The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-10-16

TRIAL OF THEODORE OLcoTT, CASHIER OF THE
CANAL BANK, ON THE CHARGE OF EMBEzzLING
THE FUNDS OF THE OGDENsBnRGH BANK
ALBANY, October 12-Theodeore Oloott cashier
of the Canal Bank, was placed upon trial on an
indictment for embezzling s42Os belonging to the
Stevens and Nicholas HILL r, Esqrs appeared his
counsel; Marcus T. Reynolds ESQ., associate counsel
The District Attorney and Samuel s. Foote, Esq, on
behalf Of the people. The following persons we're
sworn in as Jurors to try the David Mead, J.
r. Williams A, Clifford, s; Pohlman, James Jock,
Henry Judson d. Hungerford. P Batchelder, A. Case
Elias SchermeIhorn Henry butcher and Electus Shear
The District Attorney opened the by saying that
the questions involved in matters Of inn
portance both to the prisoner and to the nifty
The crime Of embezzlement not very simple
t was perpetratcd under very different circumstances
from the crimes of the nature heretofore tried here
The accused is man connected by every tie both of
business and relation, with the first Of the city
and the State yet he stood here to be judged Gull
prt with the other cuprts who had tried by the
Court this week. might be amiss to take this
case into consideration, not by the mans relation
the Canal Bank. The failure Of an institution as
gigantic in Its operations as the Canal Bank,
Is felt by all The ENFORCEMENT he is charged with il
Of package containing 20s of the bills Of the Og
densburgh Bank. II the prosecution succeeded in
yiction Mir. OIcott was the cashier Of the csuaI
Bank the Ogdensburgh Bank did business in the
county OF St. Lawrence The bills Of the latter inst
tuition were either redeemed in New York or Albany
The Canal Bank its agent to redeem its bills In
this city. The bills of the bank if taken at another
bank, are sealed up and the amount marked on them
and sent to the agency for redemption. The Ca.
nal Bank had in their possession for the pur-
pose OF such redemption, some $4,000 or $4,000 On
the 9th OF July the Mechanics and Farmers, Bank
sent the package of $42oS to the Canal Bank and 1t
was there redeemed IT should have been sent by ex
press according to the agreement with the bank that
Issued the bills Mr. Olcott wrote that he had received
IT, but that he did not forward the package but sent
1t to New York for the purpose of being thrown into
market, or used for some other purpose The Ogdeus
burgh Bank heard no more from their agen cy until
they heard Of its explosion, and of the bills being
thrown into market There were three cou nts in the
Indictment the first charges that Mr. Olcott was the
cashier and that this package came into his posses
sion, and that without authority he embezzled the
said package; the second, that as cashier he was
the agent Of the Ogdensburgh Bank; the third
similar to the first. The last count was for lar
torney then took his seat and called the first wit
ness.
THOMAS McMuLLFN, sworn.--Is clerk in the State
Banking Department. has resided in the city Fl years;
has known the Canal Bank bank since 1929 until
closed on the llth Of July; has the file Of the APP
poiniment OF the Canal Bank agent of the Ogdens-
burgh Bank for Albany, dated July LIST, lS40 and
fled June 3oth, 1910 He exhibited the file.
JOHN ID. JuDsoN, cashier Of the Ogdensburgh Bank
Recognizes his signature and that of the mt of
the Bank, to the file exhibited by Mr.. McMuen; the
bank commenced operations 10th February, 1880.
MrWheaton objected to the docume mt t seal
ed by the Corporation, neither there any resolution
execution.
The district Attorney read from the Revised Sta
tutes, the law making such agency to the Canal
Of the President and Board of Directors authorizing its
Bank the certificate was allowed, subject to excep-
ton
MIR. Wheaton commended that the certificate did
not prove the appointment, as it was written the
Canal Bank, instead Of the Canal Bank Of Albany,
its corporate name.
The OBJ ection was over-ruled.
MIR JUDsoN was recalled.-The Canal Bank acted as
the redeemipg agent, in Albany for the Ogdensburg
Bank Since about July S40 the date of appo ntment
dosn to the time Of closing the bank the Osdens-
bur furnished the Canal Bank with funds to redeem
the bills; from the 9Th to the 10th of July they had
bee furnished not less than $4,000; there was that
balance hand in favor Of the Ogdensbsrs Bank the
financial officer with whom they corresponded was
Mr. Olcott the mode and course of redemption
for the city banks seal up their bills every Saturday
and to advise them OF the amount sealed up, and TO
request redemption in twenty days time from the
agency atthe EXPIRATION Of the twenty days. they are
ha nded in, sealed directed to the Ogdensburx Bank
and, usually the amount In them is marked the
outside Of the package the Canal Bank then redeems
the amount and advises the Ogdensburg Bank; he ex
hbted the letter OF Instructions to their agency In
reference TO the disposal OF the redeemed bills which
he wrote them since the forwarding of the lie ter they
have been forwarded by Wells Cos Express; the let
ter taken from the file ut the Canal Bank
ANDREW WHITE, sworn-Is an agent since the 18th
Of July, TO take the affairs Of the Canal Bank
the letter file and the Enforcement its back
Is in the same handwriting all are endorsed in the
tame handwriting.
AUGUSTUS JENR,Ns, sworn-Was u clerk Ia the Capal
Bank the letter received while the bank was do
Ing business the memorandum ON the back Of 1t was