New-York tribune., 1911-01-20
HYDE HAS ANAN|AS CLUB
Tells Mayor That Controller Told
an absolute Untruth."
LATTER NOT LIKE SHARKeY
Prendergast Comes Back with
Statement - "Discredited
Assailantr' He Cries.

Through the medium ~ Mayor Gayrcr.
who had asked him 10 explain The deposits
II tho city In the Northern Bank whirn
failed recently. city Chamberlain HYDE
took occasion 10 attack Controller Prender-
CAST YESTERDAY The Mayor. in his reply
10 the Chamberlain, which ~ss given out
with the Hyde letter at the Mayors o.
fee. practically directs the Chamberlain
ro ignore the Controller in future designs-
ton of city repositories.
Controller Prendergast came hack AZ orc'
with, a statement in which he declared:
This correspondence 7 regard merely as =
device Of the Mayor and his man HYDE ~
divert attention from the scandal OF Hydes
absence from his office Nunder conditions
which have given rise 10 me most seVes
criticism which has been directed agalnst
pubIic officer I'm the City of New YORK
during the present generation.
They arc attempting 20 cover I'M,
scandal by raising an lssne as 10 q ss, as,s,'
do not feel disposed - assist Nj. l'aNno.
and Hyde in their effort 20 hoonvins -
puolir officer when alta cked. no natfe'
! ROW contemptbla the nature ~ 'he afta's
nor how dis.-reditad rhe assailsnt may -
70 state his position.
The Controller added that, following fhst
| custom he had 70 say that Y Nr
/ HYDE had taken the trouble 20 road
/ Tho papers he would have learned that he
/ the Controller had not attempted - dls-
owr snv responsibility for the initial de-
| posit In the Northern Bank. Mr.. HYDE dif
consult him regarding the designation ~
the bank as a depository for tax receipts
and he approved the designation. Slos"-
ouertlv no closed out rho account Of th'
! Finance Department and aothed th'
! Chamberlain ~ his action. lie did not al
wise the Chsmberlair 20 withdraw hts sc-
counts. but ne thought that the reasons
for the action he had taken should have
been clear 70 Mr.. HYDE.
The Controller called attention - tns
fact that subsequently the Chamberlain got
2 bond for the city's deposits In 'h- Nortn-
ern Bank. and continued 10 mold the ac-
count open up 70 the DAY the bank failed
In his letter to the Mayor, the Chamo.'-
lain said:
:, the latter part or January. 1910. tht
Controller came to NE personally and rs-
iouestef me- 70 designate the Northerr
BANK as The depository OF taxes in lne
p~onr borough | knew nothing NJ the
bank hut he assured me that n was q
sound and conservatively managed inst,
tutiou. T afterwsrd learned that ne nan
/ oaau srockholder and director, ana inaL
/ Mr. Henderson VI Wolfe. the chief Auoitor
~ he o+fica had been vice-presidsnt Of The
| banL thereupon directed that II .
| rsde the depository or Bronx tax re-
, cepts.
In a statement made after the failure o
the Northern Bank the Controller said that
no had been a stockhoder in the bank. our
that both he and Mr.. Wolfe had severed
their connection with II and sold all its
stock they held before they entered the
Finance Department
Continuing his letter the Chamberlain
said:
! The public statement OF the ConTouei
| that he afterward asked me 70 Witndra" "
/ untruth and no one knows better. thar
YOU the extent 10 which ne can carry un
truthfulness and deceit. Never dld NJ
make any such request OF me.
The Mayors letter in reply TO Mr. Hyd
vas in part as follows:
- note what you say Of how the Rob-
or Northern Bank came 10 be designate
as A city depository, and who made IN
deposits in it. While ! am unable 10 a.
tach blame TO you in the matter, | mus
d request that hereafter YOU consult VII
me in such matters before acting. Pleas
also go over the list OF depository bank
and mark those which you think ought 7
10 be stricken off. No wildcat bank Ike Ron
Id ms bank should be on the list at all
H. When YOU have thus revised the hs
= please submit IL 70 me-. The list mas pc
III growing for many years, and II is mig
e. time that II be revised. You will rernen
Al Der that T stated at the meeting of IN
= Banking Commission early I'm January as
III that [ thought the list vas altogether 70
D. extended and should he curtsiled. az
60 OF that opinion still, and yet l may
- WRONG about IT,