The evening world., 1911-03-24
HYDE TELLS WHY
CITY MONEY WENT
TO ROBINS BANK
Chamberlain Says Northern
Was Chosen as a Depository
at Prendergast's Suggestion.

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The isxie OF veracity has roen ra'set
ween city Chamberlain Hyde ant
Pendereast in respect u
city deposits In the Northern Bank
The City Chamberlain gave out q state
ment this afternoon IN reny to thu
Of Comptr oller Prendergast tina
the Northern Bank deposits we're or
'oy Mr.. Hyde. Mr.. Hyde accused
MIR. Piedorsast OF incorporating TN
The statement In full Is as follows:
M. Hyde's Statement.
The publication OF my onioial let
ter notifying the Comptroller OF the
selection Of tho Northern Bank as .
depository for Bronx tax receipts 10
not a surprise TO me.
II have known for a month OF mo
Comptroller's activity in looking up
evidence 70 involve me.
II selected the Northern Bank be-
cause the corptrollr asked ms 10.
lie had been a director OF the In
stitution. and Mr.. Henderson NJ.
Wolfe. the chief auditor IN the
Comptrollcr's once, appointed by
Mr.. Prendergast, had been Vice
President up to the time Of his TAX
Ing office.
IN tho latter part Of January,
1910. Mr.. Prendergast came to my
once personally and brought to me
a letter addressed TO him ny Mr..
David T.. Austen. the Receiver of
Taxes, which pointed out that In
the use OF the Twenty-third Ward
Bank. which was then the deposit
tory. much time was lost In the car-
rying Of the moneys from tho tax
once on One Hundred and Seventy
seventh street to the bank at One
Hundred and Thirty-nfth street.
Suggested Northern Bank.
The letter also requested that
the Comptroller rrang with the
proper authority to have either the
Bronx Borough Bank or tho North
ern Bank designated. The Cham
berlain was the proper authority.
The C~omptroller's preference was
the Northern Bank. and he 10 stat
ed. He vouched for II as q safe
institution. and told me that II was
conservatively managed. Knowing
that he had been a director. and
believing that he could have but
an singly to the city's inter-
ests, I granted his request.
Tte letter signed BY me notify
ing him that I had selected the
Nnrtharn nank x.a oW,tay -
written because the only person in
the world who had authority 70 Sc
lect the depository was the Cham
berlatn. ] notified him, I notified
the President Of the Bronx and I
notified the Commissioner OF Water.
Gas and Electricity. who collects
the water rents.
Attacks the Comptroller.
He now so,prns his own child.
There would he no discussion as TO
wHo was responsible for the selec-
ton OF this bank had II not been
for the u~ndarhanded and contemp-
tible conduct OF the Comptroller IN
attempting to evade his own act,
which was no doubt honest at the
time.
His conduct now Is only further
evidence OF his deceit. 10 which I re-
ferred In my letter OF January ls.
1911. TO tho Mayor. There will be no
loss 10 the city or ccoun OF the de-
posit in tho Northern Bank. so that
the discussion now Is purely aca-
demic.
The Comptroller and his subordl-
nate have recommended other ba ls
70 ms In which I have made city de-
posits. see some of them mcn-
toned among those who are said to
have made loans to Mr.. Cummins
and his associates. / have not dis
cussed this phase OF the question,
because ! believed them all 70 b
sound banks. and not given TO such
unsound practice a. the making Of
loans for the purpo-e OF obtaining
deposits.
Would Withdraw Money.
''If I find other 10 be the case. I
shall have no hesitation IN imme-
diately Withdrawing the city money
from any bank which has ever done
such a thing.
May J suggest. however. that In
my opinion contractors and others
doing business with the city are
nor concerned about the delay In
auditing Just claims, They believe
that n reorganization OF n public OF.
fee should go further than the pur-
chase Of fine rugs and furniture and
the wholesale discharge OF expert.
enced employees, to be replaced by
cron.es OF the Comptroller for po'
l!tical or other reasons"
Pren6ergast's Reply.
When Comptroller Prendergest h
read a copy OF the Hyde statement
said, 1T n true that I recommend
the Northern Bank as a city deposito'
and Il is equally true that have ma
statement TO that effect for the new
papers.
1T Is not trus that ! told tho G
Chamberlain tho Northern Dank "
conducted conservatively. Tint Is A
of Imagination on his part, la
withdrew my personal account from
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