The New York herald., 1921-06-10

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to $40 ton.
an indep endent trar saction. hut before the
lawyer finished they generally admitted
that one end of the deal was contingent
upon the other.
Extra Interest," for Banks.
Thomas Austin. president cs the Home
Savings Bank of Albany, had new
name for profit He called 1t extra in
terest." and insisted that that designa-
tion 60. so far as his testimony was
concerned, because that was the way that
Mr.. Untermyer termed the bonuses"
for making loans were entered in the
books of the Home Savings Bank. Mr..
Untermyer sought to get an expression
of opinion from Mr.. Austin as to
whether usury laws should be made ap-
plicable to corporations as well as in
divid uals. but the banker said he could
not answer the question, as he had not
given the matter sufficient thought.
O. DO you charge Albany people the
same as you charge New York people,
or do you treat them better? A. Charge
them per cent.
O. Oh, you only charge them 6 per
cent. do you? A. Yes. sir.
q. You don't charge them extra In
terest? A. We haven't charged them
extra interest here, only when we were
offered 1t.
| @. You have not been offered 1t
there? A. No. sir.
| Q. When you take loans from them
from Albany people-you take them at
6 per cent? A. Yes, sir.
@. You wouldn't take these at 6 per
cent, would you? No. sir.
| Q. Do you make building loans In AL
bany? A. Yes. sir.
! @. Do you get extra interest there,
too? A. No. sir
@. You don't get anything extra
there? A. No, sir.
| @. Only per cent? A. Only per
cent.
@. Is that because there would be a
sort of riot there If you took more
A. We have had a riot there, but don't
| think 1t was on that account.
| Q. You are rather jealous of your
home reputation on that subject, aren't
you? A. What do you mean? / don't
| just get the meaning of that.
Q. Don't you think 1t would hurt your
reputation at home, where your deposits
are. il you were to ask for more than
| per cent? A. l don't know particular
! ly that 1t would hurt our reputation.
The banks In the city Of Albany take the
cent. for money.
| Mr.. Austin had insisted that negotia-
tioa for the sale Of Liberty bonds to a
prospective borrower was q matter that
the mortgage broker instituted and was
never opened by the bank. But Mr..
Untermyer produced a copy of a letter
from the bank to the firm of William A.
White & Sons outlining a plan upon
whic,- a loan would be made. and mem
] - - An
bank, representing the difference be-
tween the market and par values of the
bonds
"Patriotic" Bond Deals.
Mr.. Untermyer asked the witness II
he did not know that Liberty bonds
were involved in the transaction In ar
effort to give it patriotic appear
ance." Mr.. Austin said he did not
recall.
I'VE have you pretty tight there,
haven't we?" asked Mr.. Untermyer.
THAT is pretty tight / want to say
| To YOU that we are not selfish, because
we are paying our depositors Az per
cent"
] Other witnesses whose testimony was
along the same lines included Arthur S.
Van Wrinkle. president OF the Empire
City Savings Bank of 2H West 125th
\ street, ALEXANDER Z. W. fluntI, pteSl-
dent of the Union Dime Savings Bank,
1 West Seventy-second street, and
William z. Knox, vice-president Of the
Bowery Savings Bank. lbs Bowery.
Mr.. Knox declared that at no time
was anything resembling coercion en-
ployed toward borrowers. Mr.. Unter-
myer brought out, however, that in the
case Of the French Church d'Esprit. in
Twenty-seventh street, the Bowery Saw
ings Bank used Liberty bonds as a me-
dunn of payment of the proceeds of a
loan.
Mr. Knox attempted to show that this
was because money was scarce at the
time. but he was excused from the stand
when he admitted reluctantly that while
the bank was disposing OF Government
bonds to borrowers at par It was occa-
sionally buying them In tho open market
at discount
| Peter Stadtmulier. convicted Of extor-
ton and awaiting sentenoe. was taken
10 yesterdays session and was anxious
TO tell the story Of his relations with
Robert p Brindell. but he was not put
| on the stand
During the afternoon session Richard
! Croker and his wife appeared and shook
hands with Mr.. Untermyer and Chair
man Lockwood.