The evening world. Newspaper, January 3, 1911, Page 4

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| } j PTT sl i Ee Das coe ga (ADM DALE ES WORLD, '] TUESDAY, JANUARY 8, 1911. JUDGE SWANN TWO SEIS OF INDICT BANK. WRECKERS, INSTRUCTS GRAND JURORS ——_ +42 — _ District-Attorney Whitman Begins Vigorous Prosecution of Robin and Culpable Officials, With Promise of Speedy Action. “No effort will be spared by this office in prosecuting those guilty of violation of the law in connestion with the affairs of the Northern Bank and ite branches and the Washington Savings Bank, and asno- ciated companies. 2xaminations officers of the banks are being conducted by me and my assistants to-day, and the evidence as it develops will be presented to the @enuery Grand Jury. The foregoing statement was dictated to an Evening World reporter to-day by District-Attorney Whitman, in connection with his prosecution | of those responsible for the collapse of the banks and promotions of Joseph G. Robin, the young financier who is 1 prisoner in Bellevue Hos- pital after an alleged attempt at suicide at the Courthouse last Friday, following his indictment for grand larceny of $80,000 from the Wash- ington Savings Bank. Mr. Whitman added; ‘In connection with these banking prosecv.tions I re- affirm my caimpaign pledge ' “High Finance Came As “Low.” Here is the pledge made "e: Dis- trict-Attorney when he was rng for that office: il “Z propose to treat crimes oriminals of high finance exactly in the same way as I intend to treat erimes and criminals of ‘low’ f- mance. I shall regard all defen- Gents at the criminal bar as equal before the law, whether they are charged with having stolen « rail- road or @ watch, whether they have plundered from public or from pri- vate funds, whether they are orim- finals of high finance or low finance. “When will Banker William Mont- gomery be brought to trial on the five Indictments found by your predecessor, | Mr. Jerome?" was asked. “This month, I sincerely hope,” re- plied Mr, Whitman, ‘I wae ready for trial in June and October, but an im- portant witness went to Europe and I could not detain him.” “When will Bankers E. R. Thomas and Orlando Thomas, both under tn- dictment for violations of the Banking Jaw in 1907, be brought to trial?" wes asked. Jerome Made Hie Own Calendar, “That I cannot say; probably next month,” replier Mr. Whitman. Here Mr. Whitman's new secretary, Hugh J. Bierne, spoke up, with a te- minder to, his ohief that the court eal- endah was made up by the Judge You understand that," sald Mr. Whitman to The Evening World re- porter. “Mr, Jerome used to make np his own calendar until that power wae taken from him by the Legislature, You will see by this slip that there nthe Tombs, as ainst 2 at this time last year, we are making some progress The District-Attorney insists that there Is “enougn Jaw” to meet all the | requirements of the Robin crash. He | read sections from the penal code, | which dre given here, Nearly all of | thesg provide for misdemeanor offenses, | and the punishment is SOT PHNCIE? | light, dudge Swann Instructs Grand duey, | “We have an excellent banking law,” | aid Judge Kdward Swann of the Court | of General Sessions to-day in charging | two Grand Juries, one of which will} taxe up the evidence against the off- cere of the Robin banks, Before making | his remarke Judge SWann conferred | with Mr. Whitman, After outlining the duties of a snaa| Siror Judge Swann sald: “The particular class of crime that 1) refey to is the alleged get-rich-quick | schemes that recently have been brougiit out in the public preas by means of what ts known a¥ a chain of banks, ‘This | fs @ matter that has been pressing upon Public attention, and probably you will | deem it expedient and wise to take up Indleting no innocent man ) Kuilty man escape. that there is probably | | | “T think Danking Jaw in any of the States, no or} probably in the world, that excveds ours, and the wonder is that wildcat schemes can be instituted successfully, and that under the excellent banking law that we have and the excellent System of supervision of banks that wo have in our 8i & sky-tocket Suancier can so manipulate banks as 0 cause them to be placed im the Bands of the Banking Department on gocount of alleged irregularities, “Bmall tradesmen, just at this par- time, may be very much em- ed by the fact that they, can- hot withdraw their deposits from their | business banks or from their savings banks, Reparation Doesn't Absolve. “But it is not sufficient to relieve a Person from the liability imposed by these statutes if by some fortuttous eircumstance a bank she 1 afterward be taken over by some other tnatitution and the depositors subsequently paid in full. If @ banking institution at the Dpresont time is insolvent the fact that the depositors subseque receive the full amount of their ¢ id not in Staelf be wuffictent to relieve who is guilty under the ‘onime. “The strength of the law Is in its ea- forcement and with the wonderful » tem of banking law that we have and the excelient superintendence and governmental control of the State over ‘Danks makes it seem extraordinary ar: wonderful that @uch institutions can be manipulated for privat: fe yg Bwann then read he Jurors Of prospective witnesses apd show bank: 1 the Mabliity of all ofcera of | foreman of the regular January Grand Jury is Ogden D, Budd, @ broker at No. 68 road street. ‘The foreman of the extra Grand Jury is Ernest EB, M coim, general agent, at No. 1828 Bro way, | Mr, Whitman proposes to put his banking evidence before the Grand Jury, which, in his opinion, ta beat fitted to handle such intricate evidence. The indictments standing againat | ¢ Bankers Montgomery and the two two Thomases are for alleged crimes committe in the very same banking inatitution which Robin was afterward charged with looting. ‘This is the most surprising feature of the whole chain of alleged wrong doing which began jo the old Hamilton Bank in 197, and was continued by Robin when it was merged with two other banks end galled the Northern Bank. Robin Unfit for Trial, Dr. Gregory, in charge of Robin at Bellevue Hospital, called up Mr. Whit- man thie morning ané said that the bank wrecker was in no condition to ‘be arraigned in court to-day. He said Robin would be physically well enough to face the court ordeal to-morrow. Tho District-Attorney said he would insist on Robin's a@rraignment no later than to-morrow, William L. Brower, vice-president of the Northern Bank, was being ex- amined by Mr, Whitman this morning, Here Im the section from the general statutes which 1 believed to cover the tion of the officers of the Northern Bank in cecelving doposita <fter they must have known the solvency of that bank was in question: Here's the Criminal Law. Penal Law 2%. Receiving deposits dn insolvent bank.—An officer, agent, teller or clerk of any bank, banking sociation or savings bank, and ery individual banker or agent, and every private banker oF agent and any teller or clerk of an indl- vidual banker, or of a private bank- er who recelves any deposit, knowing that such bank or association or banker ta insolvent, 1» guilty of « misdemeanor If the amount or value of such deposit be lows Ynan 996; 5F ‘TEE AMOUNT OB VALUE OF SUCH DEFOSIT BE $25 OR OVER, SUCH PERSON SHALL BE GUIL- ‘TY OF A FELONY, punishadlo by imprisonment for not less than one operas ardagl lpg hag fine Of not lees than 6500 nor more tian $3,000, or both. ‘The following from the Banking laws describes the pledge taken by @ director to do his duty: 10. Oath of Directors.—Each direc- tor, When appointed or elected, hall take an omth that he will, ¢o far as the duty devolves on him, DILI- GENTLY AND HONESTLY AD- MINISTER THE AFFAIRS OF BUCH CORPORATION, AND WILL NOT KNOWINGLY VIOLATE, OR WILLINGLY PERMIT TO BE V10- LATED, ANY OF THE PROVI- RIONS OF LAW APPLICABLE TO SUCH CORPORATION, and that ho is the owner in good faith and in his own right of the number of shares required by this chapter, sub- scribed by him or standing in his name on the books of the corpora- tion, and that the same js not hypothecated, or in any way pledged 4s security for any loan or debt, and in cage of re-election or re-ap- pointment, that such stock was not hypothecated, or in any way pledged surity for any loan or debt dis previous term, Punishment Provided by Code. That there is punishment for a di- rector Who “wilfully omits to perform any duty imposed upon him" by the| law i# shown by the following excerpts | from the penal code: 297,—-Mixvonduct by directors of moneyed corporations, Every direc- tor of 4 moneyed corporation who: J--In case of the fraudulent in- solvency of such corporation, shall have participated in such fraud; or @—Willfully does any act a7 such Girector which is expressly forbid- den by law, or wilfully omits to | perform any duty imposed upon him as such director by law, is guilty of a misdemeanor, if no other punishment i# prescribed therefor by law, 290,—-Misconduct of officers, dt- rectors, trustees or employees of banking corporations, A director of @ sorparation, or- ganized under the of re Yas or the Byening World of to-day of the Penal ron aqnes ww, State, having yey v a. - Page. vote or tag ot them, Oy wee intone. | Officers of Robin’s Banks Liable William L. Brower, vice-president; William H, Mi cashier; Wallace, assistant cashier. jam H, Birkmtre, George F. Brow: Ashbel P. Fitch, James M. Gifford, A. O'Donoghue, George W. Plunkitt, Anthony Stumpf, Ji WilMam P. —_— THE NORTHERN BANK. Officere—Frank L. Grant, president; John J. Clancy, vice-president; 1. 8. Voorhis, aesistant cashier, and ©. J. Directore—Joseph G. Robin, Postmaster QR, John J. Clancy, Frank L, Grant, Frederick D, Kilburn, Asaistant Postmaster Thomas F. Murphy, Charles es T. Wood and William P. Youn, Deposits last November of $6,912,582, and 25,000 depositors. WASHINGTON SAVINGS BANK. Officers—Joseph G. Robin, president; Youngs, vice-president; Patrick 8. Treacy, treasurer; Lyman A. Cheney, secretary, and Thomas F. Murphy, chairman of the Finance to Prosecution W. B. Holloway, vice-president; Edward M. Morgan, Will- Former Superintendent of Banks Joseph L. Reiling, Jacob C. Stmon, James T. Wood, vice-president; law. w Committee, and Thomas F. Murphy: 04 to make # loan or discount to eng director of such corporation, or ‘wpom paper upon which any such Girector is Hable or responsible to Qn amount exceeding the amount allowed by that statute, is guilty Of misdemeanor. Btookhoiders Loubly Liable. The stockholders of the Northern Bank have dowble liability under the As the capital atock of that bank $700,000, they are lable for that amount a second time as follows: 71. Individual Mability of stock- holders, except as prescribed in the stock corporation law.—The stock- holders of every such corporation shall be individually responsible, equally and ratabiy, and not one for another, for all or vi acts, debts and engagements of such corpora- tion, to the extent of the amount of their stock therein, at the par value thereof, in ition to the amount invested in such shares, With relation to the diligence of the the Washington Savings Bank the banking are most explicit, The collapse of that Robin bank was the first fallure of a savings bank in New York State for thirty years, rus of such inatitutions Here {s the law: Oath Binding Truste: 137, Trustees and Their Powers,— Each trustee, whether named in the certificate of authorization or cléected to fll @ vacancy, shall, when such certifi authorisation has been {sued or when notified of such elec- ‘Trustees—Joseph G, Robin, Charles K. Lexow, Dr. H. A. James, John J. Claney, James T. Wood, William P. Youngs, Patrick S. Treacy Deposits last June of $1,141,480, and 7,000 depositors. Fae REL St! tion, take an oath that he will, so far as {t devolves on him, diligently and honestly administer the affairs of ‘such corporation, and will, not knowingly violate, or willingly per- mit to be vjolated, any of the pro- visions of law applicable to ‘such cor- poration, 142, Dividends, compensation and loans to trustees prohibited.—No trustee af any such corporation shall have any interest, airect or indirect, in the gains or profits thereof, nor as such, directly or indirectly, re- celve any pay or emolument for his services, except as heretnafter pro- vided: and no trustee or officer of any such corporation shall, directly or indireetly, for himself or as an agent or partner of pthers, borrow any of Its funds or deposits, or in any manner use the same except to Many trus- tee or officer of any such corporation become an Indorser or surety, or be- come in any manner an obligor, for moneys loaned by or borrowed of such corporation, nalty Also Provided. ‘The penal code says, with relation to the punishment of the officers of savings banks: 296. Uniawful inyestments by of- ficers of savings banks,—Any officer or trustee of » savings bank author- faing or making any investment of the funds of the bank in securities, Crackers Grew on Trees not authorized by law, is guilty of a misdemeanor, In the Directory of Directors, edition of 1900-1910, the name of Mofiale appears in the list of directors of the Northern Bank, Mr, McHale was a director and vice-president of the bank at the time the directory was compiled, but resigned on May 1, 1910, and has had no conneo- tion with the Institution since that date. pace tat ACCUSED OF SETTING FIRE THAT CAUSED TWO DEATHS. Willlam Ward,, Owner of Burned Buildings, Held in Paterson Without Bail. “(Special to ‘The Evening World.) PATERSON, N. J., Jan, 8.—William | Ward, owner of the buikting at Now. 9 and 11 Seeley street, in which two per- fone lost thelr lives and three were sert- ‘ously injured in a fire last Saturday, |was arrested to-day on a charge of arson made by Fire Chief John Stagg. | Ward dented the charge but was cam- | mitted to Jail without ball, | The police say that Wart carrted in- |surance amounting to $8,000 on the two butidings Mra. Hunnah Clark and Charles Bo- ell, a boarder, lurt their lives in the it aati etna ARS oh add etn sc | Mrs. Clark's tind daughter was one of those injured. She Is likely to ole. The police charge that they found traces of kerosene about the houses. ‘They also declared that the apartment of Boshell was looted, a sult of clothing, watch having Wart l# a former justice of the peace of Passate County. pat ie idee ALABAMA LABOR LAW DECLARED INVALID. WASHINGTON, Jan. 3.—The consti- tutionality of the Alabama Labor Con- tract law was denied by the Supreme Court of the United States to-day, It was alleged that in purpose and effect | the State law subjected a large class of | persons to involuntary servitude with- out due process of law by making mere allure to perform @ contract for labor service evidence of an intent to defraud By operation of the law, it was also held, many negroes were reduced to a state akin to peonage. The Alabama courts upheld the la Justice Hughes rendered the decision of the Supreme Court to-day. Justices Holmes and pleats Minhenrtibeti INDICTED PACKERS LOSE CRIMINAL CASE FIGHT. _CHICAGO, Jfn, . Ogden Armour Hl Mher indicted” 7 lay” lowt their first attack against criminal prose- cution for alleged violation of @ie Sher- man Anti-Trust law. Judge Kohlaaat, in the United States Circuit Court, held that-the Government had a right to dia- miss the sult in equity brougitt against the National Packing Company, j and had deen living in a boarding house and punishable as a criminal offense. | disappeared again Des, 20, and the next [Gate has been set for the sanity hearin, SANITY OF BRIDE 78 YEARS OLD 10 BE INVESTIGATED Court Calls Ongley a Schemer to Get the $250,000 of His Aged Wife. An inquiry was ordered to-day into the sanity of Mrs. Eleanor Scott Ongley, the seventy-elght-year-old bride who married Henry H. Ongley of the Tax De- ¢ which partment Dec, 21, after a roma\ had been broken off thirty-five years ago and was revived when Ongley's first wife died nine months ago. Justice Marean, who heard the motion in Spectal Term of the Kings County Supreme Court, scored Ongley as he granted the motion, “It looks to me as if this newly ac- quired husband of the woman {is #ome sort of a schemer,” he sald. “What does a man want to marry a woman seventy-elght years old for? He marries for money.” ‘The motion for the inquiry into Mra. Ongley’s sanity was made by hor brother, George W. Scott, a well known Larchmont yachtsman. Thuraday of jast week he applied to Justice Clarke for the appointment of a committee for ‘is sister's person and property. He set forth that she was a apineter at No. 42 Strong place, Brooklyn, until Dec, 17, when she disappeared. That evening she was found wandering about the streets and was taken to the Adams a#treet police station until her brother called for her the next morning. She was returned to the boarding house, but day married Ongley in Jersey City. The Newly-Weds took up their home at No. 216 Madison avenue, Flushing. When the original motion was made before Justice Clarke he issued an order restraining the Guarantee Trust Company, with whom the bulk of Mra. Ongley's $250,000 fortune 1s deposited, from paying out to her more than $250, pending the determination of the motion. To-day Justice Marean issued an order permitting the company to pay to her the income of her estate, not to exceed BRANDENBURG IN TOMBS. Broughton Brandenburg, who was ar- rested Saturday ight in Hoboken, where he had been in hiding, was ar- ralgned to-day before Judge Swann tn General Bexstons and committed to the ‘Tomibs in default of $2,000 bail. He was under $760 when he disappeared three months ago. This was forfeited. Brandenburg is charged with uttering @ bad check, While hiding in Hoboken he worked on stories and articles which ‘he wae writing unter the name of “Amelia Hutchins.” He hoped in thts way, he said, to earn enough money to pay for his defense. Can fer Stamp Tax. WASHINGTON, Jan. 3.—After five years of Mtigation, the Federal Govern- ment to<my, by viroue of a decision of the Supreme Court of the United States, deoame entitled to press a sult against the execcutors of the ecatate of the late Winflela 8. Stratton, the Colorado mining magnate, fofr, nearly $5,000 for bacck stamp tax under the Spanish- American war tax measure. $1,000 a month, unt her sanity has been determined Mrs. Ongley’s lawyer, John J. Trapp, announced that an action had been be- «un for the annulment of the marriage, but he declined to say by whom. No Nature would cover them with shells, like nuts, protecting from moisture, mildew, dirt and insects. Just so are Uneeda Biscu it protected by the moisture-proof, dust-proof package, It keeps them oven-fresh and crisp, retaining all their flavor and goodness till used, Think it over and you will always buy the protected kind Uneeda Biscuit /{ A Song That “Makes j | — the Heart Grow Fonder” [| : | “The Land of a Lord & Taylor Founded 1826 Are Conducting The Annual Sale —: ' f Muslin Underwear ‘During the months we have devoted to the. preparation of this important Annual Event, it has been our purpose not only to improve upon the high standard of excellence, but to surpass the splendid values of former years. ‘ Broadway & 2oth St.; sth Ave.; 19th St. Commencing Tuesday, January Srd Our Annual January Sales Household and Decorative Linens’ French and American Lingerie Corsets, Embroideries : Valenciennes Laces, Etc. AT SPECIAL PRICE CONCESSIONS OF , 25 to 834g Per Cent. NOTE.—Only the products of the best Mills and Workshops of Europe and America are offered, every article having been selected with a view to meeting the re+ fined tastes of the most critical buyers. Ae A Vocal Success of Far More than Ordinary Merit the Beautiful Dream” =| It’s the sing now being being rae by Truly Shattuck in “Alma, ere You Live?" at Weber's i Theatre, Now York City, i Words and Music in Next SUNDAY’S WORLD

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