The New York herald., 1874-07-20
THO VINSHIP DEFALCAYION.
His Liabilities for $460,OOO-
Assets $500.
Examination To-Day Be-
fore Referee Fuller.
Naval Paymaster, Treasury and Custom House
Employe-sketch of His Life-Pauline the
Blonde Housekeeper-sing Sing in the
Distance and Ludlow Street Jail
ct tho Present Moment


This morning the trial OF Z. K. Winship, now OF
Ludlow street JAIL the well known salary broker,
who is accused OF feloniousy applying money 10
his own use which was intrusted to him by Mr.. w.
W. Burdick, OF NO. 437 Broadway, Tor investments
In salaries Of government ofcaIs Will be held be-
fore Mr., Levi Fuller, Referee at No. l02 Broadway,
who Is ordered by Judge Pratt to take testimony
and decide upon oil issues in the case. Mr. Burdick
advanced the sum Of 800 TO Winship in 1872. Win
ship acknowledged, upon his return from Europe,
to which place he took flight last November tcom-
ing back TO New York last February, that he had
been tnsolvent for four years, and had been system
aticalty misapplying money lent to him; that he
was sorry for what ne had done. and had come
back from Europe to make the honorable amend;
but 1t Ia said that he has not yet paid single
creditor cent. The full amount Of Winship's
Indebtedness Is about $465 0o0 and his assets are
estimated AT $500. He mas sworn in his bank
ruptcy schedule before Register Kitchen that he
has claims against government officials to the
extent Of $l7,o00. All that the creditors
have succeeded in getting hold of up
TO the present moment are iour fast horses; two
OF these however, were demanded ana surren-
dered to Nine. Pauline Kuhn, alias Klein, OF West
Forty-third street, Pauline having been his house
keeper at Granitevllie, near Port Richmond, on
Staten Island. The other team was sold by the
assignee in bankruptcy, but did not realize sufii-
cient to pay costs and expenses The case In
question was commenced last Wednesday by the
examination OF W. W. Burdick, the plaintiff and
mis- father and brother, VINO have all commenced
suits, the total amount lent Winship by the family
being $2l, 600. The testimony showed apparently
q deliberate intention OF Winship to defraud his
creditors, and that more than So, 500 month
had been invested in government salaries out OF q
frOm a a ne ~
called meeting OF his creditors TO show his soIv-
ency, on the day Q5th OF November, 1881 ON
which he TOOK his flight for Europe. Mr.. Burdick
further stated that he lent the money 10 Winship
for the purchase OF salary claims; he also stated
that he, as one OF a committee Of creditors, had
examined Winship's books after his flight, and
they showed that he had been insolvent for
years. and that his business simply consisted
IN receiving money and paying dividends out OF
the same (tnree and half per cent q month";;
that Winship told him frequently he had $3.50 000
which he was Investing every month in salaries,
including $4,000 Of his own capitat-while in
truth he had working capital OF $3.50, 600, and was
only using $500; that he tried to where this
money went by examining his check books and
ledger, out coud only trace it as being paid 70 HIM
self, checks being drawn, as an almost invariable
rule either TO his depOsitors for interest prin-
cpal, or to pay his personal bills, or to go into his
pocket as cash. Further than this, Mr.. Burdick
SAID, he had not been able to trace any OF the mis-
applied funds, and that In his opinion the assets
were merely worthless. Mr.. II. Ellis, counsel for
Winship, objected TO nearly every word OF testi-
mony put in by Mr.. BurdicS. but was only in one
or two cases sustained by Referee Fuller. The tes-
tmony OF the other two members or the Burdick
| family was substantially the same.
A MISSING LETTER.
On the date OF Winship's departure, a letter was
received from him to hts creditors read at the
Broad street The letter In question alluded to his
creditors as green and pack OF fools Tor ad-
nendsd 10 repay e hat be- ad M
vested their money, as agreed, but had spent and
kept large portion Of 1t for his own pleasure;"
| the letter was very lncoherent In style and ap-
parenty written under great excitement. aud
wound up by threatening to commit suicide. The
the CREDITORS was handed TO Mr. Z. II. HotcKKiss.
OF No. 81 Pine street, agent for the security Life In
surance Company, one OF his creditors who has
either accidentally or Intentionally misaid the
document. rhe letter has been seen however. by a
number OF his creditors. who will testify as to its
contents at the next meeting on Monday next.
| '1T0 BB OR NOT 10 BE-"
ence to his suicidal p propensites @ White '' on
board the Anchor steamer TrinacrIa, disgusted
with life and desiring TO seek eternal rest, he took
large dose OF laudanum but, unfortunately more
than mis- stomach could bear, which simply had the
effect ol producing nausea. He further says that,
could not help chuckling over the meeting OF his
poor, benighted creditors at the Astor House and
at his Office the having appointed TWO meetings on
the same day., who were waiting ior his arrival,
while he was free on the ocean wave.
Messrs Hodges 4 Meeker, lawyers, OF this city,
who made arrangements with his creditors that he
came back to settle honestly with his creditors.
After acting for him seven months in all his itga-
Se ad ms no '9S o
ably declined to act any longer for him, and issued
the following letter to the creditors:-
Law .OyHcR or HODGES 4 MEEKER, NEW YoRX 1874.
% New Y %e @ s.
BY good intentions, and therefore we made some per.
& such ne was sna
YOU 70 and hs d,d return g New York Mer his
to follow our aaylee and as last We became sasaed
,S sadly Ossp s% e I'd; sDd
reputation desire to thus openly rensusee him In the
a '1fi
curities e the amount Of ABOUT sl5O 900 with him
when he sailed to Europe as he was seen In his
once the day previous to ms departure, as win be
bonds to large amount the pile being very large.
II is supposed that these securities are deposited
rear OF exciting Suspicion. COMMUNICATIONS are
to be sent to the police authorities at Glasgow,
London and Brussels, authorizing them to make
inquiries IN the matter. winship is supposed to
nave spent large amount Of money upon his
diamonds horses ana elegant dresses; ;' this his is
stated by wlnshlp himself in his testimony before
referee McGowan and Register Kitchen.
wINsHIP's HONE IN LUDLOW STREET JAIL.
Winship Is now living In great style at Ludlow
street jail, at $50 week-Oecupying the best cell
| In 'Fiith Avenue" and which mas been filled Dy
General Ryan, sam BOwles, OF the Springfield Re-
publican, George Francis Train, Mcdonald, the
Bank OF England iorger, woodruff and Clanin, &c,
&c. Pauline, the housekeeper, Is daily visitor.
Five suits are now pending against MIN oi .tort,"
''wrongnl conversion" and fraudulent act in
bankruptcy, which may probably keep him In prison
for q year 10 come. Criminal proceedings are to
various misdeeds.
suit has been brought by assignee in bank
! fuptcy Demorest against Mr.. PalIllard, tue cele-
| brated music instrument importer in Broadway,
! In the supreme Court, for the recovery Ior the
creditors OF magnificent music box worth s, 500,
which WinsDip purchased Tor his housekeeper
Pauline, and which Is now Paiiliard's ~ her
| name, having been there for repairs. Mrs VIM