The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-05-17
s''S''-ss-s'''- -. ss:s

Washington, May 16.-The most i'm
portant of recent Developments in the
New Haven inquiry by the Interstate
commerce commission is the subpoe-
naing of the leading directors of the
railroad-the men who are primarily
responsible for the semi bankrupt
condition of the once wealthy New
Englind line. The directors who have
been subpoenaed and who will testify
this week are William Rockefeller
George +. Baker, Lewis Cass Ledyard
and George McCulloch Miller.
These men, all prominent in the
who's Who" in the millionaire class,
are to be asked to explain why they
permitted the expenditures of vast
sums of money belonging to the
stockholders for Improbable trolleys,
steamships, the promotion of political
ambitions, the passage or defeat OF
legislative measures, as we'll as sums
given to lobbyists and others who rem
dered questionable service in return
for the amounts paid them.
While the commission is preparing
for the quizzing of these directors the
comptroller of the currency is con-
templating some action against the
National City Bank of New York city
for violations of the federal banking
I1ws in connection with the transaC-
lions of the mysterious Billiard Com
pany, which has already been shown
to have been really a subsidiary to
the New York, New Haven & Hart
ford Railroad Company.
John L. Billiard, the Connecticut
coal dealer, who brought the Billiard
Company into existence, and sprung
into the limeight over night as the
purchaser of the Boston & Maine rail
road, testified that he had borrowed
$11,000,00O from the National City
bank. depositing f09800 shares of
Boston & Maine stock as security. He
obtained this stock from the New Ha-
ven AT S125 q share and by devious
manipulation sold it back to the same
company for $3.50. making a profit Of
S2.74S. 600.
The point in Mr. Billiards testi-
mony that interested the comptroller
of the currency is that If Mr.. Bill
Iiard's testimony is true, the National
City bank is guilty of violating sec
ton $500 of the national bank law,
which provides:
The total liabilities to any associa-
tion OF any person or Of any COM
pany, corporation or firm for money
borrowed, including the liabilities of
the several members thereof, shall no
time exceed one-tenth part of the
amount of capital stock Of said asso-
Citations actually paid in and unim-
paired and one-tenth part of its un-
impaired surplus fund: Provided,
however. that the total Of such liza
billy shall in no event exceed 80 per
centum of the capital stock of the as
ISOLATION. But the discount Of bills of
exchange drawn in good faith against
actual existing values and the dis
count of commercial or business paper
actually owned by the person negotiat-
Ing the same shall not be considered
money borrowed"
In 1909. the date of the 81 900. 600
transaction between John l. Billiard
and the National City bank, the cap
ital stock of the National City bank
of New York was $4,000, 600 and its
surplus SIS, 600, 600. These facts are
set forth in the sworn statement of
the officers of the bank TO the comp
troller of the currency.
Under the law, the hank was limit
ed to loaning any one person s.. 600. 600
or 10 per cent Of its capital and sur
plus. Billiard has sworn that he Dor
rowed $4,000, 600, or over 20 per cent
of the banks capital and surplus
Beyond admitting that he has re-
quested the interstate commerce com
mission TO turn over the check for
S11. 100000 which figured in the Bill
lard-Nat!onal City bank transaction,
Comptroller Of the Currency John
skeleton Williams will not discuss the
matter.
The National City is one az the
richest and most powerful banks in
the country and at one time is said
10 have been very influential at
Wa shingtOn