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# Suggests Criminal Action. In view of the attitude of the national bank examiner to the conditions which he found in the bank it was regarded as likely that he will submit certain facts to the United States district attorney in Trenton. Chapman's investigation, according to directors themselves, has convinced Mr. Chapman that of the $800,000 of loans made to persons in Manhattan almost one-half went to promoters. Chapman has called on George Carragan, president of the bank, and several other of the officers to deposit their stock with him. Of course in the last analysis the stockholders are liable to the par value of their stock in making up any losses to depositors. Word concerning their operations has been passed around among national banks. Many bank presidents knew of the men and were on guard. When Receiver Chapman investigated the affairs of the Bayonne bank he questioned the officers and the directors sharply as to why loans should have been made to certain persons. His attitude, according to one director, was specially severe toward President Carragan. # Promoter's Notes Questioned. One of the men to whom the bank examiner was said to have taken exception was M. M. Hart, who is commonly known as Max Hart, a promoter, of 115 Nassau street, New York, who is in the Directory of Directors as director and treasurer of M. M. Hart, Inc. Directors of the Bayonne bank declined to tell just how much money Hart, who is a depositor in the bank, got on loans. It was admitted that he had his own notes discounted without giving any security whatever. It was also admitted that he had been instrumental in getting notes discounted for persons who bought stock in various companies from him, putting his own name on the notes as well. The collateral is said to have been the certificates of stock which Hart himself had sold to the makers of the note. The directors say that the par value of this stock exceeds the amount of the loans. That fact, however, is disputed by the bank examiner. On April 26, 1904, Hart was indicted for larceny in the first and second degrees and for forgery in the first and second degrees. One of the charges was that Hart had obtained money from one Israel Dahut, with which to buy real estate in Philadel-