The evening world., 1912-06-07
SAYS F|NANC|ERS
PUT A CR|MP IN
ORIENTAL BANK
Letter Written BY the Late
Hugh Kelly Read at Money
Trust investigation.

tosoay TO the subcommittee OF tine
House Banking and Currency Commit
tee. in session at the Custom House. In
vsetigating the Money Trust" when
samuel Untermyer. counsel for the
committee. read a letter that had been
written by the late Hugh Kelly. who
wAs President OF the Oriental Bank
whsn that institution went under In
Ts6ruary. 100.
\ W. Jones. now . broker. who pre-
eoAsd Mr.. Kelly a. President OF the
Oriental. was testifyins. Mr.. Inter
mv0 asked him II ne had the ietter
witch he had been subpoenaed to pro-
auco Mr.. Jones took the paper from
hAs packet.
The latter was intended A. q revela-
ton 10 the stockholders OF how the SOL
vent bank became the Mctim OF "ths
financial tragedy
The statement was made that men
hiwh in financc," whilc Mr.. Jones was
lying I'll Of pneumonia and unable to
defend himself" had passed judgment"
on the bank president and ordered tho
directors OF the Oriental to demand his
resignation and the election Of the
writer. Mr.. Kelly
A short time before that. the letter
stated. Mr.. James had been a witness
IN an inquiry by the District-Attorney
and the erroneous impression had gone
out that he was In DANGER OF indict-
msnt. The action Of the "men high In
nnancs 0he Clearing House Committee)
operated to give face to that false
gossip and thus work a tremendous
wrong to Mr.. Jones.
The former president OF the Oriental
showed great emotion during the read
Ing. his iips twitchins and his eyes
giisteninS.
sAVs KELLY HAD promise or
FINANCIAL SUPPORT.
The letter said that Kelly had beeu
promised the support Of the Clearing
House Association In the existing gen-
erai financial distress. But how tho
pledge was carried out" the letter read.
~ told by the banks suspension two
months later when perfectly solvent"
Tho Oriental had been In business NJ
ty-<ivs years. had 500 900 OF deposits
wher the panic started. II was paying
u Per cent dividends and earning about
10 per cent. according to Mr.. James. and
whom the bank closed there were In its
vaults about ts.eO0.00O Of collateral r.
meet obligations OF tl.Sl6.0oO.
Off. Jones told Of being ordered In No
vsmbsr. 1907. by the Clearing House IA
stop clearing for the Borough Bank and
the Brooklyn Bank. both Of Brooklyn.
lie protested. he said. stating 20 the
committee that these banks would a,
once withdraw their deposits. amounting
TO ab(Qt q. 0o0. Co., which would seriously
cripple the Oriental. lie said he wal
ordered to discontinue clearing for the
other banks. and told that II he did hi
bank would get the Clearing House Ger
ttAcatss.
eft aid cause q run on the bank ant
a lot OF trouble" Mr.. Jones added.
PRoeERe ANXIOUS TO FINE
WILLIAM ROCKEFELLER.
A Secret Service man. with subpoena,
Issued by the committee has beel
searching unsuccessfuily the last tw
days for william Rockefeller. brothe
q John D.. and Charles II. Meilor
Secretary OF the Amalgamated an
Anaconda Cooper Company.
1T 10 our impression" said one Of tn
Congrsssmen. who would not be quoted
that these two men are trying to avoi
service"
No statement was made by tho CON
mittee 40 TO the lines along which II
desired to question Rockefeller an
Nsiiin.
william shsrer. Manager OF the Ne
York Clearing House. was again a WI
ness when the days session began. N
shsrsr asked the privilege Of 'correc
ing a statement made In yesterday
Evening World.
1T was stated In that newspaper
said Mr.. Sherer. that one-scventh
1 per cent. charges are collected on OF
OF town checks. amounting TO sioo,ooo,o
daily, and that this brought a retu'
TO New York banks Of about tSo.0o.Q
annually.
.srhs fact IL that the charges va
from ons-tenth Of per cent. 10 on
fourth OF 1 per cent. according to q
territory In which the bank Is iocat
upon which the check IL drawn On
seventh Of I per cent. Is not the avers
charge II 10 too high
linen thoTs eTo u hu"Se' W '
among them Boston. Providence. .
bsny. Troy. Newark. Bayonne' PM
dslpasiA end Balumore-chscks up
whieAho not come within the clcari
HeubS )saie requiring collection chars
ss;.ss know" as ''''''a'''
"elxy per cent. Of the out-of-to'
checks are on those points. 80 that
charges for collections arc made up
only about ~. 900 daily. tad at abe
ons-tenth Of per cent. would I'd
explained this yesterday ~ I had b
quite clear IN my mind as TO what
was desired to bring out"
GUT EXPLANATION DoEeN
SATISFY UNTERMvER.
Samuel Untermyer. counsel for
committee. wanted TO know where
sherer got his information.
In conversations with bankers"
piled Mr.. sherer.
He was asked for the names Of
persons with whom he talked.
Mr.. Gilpin. the assistant mana
Of the Clearing House. and Mr.. Shore