The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-09
THINKS LAW VIOLATED
Vanderbilt Declares That the
Banking Act Was Strict
~ Observed.
LOAN WAS DISTRIBUTED
William Rockefeller and Lewis
Cass Ledyard Summoned in
New Haven Inquiry.

New Haven Inquiry.
WASHINGTON, May S.-The Treasury
Department has taken a land in the in
vestigatlon by the Interstate Commerce
Commission Into the financial management
Of the New Haven railroad under the old
management.
John SHELTON williams. Comptroller Of
the Currency. asked Solicitor Joseph W.
Folk OF the commission to-day to send
him a transcript of the testimony taken
yesterday and also a certified copy OF a
check used in the acquisition of Boston
snd Maine stock by John l.. Billiard, head
Of the Billiard Company. II was through
this acquisition that Mr.. Billiard made
more than s2700.000 without the ex-
penditure of a cent of his own money
Billiard testified yesterday that the
National City Bank of New York had
loaned more than sl1,o0o, 900 in this
transaction on 1oe.9s5 shares OF Boston
and Maine stock. Comptroller williams
intends to ascertain whether or not this
u
national banking act by the National City
Bank.
Mr.. Williams's Purpose.
II is understood that he will seek to
show that under the law the bank at that
time should not have loaned more than
100000 10 a single individual. This is
rot the first time Mr. Williams has lis
~ ,..I a
actions by the National City Bank.
1t was recalled tonight that when ne
vas Assistant Secretary of the Treasury
he instituted an inquiry into a loan to
chicago street railway, interests on
similar grounds. Nothing ever came from
this inquiry
The testimony OF Mr.. Billiard yesterday
showed that the New England Navigation
Company, which sold the Boston and
Maine stock TO him. furnished part OF the
money FOR the purchase of Mr.. BILLIARDS.
Unsecured note, The balance of more
han sli.000,00O was borrowed on the
Boston and Maine stock as collateral from
The National City Bank.
The check which Comptroller Williams
mas requested was for sll,lOl,13s. dated
october ., 1908, and drawn on the Farm
RS Loan and Trust Company OF New
York IN favor Of the National City Bank.
The check was used in taking up the Bill
ard note when Mr.. Billiard resold the Bos-
on and Maine stock at an advance OF
ABOUT fifteen points to tho New England
Navigation Company. The check was
ssned by H. VI. kochersperger. vice-presi-
mt Of the New Haven system, and by
y S May. treasurer.
William ROckefellcr Sum mOned.
solicitor Folk announced to-day that he
Las summoned as witnesses for Wednes-
''ay next William Rockefeller, Lewis Cass
Ledyard and Mr.. Miner. These three at
tended the board of directors meeting In
october, 1903, at which the Contract" en-
l.red into between ex-Presdent Mellen
ard Mr.. Billiard in connection with the
purchase of l09,9S5 shares of the Bos-
ION and Maine stock was approved and
a. which it was decided that Mr. Billiard
enouid receive reasonable compensation
md actual expenses for his services
According TO Mr.. BILLIARDS. sworn testi-
|, "ony Yesterday he received more than
'.'Vo,OoU. Billiard when confronted with
laese minutes minated they were false
| NJ Folk mas also summoned George i.
Haker, who at that time was "A member
't the board of directors Of the New
haven, although he WAS not present at III,
meeting In question.
Timothy Byrnes, until January / last
| Nce-prc sldent of the New Haven, and
| reward -. Robbins, until about the sam,
tm" general counsel of the New Haven
and samuel g. Morehouse have been sum
Honed u testify on Monday.
Oa Tuesday ex-Presldent MelleG will
.a"e the stand, and 1t is hoped by IN,
.9ma.ss!on to obtain important disclos
ares from him.
testimony was put in the record to-day
showing that on January |. 1913. Mr.
N''I"n entered into contract with the
IMAM Company under the terms o.
'A''h the New Haven turned over to tn,
'ulrnhn Company the parlor and sleeping
ar fGuipment and received in exchar :,
contract which netted about S4DO. 90,
Year. Arnold g, Hanson. examine o.
ihs commission, produced this contract
'"Hch he said came from the files of tn,
'e" Haven road. 1t showed that unde
iuicndercd something like S500,0o0 a yea
"a pfohts.