The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-08-15
Windsor Trust COmpany'S
Head Issues Statement.
STERLING BIRMINGHAM OUT
John Alvin Young, President of In
stitutiOn, Gives Version of Trans
actIon-District Attorneys Investi-
CATION VIII Take Wide Scope, and
May Embarrass Prominent Brokers.

sor Trust Company's part in the $4,000
swlndling transaction:
Sterling Birmingham, manager OF the
company's loan department, came 10
President Young with a letter written by
Richard Kaufman. a note broker. Of "A
Broadway. In this letter Kaufman said
he had client. Charles Katz. president OF
the Eastern Brewing Company. of Brook
| Ign. who wanted to place a loan OF $4,000
On Heinze copper stocks. Kaufman asked
/ the Windsor Trust Company 70 act as
agent in placing this loan. and offered a
commission Of $1,000. kaufman explained
that Hatz 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
Read Kaufman's Letter.
Mr.. Young says he read this Kaufman
letter and told Birmingham to go ahead
with the transaction. When the negotia-
tions were actually under way there was
another talk between Young and Manager
| Birmingham. The president OF the trust
company declares he warned Birmingham
TO be particular 10 see that the man who
got the loan understood that the Windsor
Trust Company was not making II direct.
/ but was only acting as an agent.
/ BE sure you don't make any mistake
about this; make II clear that the COM
/ pany Is acting for a third party" was
YoUng's instructions TO the manager OF
the loan department. according 20 Young
story. He says he added:
70 l..
take in the matter. I want you, when
the money Is passed. 20 have the lender
or his agent, together with the borrower
or his agent. here in the Office. and
want you 20 see that the money really
/ is handed over 70 the borrower by the
I lender
| Birmingham admits he got these IN
/ structions from President Young. but he
admits also that he did not follow them
! So far as the district attorneys inves-
| tigation has gone. there Is nothing tan
| gible against any officer or employee OF
! the trust company. with the possible ex-
| ception OF Birmingham. II is certain
however, that the district attorneys Of
fee will ask for the Windsor Trust Com
pany's books on Monday and go TO the
bottom OF the trust company's connec-
ton with the swindle
In the meantime the Windsor people
have thrown Birmingham over publicly.
This statement was given out by Pres
ident Young. through his broker. ". L
Young, who is connected with an ad-
vertising agency:
Birmingham IL Discharged.
Sterling Birmingham IS no longer con-
nected with the Windsor Trust Company.
having been discharged when II was as
certained he had accepted a commission
OF $3.50 in connection with the loan sup
posedly made by Charles Katz. president
OF the Eastern Brewing Company, 20 NJ.
NJ. Joyce. The company has made an
exhaustive examination into the circum-
stances surrounding this loan and any
possible connection of its officers or en-
ployes with Richard Kaufman. and IS
convinced that It has not had any trans
action with Kaufman or any OF his as
sociates sother than as clearing agent in
the transaction referred to-
While the Windsor Trust Company has
thrown Birmingham over. the former loan
manager apparently is standing by the
other trust company officials in the in
vestigations being made by the district
attorneys Office. In the story that Biz
mingham first told Of the loan transaction
he is quoted as having said TO Joyce.
the borrower, that the loan was being
made by the trust company direct
The district attorneys Office will IN
dOubtedly ask the Windsor Trust Com
pany II It frequently acts as a clearing
agent in the making Of loans and what
service the oficeus really thought II was
rendering for the $1,000 commission that
II got.
l. J. Field, Of the curb brokerage Arm
OF l.. J. Field & Co.. OF q Broadway. will
be asked 10 produce some OF his books on
Monday The acting district attorney will
want 70 find where the $4,000 that he ad-
vanced in the Windsor Trust Company
loan transaction came from, whether IL
was from his own account or came from
other sources. II is possible that the act
ing district attorney may want to ask
"Jakey" Field, the stock exchange
'plunger. a few questions. He is the
father Of L. j. Field.
Donald L. Persch is still In the Tombs.
with every prospect OF Sundaying there
The bail which John +. Mcintyre, his
counsel, had practically arranged for
didn't material!ze to-day Persch con-
tinued 10 throw out his threats about ex-
posing a head devil" and man higher
up" II the $4,000 wasn't forthcoming. but
apparently the head devil isn't greatly
concerned over Persch's peevishness.
Persch. as matter Of fact, is ready
and willing to tell the district attorney
all he knows, but Mcintyre. his lawyer.
won't let him until he has had time to
verify the statements
PiukertOns Put on Case.
The Bankers Association, through its |
protective committee. has acted on the
Windsor Trust case. The protective COM |
mIttee has instructed the Pinkertons 10 |
run down every clew. to ferret out the
record Of every man connected with IL |
and 10 report also on the trust company's
connection with the transaction. William
L. Bishop, the stock exchange official in
vestigator, also has been engaged to |
assist IN this work.
Now this sums up the transaction.
Clark. the note broker under arrest
went to Joyce and told him that the
Windsor Trust Company was prepared 10
make loan direct TO him on his conner
stocks. Persch. from the same Office
with Clark. went to John +. Sherwood
Fields former clerk. and got him 10
borrow $4,000 from Field Clark repre-
sentng Joyce, the borrower. and Sher-
wood represented, as the Windsor Trust
Company say, as the agent of KAY. rhe
lender. met at the trust company. Joyce
passed In this $4,000 OF stocks 20 Biz
mingham; Sherwood handed in the $50
200 that he had borrowed OF Field; Biz
gave the money to Joyce. and
the stocks 10 Sherwood as the supposed
of Katz
ms much Is clear TO the district at
torney oiice. What remains 10 be de-
is whether Sherwood's asser-
ton that he thought the $4,000 OF stock
that he was taking I'D belonged RI Don