New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-18
THE WINDSOR ABS0LVED
NO BLAME IN JOYCE DEAL.
4. u. .Sh0nts Not Satisfied, Ho1ceOer,
7cith ,Jerome's Statement an Court.


The Windsor Trust Company was ahsolved in
open court yesterday by District Attorney Jerome
from any suspicion OF wrongdoing in the loan OF
$50 900 made in its offices 10 Matthew NJ Joyce. the
friend of F. Augustus Heinze. In opposing John
F. McIntyre's plea for reduction Of the $4,000
bail In which Donald l. Persch. the young broker
is held for his connection with the transaction Mr.
Jerome made this declaration:
II WAS al first thought by the District Attorneys
ofrce that II (the Joyce transaction involved the
attitude of certain prominent financiers in an en-
rival Further investigation would seem to show
that It simply vulgar steal. ordinary
be- of persons to steal. which was successful.
one OF our nnancia INSTITUTION, i, mas been n1
mistakes. The way in which this institution
~ he trust comnany ~ emnlov pt in matters Of
this sort The Windsor Trust Company should not
be held responsible for the acts Of employee in
such circumstances.
While Mr. Jerome was making this statement.
members of the executive committee of the Wind
sor Trust Company listening to what the
officials OF the company had TO say in explanation
Of the transaction. John Alvin Young, president
OF the company. and Jordan ]. Rollins, its counsel,
who are both members of the committee. submitted
the result of their Investigations.
This included the original statement of President
Young in reply TO that OF Mr.. Joyce. and also TIE
statement given out Saturday announcing the
dismissal of Sterling Birmingham head of the bond
department. The meeting long one lasting
for more than three hours. The other members
OF the committee present we're Cornelius Wander
bit. Robert H. McCurdy and A. Gordon Norrie.
secretary and a vice president OF the company.
T. p. sHoNTS NOT SATISFIED.
After the meeting President Young went to the
ONCE of Theodore P. shonts. the director of the
Windsor Trust Company who first urged Mr..
Young 10 take action to purge the company OF any
stain that might have been left upon il owing 10
the disclosures in connection with the Joyce loan.
ffer fc Exxyffh vrha
asked IL the company would issue a statement
piled: The District Attorneys statement speaks
for ITSELF
Other directors. including Mr.. Shonts. are not
disposed, according 10 report. 10 satisfied with
Mr.. Jeromes statement, and the president Of the
lnterborough is said 10 have insisted that the
very designation trust company implied that the
institution bearing IL should he above suspicion in
the public mind above the ordinary hank.
Their views the subject said to have been
communicated 10 the board OF directors. 10 whom
has been pointed out the ACCESSIBILITY of making a
frank statement 20 the public. which may 70
exonerate the company more completely than the
statements so far issued or Mr.. Jerome's declara-
ton in court.
Meanwhile Matthew NJ Joyce Is without the stock
which he put up collateral for the loan. except
the block Of five thousand shares of Ohio Copper.
which he bought back the curb the day after
the loan was made When asked yesterday whether
any civil action would be taken by Mr. Joyce
against the Windsor Trust Company. s Brooks
Rosenthal Mr.. Joyce's attorney. said. I'VE have
not We. decided what action Will he. We want
10 hear first from Mr. Young in reply 70 our de-
mand that the Windsor Trust Company reimburse
Dir. joyce for the damages he has suffered by the
loss Of his collateral"
John F. Mcintyre fought hard for a reduction Of
Perschs hail when the latter was arragred before
Judge Mulqueen in General Sessions on the charge
Of making way with Joyce's stocks lie said that
his client WAS only catspsw and a tool in the
hands Of kcener ard mere experienced hnanciers.
"Persch was but mere instrument IN tho hands Of
dishonest people" said Mr.. Mcintyre What he
did ne did innocentiy. The money realized did not
go him"
But ne Is Of tin age and responsible per
SON. interjected Judge Mulqueen.
JEROME SEEKS CONFESSION.
Mr.. Jerome then broke IN and told Mr. AicIntyre
that II his client were only tool he would be
pleased have Persch tell the whole story let
him turn states evidence" said he .'or give rs
the facts in sacred confidence Then we will con-
slider the reduction Of bail"
Mr.. Mcintyre didn't accept the suggestion. but
pleaded again for the reduction. which the court
refused TO grant. On leaving the courtroom Mr
jerome told Mr.. Mcintyre that he would be at his
service ~ any time during the DAY II he and his
client wished 10 sec him The Invitation was not
acted on. and Pers-h is sim in the Tombs
Leonard J. Field. Of l. J. Field g. Co. was again
Intercepted by Assistant District Attorney Mott
Yesterday. He had his ledger cash hook and per
sonal check book John F. Sherwood and Field
have both said hiatt Sherwood not In Fields
employ after July I. but perrsaI OF the books
convinced Mr.. Mott, he that all the entries
IN regard to the Joyce transaction were in Sher-
woods handwriting
complete record of /. J. Field & Co.'s trans
actions seems 70 have been kept except in the
OF two items OF checks for $1,000 each. against
which no entered. Field has already
said that he lent $4,000 10 Sherwood When asked
explain yesterday the meaning of the blank
spaces opposite the entries S25ooD each. his
memory back him. He will appear before
the grand jury to-day.
Richard s Kaufman. the broker who the
Windsor Trust Company officials say they he
lieved represented Charles KATE, president Of the
Eastern Brewing Company, in making the loan 70
Joyce, said he had Heen approached by KATE, who
wanted to lend $4,000. He had obtained loans for
Katz before. he said. but had never acted for him
IN lending money Kaufman says that at the Of
fees of the Windsor Trust Company he saw Biz
mlngham. who introduced him 10 President Young.
KAUFMANN's VISIT To YOUNG.
The president. after considering the proposition.
accepted IT, hut insisted that the proposal he made
I'm writing To this Kaufman assented. upon Presi-
dent Young's agreement to give a written accept
ance. II was stipulated, however, that the trust
company should not be held responsible I'm any way,
and President Young. according to Kaufman.
made Il a condition of the loan that after II had
been negotiated the letter OF acceptance of the offer
should he returned TO Young. Kaufman says he
returned the letter but kept copy. which he
showed to Mr.. Mott
The day the loan was made Kaufman and SHEER
wood went 10 the trust compsny's offices. where
Birmingham kept them away from Joyce he says.
After Joyce got his money and departed Sherwood
got the copper stock collateral Birmingham, &C
cording 10 Kaufman. then took the latter TO the
cashier where he received 500. half OF which he
subsequently paid 10 Birmingham. Kaufman said
he also got 800 from Katz. who was in the office
Of W 1. Clark when the deal arranged. Kauf-
mann will have chance TO tell his story To the