Williamsburg Trust Company (New York, NY)

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ALL JENKINS BANKS CLOSE

Include First National, and Williamsburgh and Jenkins Trust Companies.

NO CASH FOR CHECKS

Surprise Came to Depositors Soon After One O'Clock.

WILL RESUME SAYS COUNSEL

People Affected Include Residents and Business Men All the Way from the Eastern District to Coney Island—Said That Heavy Withdrawals by Local Railroad Company Caused Some Trouble.

All of the trust companies and banks in the Eastern District with which John G. Jenkins and his sons have been so long identified closed their doors to-day.

First the Williamsburgh Trust Company hung out a sign indicating that because of a lack of ready cash it had been compelled to shut down.

Soon after the First National Bank, at the foot of Broadway, and one of the oldest national institutions in the country, followed suit.

On top of this the Jenkins Trust Company, with branches spread throughout the town, closed down, and then the chain was completed.

An effort was made to interview President Jenkins, and when he was called on the 'phone, he declined to make any statement except that a lack of ready cash was responsible for the suspension. He intimated that it was but temporary.

At the office of National Bank Examiner Hanna no information was obtainable this afternoon regarding the suspension of the First National Bank. Mr. Hanna, it was said, had left his office to go to Brooklyn.

As a result of the shutting down of the several trust companies and the First National Bank this afternoon many large concerns in the Eastern District will be unable to pay their help to-morrow. This fact was made apparent when several large manufacturers appeared in front of the bank buildings prepared to withdraw the amounts of their payrolls.

News of the suspension of the First National Bank soon spread. A small crowd gathered in front of the building at the foot of Broadway, soon after the doors were closed, and this was added to as the afternoon passed. Shortly before 3 o'clock the officials of the bank directed the following sign to be placed on the door:

"Closed by the Comptroller of the Currency.

"GEORGE F. CUTTS, Examiner."

A Times reporter endeavored to get into the bank building to see President Jenkins, but he was prevented by the special policeman on guard. One of the clerks who came out for his luncheon returned to the bank in a few minutes before 3 o'clock and had a great deal of difficulty in getting in.

First National Bank Will Resume Shortly, Says Counsel.

Samuel B. Coombs, speaking for the First National Bank, made the following statement to a Brooklyn Times reporter late this afternoon after having attended a conference at the bank building, Broadway and Kent avenue:

"There is very little to say. The situation is generally understood. We were compelled to shut our doors for lack of cash. We had a great deal of cash on hand, but owing to the fact that other concerns closed down, the withdrawals from the First National were very heavy."

"When do you expect to open again for business?" was asked.

"I can't answer that. We will get in communication as soon as possible with the officials of the Banking Department. They will probably visit the bank, look over the situation and then tell us to go ahead."

Closing of Williamsburgh Trust.

The Williamsburgh Trust Company, on the Brooklyn plaza of the Williamsburgh Bridge, closed its doors shortly after 1 o'clock this afternoon, President Frank Jenkins causing a sign reading as follows to be posted on the door:

"Closed temporarily for lack of cash."

Immediately a crowd collected. A man was stationed in front of the company's building and he refused to allow anyone to enter. A young man soon appeared and when he found that the bank was closed he broke down and cried.

"My God," he said, "all my money is in there."

Message to President Unanswered.

He was assured by several others that his money was safe. A Times reporter endeavored to get into the trust company's building, but was refused admission. He sent a message to President Jenkins asking for a brief statement, but the message was not delivered.

Nearly all of the directors of the company were in the building when it was decided to close down. They immediately went into executive session. The meeting was in progress at the hour of going to press.

Unable to Meet a $10,000 Check.

The bank suspended when unable to meet the check of a prominent resident of the Eastern District, who employs a large force of help, and who sent one of his employees to the bank for $10,000. The cashier of the bank looked at the man and declared, so the man said, that it was impossible to cash it at the present time. The man hastened back to his employer and immediately a report got in circulation that the company had closed its doors.

Sign on Down Town Branch.

We have temporarily stopped payments owing to the impossibility of securing currency. (Signed) WILLARD REID, Vice President.

This was the notice, posted upon the closed doors of the down-town branch of the Williamsburgh Trust Company at 1 o'clock this afternoon. One hour previous the officials of the institution declared that the company was in excellent shape and no intention of suspending payment was entertained. All efforts to secure an explanation from the directors proved fruitless. All inquiries were simply referred to the typewritten notice pasted on the door.

Crowds Kept Moving.

There were several clerks and subordinate officials at work in the office, but no admission was granted to anyone by the policeman and special officers who guarded the exits. No commotion occurred at any time during the afternoon, although there was a steady stream of depositors, all of whom, after being permitted to read the notice, were kept moving by the officers.

Organized Several Years Ago.

The Williamsburgh Trust Company was organized several years ago. It has branch offices at 949 Broadway, 391 Fulton street and on Broadway, near Myrtle avenue. According to the last statement, prepared by the Banking Department, the Williamsburgh Trust Company has loans on collateral amounting to $3,063,213, and cash on deposit amounting to $513,362. Its assets amount to $6,077,903. The reserve and liabilities amount to $9,676,484. It was capitalized at $700,000 and there is now due depositors $7,663,331. The surplus and undivided profits amount to $569,720, and other liabilities amount to $743,433.

First National Follows Trust Co.'s Lead.

Shortly after the Williamsburgh Trust Company closed its doors the First National Bank, at Broadway and Kent avenue, temporarily suspended business. The following notice was posted on the door:

To allay apprehension we have decided to close our doors temporarily for the lack of ready cash.

A B. R. T. Rumor.

No statement could be obtained from any of the officers of the institution, of which John G. Jenkins is the President. It was rumored this afternoon around lower Broadway that the Brooklyn Rapid Transit Company withdrew a large sum from the bank, and that this was the cause.

It was only a few days ago that the directors of the First National Bank closed a deal for the purchase of a piece of property at Broadway and Havemeyer street, on which site it was contemplated erecting a new building.

Bank Established in 1852.

The bank was established in 1852. The capital is $300,000, and deposits are estimated at $4,200,000. The bank is a member of the New York City Clearing House.

Jenkins Trust Companies Close.

The Jenkins Trust Company, whose principal office is at Nostrand and Gates avenues, and has branches at Surf avenue and West Twelfth street, Coney Island, Bay Twentieth street and Bath avenue, Bath Beach, Broadway and Myrtle avenue, and 1,745 Broadway, closed its doors this afternoon. John G. Jenkins, Jr., the President of the company, was communicated with by a Brooklyn Times reporter, but refused to make any statement, other than to say that it had been decided to close down temporarily for lack of cash.

No Trouble at the Offices.

There was no trouble whatever at any of the company's offices. Depositors residing in the neighborhood expressed their utmost confidence in the solvency of the institution. Some even went so far as to say that if they had any money on hand they would not hesitate to deposit it with the company.

Nassau Trust All Right.

The closing of the Williamsburgh Trust Company and the First National Bank caused a few of the depositors to visit the Nassau Trust Company, at Bedford avenue and Broadway, this afternoon. The line was only a small one, and no apprehension was felt. In fact, Andrew D. Baird, of the Board of Trustees, expressed great confidence. Speaking of the situation, he said:

"We have enough money to tide us over to-day. We will also have enough to see us over to-morrow. The situation at present looks a little bit gloomy, but I believe the institutions that will see themselves through to-morrow will be all right.

"The savings banks are benefitting by the condition. There is no cause for fear, however, for I believe everything will be straightened out in a few days."

Manufacturers' Bank in Good Shape.

Things were normal at the Manufacturers' National Bank, Broadway and Berry street, this afternoon. At no time was there any indication of a run. In fact there were a large number of deposits received. At no time were there more than two or three persons in front of the paying teller's cage.

Cashier Nightingate, speaking of the situation, said: "We are in just as good condition to-day as we have ever been. The actual scarcity of money has caused a scare, and is responsible for a number of persons losing their heads. I believe all the banks are solvent, and will eventually come out of this condition. We are accepting checks and paying out the money as usual, and as you will notice there is no sign of a run here."

At the time Mr. Nightingate spoke there were two depositors in the bank.

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FIRST NATIONAL OF BROOKLYN AND SIX OTHER BANKS CLOSE

SITUATION AT A GLANCE.

Secretary Cortelyou said after the close of banking hours:

"The situation is good. This is the third day, and I see no setback of serious import. I shall probably remain in the city all day tomorrow, and if there is no critical development—which I see no sign of at this time and do not expect by any means—I shall return to Washington."

The First National Bank of Brooklyn, a Clearing-House institution; the Williamsburg Trust Company and the Jenkins Trust Company of Brooklyn, with numerous branches, suspended temporarily. The solvency of the institution has not been questioned.

President William A. Nash, of the Corn Exchange Bank, said:

"The outlook is decidedly better, and I think the crucial point has been passed. The failure of the smaller banks is not disturbing. They did not have much cash on hand and it was better for them to suspend than to stand a run. They are perfectly solvent and will be able to resume business when the present hysteria subsides."

The International Trust Company, of No. 206 Broadway; the Brooklyn Bank and the Borough Bank of Brooklyn failed to open their doors for business.

The Union Dime Savings Bank, Thirty-second street and Broadway, with deposits of over $27,000,000, has given notice that it will require thirty days' notice in writing of intent to withdraw. Other savings banks have adopted this course.

J. Pierpont Morgan and half a dozen bankers raised a pool of $10,000,000 late this afternoon which was loaned on call on the Stock Exchange to protect the market.

International banking houses have arranged to import between $10,000,000 and $15,000,000 in gold from Europe.

The Lincoln Trust Company, the Trust Company of America, the Colonial Trust Company and the Harlem Savings Bank safely weathered runs. The trust companies received substantial aid and the Harlem Savings Bank took advantage of the sixty-day clause.

Secretary of the Treasury Cortelyou placed about $8,000,000 in New York banks during the day, a total of $30,000,000 since last Friday.

Superintendent of Banks Clark Williams said that conditions have improved and will continue to improve if bank depositors are reasonable.

The stock market passed through a precarious, feverish day, closing in a skyrocket finish that sent the general range of prices away above yesterday's final quotations.

State Bank Examiner Leonard stated that the Lincoln Trust Company is in a solvent condition.

An officer of the Hanover National Bank suggested that Gov. Hughes proclaim special holidays enabling the banks to close next week to allow the arrival of gold from abroad. Gov. Hughes, over the long-distance telephone, said he had no power to order such holidays.

A shipment of $2,500,000 in small bills was received from the United States Treasury in Washington.

Ernst Thalman, Otto T. Bannard and Gen. Henry C. Ide were appointed temporary receivers of the Knickerbocker Trust Company.

Before the close of the stock market Halstead & Hodges and Van Emburgh & Atterbury, brokers, loaned on the floor of the Stock Exchange $10,000,000 of the syndicate money at 50 per cent.

The amount pledged by the Clearing House banks to the aid of the Stock Exchange will be between $12,000,000 and $15,000,000.

Williamsburg and Jenkins Concerns, Belonging to the Jenkins String of Banking Institutions, Temporarily Close Their Doors.

THERE WAS VERY LITTLE EXCITEMENT AT EITHER BANK

Borough and Brooklyn Banks and International Trust Company Had Been Forced to Suspend Earlier in the Day.

In rapid succession the Williamsburg Trust Company and its branch on Fulton street, Brooklyn, the Jenkins Trust Company and all its branches and the First National Bank of Brooklyn closed their doors this afternoon for lack of ready cash.

In each instance it was announced that the suspension was temporary and that all the institutions would reopen as soon as currency for carrying on business could be secured.

All the institutions that are affected belong in what is known as the Jenkins string of banking companies which enjoy the best of reputation. It is stated that they are absolutely solvent.

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Williamsburg and Jenkins Concerns, Belonging to the Jenkins String of Banking Institutions, Temporarily Close Their Doors.

THERE WAS VERY LITTLE EXCITEMENT AT EITHER BANK

Borough and Brooklyn Banks and International Trust Company Had Been Forced to Suspend Earlier in the Day.

In rapid succession the Williamsburg Trust Company and its branch on Fulton street, Brooklyn, the Jenkins Trust Company and all its branches and the First National Bank of Brooklyn closed their doors this afternoon for lack of ready cash.

In each instance it was announced that the suspension was temporary and that all the institutions would reopen as soon as currency for carrying on business could be secured.

All the institutions that are affected belong in what is known as the Jenkins string of banking companies which enjoy the best of reputation. It is stated that they are absolutely solvent.

Except in one instance nothing approaching the dimensions of a run preceded the closing of the doors. Depositors seeking to withdraw simply came in heavier numbers than usual, and finding that in the present condition of money, cash could not be secured the two trust companies, the bank and the branches shut up for the time being. The main concerns are all located in Williamsburg, but the branches are scattered through a wide area of Long Island.

The First to Close.

The Williamsburg Trust Company, one of the largest trust companies in the Greater City, was the first to close. Five minutes later its Brooklyn branch also suspended.

On the door of the main building a clerk simply posted this notice: "Closed for Lack of Cash."

On the doors of the branch this notice appeared, after a short delay: "We have temporarily stopped payment owing to the impossibility of procuring currency." This notice was signed by Vice-President Reid.

Half an hour after these suspensions the First National Bank of Brooklyn, at Kent avenue and Broadway, Williamsburg, also shut its doors. The First National has been affiliated with the Williamsburg Trust and acting as its clearing-house. The bank's deposits are given as $1,200,000 and its capital as $300,000.

The Jenkins Trust Company, at No. 70 Broadway, Williamsburg, closed a little later. All the branches of the Jenkins Trust and the Williamsburg Trust in Long Island shut their doors.

At the branch of the Williamsburg Trust no demonstration occurred, but outside the main office about four hundred Hebrew merchants and manufacturers who had expected to draw out money for their Friday night pay rolls created a small riot. The clerks inside the building refused to pay any attention to the rapping at the windows.

The crowd grew frantic. Some of the men wept and cursed. A great multitude gathered. Police reserves managed by hard work to keep the streets clear.

Only Got a Check.

Hardly any warning preceded the series of suspensions. It was learned that Corse Payton, the actor-manager, tried to draw out of the Williamsburg Trust $10,000 which he had on deposit. He was given a check on the First National, which the First National would not cash.

Behind him came other patrons who wanted cash instead of checks. They could get no currency. These men were wrangling with the paying teller when watchmen put them out and closed the doors.

At the branch in Fulton street there were similar scenes. A few men were inside the building waiting to withdraw their funds. Others crowded the pavement. Suddenly a watchman drew shut the outer gates of iron. Those already inside were paid off. The others confronted a watchman who through the bars of the gate simply repeated the two words, "No cash" in answer to all questions.

No Statement Given Out.

It was impossible to obtain any statements from the officers of either the trust companies or the bank. Newspaper men vainly sought for a while to get in touch with some person in position to speak authoritatively.

As the news spread through Williamsburg, Brooklyn and East New York big crowds of men, mainly small merchants, flocked to the trust companies or to the bank.

The Williamsburg Trust Company proper occupies a magnificent new building on the Williamsburg Bridge plaza, at Broadway and Myrtle avenue. Its Brooklyn branch, at No. 391 Fulton street, is a handsome ten-story office building, which was erected by the company a few years ago.

The list of officers is as follows: President, Frank Jenkins; Vice-President, John H. Scheidt; Secretary, W. Addison Field, Assistant Secretaries, T. J. McFarland and William S. Irish; Trust Officer, Charles E. Covert; Directors, Anthony N. Brady, John J. Cooney, Charles M. Davidson, Gustav J. L. Doerschuck, John Doshe, Marshall S. Driggs, Charles Jerome Edwards, Charles Englert, Joseph Fallert, Frank Harvey Field, W. A. Field, Joseph Huber, Theodore F. Jackson, Frank Jenkins, John G. Jenkins, Frederick G. Lemmermann, Joseph Liebman, Moses May, Willard P. Reid, M. L. Reynolds, John H. Scheidt, David W. Stein, John W. Weber and Robert T. Whelen.

The main office of the Jenkins Trust Company is at Gates and Nostrand avenues, Brooklyn. The main branches are at Surf avenue and Twelfth street, Coney Island; Bay Twentieth street and Bath avenue, Bath Beach; Broadway and Myrtle avenue and No. 176 Broadway. There are other branches scattered through Brooklyn and Queens.

The First National Bank is the first member of the New York Clearing-House to suspend. Its president is J. G. Jenkins. It has five or six suburban branches, located at Seacliff, Hempstead, Glenwood and other Long Island towns.

At the First National and all the other places which suspended verbal statements were refused. A watchman

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Close in Brooklyn

Brooklyn, Oct. 26.-The Terminal Bank of Brooklyn, closed its doors this morning as the result of the failure of the Williamsburg Trust company yesterday. A slight run on the Nassau Trust company of Williamsburg started this morning but is being easily handled.

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Runs on Two Banks

Brooklyn, Oct. 26.-The Terminal Bank of Brooklyn closed its doors this morning as a result of the failure of the Williamsburg Trust company yesterday. A slight run on the Nassau Trust company of Williamsburg was started this morning but it is being easily handled.

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NEW YORK PASSES TRYING DAY (Continued from Page One.) issues occurred in 1873 and 1884. The last occasion on which they were used was in 1893. The clearing house certificate is practically a guarantee byal banks in the clearing house that the certificates shall be redeemed at par, but the clearing house banks are protected against loss by the fact that first class securities, either commercial -paper or stocks and bonds, are required before the certificates are issued. The certificates are used only be tween banks. They do not appear in general circulation, but by relieving the banks of the strain of large debit balances, they enable them to keep their cash reserves comparatively in. tact It is believed by competent bankers that an issue of $50,000,000 will be the outside requirement at present. It is believed also that the mere fact that they are to be issued will so far re store confidence that runs upon banks win cease, so that it will not be necessary to keep certificates outstanding for any considerable time. Already the strong city banks are receiving large deposits from persons who have withdrawn their money from institutions which have fallen under suspicion. This does not preclude the fact that considerable amounts have been put in safe deposit boxes and thereby withdrawn from circulation, but it is believed that renewed confidence will cause the return of this money to the banks within a short time Imports of Gold. Late in the afternoon a favorable light was cast upon the prospects of imports of gold by a sudden fall in foreign exchange. The market has been practically at standstill for several days with large offerings of bills and few takers This afternoon, how ever, the rate dropped to 4.85. which practically makes imports of gold possible at a profit. Leading bankers and foreign exchange houses have been looking for this development but hardly expected that it would come so soon. The tide of gold, once it sets on. the way, will undoubtedly reach a large volume, in view of the considerable amounts due this country for the outgoing crops and for securities. While the present market is one to encourage the general public to buy American securities, there are always shrewd observers in Europe who are disposed to buy at times like the present and some of them have been in the market during the past few days. It will be possible even by the process of Joans to transfer a part of the burden of carrying stocks from New York to London and Paris, but this has been tone thus far to only a limited extent The fact that the banks and the stock exchanges will be open for business but two hours tomorrow and that Sunday with all its opportunities of calming public sentiment will intervene, added to the more hopeful view taken by leading financiers tonight will do much toward clearing the financial skies before next week. At a meeting of the directors of the Lincoln Trust Company tonight, Louis Stern, a director, was authorized to make the following statement: (The directors of the Lincoln Trust Company are justified in stating that the company is in a position to meet every demand that may be made upon it and that the company is In a strong. et position tonight than any day this week. Furthermore, the withdrawal of funds has been less day by day At a meeting late today the direc. tors, of the Knickerbocker Trust Com. pany appointed a committee to take steps to bring about a resumption of business The committee later announced that an agreement providing for the deposit of claims of depositors and of shares of stock of the company was being prepared The committee will meat Monday to pass on this agreement Run Continues Baltimore. Oct. 25. The run on the East Branch of the Home Bank, continued today and shortly before noon, the depositors who were in line waiting for their money were notified that the bank would take advantage of a chare ter provision which permits the institution to demand sixty days notice of a positor's intention to withdraw his or her account A member of the firm of Bernstein, Cohen and Company, owners of the bank, today admitted that the run has been of much larger proportions than had been reported. Runs on Pawtucket Banks. Pawtucket R. I. Oct. -Follow ing the posting of the ninety day notice to depositors by the local branch of the New England Trust Company, of Providence runs were started today on all banks in Pawtucket. With the exception of the New England Trust Company all the banks met the demand without difficulty GOVERNOR APPEALED TO. A Legal Holiday to Relieve Financial Situation Asked For. Albany, N. Y., Oct. 25 -Governor Hughes today received a number of telegrams suggesting that he proclaim a legal holiday during which the financial situation might be relieved. The Governor acknowledged the receipt of all of these messages without indicat ing his intentions. He would not dis. cuss the question tonight, but there is a good reason to believe there is no immediate probability of his taking this step. COMPTROLLER OF CURRENCY GIVES OUT A STATEMENT. Washington, Oct. 25.- The following statement was given out today by the Comptroller's office: The First National Bank of Brook lyn. N. Y., closed its doors this afternoon and National Bank Examiner George T. Cutts has taken charge by order of the Comptroller of the Currency. The First National Bank cleared for the Williamsburg Trust Com pany and the Jenkins Trust Company of Brooklyn, both of which failed to. day The National Bank was closed to protect its depositors against the checks of the Trust Companies, which might be presented through the Clear ing House.

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any other institution for the time," he said. "All of the other members of the Clearing House received the same instruction regarding the banks for whom they were clearing That order left us without means of getting cash. We have as good securities as any other bank in the country, but when we were unable to get money upon them we had no alternative but to close our doors. The Clearing House is doing everything that it can to improve the present situation, and as soon as this flurry is over I suppose it will rescind its order regarding clearing. Of course only a certain number of banks can be members of the Clearing House, and the other banks have to clear through them. "The state accountants are still going over our books, and they will not report probably until Tuesday or later. Our bank is entirely sound. The rumor that politicians have had preferences shown them by us is entirely unfounded. As for the International Trust Company, we had never gone into that concern. The action was only proposed, but was not carried out, and now will not be." The Jenkins Trust Company, the First National Bank. the Terminal Bank, the Williamsburg Trust Company and its branches, generally known as the "Jenkins banks," it was generally understood yesterday would reopen on Tuesday. The federal and state examiners, according to the directors, have found the institutions solvent and in a position to continue doing business as soon as the ready cash was obtained. President John G. Jenkins, jr., said yesterday he did not propose to open the Williamsburg Trust Company's offices until he was satisfied he could do SO without closing his doors again. He said that his bank would never have been compelled to close up had it not been for the run which used up all the available cash. A movement is on foot, according to Jullan D. Fairchild, president of the Kings County Trust Company, to bring the banks and the trust companies closer together. "We do not need a clearing house in Brooklyn, as has been suggested," he said yesterday. "We want only one such institution. What we do want is a closer connection between the banks and the trust companies. The trust companies should go into the clearing house, either as regular or as associate members. The trust companies, like the banks, should make weekly reports concerning themselves. That would give people a reliable understanding of the banking situation of the city's institutions. The trust companies have as much. if not more, money on deposit than the banks have, and yet at present they do not take steps to keep the public informed concerning themselves. This crisis may result in bringing them into closer relation with the banks. I do not think that they should be compelled to keep on hand such large reserves as the banks. The banks must have 25 per cent of their deposits, but the trust companies are not required to keep more than about 12 per cent on hand. Their deposits are slower. not so liable to be paid out and their securities are better. The Clearing House and the trust companies should be able to determine upon some equitable arrangement whereby the trust companies could become members or associate members of the former."

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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 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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Amount of loan Frederick Kaiser, clerk $62,000 C. H. Reuter, clerk 58.000 F. C. Young, clerk 95,000 Waldo Hunter. clerk 104,000 The brokerage firm itself got $188,000 from the company, and Fred Jenkins, a son of John G. Jenkins, president of the First National Bank of Brooklyn, and brother of John G. Jenkins, jr., president of the Jenkins Trust Company, got a $50,000 loan. The Jenkinses have up as collateral security for these loans stock of the First National Bank, of the American Malt Company preferred and stock of their own brokerage company. Presumably some At least of this collateral was put up after the bank closed. The loans to the clerks were made under date of October 1, except $50,000 to Young and $50,000 to Hunter, made just before the bank closed. George A. Zabriskie, a flour merchant, cashed a check for $20,000 on the Borough Bank the day before it closed. From this incident arose the rumor that he had been "tipped off" by a friend who is also a director of the bank, and he was subpoenaed by the grand jury. As a matter of fact, Mr. Zabriskie cashed the check to meet a note for that amount which fell due at that time. After the check was deducted from his deposits he still had left on deposit in the Borough Bank nearly $20,000. Directors and stockholders of the Borough Bank held a long meeting at the Clarendon Hotel yesterday morning, and it was announced that about seventy stockholders had pledged themselves to apply their deposits to the liquidation of all the notes owed the bank, regardless of the time of maturity of the notes. A committee of five was appointed to meet the depositors to discuss plans for reopening the bank. About fourteen hundred depositors have signed the agreement to accept the deferred payment plan, and a fight will be made against the motion to make the receiver permanent. The directors of the Williamsburg Trust Company sent out a statement to the depositors yesterday saying that the state bank examiner had reported assets of $8,176,826.56 and liabilities to depositors of $6,801,361 23. with a margin over and above all liability, except to stockholders, of $714,621 30. The depositors are asked to sign an agreement providing that they may demand 10 per cent of their deposits at once, 15 per cent four months after resumption, 20 per cent after eight months 25 per cent after twelve months and the remaining 30 per cent after sixteen months, so that a receivership may be fought. The depositors of the Jenkins Trust Company, at

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committed suicide, having been president of both institutions. William Gow. a director in the Borough bank and the International Trust company, is charged by the temporary receivers with dominating the International company and SO controlling its financial operations as to make large sums of money. Loans Made to Clerks. Frank L. Bapst, temporary receiver of the Williamsburg Trust company, in his report says that the company made demard loans to the amount of approximately $222,000 to five clerks in the employ of Frank and J. G. Jenkins, jr., the stock brokerage firm. These clerks also figured in loans from the Borough bank of Brooklyn. The receiver also states that the Williamsburg company made a demand loan to C. H. Reuter for $171,500, which is not guaranteed, and for which there is held collateral of the estimated value of $73,148. A loan of $25,000 was also made by the Williamsburg company to James Hart, a son-in-law of J. G. Jenkins, sr., for which collateral is held of the estimated value of $12,400. Concerning other loans aggregating $476,000 the receiver states that collateral only to the estimated value of $275,000 is held and upon these loans there is an estimated loss of $200,000 placed by the bank examiner. Directors Had a Tip. Mr. Bapst, in his report, shows that within the four days immediately preceding the closing of the doors of the Williamsburg company, several of the company's directors withdrew practically all their deposits. Goodwin Brown, temporary receiver of the International Trust company, states in his report that the book value of the demand loans of the company is $43,750 and of this sum, $32,250 is doubtful. The receiver charges that William Gow, a director, paid $307,000 for a lease which he sold to the trust company for $457,545. The receiver states that Gow withdrew from the company $325,852 in cash on October 21, 1907, a few days before the institution suspended.

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BIG SUMS DRAWN OUT

BANK RECEIVERS REPORT. Trust Company Accounts Almost at Minimum Before Suspension. Reports of the temporary receivers of the Williamsburg Trust Company and the International Trust Company were made public by Attorney General Jackson yesterday. They show that large withdrawals were made from both institutions just prior to their suspension on October 25. The array of accounts that were drawn down almost to a minimum in the International Trust Company is startling. It would appear that William Gow made some $150,000 by the transfer of the lease of No. 206 Broadway, where the company did business. Deputy Attorney General Robert J. will before District all the facts he has in to-morrow Steele Special place Attorney connection and Jerome ask with the International Trust Company, that some action be taken on them. At the same time the Kings County Grand Jury for December, take which is to be sworn in to-morrow, will up the Williamsburg Trust Company Attorney General Jackson said last night that the loan committee of the Williamsburg Trust Company might be responsible for loans amounting to $220,000, which went to five clerks in the employ of the F. & J. G. Jenkins, jr., brokerage in which this corporation, all which is held by the concern. the stock farm The of ly, way members of dollars of Jenkins borrowed thousands from the Jenkins Trust Company has already been told. It is understood that it also had large loans from the First National Bank, of Brooklyn, which is in the hands of a federal receiver. More evidence has been found to show how some of the accounts in the Borough Bank were drawn down just before its suspension. Arguments were heard yesterday by Justice Bette in Albany on an application to make the receivers of suspended Brooklyn institutions permanent. The application was strenuously opposed by counsel for the banks. All the arguments were adjourned, the Borough Bank to December 10, the International Trust Company. the Brocklyn Bank, the Williamsburg Trust Company and the Jenkins Trust Company to December 12. ORGANIZED OUT OF WIND In giving out the report of Goodwin Brown, receiver for the International Trust Company. Attorney General Jackson said it would seem as if the concern had been organized largely out of whid. "If the report of the receiver is correct," he said, "there was a falsification of the books of the Borough Bank and the Brooklyn Bank and a manipulation of their securities, in order, apparently to give the International Trust Company a surplus and capital of $1.000,000. It was organized only a few weeks before it went up, and when it closed its doors had only about ninety depositors, with deposits of between $110,000 and $120,000. The report states that R. W. Jones, jr., the former president of the Oriental Bank, had a demand loan of $32,250, which was entirely unsecured. "This indebtedness has not been adjusted," says Mr. Brown. "Mr. Jones is ill, but his attorney has promised to confer with me in reference to the matter." An interesting transaction, where William Gow, the organizer of the trust company, apparently made $150,000 is related at some length. It seems that Gow paid to the trustees of the Henderson estate for the lease of No. 206 Broadway, where the trust company did businear, $107,000 in cash and gave a mortgage for $200,000. He apparently sold the lease to the trust company for $457,545 on October 21. or four days before the suspension, receiving $257.545 55 above the mortgage. He on the same day deposited stocks and bonds with the company and drew out $325,852. CONCERNING GOW'S DEAL Concerning this transaction the report has this to say: In another part of my report 1 have called attention to Gow windrawing from the company the $325,852 50 on October 21, 1907 This covered credit he received from the transfer of the leasehold of the building No. 206 Broadway, at a total cost to the company of $457,545 55. which, however, included a mortgage for $200.000 w hich Gow gave to the Henderson trustees at the time he purchased the lease from them. a He by taking out the amount he did, realized profit of $150,000 in disposing of the lease to the company On the other hand however, is to be noted the fact that on October 21 Gow also turned over of to the company stocks and bonds of the value $150,000, so that as a result of the entire transaction if the company had a balance left of about $82,293. we are to concede the full value paid by the compass for the leasehold. and that, as pointed out in another part of my report, is extremely doubtful. In my opinion, Gow originally had no intention of transferring the lease to the company Having paid $107,000 in cash on account of the purchase price paid by him to the Henderson trustees, the the rentals exceeded the charges of operating building by substantial amount It was good investment for him. but on October 21 he evidently needed money either for his own use or to put in the Borough Bank. By turning the lease over to the company on that date at the price of $257,545.65 over and above the existing mortgage for $200,000, and also turning over to the company stocks and bonds of the stated value of $157,600. he was enabled thereby to take on the Fame day from the company's cash at the Oriental Bank the sum of $225,852.50 In support of my opinion that Gow had no inten In tion originally of transferring the lease to the ternational Trust Company, call attention to the fact that the lease itself is not dated, although it The was duly acknowledged on October 21. 1907. original lease made by the Church Corporation contained a clause that in the event of an assignment of the lease being made without their consent, the Church Corporation could then re-enter. This conContinued on second page. CONGRESS OPENS DECEMBER 2ND.

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PROBE BANN FAILURES RECEIVERS UNEARTH GROSS IRREGULARITIES Insolvent New York Trust Company Directors Obtained I Institution's Funds By Loaning To Dummy Borrowers. M [By Morning Journal Special Leased Wire.] New York. Nov. 30.-Attorney GenI eral Jackson made public today the report of the temporary receiver# of the Williamsburg Trust company, of Brooklyn, and the International Trust I company. of New York, both of which 800 recently suspended. The matter will be taken before the grand jury of ( Kings county. The president of the Williamsburg I Trust company was Frank Jenkins, BAG who, with his brothers. John G. Jen8 kins. Jr., and Fred J. Jenkins, held X a controlling interest in the Jenkins 1 Trust company. now suspended. The International Trust company was closely allied with the Borough bank of Brooklyn, the late Howard Maxwell. who committed suicide, having Miss been president of both Institutions. I William Gow. a director in the Borough bank and the International ! a Trust company. is charged by the temporary receivers with dominating o the International company, and so controlling its financial operations as 1 to make large sums of money y Frank L Rapst. temporary receiver a of the Williamsburg Trust company. in his report says that the company 18 made demand loans to the amount of 1 approximately $222,000 to five clerks a in the employ of Frank and J. G. Jen0 kins, Jr., the stock brokerage firm. g These clerks also figured in loans T from the Borough bank of Brooklyn. The receiver also states that the WIIIlamsburg company made a demand loan to C. H. Reuter for $171,500. j which is not guaranteed, and for which there is held collateral of the 1 estimated value of $73,148. A loan of t $25,000 was also made by the Will1 lamsburg company to James Hart, a I son-in-law of J. G. Jenkins. Sr., for DE which collateral is held of the estiV mated value of $12,400. Concerning * other loans aggregating $476,000. the receiver states that collateral only to e the estimated value of $275,000 is held p to and upon these loans there is an estimated loss of $200,000. placed by the t) bank examiner. n Mr. Bapst, in his report, shows that 3 within the four days immediately prebe ceding the closing of the doors of the C Williamsburg company. several of the ( company's directors withdrew practir cally all their deposits. C Goodwin Brown, temporary receiver to for the International Trust company, P states in his report that the book value of the loan company is $43.750. and of this sum $32.250 is doubtful. b The receiver charges that William a Gow. a director, paid $307.000 for a b lease which he sold to the trust comg V pany for $457,545. The receiver states that Gow withdrew from the 0 company $325,852 In cash on October 21., 1907. a few days before the insti- u

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CROOKED BANKING ON LARGE SCALE Temporary Receivers of New York Trust Companies Make Reports NEW YORK, November 30.-Attorney General Jackson made public today the report of the temporary receivers of the Williamsburg Trust company of Brooklyn and the International Trust company of New York, both of which recently suspended. The matter will be taken before the grand jury. The president of the Williamsburg Trust company was Frank Jenkins, who, with his brothers, John G. Jenkins Jr. and Fred J. Jenkins, held a controlling interest in the Jenkins Trust company, now suspended. The International Trust company was closely allied with the Borough Bank of Brooklyn, the late Howard Maxwell, who committed suicide, having been president of both institutions. William Gow, director in the Borough bank and International Trust company, is charged by the temporary receivers with dominating the International company and so controlling its financial operations as to make large sums. Frank L. Bahst, temporary receiver of the Williamsburg Trust company, says the company made loans to the amount of approximately $222,000 to five clerks in the employ of Frank and F. J. Jenkins Jr., a stock brokerage firm. These clerks figured in loans from the Borough bank. The receiver also states that the Williamsburg company made a demand loan to C. H. Reuter for $171,500 which was not guaranteed and for which they held collateral for $73,148. A loan of $25,000 to James Hart, son-in-law of J. G. Jenkins Sr., for which collateral held is estimated at $12,400. Concerning other loans, aggregating $476,000, the receiver states that the collateral estimated at $275,000 is held upon these loans, there being an estimated loss of $200,000 placed by the bank examiner. Bahst shows that within four days preceding the closing of the Williamsburg company several directors withdrew practically all their deposits. Goodwin Brown, temporary receiver of the International Trust company, says that the book value of its demands loans is $43,450, and of this sum $32,250 is doubtful. The receiver charges that William Gow, a director, paid$307,000 for a lease which he sold to the company for $457,545. The receiver also states that Gow withdrew from the company $345,852 in eash on October 21pm fewl/days before the institution suspended.

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FIND MANY ERASURES Investigators Are Probing Brooklyn Bank Affairs. COMPEL RETURN OF MONEY Receivers Will Bring Civil Action to Recover $200,000 Taken from Borough Bank After Closing Hours. More Indictments Expected to Be Returned by the Grand Jury. New York, Dec: 1.-The new grand jury in Brooklyn will take up the withdrawals that were made by insiders from the Borough Bank on the day before it suspended. It is estimated that $200,000 was taken out by the insiders and their friends after the close of banking hours on October 24. The notice of suspension was posted about 1 o'clock the next morning. Nearly all the checks that were cashed by the bank on that last day are missing, and erasures and other alterations were made in the books so as to include some of the after-hour payments in the entries for the regular course of the day's business. It is said that when the elerks appeared at the bank on the morning of the 25th they found entries by strange hands in the books. Demand Return of Money. The receivers of the Borough Bank also have started an investigation into these last moment payments, and they intend to bring civil actions to compel the return of every penny to the bank. The new grand jury will take up tomorrow also the withdrawals by directors of the Williamsburg Trust Company from that institution on the last day. It is expected that in the course of the investigation into the Borough Bank affairs by the new grand jury more indictments will be returned against at least one of the men who has already been prominently mentioned in the scandals. Since the publications of the receiver's report it has become apparent that the funds of the three Gow institutions, the Borough and Brooklyn banks, and the International Trust Company, were juggled about among themselves. Hurley Attacks Gow. Martin W. Littleton, counsel for William Gow.(the indicted Borough Bank director. issued on Saturday a statement in defense of his client, and attacked other directors of the institution, notably William S. Hurley. It was decided this afternoon at a meeting of Mr. Hurley's friends that'a statement should be issued telling the facts in the case. At the meeting of Mr. Hurley's friends at the Clarendon Hotel the statement replying to Mr. Littleton was prepared under the personal direction of Samuel S. Whitehouse, Mr. Hurley's attorney. The statement was. in part, as follows: "It is true that Mr. Hurley was abrupt in his treatment of Gow. It is true that Mr. Hurley went at Gow hammer and tongs. As a matter of unadorned fact, Mr. Hurley threatened to shoot Gow. Campbell, and Maxwell unless they made restitution to the bank. It is true that under Mr. Hurley's threats to shoot them, Gow, Campbell, and Maxwell turned over to the bank $767,000 worth of property." .

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CHANGE OF VENUE TO BROOKLYN

Albany, Feb. 3.-Supreme Court Justice Howard, of the 3d Judicial District, has granted the motion of counsel for the Williamsburg Trust Company. of Brooklyn, for a change of venue from Ulster to Kings County for the trial of the action brought for a dissolution of the institution. The matter does not involve the question of the receivership of the institution, which was made permanent several weeks ago.

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BANKER JENKINS DIES SUDDENLY AT SON'S HOME Indicted Head of Brooklyn Financier Family Stricken by Paralysis. FOUNDER OF A BANK. Pioneer of Williamsburg Business Interests Cut off While Under a Ban. John G. Jenkins, sr., head of the Brooklyn Jenkins family of financiers, four members of which, including himself, were awaiting trial on indictments charging conspiracy and perjury, died to-day at the home of his son, John G. Jenkins, jr., Sea Cliff, L. I. Mr. Jenkins was sixty-nine years old. He contracted a severe cold two weeks ago, but had partially recovered and yesterday spent several hours in Brooklyn with his lawyers, talking about his approaching trial and the plans for resumption of business by the Jenkins Trust Company. After a hearty dinner yesterday evening he retired. At 1.30 o'clock this morning he suffered an attack of paralysis. Dr. Grant Stanley. the family physician. was summored. Mr. Jenkins suffered a second paralytic stroke at 4 o'clock. and S o'clock he died. He did not regain consciousness after his first seizure. John G. Jenkins, sr., was one of the best known men in Brooklyn. Up to the time of the panic, last fall, when the First National Bank of Williamsburg, the Williamsburg Trust Company and the Jenkins Trust Company, with all of which he was closely identified ailed. he was regarded as a leading example of the old school, safe and conservative financier. His wealth was counted in the millions.

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TRUST COMPANY WANTS TO RESUME (B) Associated Press. y NEW YORK, April 10.-The Williamsburg Trust company of Brooklyn, which went into the hands of a receiver October last, will resume business as soon as a plan of reorganization can be put into effect if the courts permit. The receiver now has on hand $1,300,000, which the directors hope to increase to $3,000.000.

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Trust Company Resumes

New York, April 10.-The Williamsburg Trust company of Brooklyn, which went into the hands of a receiver in October last, will resume business as soon as a plan of reorganization can be put into effect, if the courts permit. The directors decided today to formulate a plan to resume business, The receiver now has on hand $1,300,000, which the directors hope to increase to $3,000,000.

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WILLIAMSBURG TRUST'S BACKER

The Metropolitan Trust Company to Put Up 81 ,500,000. It was announced yesterday that the Metropolitan Trust Company has agreed to put up $1,500,000 in cash to back the Williamsbrug Trust Company in its plans to resume business. A motion for the removal of the receviers of the Williamsburg Trust Company is to come up before Justice Crane in Brooklyn next Monday and it is confidently expected by the directors that it will be granted, as the bank will be ready to pay off all depositors in full. The reopening, it in said, may take place about June 1.

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WILLIAMSBURG TRUST CO

OPENING. Announcement was made yesterday that the Williamsburg Trust Company would resume business on Monday, June 8. An order permitting this will be presented to Justice Kelly for his approval, which is expected. He will be asked also to fix the compensation of the receivers, upon which, it is understood, an agreement has been reached. The doors have been closed since October 25. A large amount of money has been collected by the receivers, and the Metropolitan Trust Company has promised to advance $1,500,000.

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Williamsburg Trust Company Reopens Tomorrow

All arrangements for the reopening of the W illiamsburg Trust Company in Brooklyn at noon to-morrow have been completed, and vesterday Receivers Van Wyck and Baptist and their counsel, John Lyons, called on Gen. Brayton Ives, the new president, and the directors, and congratulated them on the favorable outlook for the institution. Justice Kelly of the Supreme Court yesterday gave permission to the diretors to establish a branch in Broadway and Stockton street, to take the place of the branch in Myrtle avenue and Broadway, which was leased by the receivers to the Corn Exchange Bank.

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at 6 per cent interest, without commission. This credit, it is understood, has been repaid.

Whether or not the bank will be reopened it is still too early to predict. Some of the larger interests, it is understood, are desirous of putting more money into it, but other important interests are said to consider that policy inadvisable. The wishes of the body of the stockholders have yet to be ascertained, and if they are willing to submit to a considerable assessment the institution may be reopened. Another possibility is that some other bank may make an offer for the Union and take it over.

The Union Bank will benefit by having its affairs placed in the hands of the State Superintendent of Banks instead of a receiver. The first case of the sort was that of the Home Bank of Brooklyn, a small institution, which was reopened for business on June 4, 1908, after having been in charge of the Banking Department for forty-two days, at a total cost of only $1,200. Under the new system, it was said at the time, the cost of liquidating the Williamsburg Trust Company would have been not more than $4,200, compared with the $40,000 allowed the receivers and their counsel, which fee did not include the cost of administering the trust.

The report of Superintendent Cheney last month noted that the creditors of the Lafayette Trust Company up to date had received 30 per cent and those of the Binghamton Trust Company 50 per cent, the costs of liquidation having been, respectively, 1 per cent and two-thirds of 1 per cent.

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TRUST CO

TO LIQUIDATE. NEW YORK, Dec. 14.-President Jacob C. Klinck, of the Williamsburg Trust Company, announced today that the *trust company was going into liquidation and that all its deposits would be paid in full. The company suspended during the panic of 1907.

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VOTING TRUST AT AN END Williamsburg Trust Company Now May Be Dissolved. Jacob C. Klinck, president of the Willfamsburg Trust Company, of Brooklyn, anhounced yesterday the termination of the voting trust agreement whereby the com-, pany was able to resume business after its suspension in the financial panic of 1907, and added that every depositor would immediately be paid in full. The voting trust held three-fourths of the voting stock of the company. This will be returned to the original holders and the hareholders then will decide whether or not the company shall continue in busiaess. The statement made by President Klinck follows: General Brayton Ives has returned to the Williamsburg Trust Company for distribution more than 1,100 shares of capital stock transferred to him in May, 1908. Yesterday General Ives and William N. Dykman, as voting trustees, terminated the voting trust agreement under which they held over 5,000 shares of the capital stock and arranged for the return of these shares to the holders who deposited them. The reult of this is to put every shareholder just where he was before suspension. To-day the directors have concluded an greement with the Metropolitan Trust Company whereby we borrow money enough to pay every depositor in full in cash at once, and the assets of our company will be liquidated by the Metropolitan company between now and July 1, 1912, but under the direction of the men who compose the executive committee of the WillLamsburg Trust Company. This will prevent the waste or sacrifice of our assets. The agreement provides that the shareholders shall meet and pass upon the agreement and also decide whether the Williamsburg Trust Company shall continue in business Gr be dissolved. We have been forced to lay this question before the shareholders by diminished deposits and profits, which has led the directors to believe liquidation. the shareholders will be benefited by The report of the company to the State Banking Department last month showed deposits of $1,312,640 and assets of $2,988,316. The company was organized eleven years ago, with a capital of $700,000. Its main fices are at No. 391 Fulton street, BrookP and It has & branch at Breadway and Williamsburg.