New-York tribune., 1912-01-04
BANK PROBE IS RESUMED
49, -Year-0Id Clerk Borrowed Biq
Sums; Got $40 a Week.
A. E. KLEINERT A WITNESS
Says Maxwell, Cow and Campbell
Wrecked Borough Bank-De-
scribes Directors Meetings.

Inquiry into the affairs of the defunct
Borough Bank was resumed yesterday In
Borough Hall. Brooklyn Some new and
interesting information came to light in
the testimony Of William F. schuter. a
former employe of r. W. Haf. He testi-
fed that under the direction of his en-
ployer he had signed notes made out by
Han borrowing money from the bank He
said that he had never received any OF
the money nor did he ever put up any col
lateral. The witness was then eighteen,
had no property and received $40 a week in
salary. Other notes, he said. were signed
by different employees in Haff's office.
One of the notes he identified bore on
the face of IL the figures s2iOss 10. and in
the body OF the note was written the sum
OF $24S5 10. jeremiah T. Mahoney. spe-
clal investigator OF the Banking Depart
ment. said the note had been discounted
at the larger figure.
Richard W. Jones. a former president OF
the Oriental Bank, testified In regard 10
the s250OOO note signed by Maxwell. He said
that 20 the best OF his knowledge the
money had been raised for the captaliZa-
ton OF the International Trust Company,
which was TO take over the Borough Bank.
He said Maxwell, Cow and jenkins, az
counsel for the bank, had offered note Tor
sl46,So0 signed by J. S. JENKINS and one
other. and another note for the same figure,
signed by Nelson =. Burr, as collateral
Jones said the collateral was good at the
time.
John W. Walker. of the John w. Walker
Company. said his company still owed the
bank 5000 and that Hurley had taken the
stock Of the company as security. lie ad-
mitted that when the company was first
organized none Of the stockholders put up
any money, and that whatever money the
concern used In doing business was secured
from the Borough Bank.
Charles +. Darlington told Of note CIV
en- to Jenkins for 10000 with which to
buy stocks on margin. Darlington said he
made out the note and that 1t was payable
on the bank Darlington testified that this
was done because Jenkins said that he was
a depositor at the bank. No collateral was
put up by Darlington, who understood that
Jenkins was good" for It. No indorse-
ment appears on the note. and according to
the witness II was renewed several times
same $4,000.
George A. Zabriskie testified that he hrst
learned Of the transference OF this SO.Vp
loan from the Borough Bank TO the Peo-
pies Trust Company on october 23' 19o''
from William S. Hurley. He said he ob-
jected 10 the transfer, but sent over
check next morning and that II was never
returned 10 him.
Albert f. Klenert. one OF the directors
OF the bank up to the time OF its closing
the first time. said that at the meetings
Of the bank committee he only saw one
half Of the notes, AS part Of them were
examined by Campbell and Hutton and the
rest by himself and Cow.
He never examined the collateral. but
accepted the statement OF others that II
was all right, and he also testified that
the notes for large sums OF money were
not read of In the directors meetings
When asked what his opinion was as 10 the
cause of the disaster. he replied. I'M
doubtedly Cow, Maxwell and Campbell
wrecked the bank"
Kleinert said officials OF the Borough
Bank had received letters from the state
Banking Department pralsing the standing
OF the institution.
Three employees OF the Clarendon Hotel
who were subpenaed to appear at the In
quiry yesterday morning sent politely word
ed notes TO Mr.. Mahoney. saying they were
unable TO be present at the probe.
The letters were all written on the same
paper and worded exactly alike. The names
Of the men are A. J. Wegge. o. p. Warlick
and Chester II. Roods. After reading the
notes Mr.. Mahoney said the witnesses
would very soon appear or take the conse-