New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-25
BANK EXAMINER
STAREK OUSTED
Controller Declines Expla-
nation of Change in I'd
Federal District
w. p. MALBURN NAMED
AS NEW CHIEF HERE
Removed Official Has Had
Clashes with New
York Bankers

Charles Starek, chief national bank
examiner for the Second Federal re
serve District. with headquarters In New
York, was removed yesterday by Con-
troller John SHELTON Williams without
explanation. William p. Malburn, As
sistant Secretary Of the Treasury, was
appointed to take his place.
Reports that charges had been filed
against the ousted chief examiner and
that he had been summoned to Wash
ington TO answer them, went unan-
swered at the office of the Controller
Of the Currency. There was nothing to
add to Mr.. Williams's statement, 1T was
said.
Mr.. Starek himself apparently had some
idea Of giving an explanation, for he IN
vited reporters to his home in the Hotel
Collingwood, on West Thirty-ffth Street,
last night When they arrived, how
ever. Mr.. Starek was not there. a tel
ephone operator explained that Mr..
Starck chad been called out unexpect-
edly on business of Importance, and 1t
would be impossible for him to issue
any statement"
More than once Mr.. Starek. who has
been on leave of absence without pay
since November IS. has FLASHED with
New York bankers because OF his al
legged "hiRh-handed" methods. At least
one complaint against him was for
warded to Washington.
Controller Sustained Bank
This complaint was made early IN
1914 by Joseph B. Martindale, president
of the Chemical National Bank. when
objected emphatically to Mr.. Starek
attempt TO walk off with list OF It's
depositors. The Controller OF the Cur
rency on receiving Mr.. MartindaleS
complaint notified him that the bank
need not permit Mr.. Starek to have the
list of depositors.
Suit for $4,000 was brought against
Mr. Starek in January, 1914, by the
Merchants National Bank for alleged
damages suffered when Mr.. Starek OBJ
.ained two documents without the
knowledge Of officials OF the BANK one
of The documents was cancelled check
for $3.50 600. drawn by the cashier and
navable to +. de c. Sullivan, and the
other was a deposit ticket containing
memorandum of S250,000 deposited by
Morton F. Plant.
Bankers regarded both Of these al
fairs as too far in the past to have had
any effect in his removal, and had long
looked upon Mr.. Starek as an official
whose Washington connections were
unassailable. His removal came as
surprise.
The Controllers statement follows:
"William P. Malburn, Assistant Sec
rotary of the Treasury, has to-day re-
signed that Office and has accepted the
Office of chief National Bank examiner
for the Second Federal Reserve Dis
trict. with headquarters at New York
City. vice Charles Starek, removed.
"Mr. Malburn is by training and ex-
perience peculiarly well qualified for
tbis important office. Before he became
Assistant Secretary of the Treasury IN
March. 1914. Mr.. Malburn was engaged
in the active and successful practice
of law in Denver for over ten years.
Prior thereto he had for thirteen years
practical experience in the operation OF
national banks in Colorado, principally
in the City of Denver.
"As Assistant Secretary Of the Treas
urv MIR. Malburn has had general SUI
pervision of the fiscal bureaus of the
Treasury Department, including the
Office of the Controller of the Currency.
Mr.. Malburn's salary as Assistant
Secretary of the Treasury was s5,VOV.
In his new position it will be Sl5,OOO.
He will also be relieved Of the two-year
bar. which would have prevented hlrl
from associating himself with any bank
ing firm for two years after severlng
his connection with the Treasury De-
partment. Since October 10, Charles
+. Richmond, chief of the reports di-
vision of the Controllers office, has
been acting chief examiner.
Besides being chief examiner, Mr..
Starek was a Class director in the
Federal Reserve Bank of New York.
His term there will not expire until
December 81. =.
When the Federal Reserve Bank of
New York was organized, Mr.. Starek
was appointed deputy reserve agent.
/ He held that Office for a year, when he
was succeeded by Charles A. Peabody.
Prior TO his assignment to the New
I York district in 1908, Mr. Starek was
/ the special representative of the Treas
ury and the Department of Justice in
many cases involving the wrecking OF
national banks through the misappli-
cation of funds. In one Of his cases the
late Cassie Chadwick was the principle
/ figure.