New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-20
Havana Banker.
Indicted, Denies
Bribery Here
Herman Upmann Says He
Did Not Spend Penny in
Washington or New York
for Guarding Fortune
Huge Expenses Alleged
Clients Testify That Use of
Their Securities We're
Not Authorized by Them

HAVANA. May 1a.~-Hcrman Upmann
president Of the suspended hank Of H
Cpmann & Co. declared to-day that
neither IN Washington nor in New
York did have to spend single pc my
20 secure the favor Of anybody in maS
ing better the Official situation of our
seouestrated fortune" He made the
statement because Of ar item in the
report Of the accountants employed by
the Havana Clearing House to examine
the Upmann firms books which lists
s1,o2s,5l7 in liabilities as Expenses OF
H. Cpmarr in Washington TO secure
the return of properties seized a 5 re-
suit of the war"
Late today Upmann was held for
trial on an indictment charging mis-.
appropriation Of securities placed in
his possession and released under
bonds Of $4,000 to guarantee Grim
inal, and sl,oooooo to guarantee civil
responsibilities. Albert Upmann, his
brother, Was released and the charge
against him dismissed
The two men had beer in iail since
last Tuesday under provisional arrest.
While Judge A. &. Sofa of the First In
structIonal Court heard testimony rela-
tive to conditions which resulted in
the bank failing to open
Securities Misuscd, Say Clients
The order for the release of Albert
Upmann was based on the fact that
no testimony was presented at the in
structional court hearing TO disprove
his original declaration that he had no
hand In the banking business of the
firm, but devoted himself exclusively
to its tobacco interests
The Indictment OF Herman Upmann
came after three day investigation by
Judge Sofa into data contained in re-
port to the Federal bank liquidation
commission by the agents appointed to
represent the commission on the Up
mann liquidation board This report
followed the general lines of the in
complete report made by accountants
and upon which the clearing house
based its refusal to advance a loan
requested by the bank.
Numerous clients of the bank testi-
fed before Judge Sofa that Herman
Upmann had not been authorized to
dispose of securities they had deposited
with him. Among these was Manuel
Flores Pedroso, who testified that he
had not authorized the hypothecation
of 100000 worth of securities or the
transfer to the National City Bank by
n. Upmann Of d note for 1925, 900.
Other clients. some Of them listed as
having deposited securities totaling
more than sl,o00,oo0, did not appear
at the hearings
Explains Huge Expenditures
According to the statement of Her
man Upmann relative 10 the expend-
ture Of 81 ,02S,517 charged against him
the Clearing House accountants in
making their report failed to include
his explanation Of the purposes to
which the money WAS devoted These
n. explained in approximate figures as
follows
To attorneys in the United States,
$4,000; TO attorneys in New York. by
order Of the Alien Property Custo-
dian, $4,000; expenses Of Northern Of
see. $4,000, personal expenses. $4,000
The remainder Of the total amount.
he continued, was absorbed by personal
and family expenses and by the hank
ing house which. although closed for
thirty consecutive months because Of
the war. was the cause Of heavy ex-
penses by reason of maintenance costs,
salaries OF personnel and other items.