The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-06-08
Glimpse Into Workings OF
High Finance" Given in
Investigation
HELP WAS DENIED
AT CRITICAL TIME
Oriental Bank One of Several
,,,- to Go Down When Clear
ing House Imposed I'M
possible Conditions

NEW YORK. June THE black
shadow of tragedy of high finance,
hrooded over the proceedings today Of
tha Money Trust investigation. being
conducted in this city by the con-
gressionai committee. Witnesses told
how Eugene Kelly, after being In
duced by members OF The clearing
house to assume the presidency of
the Oriental bank, was denied help
at Il critical tfrrt-, the bank being
forced to suspend That II Is declared
by friends, was the direct cause Of
the death of Mr., Kelley eight months
later.
r. ". Jones, himself broken In
health. produced the letter soon after
he had been called to the witness
stand by Samuel Untermyer. counsel
To the committee. Mr.. Jones was
president of the Oriental bank when
the financial cyclone of 1907 swept
oyer New York According TO his
festjnnnss and that Of EEsklne Hewitt,
son Of the late Abraham Hewitt. and
Charles K. Bcekman, both of whom
were directors of the Inflated bank
Mr.. Hewitt also being it's .counseD,
was the clearing house committee of
the New York Clearing House ASSOC
citation prescribed conditions for the
conduct of the Oriental bank, which
made It impossible for 1t to survive.
And 80 ii Was driven to the wall. al
though. as shown by It's assets, It was
perfectly solvent. Their statements
indicate that as soon as President
Jones met one requirement made by
ths. ~ ring a,sr rt
organization would prescribe q new
one. until finally ~ issued its ulti-
matum that nothing would be done
TO aid stile Oriental unless jones re-
aligned the presidency. and was sue
ceeded by Eugene Kelley. The Oriental
was one OF the oldest banks In New
York. and was a charter member of
the Clearing House. association. The
two Morse banka-the National OF
North America and the New Amster-
darn--and the Mechanics and Traders
went down 10 ruin with the Oriental.
The Brooklyn bank and the Borough
bank, OF Brooklyn. had closed prev
iously when the Oriental was ordered
TO cease clearing for them.
Mr.. Kelley accepted the presidency
under protest and only after he had
been solernnly assured, according to
the sworn testimony of the witness
mentioned. that the clearing house
would stick TO the Oriental to 1.-The
last ditch" This stern demand was
made by the clearing house commit
tee in the latter part of October 1907,
when President Jones lay unconscious
and struggling for his life from an
attack of pneumonia. at his home.
Soon after Mr.. Kelley reluctantly
assumed the 0rientafs presidency he
aud this board OF directors took adj
vantage of the privileges extended to
all members of the clearing hou.s, in
that crisis TO borrow clearing house
certificates. The amount was Sl,T50.-
geo, which was secured by quick as
sets of ss.6ao, 0oo On January 25.
1908, according to the testimony of all
Three witnesses, the Oriental bank.
as did also the two Morse banks. and
thS Mechanics and Traders. received
wosi from the clearing house com
mittsse to return tho clearing house
certificates Not later than February
Sfh News Of the calling of these GER
ftaeates was published tn stss1sc af Ihe.
uewspa pers the next day. Then fierce
tornado broke nfresh over the four
financial institutions. and they went
down, three months after Mr.. Kelley
mad assumed control of the Oriental
Mr.. Kelley died OF broken heart
eight months afterward.