New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-21
lrreouIarities in Conduct of the
KnickerboCker Charged by
Banking Department.
ABOUT $4,000 INVOLVED
IN Liquidation, the Company
Failed, 1t Is Said, to Pay
Promptly-Poor Per
sons Affected.

,.nv the State Banking Department
., e,,ola'ned yesterday 10 the District At
,nv,sv of certain alleged Irregularities
a. IN. management Of the companv's
s-.,c.s There followed a conference
x.,,,sen Messrs. Du vivier and Adams.
.sx,sfant district attorneys represent
,,,s SIR. Whitman. and Messrs. Hum
,sr.ys and Haight state bank examin-
ess
IN. only official word Of the Banking
,..artment's action I'm closing the con-
,s-n and It's reasons were contained in
,b,. brief statement:
~s,perintcrdent Of Banks O. II.
f,s,ey to-day took possession Of the
yr,cksrbocker Savings and Loan Com
r.rx at No IS Park Row. This action
80 necessary because OF discoveries
ras. resterday during the course Of the
,.gular examination Of tho banking De-
1artment"
n was learned that the examination.
,hourh about due. had been precipitated
Nv complaints received 10y the Banking
n.na,tment from persons whose names
have not been disclosed. Not even the
oacers of the company have been fully
s,cr,s.d by Mr.. Cheney of his reasons
for e,osins their institution. the Super
,ntendent explsinina to them that he
RAD not VET completed his examination.
May 8. Theft. Says Secretary.
Herbert u. Gibbs. secretary and coun-
CO. with Offices al Nc. &c William street.
said in the morning. immediately after
the closing.
Pending the examination Of the BOOKS
If the company by the Banking Depart
r,ent can say but little. The examina-
tion may disclose nothing more than
bookkeeping irregularities, and 1t may
disclose theft. The company owned
,,onertv in Manhattan and Brooklyn
mostly small dwelling houses. The com
ranv never developed large tracts of real
estate
Joseph Oatman, a real estate dealer III
1org Acre Square. president Of the com
pany. declined TO talk. When an at
tempt was made TO see 7. Atherton
Black treasurer and active manager OF
the concern. at the Republican Club, No.
~ West 10th street where he lives. Mr..
Gibbs appeared in his place. The com
tany's counsel explained that ne was
NOT attorney for Mr.. Black, and that so
far as he knew Mr Black had retained
no LAWYER 70 represent him. Mr.. Black
he said. had not told him that the Dis
trict Attorneys office was interested In
the closing Of the institution. and there
fore ne inferred that the treasurer had
received no intimation from Mr.. Whit
man that an investigation was in prog
ress He himself had received no such
intimation.
The company a small cooperative
savings and loan association. occupying
two little rooms on the top floor Of the
Potter Building has been in a state OF
liquidation since 1907. on January /,
1910 1t reported 10 the State Banking
Department unpaid Withdrawals" Of
$70l27 on that date its total assets
were put down as S19O,994. Five years
ago they we're S2jO.OOO. and to-day. ac-
eording 70 a statement in Mr. Gibbs's
possession, they amount TO S1Ii,UO Mr..
Gibbs denied emphatically that the COM
psny had violated the recent law making
Il Illegal for associations Of the type of
TIE Knickerbocker Savings and Loan
Company to hold second mortgages or
Their equivalent
The amount Of money involved in the
discrepancy charged is between 5000
and 5000, II is said, but may reach
higher figure. Those affected are largely
poor people. One man who called al the
once yesterday. evidently a laborer, said
he had been depositing 50 month with
me company for the last two years. In
other words. he had five shares of stock.
par value 500 each, for which ne was
paying at the rate Of 81 a month a
snare with the privilege Of borrowing
the face value Of his investment
Unable TO Pay Back Promptly.
He retained the privilege also Of relin-
gushing his stock and drawing out what
ne had paid into the company on giving
hrty days notice. But the unpaid
Withdrawals" item in its 1910 report
SHOWS that the company has been un-
sole 70 pay back the claims OF its with
drawing members promptly. As for the
oscrepancy Of some $500 reported, It
vas caused, IL was explained. by the
entry in the books %! certain stock AS
surrendered and a consequent payment
cash. The purpose OF the District At
'ofheys investigation is 10 determine
"nat became Of the money thus paid out
ana whether It involves any criminal
liability.
me hnickerbocker Savings and Loan
e'mpany was organized in 1883 in
00hester. where IL was known as the
eh Avenue Building and Loan AS
ation- IL transferred its Offices 10
-" York in 1890. II did at one time
se business In the ncighborhOod of
e'on and Brockton. Mass. il is said.
directors, besides the officers already
n'ioned. are given IN the Corporation
,e'ofy as follows: George W Allen.
''nsd +. Niece. Jackson \. Nicol.
urge NJ. Hook jr. Joseph L. White.
s're H. Marshall and : W Etter
= n''le before 10 O'Clock Yesterday
.'Hhs one Of the two clerks consti-
ing 'he entire Office force Of the COM
entered its Office. and under the
obstruction Of J. Kennedy. Deputy
e''n'enden' Of Banks. who was al