The evening world., 1911-12-12
POOR DEP0ST0RS
LOSE Ns6O0O00,
BANKS
1000 Persons Started 81 Ac-
counts in Jennings's Mount
Vernon Institution.
TWO MEN ARE HELD.
President Declares Troubles
Began With Investments
in Manhattan.
TWO MEN ARE HELD.

Herbert T. Jennings. former Presi-
dent. and Samne, X. Raymond. former
Cashier Of the bankrupt Mount Vernon
National Bank. were arraasned before
Judge Holt In tho United States Dis
ttct Court to-day. charged with mis-
appropriattng the funds Of the tnSitu-
ton.
Jennings II accused of stealing moro
than 10000 from the Mount Vernon
Bank and about 500, 900 from the First
National Bank Of Oneonta, N. Y. which
he also controlled and wrecked.
The charge against Raymond 10 that
he was implicated In a specific theft Of
$4,000. He was arrested at his home
h Mount Vernon early to-day. Jen-
nings was arrested last night and re-
leased In S25. 900 bail.
Judge Holt continued this bail to-day.
Bail was fixed at $1,000 In the . . Of
Raymond. Henry C. Henderson of
White Plains. counsel for Jennings. and
Charles w. Bacon. counsel for Ray
.mond. entered pleas Of not guilty for
their clients. Both the accused bankers
furnished bonds.
"when his thing 10 all threshed
out" said Jennings. after the Court
proceedings. 1T win be found that I
Am not as black as I am painted. My
troubles began when I met Moses
Greenwood jr. and sot into Manhattan
real estate"
BROKE A SOUND BANK IN 10
MONTHS.
Jennings 10 a fnancier who came to
New York from the upstate country
after promoting some inter-urban troll
Icy lines and involved him self In metro
polttan finance. He got the Mt. Vernon
bank In 1908 and the Oneonta bank in
1910. United States District Attorney
Wise Rays It took jennings only IL
months to break the Oneonta bank.
which was a sound institution when he
% hold OF 1t.
In acquiring the two banks Jennings
used very little capital. The ~stocxhold-
crs Of the Oneonta Bank have taken up
the bad paper -unloaded by Jennings on
the institution At 60 cents on the dollar
and ave consolidated with tho Citi-
Gems National OF Oneonta. Deposltors
viii be paid In fun.
las for the Nj. Vernon Bank" said
Mr.. Wise to-day. u don't thins& the de-
postors will get 50 cents on the dollar.
Jennings was worse than the Morse and
Walsh type of banker because the de-
poators In his Institutions were all poor
people. The 3.O00 or more depositors In
the Mt. Vernon Bank were mainly
working men,"
R>6apoI Racaiysr phtIto TtIIIcuha.s
said 1000 of the MOUNT Vernon bank
depositors started with deposits OF 81
vel through a toy savings bank sys-
tam put into operation In the town by
Jennings. Their deposits now average
from $50 to $50.
$4,000 SUNK IN BROADWAY AND
, +sD sTREET COMPANY.
eoensy ]. NJ. Levey. who has charge
Of the Jennings Case has traced . lot
o8 the money Jennings took from the
Onsonta and Mount Vernon banks.
Moro than $4,000 was sunk in the
ToPty.third street and Broadway COM
pAny. which put up the Fitzgerald
Building.
a big chunk went into the White
PgA3ns Development Company and the
16onnk Vernon Heights Realty Conn.,
eAny, Tho w~estchester Brewery Com
panv, now bankrupt. nwallowed .up
$4,000. Tho Huh Building Company.
which, was organized by Jennings to
pa . building at Forty-second street
and Broadway. also absorbed a con-
siderable sum. This building. however,
10 TO be erected by security companies
which bonded the enterprise.
In Ids banking enterprises Jennings
has been associated with William r..
Holloway. r. W. Jones. former Pres
idsnt OF the Oriental Bank: Burd NJ.
Robinson and James X. Moran. all well
known In New York banking circles. He
had a number of wealthy, financters in
terested in his building and real estate
operations, but appears to have used
them largely for phe benefit accruins
from their names and TO have financed
the concerns himself with the money he
got from his banks. .l''
NOTES ISSUED BY OFFICE BOYS
AND JANiTORs.
Jennings Is said to have utilized tbs
methods OF various high fnanciers who
are now lingu.shIng In Federal prisons
In controlling the funds OF his hanks
promissory notes Issued by office boys
bnltors, stenographers and persona who
ave not as yet been traced by Howard
!. Rank. special bank accountant of thu
department of Justice, were tho basis Of
1anS Il the banks funds which fell tnto