The evening world., 1914-01-29

/
for II. He didn't recall that tho
interest had bsen paid either. though
the note ran for moro than a year.
@. Were any Of these loans made
70 the siegel stores secured by col.
isteraif A. Oh. yes. sir. learned
later that thsy were.
Q. But you did not know Il at the
umss 4. No. sar. .--.......-
Q. How did you learn itf A. Well.
Nr. vogci handed me an envelope q
short time before the failure (the Wit
ness would not nx the date closer than
. week or perhaps ten days) and
told me 70 put II IN the safs. put
II with the Butler note and the other
notss In conAsction With loans 10 the
stores ana . few days later I opened
le
PlRsT COLLATERAL oEPosIrgo
40 sGcURiTv.
q. what was In the snvsiopsf A.
Well I only glanced atsit but my i'm.
preston was that II was stock Of the
eiegel stores Corporation, and was
left there 70 secure ths leposltoss Of
the bank on these loans % ths stores.
Q. Prior TO the day this snvelops
was handed 70 you thsrs hsd been no
paper in the safe except the notes.
had thersf 4 Ne. sir.
Q. Nor aaytAin6 relating 70 these
loansf 4. No. CIR. o..
q. Nor any ooliatsraiS A. No. cir.
There had been no collateral lsft With
me-.
The cashier testified that for siz
months before tn failure dspositors
had seemed - havs .su inkiing that
somsthiag was wrong asA haA made
Inquiries Of hlaa. but ~ d'da't know
the bank IVES not solvsat and didn't
suspect n
champion's tsIimony followed that
OF several psivaSs bankers. Including
Jacob 0imbsl Of 0imbsl Brothers and
william II. Pestss % ,. p. Morgan q
Co. Mr.. Hays examined M. 0imbsi.
oiMDgL DOESN'T LEND MONEY
TO heMoelt.
DO you allow interest" he In.
quirsd.
"Yss. cir. on deposits which remain
between ssmi-annual dates In Jan.
uasy and July."
do you furnish bank booksr'
"Yes. SIR"
"And check bootsf"
'Yss, sir"
And you allow withdrawal By
chsckf"
"Yss, sir.'
'-Thsa you DO Q regular banking
business IKE . etsts % national
hankf''
"yss, siP."
"How DO you invsst the deposltsr'
I'm reliable securities and In cash,
% that In . short time. say two or
three hours. W could pay on our
dspositors dollar for dollar"
DO you lend any Of these deposits
70 your businesef"
'Nev1I" .f,..rA ~..Y. .F
you DO not lend money 70 your.
sAlvesr'
I'VE do not"
"You know ths purpose Of this In
auiry-to nnd . way 70 protsct the
dspositoFs Of private banksrsr'
"Yes, str"
DO you bslisvs . private banker
should not b under the control Of
the state Banking Dspartmsntr'
II do not"
''rhen you would not object TO bs.
Ing placed under such jurisdictionf''
II would not. believe In ~
PARTNER SPEAKS FOR J. p.
.'S MORGAN Z CO.
When Ar. 0imbsl wss excused,
william H. Porter. . partner In J. p.
Morgan 4 Co.. was called. Nr. Hays
asked:
"who are the other pArtnsesr'
~. p. Morgan. Edward Z. etotss-
bury. Charles stssls. Henry p. Dav.
ison. Arthur ID. Nswburg. Thomas
w. Lamont. Temple r. Bowdoin,
william q. Haniiton and HoFatio q.
Lloyd"
DO you do . general banking busi.
nsssr
"Wsll. yes. sir. . general business"
He said the principal business Of his
arm now was buying ana selling bonds.
TEL VI what class your dsposators
are" suggested Mr.. Haysa :.
They are generally BIG corporations
and Arms abroad who come to us
voluntarily and offer " their bust.
ness"
"How about private dspodtorsf"
"Oh. they are men Of wealth who
occaaonaliy invest and who like TO
have funds Cd hand with us"
L w0