New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-04
SURPRISE IN BANK CASE
Union Deposition Tells of $4,000
Note Withdrawn Before Probe.
CHENEY TO INVESTIGATE
Brooklynites Appear Before Gov
ernor and Legislative Com
mittee in Favor of Inquiry.


Albany, May 3.-Depositors OF the Union
Bank Of BROOKLYN now in process OF liqui-
dalton under Superintendent Cheney OF the
State Banking Department. urged Governor
Dix and the Legislature to-day to sanction
general investigation Of the conditions
which permitted the wrecking Of that bank
and other institutions in New York City.
Covert insnuations Of wrongdoing on the
part of people in Official life were frequent
in the somewhat torrid talk before the
Governor and Senate Finance Committee.
Stephen Tritschler. chairman OF the de-
positoTs' committee. which is trying to help
straighten out affairs. sprang a sensation
late this evening. Superintendent Cheney
had been telling the Finance Committee
that the department had done all il could
to straighteD out the banks affairs The
bank. he said. had become loaded with real
estate mortgages now prohibited under the
banking laws. which made liquidation
very slow process, and one which. II hur-
ried. would mean loss to the depositors.
Did you ever hear that bank examiner
had an 5000 note which was sent around
from one branch OF the bank 10 another
and withdrawn two days before the in
vestigation?" queried Mr.. Tritscher.
"No. | never did" retorted Superintend-
ont Cheney in surprise. Il never heard
anything ike that II you have any such
information I'd like to get IT mighty quick
~. and | think you'd get all the action
you want
Mr. Trltschler said he had all the neces-
sary proof but he didn't want TO divulge
ii al this time. He said he'd have 10 con-
suit with Almet r. Latson, counsel for the
depositors' committee Mr. Latson declared
that he never heard Of any such thing.
Superintendent Cheney said he'd get hold
Of Mr. Tritschler in New York and see
what information he had 10 back his state
ment and investigate among the banking
examiners.
Mr. Latson. various members Of the de-
posters committee and Assemoiyman Gold
stein advocated the passage OF the Gold
stein resolution approprating '5oo00 for
A legislative investigation OF the failure
and liquidation Of the Union Bank and
others now in the hands OF the Banking
Department. x-Superintendent Williams
and MIR Cheney. the present superintend-
ent came in for considerable criticism. as
did the prosecuting officers Of Kings
County.
Earlier in the day the depositors and
Senator Cronin. chairman OF the banks
committee. who was a director and de-
positor and heavy loser in the Union Bank,
waited on the Governor on the same gen
era mission. They told him things We're
pretty rotten IN that case. and II ought 70
be probcd t. the bottom.
IT a legislative committee were appoint
ed" said Assemblyman Goldstein, II think
it might easily he discovered that high
city officer participated in the misdeeds OF
some Of these defunct institutions"
Much emphasis was laid on the fact that
the Union had made soma bad loans and
got loaded mp with lot 81 poor invest
ments Superintendent Cheney, who was
present was interrogated rather sharply
by Governor Dix about these. Mr.. Cheney
said he knew nothing about loan Of
81. 10000 until after Il had been reported.
and there was no way IN which he could
have known of it, Some % the transac-
tons against which the depositors now are
protesting, he said were not against the
law when they happened, though they are
now