The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-12

UUUtW ACKNOWLEDGEMENTS
8 % $3.50 OCEAN Insurance COMPANY,
SCS No. 3e2 New YoRK, 18th April, 1912. :
3eS Cashier OF the Merchants Bank pay to ". G 3
gig Rutgers. Assistant or order, Two Hundred and
zss ABR OGDEN, President. s
10000 o0ooo0oO0Oo
This check endorsed by N. G. Rutgers, Assistant
and paid at the bank the 18th of April 1912 The first
witness called was
ABRAHAM OGpEN for the prosecution who deposed
follows IL President of this Ocean Insurance Com
pany from 1918 to ls42when Receivers were appointed
which was in the of the latter year-James s
schermer Thorn was Secretary during that time, being
elected in 1919 he continued to act until lSa2 when ms
defalcations were discovered this was on the ON OF
June, 1912 the company was chartered in March 20,
1906 acts TO extend the charter passed in 1888 and 1889
Sunday evening, 5th Of June 1912 Mr. Rutgers called
upon to 60 TO the house of Mr.. Schermerhorn we
went together Mr. Schermerhorn then stated while he
much effected and excited that he had derauded the
thing could be done he said had been long while in
progress asked him how he could have deceived the
company in the half yearly reuros he said il had been
done by altering the amount OF bills receivable note
book kept by the company of register OF notes deposit
ed in the Merchants Bank was here exhibited These
half yearly returns made up by the accused in
balance sheet the assets of the company always
examined that they intended to tie examined to
taken granted withou, examining the orig
nal hers the accused said he had altered the figures
in the notes he said he had made the bills receivable
hook compare with the balance sheet and the bank book
by and alterations he said he regretted the
thing very much indeed he had been led asray by fell
tors and make the statement he made to and ac
quit all other parties in the institution of any psrcpa-
ton he regretted it account of the officers Of the in
stitntion but ready take the responsibility the
erasures evident in the note book Of the Merchants
Bank here shown.
Mr. JORDAN objected, he said the book showed no
evidence Of the abstraction Of the funds, but de-
ciencythe the prosecution must show to sustain the
indictment OF embezzlement, that he had appropriated
the funds 10 his use..
The CouRr decided that the offering ofthe book in
tended link in the chein Of testimony, to show that
dp "a
Mr. JORDAN objected to the admission of any entries
made, that would sustain IN offence debarred by the
statute from length Of time he believed every body
concerned with this matter except Mr. Ogden was dead
and he had been spared for some special purpose
The CouRr decided that the testimony admissible
to which decision MIR Jordan took exceptions
WIrNi IS contnued.The entry in the margin OF the
book is in the hand writing OF accused and under date
date of the accused said TINT he had made the al
teraton by adding figure before those entered for in
stance if it $500 he would add figure or or D.
which would make it thousands instead Of hundreds we
found the hook of bills receivable short over $4,000
do not know that examinations correct of my
own knowledge they examined by others under
my superintendent. 49,
JoRpAN-Then suppose all that has been said about
the knowledge of witness relative to the books amounts
| to nothing.
disclosures he also told that the books were in very
bad state and he would and arrange them he did
several afternoons at the Office cash book was
here shownlpage 497 contains an entry 4th jan is43
Dayton Hodges Co. debit $l245 So it should be S245 So
| oRDAN-How do you ascertain this Mr.. Ogden2
WITNEss-Here the corrections Of the accused ID
his own hand writing that explain the matter.
1.-THE bills receivable book, note book and cash book
here presented by the District Attorney who read
a number Of entries to show the false manner in which
the books had been kept such alterations from $27O to
e s Of Sis 400 within abort space of timeI
WIrNvs continuesThe entries and alterations are gu
in the hand writing of Schermerhorn; the 9Th April
ls42 Schermerhorn drew check for $3.50 to pay pre-
mums due to W. s. Wemore; the check was signed by
me and endorsed by MI Rutgers the Assistant Presidents
il then handed back to the accused az was usua
when the defalcaton wis discovered ascertnned that
the check had been paid to Mr. Wetmore by the
sed this the check here produced and the date and a.
mount corresponds with the entry in the check books
turning to the cash book find that the cash il credited
with $3.50 paid to Wemore in the hand writing Of the
accused the check paid by the Merchants Bank and
charged tho company the amount has since been paid
by the company to Mr. Wemore at the time the defalca
ton wss discovered may have had talk with the
relative TO the check but do not know that he
told what he had done with the money! the 18th OF
| Nav is42 check was drawn by the company the
Merchants Bank for s5s5s 81 to pay balance due the
| General Mutual Insurance Company, which we have
since learned not paid although about 81 600 was
credited the Ocean Insurance Company on the books
of that company paid The occused was secretary OF
the General Mutual Insurance Company also this was
balance due them took the report of the clerks as to
the amount Of the dedication of accused do not know
the amount Of my own knowledge.
Crosserdmined by Mr. JORDAN The accused went from
my counting into the Office Of the secretary OF the
company: his salary ranged from $500 to 500 ms
habits, while in the company were economical and IN
dustous never knew he extravagant in his family
elsewhere he said he had been led into the business by
Wall street he told me that he had endea
vored the money he had intended to it. and
had entered into specuatons for that purpose Morriss
canal among others; these speculaons were going on
good many ago this stock has been in the market
from time time till the company could have dis
covered the defacatons any time by comparing the
bills receivable with the bank book and balance sheet
the company in their half yearly examinations have con-
silered the receipt book Of bills receivable evidence OF
| the condition of the bank do not think they have
have to tell whether the deficiencies OF accused
ten fifteen twenty agothe hooks show the
deficiency but cannot tell when IL was or how was
do know thing about when except by his
own confession cannot tell whether it was all taken
| ut one time at different times do not know that Mr.
ment for which he il trial the hank book containing
these taken to the bank whenever notes were
entered the check for S5357 96 given - Mr. Scher
merhorn, officer Of the General Mutual Insurance
Company a credit is in the books Of the General Mutual
Insurance Company for the amount of the check with
| interest
| WHrrIvG.-When was this entry made
| JoRpAN-I object to this question.
WHIrNG.-I ish to show that the entry OF credit was
made in these books after these defalcations were DISCO
vered and the Ocean Company repaid thu
balance OF 50 800 the accused had appropriated &c
himself out of this check .
JORDAN replied and the court decided that the testi
not admissible TO show intent or quo amino
in the case.
witness cOntinued.-The cash book of the Genera
Mutual Insurance Company containing this entry all II
the handwriting of accused up to June 1912
| Mr. 8 WETMoRE called and sworn Il had claim or
the Ocean Insurance Company in April 1912 for S2SOi
paid after the accused had left the company on tht
9TH OF June ofthe same yearhe check here shown wal
Lever paid TO
JAcoB S. BAKER called.-I of the clerks of thu
Merchants Bank; charged this check on the 18th n
| AM, II xUae ivedo "