men were to be directors He told Of
the subsequent organization of the Sheldon syndi-
cate relieve the trust company of its shipbuild-
ing company obligations 70 which he said he sub
scribed $1,000. which was paid late in October A
dence. Mr.. Brooker soon afterward resigned as a
director and as a member of the executive com
mittee of the company.
A letter from Mr.. Dresser TO Mr.. Brooker dated
May 26 put in evidence in which Mr.. Dresser
inclosed a prospectus and underwriting agreement
OF the shipbuildng company. The letter said that
50 100000 OF the shipbundinS bonds were ready for
underwriting that 100000 had been placed In
Paris. S3,00oO00 in London. and that S100o,5O0 had
been subscribed in New York The witness said he
subscribed for S250o0 worth of, the bonds.
Mr. BROKER intends to leave for Europe Tues
day next and his testimony was taken to-day so
that ne could sail time
Dr Frederick A Cleveland, an expert accountant.
day testified as TO loans Of s. 10000 made the
trust company for the purpose Of providing a
working capital for the shipbuding company. OF
. this amount 100000 secured from the Ma
tionaI Park Bank and the remainder from the
Paterson Safe Deposit and Trusr COMPANY