New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-08

condemned Mr.. Jones, and, with a COM
mittee of three directors of the Oriental
summary treatment which il was proposed
TO measure out TO their colleague whlle
he was i'll and unable to defend himself
Protest Of No Avail"
This protest being of no avail. Mr.. Kelly
demanded to know how far he could rely
upon the protection and aid of the clear
ing House if he accepted the presidency,
and was told i'm unqualified terms that ne
and the bank would be protected to tll1
end of the trouble. Under no other CIR
cumstances would he have accepted inc
office, which he did without salary ana
with no hope OF reward other tnan no
satisfaction to himself and his fellow al
reCtors of safeguarding the deposltorS VI
the bank. ,o
How the pledge given him at that time
has been carried out is easily told by tne
banks suspension two months later Oh
January 81, while in a condition OF ap-
solute solvency Its assets had been
infinitely examined on December 81 anu ar,
unparalleled in banking history in New
York The book value of its stock Wds
voluntarily marked off from go per ceHt
to 2O1 per cent in the EFFORT TO MAKE !"
superlatively clean. e..,
If the Banking Department Of the state
of New York were permitted TO spear
publicly on matters OF TINS klnu IT 80,
tell YOU how courageously and how non
estlv This process was carried out. From
NoyemIcr y onward it's business was con
Quoted Conservatively and more OF U.s.
under the advice of infuehlla. Mn nro,
of the Clearing House, who actualN Pr,
nounced the Oriental now as safe as the
Chemical" -,..- -. dis
Then. without previous warning or dlsc
cussion of the subject win tne ol'nnhiiclv
the Oriental. came the demand. puol,vEt
announced for the retirement OF lht 1 4oro
standing Clearing House certhSa'cSF Tnan-
February &. In previous peiloua W ,ar
r,ittod to RIM for six months or more ~
this instance the larger INSTITUTIONS no
recovered their deposits ana M M sitma
librum in shorter term. and thtn ',, the
ton resolved itself into a case vi
divil take the hindermoSt'
"The Fatal Blow Struck"
The fatal blow had been struck at o, une
Oriental and the run, both oNeI ,"' which
FRY and through the eXChahEeS, ~
foi,o,,cd comneIied the closing of It's dooIs'
Subsequent events prove the honst,' o "a, les
iusticc that was done 20 II anu de
,,uroeidcnt REASONABLY The latter was lnaue
i,s nr ia satisfy "A condition that thItd.-
cncd NOT merely the Oriental nut tNtta
clearing House bank IN New ao'M MAST 8; the
time When that condltlon Naot fnrrot-
engapcmcuts made with him were lo'So
Within ten days Of th' closing "i In
hank the dcpositors have h'eil ~" io,n
cor nd Maid and its Clearing liouSe oa''
,crti6cat6s retired all by It's own ~,
,oi,,coe thus IS its sOlVencN proven a. Nv w.
a,,Iy on.s now concerned with ITS dllSHa
ava tie stockholders. and they alone suiitI
a. rnpeenuerces Of its treatment az tie
bordc If those whose care II Shoulu nav
i,ian IA rrotect II for their own sakes.
From this time forward II rs Imt re
memory among New York banks nu' l.H
honorable record OF nllN -HN'
titlcd II to this euloEy. ,p,,ropc
''' THE BOARD OF plREIIOko.
UI-GH KELLY, President
MIR. Untermyer had asked MI ''ililo'
70 stem aside from the witness stahu 10
allow Mr.. Jones to testify, who had 10
undergo an operation. and could not
testify until some time later unless
called AZ once. Jones looked pale ana
weak nc he sat in the witness chair. lie
said he was now in the brokerage dust
ness He had been connected with the
Oriental Bank from 1902 10 1870
He told of being summoned to meet
the Clearing House committee in oc-
toher. 1907. Some Of the Brooklyn banks
had got into trouble about that time
and the committee wanted HIM 10 stop
clearing through the Oriental for the
Borough Bank, the Brooklyn Bank and
the Chelsea Exchange Bank. OF tins