The New York herald., 1879-11-09
THE HAWS DEFALCATION.

THE BANK OFFICERS CONFIDENT OF RECOVER
ING MOST OF THE LOST MONEY-THE FUGI-
TIVE INTERVIEW. d IN QUEBEC-LEvINsoNs s
SIDE OF THE STORY.
Tho officers Of the Manufacturers and Merchants
Bank expect to- the greater part Of the loss
sustained by the defalcation OF John P. Haws, the
bookkeeper who confessed to the abstraction Of
$38, ASS, and they have taken measures to secure
that end. 1t is also generally understood that a
criminal prosecution will be begun against one Of
the parties, il not both. tho ground Of alleged
forgery of the paying teller's signature. Louis
Levnson is still in Ludlow Street Jail. and from
the papers returned by the Sheriff the grounds
on which the order Of arrest was based
are alleged conversion. fraud. and fraud in con-
tracing incurring the liability. The friends Of
Haws are. it is stated. very ANXIOUS to make some
sort of settlement the matter with the bank, and
it is reported that of the amounts offered was
$4,000 but the bank did not think it large enough
by 1880. Mr. T. +. Wentworth. the attorney for
the bank said yesterday tnat he went to Quebec to
have an interview with Hawes on Tuesday. October
a. Tho friends OF Haws were very anxious. and
would not bring him to where the latter was until
he had gwen a promise OF immunity from arrest.
the conditions OF the interview being that Mr. Went
worth should take measures during the time of
the interview to arrest Haws. and should not do SO
versation with Haws as to facts which
TALLY reiterated az set forth in the let
ter of confession. One OF the principal ob.
jects of the interview was in relation to
the policy playing but Mr.. Wentworth did not feel
at liberty to disclose any OF the information OBJ
further said that the late William Orton Of
the oondsmen of Haws. but he did not know the
amount, and tar as he knew there were no nego-
tiatons i'll progress to collect the penalty; he had
not time to attend to that
It was expected by the bank that they would be
able to obtain money from the assets Of Levin
son. but it generally believed in the trade that his
htC r,nf lizarn
than enough to pay his merchandise creditors and
the lawyers. His liabilities to merchandise creditors
amounted S4158 %. and the ten creditors oil
preferred order that they shall get the amount Of
their claims before the bank ure anything Mr..
solicitation of Leviuson until the latter could COM
municate with friend to assume the trust. Mr..
Zeimer had no intention to continue to act as as
signee and merely did for the purpose Of protect
ing the estate for the merchandise creditors aud
soon that object was attained he resigned. aud
Ellis Goldberg said to be foster brother OF Levin
son, was appointed assignee by Judge Larremore .
Since Levinson's incarceration in Ludlow Street
Jail he has had disagreement with his attorney.
Mr.. +. s. Hahn. which will probably lead 10 the sub
stitution OF another attorney.
Mr.. Kahn. who is still the attorney or record for
Levinson, said yesterday that from papers in his
possession his client was innocent of any fraud.
collusion or conspiracy OF any description, aud
this will be established the trial the cause.
The most he could concede from these papers
would be little overdraft on the bank account by
Levinson. He was attorney tor several days alone:
then. upon the suggestion OF Ellis Goldberg Messrs.
Martin L. Smith were retained rs counsel. A motion
made October "a to vacate the order Of arrest
and to reduce the amount OF bail, but ii was denied
From the beginning the propriety of an assignment
considered. and upon consultation with counsel
Levinson advised not to make assignment
the ground that the bank had grounds
for attachment and there no
danger to Levinson's business. The advice. he
said, was given after careful consultation.
The assignment to Mr.. Zemer on November was
made and executed anu Lcvnson accepted service OF
summons and cuted and offered to take judg-
ment TO Mr. Zeimer on the same day without the
knowledge or information of either his attorney or
counsel. On the evening OF November Mr.. Hahn
went to Ludlow Street Jail, aud was then informed
by Levinson that he had made an assignment and
offer of judgment a the request OF the attorney for
Mr.. Zemer Upon hearing this Mr.. Hahn demanded
settlement OF his bill Tor in this and all
other matters now in his office wherein Levinson IS
plaintiff .efcndant or interested, and substitu-
tion OF any attorney Levinson might name.
The bill has been rendered and negotiations
are pcn ing for substitution. Mr.. Hahn said II
he remained the attorney OF record an early trial of
the action would be pressed. Mr. Hahn also said
that he the assignee of 4. Levinson Company
when they failed January l, 1879. and supposed he
knew all the affairs OF that concern up to that ttme
LEvINsoN's SIDE OF THE STORY.
A friend of Levnson gives the atter's side OF the
story. Ho said yesterday that year ago Haw in.
dollars belonging to himself and did not want
to open account in his own name
st the bank for reasons which appeared
satisfactory TO Levinson, and asked the latter to
allow him to deposit this money to the credit OF
LeviDson from time to time aud for Levinson to
then draw IL out by checks as Haws required IL.
posits made by Haws and drew upon 1t as Haws
suggested As Hawes occupied prominent and
confidential position in the bank he appeared to
be ling in good faith.
one OF the bookkecpers who investigated Hawes
alleged Irregularities the bank, II appears that lac
found. up to October O. the total deposits 10 Levin
son and f. Ievinson Co. credit were $lS,o0A W.
and the Withdrawals $50,gS7 IL.