The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-10-21
CURIOUS FINANCIAL DEVELOPMENTS.
THE COLCHESTER BANK CASE.
MODEL LETTERS OF MrRoDUcrIoH.
Honorable Discharge Of MIR. War.
rem Leland.

r~~~~~o->~o>~~~.>~.~.So.~
His Re-Arrest and Bailment on Substan-
tally the Same Charges.
Alleged Black Mail Motives Of the
Prosecution,
&c. DO, 10
SPECIAL REPORT FOR THE HERALD.
CoLcHnnzR, Oct 10, 1859
The examination in the case Of Warren Leland and the
alleged Colchester Bank defacaton continued To- day.
comprising interesting examination the former
cashier Mr.. Sam. r. Jones, Jr.
The prosecution resumed the examination Of Mr.. Jones
as follows tho testimony being elected by Mr.. waite
What have you say about the Of bills oe
the Colchester Bank9 A. said that the first amount Of
bills issued was for the sum Of $4,000
Q. Where they issueds A. AT the city Of Hart
ford.
Q Did they ever come to the Bank Of Colchester9 4.
Only for redemption
O. Did they to be registered signed or put upon
the books of the bank with the directors cognzances
A. They came the President and were signed by me,
unknown 10 the bank but entered upon the
books Of the bank.
@ What became of these bllss A. These bills Mr. war
rem Leland took.
Q. In what form they given into his handsa A.
Aporton Of them were prepared, positive, and por
ton Of them,were only signed.
O. What did Leland do with regard 70 the preparation
of these bills prepare them for circplaton9 A.
he assisted in cutting and trimming, cutting and num-
bering. n
took them.
n uyt 1,to A q uorxf
O. Did the bank receive dollar consideration
for these blls9 A. They never did, sir, In any fem,
either actual or r.~.enued.
@ We're there even bogus notes made by Michael Mur-
ply or others substituted for hems A. No. sir unless The
consideration was that Of the final settlement.
@ Have you any knowledge to where these bills
were circulated A. have personal knowledge.
Q have you any knowledge from conversation with
Mr. Warren LeandY A. Yes, sir; the purport Of the
versaHcn was that he was 70 take the bills 70 New York
TO use them
O Dd he in any subsequent conversation say that he
did 80 use them? A. presume he did, sir, but can't
recollect
Q. About what time was that9 A. About December l.
1885, before the bank operation the bank went
| into oper alton on the ID q December.
q Was before such time as by the terms Of your
charter you had power to issue money? A. Yes sir;
the last instament not paid in until the ID OF De-
cenber; the amount Of fifty per cont TO be paid
first.
O What conversation passed between you and War
Leland showing his knowledge that these issues
A. i
conversations with Mr. Leland New York and Hartford
can't tell where the conversation aude took place;
occurred among first and last TO attempt
10 locate them would be out of my power.
Defence objected that he must locate the conversations
Mr. Jones' testimony communicative had conversations
with reference the Of the second and third tn
staments and Leland desired TO let him have Of
the bills Of .he bank which he said might appear
the books Of the bank, but he would that trouble
should come from them: that is the purport of H.
O. Was this suggestion made to let him the $4,000
before you bad power 70 put bills of the bank in crcua
tonf A. II was, sir.
O. What the character Of the unfinished bills9 A.
The notes were not dated or numbered or cut the law
quircs that each bill shall be numbered and dated and
entered upon the books Of the bank.
O. To have them 60 into circulation legally they should
be and dated and numbered the bank and proper
record kept Of themf A. Yes, sir.
Q What was the date put on these bilss A. December
Q. What knowledge have you Of their coming INF A.
They all returne they went out Of my hands unfinished
and returned finished, and redeemed by the bank
@ Did you ever see Leland finish these bllsf A. In
Hartford.
D. Did he come to Colchester for them A. Yes sir:
he after them and for them-the nrst batsh.
Q. What about the second batch A. After the first
$4,000 issued which December 1, before Mr.
Leland came TO Colchester, there other issues
OF which legitimate and some Of which not le
gimate Mr. Leland sentup paper from New York can't
state the Leland first here; it in the
winter Of 1s66-ls57-somewhere in January; between
the issue Of the $4,000 and the visit Of Mr..
assos M uwu@paper that be had sent here ana an
sue was made for circulation upon that paper, which
Colchester received another batch Of which no nc
count was made.
O. what was the condition Of these bHls7 A. Some
46 900 Of finished and un-
flushed bills were taken--a majority were finished.
@ What stated by him 70 you with regard 70 the
bills? A. He said he would that they nnshed,
trimmed and stamped; finished some Of them, and
Mr. Leland of them; dated and signed al Of thenn.
(r Jones here read the law the subject Of signing
and stamping) II Was the understanding that all the
BE- sra he BOOKS Of hs bank Va
stood between the object of making ovenes %
conceal the fact from the Bank Commissioner of The
directors had any oognsance Of this matter-noue Of
@ Did he provide any means Of redeemng ths second
batchs A. The only that he provided for redeem
ing Of all the other issues there no specdc ar
rsnsement made TO protect this $4,000, but whom our
came % u h .a ae o'x I sanx esy wsrs sent
cecds for taking up notes in New York.
What did he send % take the place Of the oversuea
In pursuance Of agreement with Leland; some were
sent tc Jones Wilcox.
firm, and Horace B. wilcox was the other.
Q. How did Leland dispose Of the notes7 A. He sold
them 70 brokers At half per cent discount, and sen the
which would Indemnify The suffolk Bank; for instance,
suppose received from the suolk Bank Chichester
amount good 70 the sunolk Bank notes we're
forwarded To the Suffolk Bank payable in New YORK some
,nS o some Ss won ~ sr Soe sold 70 he Ssoke
my action with Warren Leland was witnou. ~ xaow
ledge Of the Ssssor Leland en- eosCon psa Of course hat
d - r. sum IN BANK 90 much; guess there
AZ boens nScs sent 70 every bank in New York; Leland
had memorandum Of these notes besides me original
NEUTRALITY-SUSPICIOUS.. vhcb he took when he made them; he
srar When they fen due; he knew what did with them.
O pd Mr. Leland participate with you IN your defence
In New York in aiding you when you were arrested
thcre2 - =. -.
ss.nS relative accused Of crime could mot aHsct this
nrosecuon and the Court excluded The evidence, ~
The proaccuon here put In tive letters alleged BY Mr.
ZONES "a baye been written by Mr.. Leland, and houGh
he defence denied that Mr. Leland wrote them, any
other which had been put in, the Court admsd
thcm:- t Fe8ssst rA.st 4
Mr. LELAND INTRODUCES xR. JONES AZ Nh. PrRHusA
METROPOLITAN HORN, NEW Ycnx, Sept 10 looa
FRIEND FEREALp-Allow me TO introduce TO you my very
look your city and State generally Please akoW Nm any
attention You can, and win b duly Appreciated by your
friend, WARREN LELANO.
mn. LELAND wAxn m. JONES s'noxn SsowxD -
49,. Msrncrorran M % Horsl NEw Yoax, ssps io. is0a