The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-15
THE HOBOKEN BANK DEFALCATDN
Klenen, the Absconding Secretary,
On Trial.
Story Of His fight---The Chase and
the Capture.

After repeated postponements Frederick Klenen
was placed at the bar in the Court OF Quarter SEES
sions at Jersey City yesterday 10 answer an In
dictment for grand larceny This is only the nrss
OF ten indictments found against him. Summed
up these indictments charge MIN with the en-
bezzement OF $l20, 900 from the Hoboken Savings
Bank, Of which he was Secretary The indictments
on which he Is now tried specifically sets forth
the larceny OF twenty United States bonds OF
81, 900 each. The case may be stated In brief:-
Kenen was appointed Secretary in 1862. No sus-
plcon was entertained against him till on the eth
OF April 1873, he disappeared. An examination Of
the securities and accounts was Immediately made,
resulting In the discovery that $4,000 in
United States bonds were missing, and
that there were discrepancies In the books
amounting to 100000 The true state OF afiairs
was carefully concealed from the public for many
days, the directors fearing sudden run ON the
Institution. When the facts became known there
was
RUSH OF DEPoSITORS,
who were paid on for a few days, till the lnstitu-
ton could no longer bear the strain, and It was
closed. The unpaid depositors held indignation
meetings and brought their case into the courts,
but they did not succeed In throwing the bank
into bankruptcy. subscription list was opened
among the mortgages and directors which was 80
successful that the bank was soon opened on q
new and sound basis, and is still doing business
public confidence having been restored. Klenen
was
CAPTURED IN ENGLAND
in March of last year by Mr.. Francis M. McDon.
ough, ex.Chief OF the HoDoken police, and con-
veyed to this country. He has occupied quarters
ever since In the HUDSON County JAIL The Grand
Jury found six indictments against him for for
gerry, two for embezzlement one for passing
counterfeit bank bills and. one for grand larceny
District Attorney Garretson and United Stats
District Attorney Keasbey appeared for the State,
and Leon Albeit and Jonathan Dixon for the de-
Ience.
Tne first witness was Louis Housman, who ties.
tided-I am connected with the Hoboken Bank
tor savings as Treasurer; was elected IN 1885,
purchased from Messrs FISK Il Hatcn in January.
$40, 900 coupon bonds Of $1,000 each; delivered
them to William G. Sheppard, President OF the
delivered them to Klenen to be recorded; dOn'S
recoiect seeing them again; took no list OF tho
numbers at that time; got one from Fisk Hatch
after they were missed; it was about the 18th OF
April; IN April, 1872, purchased from the same
firm $4,000 in registered fve-twenty bonds ana
$50, 900 six per cent coupon bonds; in January,
1873, again bought $4,000 in registered i've
twenty bonds; the $4,000 and $4,000 were sold
after Klenen' IS flight; 1t was
WHEN THE RUN COMMENCED;
to the best OF my knowledge the bonds were kept
boken. In his cross e xaminatIon witness said he
han sold altogether at different periods $3.50 600 in
bonds; the bonds were kepl in the First National
Bank Uy direction OF the board OF directors OF the
HobOken Bank.
william G. Sheppard testiaed-I was connected
with the H0boxen Bank Tor Savings; IN 1872 was
President, but reslened in September. 1873; Mr..
Housman purchased all the bonds for the bank;
he bought $4,000 coupon bonds ana $40, 600
coupon bonds; the $4,000 were IN my custody in
the First National Bank until the run com
Ho6oken Bank Tor Savings; l recolect get
ting the $4,000 bonds from Mr. Housman; the
coupons were payable IN May and November; the
Il. n
lock them up; saw INN put them IN the SAFE; Mr.;
Bank, had access to the sale; so did Klenen and
himself; was connected with the FIRST National
Bank; saw the bonds delivered to Klenen about
a month after he got Them they we're In the safe:
don't remember seeing them after that time nave
no knowledge OF taking them out OF the safe;
AFTER KLENEN's PLIGHT
endeavored TO find them; saw Klenen 20 into
the First National Bank on the evening OF April 8;
ing TO find out an error OF 81, 900: spoke Klenen
about the error and he promised to assist me to
ind 1t The following day.
Edward st. John swOrn-I am . clerk at the
office OF Fisk d Hatch. New York bankers and
brokers; am engaged a9 IN the governmens bond
any bonds; have knowledge OF the number and
amounts purchased a ed Dy MIN; received $4,000 ia
them either to Mr. Fisk Or another member OF the
firm.
Francis P. Lowenthsl, Cashier OF the First
National Bank OF HoboKen, testlfed-
KLENEN FAILED TO APPEAR
at the bank on TIE 9th OF April. 1873; Mr.. Shep.
hard ana went to the safe after Klenen had lett,
but did not ind any bonds; had seen the bonds
there previous to kienens leaving; he produced
Francis M. McDolough examined-Am Q spe.
cial officer at the hoboken Jerry; was sent to
the 3lst OF January, 1874 sailed lor Europe; ar.
rived in Liverpool on the l4th OF February; went
to Lonuon and remained about six weeks; saw
Klenen about i've weeks alter my arrival; saw
him on board the French steamer from Calais ar.
irving at Dover: Klenen was standing tho
dccK: told an English officer had a warrant for
kenen's arrest, and the officer went on board and
he and Klenen disappeared for q few minutes. bus
they soon appeared again; Klenen came ashore:
followed him on o car, came up to him and shook
hands with him; went to q hotel and thence to
London, where gave MIN into the custody OF the
authorities; he was taken
BEFORE SIR THOMAS HENRY
on the day following his arrest; in answer to
questions, ne said he had nothing TO say; he was
charge and held up some bonds, which were
found in Klenen's possession. saying that these
clined tn say anything, and he was lully COM
mitted for extradti0n; first saw the bonds
about fifteen minutes alter Klenen landed from
the steamer; we were in the hotel; the English
officer took them out OF Kienens pocket; the
bonds were three IN number; after the arrest the
bonds, and he replied that he did not know what
S1s0 ouna ,on $40 on
turned them over to Mr.. bod, President OF the
bank IN Hoboken; found book full OF papers in
don; in coming from Dover to London, i ap-
pr0ached HIM on the subject OF his arrest aid the
causes tnat led TO 1t, but ne avoided all CONVEX.
coming here from England II any other parties
We're implicated in tn bank affair, but ne refused
enough TO talk about 1t when he got home.
rhe case was here adjourned till tins morning.
Kenen's wife and brother sat beside MIN during
the DAY. His Iather was also in Court. No one
would suppose, from his dashing appea rance, that
he nad been immureo for months In the County
JAN.