New-York tribune., 1909-06-09
SUES Cow AND OTHERS
INTERNATIONAL TRUST
co. WANTS $257,j4j.
Saus Its Directors Mulcted Ii for
That Sum in Sale of BrOddzCGy
Building Lease.

The International Trust Company, in liquida-
ton. has brought suit in the Supreme Court
against William Cow, John S. Jenkins. Nelson
B. Burr and Stanley r. Gunnison, who were
directors of the company, and William Maxwell
and F. W. DOolittle as administrators of the
estate Of Howard Maxwell, to recover S251,-
80 ~. being the excess in value which, it Is al
legged. the defendants paid TO Cow for the
leasehold of the property at No 206 Broadway,
known as the Evening Post Building
The litigation is the outgrowth of the high
finance uncovered in connection with the
Borough Bank of Brooklyn the Brooklyn Bank
and the international Trust Company at the
time of the financial panic in the fall of 1901.
The defendants are who figured in these
revelations which led to the indictment of Cow
the suicide of Howard Maxwell and the clos
ing of three banking institutions
1t appears from the complaint in the suit
that Cow. the organizer of the International
Trust Company, made for himself Sl9oooO AT
the expense of the company. He paid To tAe
trustees of the estate of Isaac Henderson for
the lease of No. 2O6 Broadway, where the COM
panv had offices. 100000 in cash and gave a
mortgage for S2OOOO0. Then he sold the lease
to the trust company for S457,545 four days be
fore its suspension. receiving S257.545 - above
the mortgage 1t is this money that the plain
tiff demands returned, saying that the de-
fendants wrongfully and neggently left the
funds of the plaintiff unguarded."
The part played in this transaction by the
other directors and officers of the institution
according to the complaint in the suit, and how
they came to be Co-defendants as result Is
also interesting At a business meeting Of the
directors on October 10. 1901 the following
resolution was unanimously adopted:
Resolved, That the matter OF the purchase
Tcrl=E
hold Of the building known the Evening
Post Building be referred to the executive com
mittce with full power to purchase and pay for
same"
This committee appointed by the president
Maxwell. consisted of Cow. Jenkins. Burr and
Hutchinson. president Of the Brooklyn Bank
ex-oficio. Then. on October II this resolution
adopted:
Resolved. That the president be authorized on
behalf of the executive committee 10 purchdSe
from William Cow 3.O12 shares Of capital stock
II the Brooklyn Bank and his equity IN the
leasehold OF the property No. 2o6 Broadway
for the sum Of -
The amount was left blank. The same day
Cow assigned the lease. The purchase price
was not specified. The plaintiff says:
A fair and reasonable value OF said lease did
not exceed 100000.
Goodwin Brown receiver of the international
Trust Company. said OF TINS TRANSACTION III MS
report OF the company's affairs:
-. have called attention to Cow withdra wing
from the company S325.S52 80 on october p.
1907. This covered the credit he received from
the transfer Of the leaSehold OF the building,
No poo Broadway. at a total cost 10 the com
panv OF S457. .545 80 which, however included q
mortgage for $1,000 which Cow gave 10 the
Henderson trustees at the time he purchased
the lease from them He. by taking out the
amount he did. realized profit OF 413Vo0O IN
disposng OF the lease 70 the company. In my
opinion Cow originally had no intention OF
transferring the lease to the company Having
raid SI07 900 in cash on account Of the purchase
pric.. paid by him to the Henderson trustees
the rentals exceeded the charges Of operating
the building by substantial amount. II was
a good Investment for him. but on october y
he evidently needed money either FOR his own
use or To put in the Borough Bank.
The plaintiff asks that the resolution ordering
the purchase Of the lease be set aside and that
the defendants be made To pay back 70 the
company the amount sued for The defendants
have interposed demurrer To the complaint.
on which Justice Hendrick has reserved de-
C