The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-01-14
HEAVY DEFALcATION IN WALL STREET.
The Teller Of the City Bank Dcramps with
ss5O,OOO in GrecnbQckS
Dabbsins in the stock Of the Chicago and
Rock Island Railroad tho
Cause of Ills Crime.
INTERESTING LEGAL PROCEEDINGS.

$3.50 600 In grsenbacks the properly Of that nstu-
ton his possession The authorities a. the bank are,
customary such somewhat rctIceut the
subject OF lo. but enabled through infor-
NATION cleaned from Thorn and other Sources TO present
an accurate account OF this most audacous robbery.
The defaul.ing teller is young man, not twenty
years OF age but lately married and respect
ably connected standing in the relationship Of nephew
70 Mr. Charles p. Leverch. President Of the
Bank OF New York. His late employers
bear high testimony In regard to his and In
tslgence and placed the highest confidence in his In
tegrity and trustworthiness He had boon for
years in the employ OF tho bank and through his
rect department and sssduous attention to business had
the Of both his employers and fellow clcrks
He 10 the receipt Of salary OF 81 500 year. aud
sided No so East Twenty sixth street. The suspicious
OF the President of the Bank Mr.. Taylor, first
aroused ON learning that Leverch paying for
his residence the high rent Of $500 monthly,
and called him TO account for living In 30 extrav-
agant manner, but Leverioh excused him
self by saying that largo . mansion
necessary his mother and sisters intended reside
with him. II has since been that he nego-
tiated with Mr.. Lyman for the purchase Of estate
at Ingewood, but the money net forthcoming and
the matter fell through Last Monday week note
received by the first teller Of the bank from Leverch
stating that he indisposed and might probably DO
detained at home for day Several days having
elapsed and he failing to appear, tho bank officials
ordered investigation OF his accounts, when
Was discovered ssas o ne was saso ooa eiau T
examination not vet been conc ude1 and the
dehci may further investigation amount to much
larger figure. The officials have received information
that he Jeff mis- residence at i've clock Sunday the
btn inst accompanied by his wife and having with him
baggage only q small vasc and travelling shawl and
went in the drec ion OF Seventh Previous to
his leaving home he left directions with his girl
TO deliver Two trunks and hamper, which in all pro-
liability contained the greenbacks, 10 carnlan
Westcott Express. who would call for them on the fol-
lowing morning at o'c ock. The girl obeyed the
orders gwen her, and handed the property
70 the expressman who arrived at the house
pCpctuay 10 the appointed time. This baggage has
Been traced to the house or hs no!ner al NeStown,
l. l., and II, as Is supposed 1t contains the stolen
money us recovery Is regarded as CERTAIN II rs gray-
ing to that this defa cation will the slightest
degree Affect the credit Of the City Bank for,
assuming the loss to be as high as stated surplus Of
$500 600 remains IN vaults, and stock
selling at $l75 1t IL currently reported the street
shat the ruin OF young Leyerch has been effected
BY free indulgence fast horses and women
but by dabbling deeply in the stock OF the Chicago,
Rock Island and Pacific Railroad Company whose affairs
have OF late been so prominently before the courts
In this connection may not be Inappropriate pre-
sent brief statement OF interesting sui; pond
Railroad Company defendants. On the 9th Of Jan
nary Messr:. Fisk. Be deu Co. commenced action
against the Chicago, Rock Island and Pacific Railroad
Company and is directors John Tracy, Charles w.
Durant, Francis H. loves and others alleging in their
compliant that tho 40 900 shares OF the Railroad Com
pany been Issued without any legal authority by
taeir Executive Committee or par OF them, VITA the
Wits setting these and showing Issue
an Illegal ore JUICE Cagdtz, granted anrj notion
agans any transfers OF this alleged illegal stock on the
books Of the company The plaintiffs having applied
70 Messrs Towes and Tracy to testify the motion
for injunction, and they having refused, Mr. Julius j.
Lyons appointed referee to take test mony On
the sh Of January, the TING appointed Tor Asssrs
fowes and Tracy to attend they we're not present. and
IN attachment was obtained from the court against
them, under which they arrested and brought be-
fore Judge Cardozo but having excused and
oerceng attend the next day before the referee
further proceedings had under the attachment.
Inquiry being made for the money which was received
for the sale Of these 20, 900 shares. 1t found
that the whole amount, with the exception OF a
few thousand doliarSs had been taken from she
deposted the drec Of tho company declined
give Information as to what mad been done with It,
na he rsnster Of tie new stock the directors sent the
tranfsr hooks 70 Chicago for the purpose of enabling
me 70 Dc maao .nsT r wnefs ,sey supposed
have effect Upon discovering this the plaintiffs OBJ
tanned order 70 show cause against the defendants
Why they should not punished for contempt alleging
that this proceeding WAS in fact violation OF the in
jnnc,ion, and also moved that the defendants be
the sale OF the new stock In court or
pay the same over 70 . receiver The testimony
curious facts and is far specimen Of the
which stock transactions are managed Subjoned are
verJatim report Of the evidence given by Mr. Tracy
In TO questions put to Mr. lows he said that he
unable 70 state under what statute the directors Of
the company assumed to act in respect to the Of
the ~ 600 shares: that meetings Of the board Of
directors SO far as he knew had been held entirely in
TIA city at the company's oaco Is william street: that
n the secretary Of the company and kept minutes
OF all the meetings OF tho board but could not tell how
many there had been could not positively whether
there had been than one but thought there had
the LIST OF January assistaet had
been appointed for the first time, their Gppointeo
being Mr. b. G. Sherman; could not tell whe.Ler auy
appointment had or bad not been made since the suit
wa commenced on the 9TH OF January; he could not
Tecoect any by tho board OF directors since
the organization Of the COMPANY; the executive COM
m.tee had met frequently, always in the city OF New
YOr la AZ
Der 10, during which time Mr. Ebeuezer Cook acted as
secretary OF The committee 10 his place. 1t was during
shis period that the OF the 40 900
resolved upon; LARGE part OF the company's books
sent out o. town ON Tuesday, 9th OF January they
taken from tho ofce oy Mr. Gardiner, the trans
for clerk. about twelve ococS and delivered by him TO
Mr. 81 John but whore tuey went, or Dy whose
the certificates for 5000 shares eli
issued since the 25th OF September signed by the pres
ident in blank, left with Mr.. Iows signed ny him as
register aud all delivered to Dir Durham, the treasurer
In one parcel, each certificate DciAg Tor one hundred
Eharcs; Mr.. Towes utterly unable 20 state when
this delivery made bu, thought it previous to
November. NJ entries had boon maze In tile books OF
Ihe company al the date VI ISSUE ali received by
the company on account 81 thi now ssOok was teoevea
from the president Mr. John r. Tracy, the 18th %
December last, although n tness 10 utterly unable %
recolest ths date tue whole amount thus received
was S4,s0lc0O; witness handed thia money 70
the treasurer Mr Dauuam, Al the Com Exchange
Bank, OF. va'ch bank hr. nunhan y president; me
whole anoqnt sas pad IA thfes or four
checks Mr. Tows cann7t rocolicct who signed
one OF them, mol whether they were certified
checks When asked What had become OF the money
he stated that IT loaned out different parties but
declined 10 answer y whom. Being asked whether II
was not loaned Without sny ty, at rom -four 70
per ceut interest he refused 70 make answer,
further than that hc no; treasurer and did loan
the money. Being asked II he knew Of ony security
being received these loans lao declined 10 answer.
Since the let OF January In addition 70 tie creation u
the Office II Assistant Treasurer Mr. Edward &c John
vaa pyrointed Registrar, end the transfer books
delivered TO him. Being asked II Nh 81. John
was Appointed Tor tho purpose OF beng serL TO
Ch,c4gos Mr. Tows said that horc ud no answer that
question: pdor this appointment Mr.. ST Johu was
the ollce Of the company IN New York. MIR. +.
Is. nlernan, tant treasurer, is resident OF
Cnlcsgo witness doc ned TO say whcthor since his e-
turn from Europe he specunted tho company stock
or depress It's value. or for What
purpose the books cent " Chicago ana tho new
oicers appointed; be knew nothing Of any rip
lons beng received Tor the stock and had never
rece, any proceeds thereof beyond tue 81 400 O00
nor had company ms far a. he knew he declined to
say whether or not the company had offered 10 lend
sl 100 600 Of the proceeds At tive per cent.