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TEMPORARY RECEIVERS FOR SIX BANKS Kingston, N. Y., Nov. 16.-Temporary receivers were appointed today for six New York city banks and trust companies which recently suspended payments. They include the Hamilton. Brooklyn and Borough banks and the Williamsburg, Jenkins and International Trust companies. Application for the receivers was made by William F. Mat for Attorney General Jackson.
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Receivers Named in New York and Brooklyn. PROSECUTIONS TO FOLLOW Some of the Officials Are Criminally Liable. ONE PRESIDENT GOT $557,000 Small Institutions at Other Points That Are Also in Trouble-Will Be Civil Suits. NEW YORK, November 16.-In receivers securtoday the appointment of compaing three banks and three trust which for in New York and Brooklyn Atrecently nies suspended payment State in General Jackson declared that the the torney Borough Bank of Brooklyn and in has Jenkins Trust Company evidence of been found of illegal overloans and the both civil and criminal liability In of the Borough Bank, Mr. Jackson case stated there is evidence also of overdrafts. forged paper and other criminal transactions, all of which will be presented to the grand jury. In the Jenkins deTrust Company the attorney general the clares the records show overloans to president. John G. Jenkins, jr., aggregating $557,000. The applications for receivers were made to Justice Betts of the supreme court at Kingston, N. Y., and were based affidavits of Clark Williams, superintendent upon of banking The court appointed the following temporary receivers: Williamsburg Trust Company, Frank L. of Buffalo: bond, $300,000. Hamilton Bapst Frank White of New York; bond, Bank. $200,000. Borough Bank of Brooklyn, Isaac Henry A. Powe11 of Brooklyn and bond, Cox of Ellenville, Ulster county: N. each Jenkins Trust Company. $200,$100,000 John Mulhall of New York: bond, Brooklyn Bank, Bruyn Hasbrouck Interna000. New Platz; bond, $130,000. of of tional Trust Company. Goodwin Brown Yonkers; bond, $100,000 of the Bapst Some is managing Men. director of the He Mr. American Bank of Buffalo. affairs German charge of winding up the White of had Pan-American exposition. Mr. under the first deputy attorney general attorney was Jackson. Mr. Powell is an Mr. Cox Mr. residing in Brooklyn. at-law former member of Congress, and Bank is is a president of the First National estate now Mr. Mulhall is a real of with offices in New dealer. is a merchant and was Ellenville. Mr. brick Brown York. manu- Mr. Hasbrouck Paltz. and facturer at New under Gov. Cleveland, pardon clerk was appointed on-the served state for lunacy subsequently commission, where he fifteen years. on October 25 and 26 that depart- SuperIt was Williams of the banking general intendent reported to the attorney Wilment he had taken possession of Hamilton the that Trust Company. the Jenkins Hamsburg the Borough Bank, the International Bank, and the unsafe and that it was to for those and Trust Trust inexpedient Company Company institutions attorney doing business. Both the Williams continue and Superintenden officers general to co-operate with the in an sought directors of the closed banks and put them on their feet again. Thursday Superintendent the the attorney general effort informed Again to to that Williams mentioned were unable secure banks additional capital and that of be placed in the the they necessary should delay. hands receivers without further Mr. Statement Jackson said From today Brooklyn. that he will still to co-operate in the banks now to rehabilitate continue all in efforts inves- the hands of temporary receivers. The tigation thus far has been confined to the Borough Bank of Brooklyn and the Jenkins Trust Company. Attorneys for the Brooklyn bank which issued a statement this afternoon, in they declared that the Brooklyn bank and the International Trust Company the have assets $800,000 in excess of amount owed depositors: that they exI pect soon to complete arrangements with depositors to accept certificates of deposit that in part payment of their claims, and they hope to avert a permanent receivership. Idaho Bank Suspends. POINT. Idaho, November 16.The State Bank, payment $15,000. SAND Traders' suspended capitalized temporarily at Inability to realize on secured loans is given as of The bank of yesterday. suspension. deposits the amount $60,000 cause have to $125,000. all of which the officials pledged themselves to make good. Run on Buffalo Bank. Special Dispatch to The Star. N. Y., November run BUFFALO, 16.-A yesterday that started in a small way assumed fairly large proporthis and is now tions afternoon morning in The progress bank on the Buffalo Savings Bank. of $2,658,317. It is one the and strongest the The run was started by decity. has a biggest surplus of banks Polish in positors.
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Receivers For Six New York Banks. KINGSTON, N. Y., Nov. 18.-Temporary receivers were appointed for six New York city banks and trust companies which recently suspended payment. They include the Hamilton, Brooklyn and Borough banks and the Williamsburg, Jenkins and International Trust companies. Application for the receivers was made by William F. Mackey for Attorney General Jackson.
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IN NEW YORK Cause of Panic To Be Sought NEW YORK, Dec. 11.-Arguments on the orders to show cause, why the temporary receiverships of six bankinb institutions of New York City, which succumbed during the recent panic, should not be made permanent, will be heard before Supreme Court Justice Botts at Kingston, beginning to-morrow. The cases of the International Trust Company, the Borough Bank of Brooklyn and the Brooklyn bank will be heard to-morrow. The Hamilton bank case will be considered on Friday, and the affairs of the Willlamsburg Trust Company and the Jenkins Trust Company will be Investigated on Saturday. On the latter date, the motion to appoint permanent receivers for the Knickerbocker Trust Company will also come up for hearing before Supreme Court Justice Clark. Edward M. Shepard will represent the depositors of the Borough bank at the hearing and will urge that the Institution is solvent and should be be allowed to re-open. The plan announced by the depositors for a re-organization Is to pay 10 per cent. in cash, 15 per cent. in four months, 20 per cent. in eight months, 25 per cent. in twelve months and 30 per cent. in sixteen months. It is allleged by representatives of the State that the bank is hopelessly Insolvent and that Its funds have been managed in a criminal manner. The examination made by the receivers showed that, out of $3,186,863. bills discounted. more then feel obliged to deduct on account of paper regarded as forged, fictitious or of doubtful value. $1,382,842; that the realized value of the total amount is $1,804,021; of the $482,596 of loans made on demand, $78,584 had been deducted on account of worthless paper, such as collateral t held in gold and silver mining stock, e oil paintings, etc.; of the sums due I PO from banks, given as $188,003. $158,I 104 had been deducted on account of offsets and receiverships; of the $148,M 000 credited to stocks and bonds, but I one bond of $1,000 was on file with the State banking department. It is al1 leged by the receivers that the total 1 deficiency of the bank is $1,500,000. Ex-Judge Alton B. Parker is chief counsel for the Hamilton bank, and will urge that that institution was forced to suspend business only because the bank through which it cleared could no longer serve in that capacity. Judge Parker declares that the 18,000 depositors are anxious for the bank to re-open its doors, and that he is prepared to show that there was nothing of a fraudulent nature con-nected with the management of this bank. The attorney general's office will make a hard fight aaginst the accepte ance of the plan of re-organization sug1 gested by the Williamsburg and Jenkins Trust Companies. In regard to the Williamsburg institution, Deputy Attorney General Mackey alleges that it had "loans credited to clerks and t roustabouts on security of a cat-andt dog nature," and that "the directors and their friends grabbed their money just before the bank closed." One of
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# WILLIAMSBURG TRUST INVESTMENT. Said to Have Violated Law in Interborough-Metropolitan Stock Purchase. That the Williamsburg Trust Company, of which Frank Jenkins was deposed as president, bought 1,330 shares of Interborough-Metropolitan preferred stock at 105 and 106 in May and June, 1903, and paid in all $146,512 25 for it, was discovered by Frank L. Bapst, receiver for the company, yesterday. Mr. Bapst pointed out Section 159 of the banking law, which says that no banking company shall hold stock in any private corporation to an amount in excess of 10 per cent of its capital stock: The receiver holds that the Williamsburg Trust Company has violated this section of the law, as its capital stock is $700,000, 10 per cent of which would be $70,000.
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TRUST co. TO PAY 40 PER CENT. NEW YORK, Feb. 3.-Announcement has been made by John D. Lyons, counsel to Receivers Bapst and Van Wyck, of the Williamsburg Trust Company, which closed in the latter part of October, that on May 1 the institution would be able to declare a 40 per cent. dividend. This announcement was made to discredit reports that the bank's finances were in a deplorable condition. It was made known, too, that the chances were excellent for the depositors receiving their money in full. Mr. Lyons would not discuss the question as to whether or not the bank would resume business.