New-York tribune., 1919-07-31
Big City Fund
Is Taker From
National City
Chamberlain Transfers
$l,5OO,OOO to the Chase
National Bank; No Ex-
planation Is Forthcoming

Municipal sinking fund deposits ap-
proximating s1.5oO0o0 have been with
drawn in July by City Chamber
lain Berolzheimer from the Ma
tional City Bank and deposited IN
the Chase National Bank. This sum
represents the entire account of The
City of New York with the former in
stitution, so that although the National
City Bank remains nominally a city
such, for the time being at least.
While the Chamberlain's reason for
withdrawing the funds could not be
ascertained yesterday, it was learned
that there already is sharp con-
troversy on between the Chamberlain
and Controller Craig over his right
to do so. The Controller is understood
to contend that the disposition Of sink
ing fund moneys is his prerogative.
Controller Craig was out of town
yesterday and no one in his office
lain Berolzheimer sent word by his
secretary that he was in conference
and could not be disturbed.
"Why was the money withdrawn
from the National City Bank and de-
posted in the Chase National Bank p
the secretary was asked.
One Explanation Doubted
"It is frequently necessary to trans
fer funds in order to meet payrolls
or some emergency" he replied, "and
they would have to be deposited in
the Chase bank because that institu-
ion carries the city's active account"
twas that the case in this IN
stance ?"
81 presume it was" said the secre-
.ary.
The Chamberlain secretary appar-
entity was mistaken. it has been in
timated. because the moneys with
drawn from the City National were
part of the sinking fund and cannot
be used for any except sinking fund
purposes.
The facts of the transaction, as OBJ
tanned from an official source. are
these: =.
Early in July there was on deposit
in the National City Bank, in round
numbers, S1,50O,0OO of sinking fund
moneys.
On or about July 1s the sum was re-
duced to about S500000, the bulk If not
all of the $1,000 900 withdrawn being
transferred to the Chase National.
The remaining $500000 was then
withdrawn, and this, too, deposited IN
the Chase National.
Bank Officials Reticent
The cashier of the City National
Bank declined yesterday to discuss the
subject He said the city was still
depositor.
"Of course" he added, 1--WE can't
divulge the amount of any ones bal
ance."
The city is still nominally de-
nositor. because the National City Bank
is one of the institutions established
as city depository by the Banking
Commission.
1t was denied at Chamberlain Beroi-
heimer's office that there is any dis
pute between the Chamberlain and the
Controller or any question OF the
Chamberlain's right to deposit the
sinking fund moneys where he pleases.
Early in the Hylan administration
the Chase National Bank was substl-
tuted for the National City as custo-
dian of the city's active account. that
from which payrolls and other regular
expenditures are met. This was before
the incumbency of Mr.. Berolheimer as
City Chamberlain, and the reason for
the action was never made known
Until July 18, however, the City Ma
tional continued as depository for
other funds.
The New York "American" says this
morning: :.
"Gossips at the City Hall had il
that the Hylan administration .
had concluded to eliminate the Ma
tional City because it is Rockefeller
institution"