The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-10-20
CURIOUS FINANCIAL DEVELOPMENTS.
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THE COLCHESTER BANK CASE.
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CONFESSIONS OF A CONNECTICUT CASHIER.
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Notes of Walters, Porters and Mythical
individuals Discounted Freely.
WHO GOT THE MONEY
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What Had the Lelands to DO
With the Concern
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LOG-ROLLING IN THE CONNECTICUT LEGISLATURE.
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Three Thousand Dollars for a Bank
Charter.
Curious Operations in the Nutmeg
State,
nc. &e., &c.
WHO GOT THE MONEY
What Had the Lciands to DO
With the Concern
loG-RoLLING IN THE CONNECTICUT LEGISLATURE
Three Thousand Dollars for a Bank
Charter.


To-day commenced the examination in the case OF War
rem Leland Of the Metropolitan HOTEL charged with d-
yers henous Offences alleged have resulted u defraud
ing the Colchester Bank Of this place Of the sum Of
600 The prosecution did close tho case but
of the allegations will BIO perceived, involve Of
the charges of sharp operations known
in this country Of such curious financial history. is
but fair to tho accused u state, the outset that he
claims that this prosecution originated for the purpose
Of extoriing black mail.
The history the trial Of Samuel F. Jones' the cashier
Of the Colchester Bank, charge Of defaeation, his
astonishing escape from conviction the sharp practice in
the arrest Of Mr. Leland his giving bail for $4,000 and
comments OF the press thereon fresh in the minds
Of the reading public and need not be repeated here
peciay the evidence, the trial proceeds, will dis
close the relative position Of the parties and the circum-
stances
The investigation commenced this afternoon before
Justice Lamb of this place, who issued the warrant for
the arrest of Mr. Warren Leland and several hundred
spectators collected tho Town Hall from the surround
ing country The trial is quite godsend to the dulness
Of this superannuated town. The array OF counsel s
something Of indication Of the Importance of the case,
there being three each SIDE Messrs Sarkweather,
Halsey and John Waite of Norwich the former coun-
sci of the bank appeared for Mr. JONES' the
the alleged defaultng cashier. Messrs. Wells Chapman
and Strong of Hartford the former counsel for at
the time of his trial, appeared on this occasion to defend
Mr.. Warren Leland
Mr.. Waite opened the case for the prosecution
by reading the complaint, which set forth, with
the customary verbosty of legal precision, three
separate charges against Mr.. Warren Leland
comprising allegations that he had stolen the blank notes
OF the Colchester Bank with the intent to ill them up
and circulate them that he had filled up and passed these
bills and that be had conspred with various others de-
fraud the Colchester Bank
The Justice, upon the reading Of the complaint asked
Mr. Leland whether he plead guilty or not guilty, to
which Mr. Leland replied, "Not guilty.
Mr. Starkweather then proceeded TO make a statement
for prosecution He said that they expected prove
than Warren Leland engaged in obtaining the charter Of
the Colchester Bank for the purpose or deaudng the
honest stockholders and the public; that he had written
letters before the charter applied for in his own
name and under assumed Names Stating that he get
ting up the bank for the purpose Of making money plenty
and endorsing generally his bank-referring to the
operation from the first his bank that he subscribed
for stock, bat paid dollar that he made arrange
with parties to issue alarge amount of
ssue Of the bank that he sent fictitious notes. putting
the Of other parties to them in hs huudwrS
ng; tha.he had guilty OF Intentionally passing the
bills OF this bank and filling them up and defraudng the
bank and that he guilty of conspiracy in defraudng
he bank Of $4,000, which he had in his own
hands.
Mr.. Wels-How muchs
Mr.. Starkweather-Over fifty thousand dollars
Mr.. Strong-That is more money than the Bank ever
had
Mr. Starkweather-wes shall show that Mr.. Leland and
the firm Of s. Leland & Co. have defrauded the bank
Of over 100000. The first count is for passing
large amount Of these bills which filed up by Leland
himself, some in Colchester some in Hartford, and some
in New York-more than $l00000 of issue having
been made either by him through his completely, and
distributed through his servants in New York. The next
count for obtaining the bills Of the bank, in fact
stealing them to certain amount; and the last was
for the conspiracy His friend Wells the other side
had been factorzed in the civil suit.
Mr.. Weiis-Am factorzed az the agent OF both par
ties9
Mr.. Standardization actorized as to Warren Le
| land, and as 70 Simeon Leland.
Mr.. Wells said that it some to him AT any
rate. He unaware that he had any property of War
Lelands or smeons either He considered the
ments made by counsel intended only for the public
eye. He looked upon the whole proceeding bogus,
and instituted for the purpose of procuring black mail from
the accused He had in his pocket release by the bank
TO Warren Leland and Simeon Leland & Co., from all
legations whatsoever, which be would read TO show what
claims the bank could have upon them He then read the
following
duly appointed do hereby release and discharge Simeon
Leland Co.. and e Simeon sfs IL co
the Colchester Bank has said capacity
March, ana
Receivers Of the Colchester Bank
He therefore looked upon all the statements made as in
tended only TO nure Mr. Leland in the eyes Of the
munity and perhaps to influence the minds Of the jurors
OF the county He ntmated that Mr. Starkweather had
been engaged in newspaper publications against Mr. Leland
long discussion here ensued as to which of the
nanaatons as 10 move M Wells proceeasdHs
thought the prosecution would have difficulty in showing
that Mr., Warren Leland had anything to do with getting
the charter OF the bank; that the charge npca
ton Of the members OF the Legislature that Mr. Leland
could have been in much more profitable business than
in stealing the notes Of the Colchester Bank that
other parties to the alleged conspiracy, If they existed
ought to be named; that the charge its de-
tails and its generaes that before the investigation
was concluded ii would be seen that another man than
Dir Leland was responsible for the disordered state Of
the bank affairs.
The witnesses for the prosecution were then called and
sworn in body according to tho custom Of the State Of
Connecticut.
bank and the subscriptions and organization of the bank
the defence Directing
ASTOUNDING TESTIMONY OF CASHIER JoyEs
Samuel i. Jones' the former cashier Of the Colches.
ter Bank, who was prosecuted by the bank for
defacation, and not convicted, was the first wit
ness called for the prosecution. He testified:
reside Rye depot, New York; it is in the
town Of Harrison; the cashier Of the Colchester
Bank appointed October 1885, and continued cashier
until the 18th July following assisted in obtaining
the charter before the Legislature defence obeced
warren Leland and Simeon Leland were connected with
me IN obtaining this charter the last OF 1865 the first
OF 1856 became acquainted with Warren Leland, he
having married cousin Of my wife after became
acquainted with Simeon and Charles; there had been
business relations between myself and the Lelands
before the organization Of the Colchester Bank;
] had conversation with Warren LELAND, in which he
spoke about organizing bank he asked me whether !
could procure charter for bank Ia the State of Con
necticut; said possibly might, 1t a little out Of my
line.
O Did he say anything about the Colchester Banks
Defence objected TO this evidence as irrelevant and
after extended argument in which the defence claimed
hat M ho rAIn 49,
cess Of forming the bank and procuring the charter the
Court admitted the line of inquiry
Mr.. Jones identified letter received from Mr. Leland
March H. 1885, which the prosecution proposed read
Defence objected that the date pror the formation
Of the bank and as In the OF the former question:
that the bank could not be dcfrauded before II in
existence.
The Court overruled the objection in very lucid de.
cision, which would be worthy of the gentleman who
spoke Of "comprehending these vagrom men," The
learned Court sustained the decision by illustration
commencing foiows:-sn two men conspirc together