Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-05-13

Washington, May 13.-The most i'm
portant of recent developments in the
New Haven inquiry by the interstate
commerce commission is the sub
poenaing of the leading directors of
the railroad-the men who are pri-
marily responsible for the semi-bank-
rupt condition of the once wealthy
New England line. Tf2 directors who
have been subpoenaeC and who will
testify this week are William Rookie
Teller, George F. Baker, Lewis Cass
Ledyard and George McCul1och Miller.
These men, all prominent in the
who's Who" in the m-nIonaire class,
are to be asked to explain why they
permitted the expenditures of vast
sums of money belonging to the stock
holders for Improbable trolleys,
steamships, the promotion of political
ambitions, the passage or defeat of
legislative measures, as well as sums
given to lobbyists and others who rem
dered question: BILE 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 >anking
laws in connection with the transac-
tons of the mysterious Billiard conn.,
pany, which has already been shown
to have been really subsidiary to the
New York, New Haven & Hartford
Railroad company.
L hn
dealer, who brought the Billiard COM
pany into existence, and sprung into
the limelight over night as the pur-
chaser of the Boston & Maine railroad,
testified that he had borrowed SILL
300 600 from the National City bank, |
1epositing 109,S00 shares of Boston e |
Maine stock as security. He obtained |
his stock from the New Haven at i
1925 a share and by devious manipu- |
ation sold If back to the same COM |
Dany for $50, making a profit of 81 |
743, 900
The point in Mr.. Billiards. testimony
hat interested the comptroller of the |
is that if Mr.. Billiards. testi-
nOny is true. the National City bank
S guilty of violating section $500. OF
he national bank law, which pro-
-ides:
The total liabilities to any asso-
,iation of any person or of any COM
'any, corporation or firm for money
orrowed, including the liabilities of
he several members thereof, shall no
ime exceed one-tenth part of the
mount of capital stock of 81 asso-
iations actually paid in and unim-
nd 1
impaired surplus fund: Provided. how
Yer. that the total of such liability
hall in no event exceed 80 per centum
+ the capital stock of the association
tut the discount of bills of exchange
rawn in good faith against actual ex-
sting values and the discount of COM
lercial or business paper actually
wned by the person negotiating the
anne shall not be considered as mon
y borrowed"
In 1909, the date of the S11 900. 600 !
'ansaction between John L. Billiard
nd the National City bank, the cap
al stock of the National City bank OF J
ew York was S25. 00O, 900 and its sur
us S25,o00.O00. These facts are set
nth in the sworn statement of the :
hcers of the bank to the controller of F.,
e currency.
Under the law, the bank was limited =
loaning any one person $4,000. 900,
10 per cent of its capital and sur
us
Beyond admitting that he has re- n
tested the interstate commerce com. :.
lssfon to turn over the check for SILL -
5000 which figured in the Billiard
ltional City bank transaction. Con-
,ller of the Currency John SHELTON
iliiams VIII not discuss the matter. Il
The National City is one of the O
hest aid most nowarful hanl;s Il, | o.