The Waterbury Democrat., 1931-02-11
|ONE PROSECUTOR
 | OF WRONG THINGS
 | IN RING HIMSELF
Isidor J. Kresel Has Resign ed in New York, Because He Was Indicted in Great Bank Failure

New York, Feb 11.-UP)-The appellate division inquiry into New York city's lower courts went for ward to-day without its leading man as Isidor J. Kresel, the special prosecutor, who resigned following his indictment with seven other officers of the closed Bank of United States prepared to be fingerprinted land photographed and then arraigned They will be tried before a spe- cial term of general sessions in Octo- Der on the felony charges. The investigation of the failure of the bank was halted yesterday by a temporary stay obtained by the banks attorneys and argument will be heard to-day before the court of appeals on the legality of the in- vestigation. headed by Max D. Steuer. Other developments yesterday in cluded evidence that 1000 bundles of the banks records were burned shortly before the failure; and a ruling of the court of appeals in AL bany that Francis x. Mancuso and six other directors of the defunct City Trust Company must stand trial on charges of fraud, which may set a precedent for procedure in the Bank of United States case. Kresel, who has remained the center of the inqury into the courts and leading figure in the bank in- vestigation, is small man, with a sharp tongue and a genius in the art of embarrassing witnesses on the stand.
 For many years he has been a cru- sader and investigator. starting un- der former District Attorney William Toropno ond and{nU cnoo;o1 prosecutor of the appellate divsion's inquiry, where he has caused the res- ignation of three magistrates and the trial of fourth.
 Now, for the first time. he is un- der investigation himself.
 Kresel Is personal enemy of Max D.. Steuer, who heads the bank in- yestigation, and once tried to disbar him.
 Moreover. political observers have pointed out, Steuer is 8 good Tam nianyite and friend of the present city administration, which has been slightly embarrassed by KreSeps re- lentless borings into the courts.
 For either or both of these rea- sons, Steuer has been particularly jealous in tracking down Kresel as counsel and director of the closed bank.
 The others under indictment are Bernard K. Marcus, president of the bank; Saul Singer, executive vice. president; Herbert Singer. his Son. clerk in Kresel's office and president of a dummy corporation used by the bank in alleged shady transactions; c. Stanley Mitchell, director and chairman of the board; Alexander S. White, executive head of Bankus Corporation, leading affiliate of the bank; Henry w. Pollock, a vice. president, and Simon H. Kugel, di- rector and vice-chairman of the board.
 The indictments are all based on an $8,00O,000 transaction whereby the bank is alleged to have paid debt to itself with its own money. This involved the use of two dummy corporations; one of which was headed by Younger Singer, a $50 week law clerk.
 The closing of the Bank of United States was the largest bank failure in the history of the country. Other indictments are expected to follow, and the decision of the court of ap- peals that the directors of the de- funct City Trust company must stand trial on fraud charges may set a precedent for trial of Bank of United States officials in that it in effect holds directors responsible for mis- management by executives.