Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-12-01

OeTG0 guy lOtNy AcAADNi oeASAs
A stay of proceedings was denied, and SEN
tence wss at once passed, Judge Wallace
being very severe in his comments on Lees
conduct The prisoner was brought 10
this city in charge Of United
States marshal. He was accompanied
by his wife and his attorneys, who
have fought every inch of the ground very
ably. Lee bade them good-by at the depot,
and, in parting with mis- wife, broke down
completely for The FIRST time since his arrest.
The leave-takirg over he was placed IN
carriage and driven to the penitentiary-
Before being locked up he was interviewed
BY the Tribune representative, but declined
10 make any statement. at was wrong of
me-" he said, ITO attempt to carry so great
he would say nothing. He was perfectly
cool and self-possessed, and stepped into his
| cell "a quick as though in his own home.
The trial OF Herman J. Hall, the
grain broSer, Indicted as an accomplice OF
| Lee, will come on at Albany the second
| Tuesday of January. The jury were out but
| q few minutes, agreeing on verdict on the
| first ballot When asked if he had anything
| 10 say, he huskily said, "No, SIR" The Judge
| addressed him at some length, and said that
| it was about as important that the punish
| ment of crime be prompt as that it
be certain. He said Lee was guilty not of
Welding to pressing temptation, but his
| offenses continued deliberately through a
series of days. He said TO the prisoner he
had not only ruined the bank, but had ruined
| himself, his family, his friends, and all near
and dear to him. May 18th last Lee was
\ arrested BY United States Deputy-M al
Level on an order issued by Judge Wallace,
| of the United States Court, on complaint of
the bank, which charged him with embez-
cling and Incorporating 100000 of the
funds OF the bank. The application for the
order of arrest was made by the Hon. Richard
Crowley, member OF Congress, the receivers
attorney. The complaint alleged that Lse,
while president of the bank, fraudulently
misapplied and appropriated the property OF
| said bank in the course of his employment
"a an officer OF the same; that the plalnIiti
| dem anded against the defendant 5000 Coo
with interest from April Is, 1882; that the
defendant had assigned, disposed of, and
secreted portions of his property with intent
to defraud his creditors, and especially the
First National Bank; and that he was about
to assign, dispose of and secret other OF hii
| nroperty with intent TO defraud." The
order further dir cted that bail should moi
be accepted in a srm less than 100000
This Lee was unable to procure. The mar
shall waited until o'clock, and then, al tn,
urgent request Of Lee, extended the timt
until O'Clock. At that hour no bondsmer
putting In an appearance he was removed t
The county Jail and locked up. He was sub
seouentIy indicted on criminal charge o
embezzlement, Herman j. Hall being pu
under arrest as his accessory. Unlil tn,
collapse of the bank Hall was looked upoI
as model young man, peculiarly fortunate
in the start ne had made ia life Last fal
Lee was the Stalwart candidate of Western
| New York for the Office of State treasurer
and barely escaped securing the nomina
| ton, There was great interest in the case
especially by The bankers in CeAirAl suC
Western New York, an the result OF thu
last trial falls with crushing weight on hi
aristocratic family and friends. The lria
developed one Of tie most gigantic fraud
ever unesrihed. Lee became connected will
the bank at the age of fifteen years as mes
senger He gained the confidence of tn
directors, and promoted successfully {
bookkeeper, cashier and president. Bu
three months passed sitter he became presi
dent before the bank collapsed. The sus
pension was on account of the Fourth Ma
. iional Bank, of Buffalo, cal ling for increase
; collateral. Lee discounted notes that wer
/ entirely worthless. Some OF the amount
. were enormous. II. J. Hall & Co., grain an
. stock dealers, were the principal anon
, drawers of worthless notes. Il is suspecte
, that he was the Company" although it di
! not seem to appear at the trial. From DE-
cember 6, 1879, 10 December 10. 1880, the Ut
: secured paper of H. J. Hall & Co. held by tn
Y DAnk amounted 10 S4l,oUU DuIlnS ina
: period the bank discounted for them 81 PSF
634 43, and in 1881 held $4,000 of pape
r not secured hut overdue. From Decembe
i | 10, 1880, to October 6, 1881, the amount dis
} counted for Hall was 81 ,346, 977 81, and frol
, October 6, 1881, to January 10, 1882, th
!. bank discounted S2SS, 649 OF, of whic
2 SOL 600 were unsecured. The amour
: oil the paper discounted from OctG
v Der 6 to April, 1882, was 1924, S85 80, {
r which S45, 200 were not secured on the latte
date" This shows the loose manner
which he did business He also discounte
: worthless notes drawn by himself, his wifi
and other friends. Governor-elect Grove
: Cleveland was witness, and testi6. d to tn
: former good reputation of Lee. Judg
: Wallace occupied about two hours in char.
: ing the jury. He referred to the fact thu
after Lee became president of the banl
: within three months and three days frol
the time, when its stock was selling for 81
I on the dollar, it closed it's doors in hopeless
c insolvency, and characterized the state {
facts then found to exist by the bank exa n
: liner as both extraordinary and startli n
1t was sufficient to say that the whole e,
hibit was phenomenal. A result SO disa
= troUs and unfortunate was traceable to mi
management or crime on the part OF thoi
who had the management OF the institution