New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-21
B. R. SHEARS INDICTED
IN BOROUGH BANK CASE
Examiner Who Became PreSi.
dent Accused of Larceny
of 1884 Check.
RISE AND FALL SUDDEN
Showed to the Front Because OF
Ability in Strengthening Out
Tangle Which Involved
Prominent Men.

Broc r. Shears. who rose through his
ability as a bank examiner to be presi-
dent Of the Borough Bank, OF Brooklyn.
now out Of business, was arraigned be-
fore County Judge Townsend yesterday
charged with grand larceny in the first
degree. The Indictment charges that on
October II, 1911. he appropriated check
for 1884 50 which came into his pos
session as a trustee OF the Hollis Park
Land Company, formerly a subsidiary
concern Of the Borough Bank.
When Shears reached the courthouse
he was accompanied by his bondsman.
who put up a bond of $4,000 after tho
banker had pleaded not guilty. The case
will be tried in October.
The rise and fall Of Mr. Shears was
included in period Of three years. The'
Borough Bank went under on October
IS, 1907, at the time of the bank panic.
and Mr. Shears was sent TO BROOKLYN
to straighten out its affairs. He did so
we'll that upon the reorganization, in
April, 1903, he was made the president
of the institution. His term Of Office
was from April II, 1908, to April T. 1910,
when the bank again closed its doors.
Last December Banking Superintend-
ent Van Tuyl appointed jeremiah T. Ma
honey, an attorney, of No. 81 Chambers
street, Manhattan, to investigate the az
fairs of the institution. His investisa-
ton was carried on at the Borough Hall.
~ -
second deputy superintendent of tho
department. About four months ago his
report was turned over TO the depart
ment and District Attorney Cropsey, OF
Kings County, undertoo TO have indict-
ments found under it.
Mr. Mahoney explained the connection,
between Mr.. Shears and the bank yester-
day. After the first closing of the insti-
tuition, he said, William Cow transferred
his interests In the Hollis Park Land
Company TO the bank in his effort TO cover
! alleged irregularities. Later, on the ap-
plication Of Paul Grout, the Supreme
Court appointed Mr.. Shears. Vice-Presi-
dent Herman IT. Lucke and T. +. Martin
as trustees TO dissolve the corporation. IL
is still in the process OF dissolution.
Last October the bank paid to the COM
pany $33S4s upon the amount owing IT.
The company then declared dividend Of
10 per cent, or 1854 CO. Mr.. Shears re-
ceived the check TO deposit. He deposited
only few hundred dollars, IL is charged,
and retained the rest for his own use.
Mr.. Mahoney said last night that beyond
this sum there has been practically no
loss in connection with the land company.
The negotiations involving Mr.. Shears
were not discussed at the investigation.
which was cut short by decision Of the
courts which held that only the officials
OF going" bank could be subpnnaed 10
attend such a hearing held by the Banking
Department. Mr. Mahoney had large
amount OF information in his possession
at the time, and he turned this over to
Mr.. Cropsey, who began laying II before
the grand jury in July The jury was
held over on August /, and is still sitting,
which leads 10 the belief that other in
dictments may be found.
Mr.. Mahoney recommended several In
dictmepts in his report, and II Is expected
that the District Attorney will follow his
recommendations as closely as possible.