New-York tribune., 1912-03-11
MAH0NEY REPORT MAY
LEAD TO NEW LAWS
Superintendent Van Tuyl viii
Use 1t as Basis of Recon-
mendatl0nS.
CONVICTIONS ARE DOUBTFUL
State Banking Official Thinks 1t
Impossible to Push Cases
After Time Which
Has Elapsed.

After Time Whlcn
Has Elapsed.
The report of jeremiah T. Mahoney on
his investigation of the failure of the Bor-
ough Bank Of Brooklyn and the lnterha-
tional Trust Company. which was flled win
the State Superintendent of Banks on sat
urday, will be used by Superintendent van
Tuyl as the basis Of recommendations tor
changes in the banking laws to be MADE 10
Governor Dix. Mr.. Mahoney has sent a
copy of his report to District Attorney
Cropsey OF Kings County, and another
copy to District Attorney Whitman ana
he said yesterday that he considered lhe
evidence against the men mentioned III the
report so conclusive that no grand Jury
could fail to act on II. 1t is very douptlul'
however. whether the statute ot limitations
has not run against all the offences IN CON
nection with the looting and failure OF Ihe
two institutions.
This was we'll understood by Superin-
tendent Van Tuyl at the time the inyestl-
CATION was ordered last fail, just after the
investigation of the failure OF the Brook
lyn Union Bank came to a sudden end
TO testify without n list Of the questions
TO be asked of him being furnished TO MN
in advance. The Investigation OF the
Brooklyn Union Bank had disclosed serious
defects in the state banking law, and from
what was known then of the incidents sur
rounding the failure OF the Borough Bank
and the international Trust Company II
was considered by Superintendent van
Tuyl that an Investigation OF those lhsu-
tutions also would furnish a series OF facts.
which taken In connection with the disc!oS
ures already made in the case OF the
Brooklyn Union Bank, would iurhlsh d"
unanswerabe argument in favor OF the
changes in the state banking law the Su-
perintendent purposes 10 recommend
Mr.. Mahoney's report says:
Directors of our state banks will never
take a businesslike interest In banks or
ganized under the state laws until the pen
atty for laxity Is so severe as TO compei
due attention in interest of the stockhold-
ers and depositors. Our state BANKING
laws are inherently weak here and should
be amended" And the report ends with
strong recommendation to make directors
rs strictly accountable under tho state
ing acts.
OF the directors of the international
Trust Company and the Borough Bank the
report says that it is almost impossible
to believe that all the crimes enumerated
could have been committed without the
knowledge of the directors, but rigid eN-
animation had shown that they were. on
the whole, honest men and had been be-
trayed and deceived by William Cow and
his associates.
Van Tuyl Critcises Laws.
Superintendent Van Tuyl in speaking Of
the report said that he expected it to con-
tain information OF great value to him in
making his recommendations for changes
in the state banking law II hardly think
IT will be possible at this lIte day 10 pun
sh any Of those who were concerned I'm
the wrecking OF the two institutions he
said "Our banking laws are such at pres
ent that the statute OF limitations has
probably run against all or the offences,
but do expect the report TO furnish argu-
ments in favor OF changes in the law
which cannot be Overridden. II man
steals S2J from your cash drawer he is
guilty of a felony and can he punished by
from one TO ten years Imprisonment, but
If an officer or director Of a bank steals
100000 from the depOsitors OF the bank
he is only guilty OF a misdemeanor and
can be sent TO Jail for not more than n
year at the most
1T is most amazing" the report says,
that not one man has been sent TO jail for
his connection with the disgraceful looting
of these banks. That OF all the indictments
found in connection with these crimes only
one, and that weak one, was ever tried
and that later the remainder were dis
missed on the District Attorneys own mo-
ton"
it Is not only the Office Of the Kings
County District Attorney, but that OF the
State Banking Department, that comes in
for Mr.. Mahoney's criticism and censure.
In that section of the report that deals
with the Borough Bank he says:
No story OF the looting OF a bank has
ever been told or written that at all can
compare with the evidence adduCed of tho
looting of this bank. The former District
Attorney Of Kings County was supposed to
have made a full investigation into the
Borough Bank Of Brooklyn prior 10 October
"a 1907 ] may be wrong In my conclusion.
but this investigation, IL appears to me, in
Mahoney Urges Investigation.
Because In spite OF the maladmnistration
Of the bank and Of proven criminal acts
on the part OF its officials and directors not
a single person was ever convicted and sent
10 iail therefor / believe IL 10 be your duty
as State Superintendent of Banks to find
out where the laXity was, whether I'm the
prosecuting officials or In the law pursuant
TO which II was their duty To prosecute.
Much evidence of the looting OF the bank
recently found should have been discovered
years ago by the prosecuting officials and
by the officials of the Banking Department,
all OF whom must be accused of at least
laxity in their official conduct
Indictments Are Dismissed.
In Mr.. Mahoney's report the doings of
William Cow Arthur ID. Campbell. John :.
jenkins. Nelson B. Burr. jr., John \. Hill.
Frank Doolttle, j. +. Bouker and Robert
w. Half are considered in detail. Cow was
the promoter of the international Trust
Company and a former director of the
Borough Bank. lie was indicted on several
counts and tried on one Of them. The jury
disagreed, and the remaining indictments
were ouashed on the recommendation Of the
District Attorney. Campbell was former
cashier and director of the Borough Bank. |
He was indicted several times, but the in
dictments against him were also dismissed. |
Jenkins was counsel for Cow in his Inter-
national Trust Company and Borough Bank
transactions Burr and Bouker were direc- !
tors Of the International Trust Company |
Hill, who is said to be the present owner
of the Clarendon Hotel, was associated |
with Cow in his promotions and loans |
Doolittle was Cows secretary and was as
ISOLATED with him in many of the Interna-