The New York herald., 1871-12-07
THE PHILADELPHIA DEFALCATIONS.
Trial and Conviction Of c. T. Yerkss, Jr., the
Broker-The Larceny Of a
p'@ Check for $s3,0sS so.
What the Chicago Fire
Has to Answer For.

II
PHILADELPHIA, Dec 8, 1871.
AS an evidence OF the Intention OF the Philadelphia
"Committee Of Seventyu to institute q thorough
reform In the manner OF conducting the city gov
ernment, send the record OF the speedy conviction
OF Charles T. Yerkes, Jr for tile larceny OF check
for $33,03s so.
Itwas alleged that the check was drawn upon
the sinking fund by Mr.. Jones, the chief clerk in
the city treasury, and by an arrangement with
Yerkes, the broker placed In bank his order,
thereby robbing the sinking tund OF that amount.
Yerkes succeeded III getting possession OF the
check BY falsely pretending that he had purchased
loan for tho city for this amount and the check
was drawn to enable him to meet the obligation.
He never returned TO the city any collateral for this
check but used 1t for speculative purposes
assN THE INDICTMENT. a
The Indictment charged larceny Of the check. en-
bczxlement, larceny as bailee and larceny OF the
money.
Ul THE TRIAL. at 9G
The court room was crowded Dy brokers and mer-
chants, many OF whom were personally interested
In the result Of the trial. all were Interested as citi
Zens
David Jones, the Chief Clerk was the first man
sworn. He testified as follows:- 81 H
am chief clerk OF the city treasury; October IS
Mr. Yerkes came In and said he had sold O3S SO;
soon afterwards one OF his clerks came with bill
and gave him check for the money.
Witness was asked what were the contents OF the
bill but the question was objected by coun sci for
the defendant.
John Hopkins callel-I was In the employ OF Mr..
Yerkes; ! made out the bill Mr. Yerkes gave me
the figures. H tr~1H 3t
Cross-examined-Mr Yerkes told me to send
bill down the street for IS ooo but dld say what
for he only gave me the price OF the loan; 1 sug-
gested the sending OF the bill; he did not see the
paper; all he did was to tell me the amount and
price. he
Mr.. Jones recalled-I drew this check (check
produced) pay for this loan; never saw the city
sixes for which this money was TO be paid.
Cross-examined-Wnen the check was drawn 1t
was intended to be drawn by Mr.. Yerkes to pay Tor
this loan; Mr.. Yerkes has been the financial agent
for the city ever since Mr.. Marcer went into once:
have on some OCCASIONS minated to him that In
order TO keep the market up ne should go and buy
up for the sinking fund, and he had suggested the
same to me at times, and we have arranged
TO buy for the sinking fund when It was IN need
Mr.. ferkes bought up ahead and kept the bonds
waiting until the sinking fund should need them;
the checks were drawn; sometimes they were not
brOu hit In for several days after the checks were
day purchased Sas, 600, but do no not know that he
mentioned the SINKING fund; do not know at all
tnat he then had the bonds ready and on his books
for the city; DO not know that he had placed them
on our books: l know that he now mas 81, 500 on
our books. M
Mr.. MILLER-Did not your course lead to the IN
sOlvency OF Mr.. Yerkesl
Mr.. Manu- object. This Is not a question OF In
soync ana IS NOT 10 nraye .nan Mr.
had loaned Mr.. Yerkes $780, 900, and Mr. Yerkes
was IN way 70 meet every ooligat,on , when the
but becoming alarmed by the Chicago fire. Mr..
Jones called tor $780, 900 or that loan ON the follow
an Mnph md thrro tnad Mr. YQrk vUhn IN
received this check he was perfectly solvent, and
he received the check honestly; he only relied upon
he having the stock for the city, sold It, hypotne
Gated IT to bull the market for eighteen months
money until that Saturday II reached $500 600; then
when he could otherwise nave met all obligations,
swept w ali his means II ON Iim and made him bank
rupi Now, Mr.. Mann based his case upon the alc-
ply want 70 snow why II did not get It
Judge PAxsoN-I will pass upon the legitimacy 0l
now disprovs Of it by SAYING that it rs not proper
cross examination. nn s~ NJ
more than 5000 never allowed more than TWO or
three days to pass without looking after 1t. to
may have been on several OCCASIONS that lhe fund
was not supplied; on each OF these occasions Mr.
Yerkes got the check tile day the loan was pur-
the usual form OF these bills was, "Boughr for
Mr.. Marcer;' and when he sold for the city II was
"BOu.hJ from Mr.. Marcer;3' when Mr.. Marcer went
into olllce said to Mr.. Yerkes ..Be careful not 10
let the outside world know you buying aud sell
aud Will arrange II 30 that one shall know that
am buying selling FOR the city," and that is why
ne made out the bills IN THIS form. Qf ssaGs
Recommending city does not owe Mr.. Yerkes
any OF the $500 that stand to Mr.. Yerkes on the
books; It simply stands to his order, and he never
Re-cross-e examined III 1t Is an old loan the city
has been paid for It; do mt know whether II Is
Mr.. Hopkins recaled-My endorsement Is on this
cheek; the check was placed In the First National
check myself and knew It was coming; Mr.. Yerkes
knew that deposited all the checks tnat came into
check TO make our account good: we 6ad not re-
ceived any note from the bank that day as to the
condition OF our account; did not know that 1t was
necessary to get that check In order to make our
Cross examlned-Mr. yerkcs had, from the 1st to
the 10tn Of october, purchased city loans enough to
exceed the amount or that check; believe all or
that Mondays checks were drawn by me for an
out the KnowIedse Of Mr. Yerkes, ami in the regular
course OF business and IN utter ignorance OF the
fact that Mr.. Yerkes was about TO fail.
Witness resumed-Mr. Yerkes generally attends
to the outside business, the board and other mat
ters; believe that on Saturday ana Monday money
was checked out to pay for city loans
Re-examned,-id DO not know OF a thousand dol.
lars that he had that day free from or unembar.
rassed by any loan; Mr.. ierkes had no partner.
George Filler sworn:-I am vice president Of the
First National Bank; on saturday Mr Yerkes over
Cross-exainlned-He overdrew IT by PERMISSION;
he usually deposited collatcras; we then had col
lateras, and got more coilalcralS on Monday; on
Monday we got some $250OO city loan collateral;
tnink lie was asked Ior it his was the largest and
most active account III tue bank.
Re-examIned-Ihat collateral OI $25O00 OF city
loan was or the new october loan got by an order
upon the CITY treasury. t H
Mr.. Jones recallcd-Ihls loan did not belong to
Mr.. Yerkes; II had been placed IN ms hands for
sale. Wt sm Cester nns fn
Mr.. Joseph Roberts sworn-The check here in
question was paid at the Pnadepnia Bank IRON
the Sinking Fund OF the city.
THE DEFENCE OFFERED BY YERKEs' CoUNsEr.
was preceded by q statement to the eject that '1t
IS O notorious fact that no man would accept the
ONCE Of CITY Treasurer or Philadephia without an
understanding that he should use the funds for his
own private benefit" and yet city Councils were
the oner day asked to put q stop 10 this state OF
things and refused To do SO; and the
time sanctioned custom had been TO employ
sbrewd broker 10 manage the funds secretly, and
Mr.. Marcer entered into an arrangement with Mr..
Yerkes, the agreement being that settlement should
be had al the emu OF each month. Occasionally Mr.,
Yerkes would SO manage as to supply the wants Of