New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-20
KATZ AND CLARK MINED
IN HEINZE LOAN CASE.
Both Charged zcith Grand Larceny
-Persch "Squeals" 8" - Young
Before Grand jury.

his delayed "squeaL" The men indicted were
W L. Clark. who already is out under $4,000
bail for grand larceny in connection with the
transaction and Charles \. Katz. president Of
the Eastern Brewing Company. who was repre-
sented as the lender OF the money 70 Joyce.
Incidentally: John Alvin Young. president Of the
Windsor Trust Company had exciting tim9
lodging the camera men.
Friends of Birmingham added interest by say;
ing that he might have some revelations tor
make after he was arrested on the warrants
issued for him yesterday.
The indictments OF Clark and Katz came afresI
Mr.. Young had been once more before the grand
jury 10 explain the statements OF Richard s.
Kaufman and show the entries in the trusH
cOmpany's books In relation TO the Joyce loan-l
Before the loan To Joyce was put through. Kauf-i
man has said. he had written agreement WITH
the Windsor Trust Company that the names Oh
the borrower and lender were to be kept secreS-l
Mr. Young made 1t condition OF the agreed
ment. Kaufman said. that the correspondencul
should be returned 10 the Windsor Trust Corn-S
pany after the deal was put through
Young was examined for nearly two hours
District Attorney Jerome. Assistant District Az
torneys Mott and Perkins and Frederick Strauss2
Of J. ". Seigman & Co.. foreman OF thA
grand jury, all taking part in the examination.
Mr.. Young denied that he had had any corre-S
spondence with Kaufman. and put the onus oa
the affair Birmingham. He said that he had
instructed Birmingham to consult Jordan I'D
Rollins. the counsel OF the trust company. and to-
follow Mr.. Rollins's directions. But. he said,
Birmingham did not follow instructions. He haas
been told. the witness said. 10 have an agrees
ment in writing with Kaufman. and that there's
should be guarantee OF indemnity IN writfngs
YOUNG CONTRADICTs KAUFMAN.
Mr. Young said that he had never asked Kauf-l
- hut aS-a he SaaE
was completed Birmingham had brought the let.
ters 70 him. In proof Of his statements he pro-
Guced the letters The first was from Kaufman
70 the Windsor Trust Company, and was dated
July % II written the letterhead OF
r s & NJ = Kaufman No. 30 Broadway, and
addressed TO Stirling Birmingham. manager of
the trust company's bond department. II was
signed by the firm name. through Richard s.
Kaufman. The letter said;
Dear Sir: In my capacity OF broker for a lender
sponsibIe parties here of $1,000. for either
win be determined later bur not in excess OF 3
per cent per annum. upon promissory note se-
OF stocks or the Davis-Daly ohio Copper and the
The borrower in this instance is represented by
a broker friendly with the lenders and l repre-
10 appeaeT as such is desirOus Of having a hank
or financial institution clear this loan; he my
with your institution for aforesaid purpose. with
agreement, and all that is necessary is that you
transfer this security and against the cash
or anv other party or parties against you. for
which purpose you Will receive specinc agree
IN acting IN this capacity as clearing agent for
this loan you viii ask commission Of Sl5o0. which
will be allowed; Of which SlGS IS 70 be retaned
by yourself and the other $500 is TO De delivered
umsnn en5 general manager o IF the Eastern Brewing
Company. The borrower, ] am assured is not a
member OF the Heinze family
Birmingham's reply was sent the same day
and was on the paper Of the trust company 1t
was signed Windsor Trust Company, per Stir
ling Birmingham" The letter said:
Dear sir9 Replying 70 your favor Of even date
requesting that the Windsor Trust Company act
$50 900 which has been arranged between two prin-
eipels by you and another s 9ro5er' @ as as per s9s
I65S viii % accept your proposal # the foilOwins
Sps in r6 s csse Sre atisoTy and the codi
tiors he carried out as stated IN your letter.
namely: That we would be held harmless Ia the
event OF Us acting and that an agreement 70 that
W. W. " f ~ 81 ,,-ttfsS 90 - -
will he made without any indorserent by US and
that upon The completion of this transaction our
for any further action in the matter and that az
time be held liable in any way for
any deficiencies further than that we agree to de-
liver money TO the borrower after the note and
securities have been approved by the lender
charge s1,5Oo. which viii be paid $500 Of which 10
to be returned 10 YOU
KATz SUPPOSED To BE REAL LENDER
Mr. Young said that though UIlnan was nen-
toned in the letter the lender OF the money,
ii was understood that Katz was the real lender
After the letters We're read Mr. Young pro-
duced the credit book. ledger and other books OF
the bank which he had brought with him These
books showed that the $1,000 commission re-
ceived by the trust company had bsen entered
on the books on the day that the loan was made
Mr.. Young called attention 70 the position OF
the entry. in the middle Of the page with other
entries both above and below IT, showing he
said that the entry must have been made at the
proper time and could not have been inserted
later.
Young came out Of the grand jury room look
ing though he had passed week of sIeepIess
nights and met Jordan j Rollins. his counsel and
counsel for the trust company. and Young's prf-
vate secretary. who took charge of the books Tho
three went with Assistant District Attorney Nc
Nsh and Kaufman to Mr., McNish's room 20
make out the complaint against birmingham
While Mr. Young was in the grand Jury room
Kaufman had been parading the halls and dis
cussng Birmingham and Katz. He described
birmingham as "a fine young fellow and said
that il was shame he was in this trouble
Kaufman said that he did not think Birmingham
meant TO do wrong in taking the s95e
"I gave 1t TO him." he said. because llxed
him. and IL was the vacation season. and un-
derstood he going TO be married.
Later In the day Mr. Kaufman said that after
the loan was made Birmingham asked what he
was going TO get out of it. Kaufman replied
that he was getting a smaller commission than
he should have, but he would split the $500 with
Birmingham.
MAKES CHANGES IN COMPLAINT.
When In came tO making out tba Commentaries