New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-13
ARREST OF CASHIER SHAW.
THE WRECKED JERSEY CITY BANKS.
EXAMINATION OF PRESIDENT BoTCE-DIRECrORs
UNWILLING To PROSECUTE SHAW.

| EXAMINATION OF PRESIDENT BoICE-DIRECrORs
| UNWILLING To PROSECUTE SHAW.
/ The interest in the bank troubles in Jersey City
was increased yesterday by the arrest OF Edward E.
Shaw cashier of the wrecked City Bank 1t was
| generally understood that Shaw had Oyerdrawn h is
| account in the bank to the amount OF about
| $40 900, and Chief Murphy endeayored on Wednes-
| day and Thursday to SECURE complaint against
him from of tho directors stockholders, but
without success. Each of the bank officials to whom
the matter was broached declined TO act, and sug-
gested that some other officer would be more
proper person to make tho complaint Finally
| Chief Murphy directed Captain Edmond
son to make complaint on information
| and belief and Justice Stilsing issued a warrant
for the arrest of Shaw on charge of having, while
cashier of the City Bank overdrawn his account in
1t aud foniously embezzled and Appropriated to his
| own use the funds of the institution.
| Captain EdmOnds)n and Detective Doyle went
| to Orange, ~ J, on Thursday afternoon, but did
| not find Shaw at home. The officers remained at
| his house until midnight and local constable ar
rested Shaw as he stepped off the last train from
| New-York. The prisoner was brought to
Jersey City on thS z o'clock train
yesterday morning and arraigned in
the First District Police Court Justice StIlsing
read the complaint to him and he entered plea of
not guilty. Francis W. IIanaford of this city, who
said that heappeared as Shaw's counsel temporarily,
asked that bail should be fixed and that his client
should be p5rmltted 10 go out in custody of an Of
cer and look for bondsmen. Justice Stilsing fixed
the bail at 81 900 and denied the other request
saying that tho defendant would have to be COM
mittel to the city prison unless the bail was fur
nshed. The examination was set down for this
| morning and Shaw was taken down stairs and
| locked in n cell.
| short time afterward President Garret s. BOce
WAS taken into court and seated in the chair that
| his sOnn-law shaw ha Just vacated. He was ac-
companied by his counsel, Charles III. Winfield. AS
he walked into the courtroom. which was crowded
with bank officials, depOsltors and Others interested
| in the banks, al eyes were turned upon him. He
| seated himself with his back to tho crowd and
nervously twisted his fingers while the examination
was in progress District-AtOrney Mc(iil appeared
| for the State, and II. NJ. T. Beekman represented
| the Fifth Ward Savings Bank. Charles l.. Kicker
son, a manager of the savings bank and member
of the Finance Committee, testified that the last
time that he saw the $24,50O alleged to have been
purloned by Boice was at the quarterly meeting of
the directors in October last. They then pro-
duced by Mr.. BOice for inspection. When they
were examined, they were put back IN the security
box and replaced In tho vault. On cr0ss-examin-
alton, Mr.. Rickerson said that hese securities had
| never been hypOthecaed. No officer Of the bank
had the right hypothecate any of It's securities
| without the thority OF the Finance Committee.
| Henry Wood, another member of the
| Finance COmmtte, gave similar testimony.
.y o the 5anP ed Rs hs the ast t%S
| that he saw the bonds was in October The witness
never knew that any of the banks securities had
knowledge or consent. Mr. Winfield asked Mr..
| Rickcrson to describe the security box.
1T is square tin box" he replied, "You have
| seen II many time, have no doubt"
| MOP quickly RESPONDED Mr.. Winfield, &" | am
| happy to say that have never been inside OF tho
| Fifth Ward Savings Bank"
"Then you've kept out Of bad company" retorted
! Mr. Traphagen.
1T was kird of an insufficient box, wasn't it ?"
| at was suifcient enough for honest people"
| Samuel G. Barber, The assistant cashier testified
! that his attention was first called to the missing
bonds by Mr. Boice. lie went to B9iccs house on
| Wednesday morning, to bring, hun to the
taken the bonds and pledged them
ia the First National Bank to save the City Bank.
| lie also aid that he had done wrong i'll doing So,
| bu. That ne wanted to save the bank On cross
examination Baroer admitted thai the banks secur
| ties had been ple ged probably often as once a
year. lie SAID thai the assets of the Savings Bank
| were over 100000, of which $230,0OO were in
bonds and mortgages and the remainder was in cash
ana convertible securities. AT the close OF the eX-
| animation the lawyers summed up the case. Mr..
| Winfield admitted that his client had been
guilty of technical violation of the law.
| During his remarks Mr.. BOice wept cOplously.
| DistTct-Al torney McCii stated to the Court thai
Le was informed by Mr.. Winfield that the mssln g
bonds were III the Fist National BANK lnaU DclllS
| the case he would suggest that $4,000 would be
| sufficient bail. The Court fixed the bail at that
/ amount and gave BOice until o'clock To furnish it.
He had not secured b0ndsmen Mt that tlne and was
sent to the County Jail IN custody of Officer Keenan,
Before starting for the jail Boice requested that
| carriage shoud be procured rs he feared that he
| might he mObbed if he went up IN horse-car His
| request was granted.
1t was learned in the evening that the police
| would be unable to procure any evidence against
Shaw. the directors having expressed their deter
minaton not to testify against him. Ikhat proves
to be the his discharge will follow the ex amin
alton this mOrIng, unle as is intlmated, he is
| held on charge OF perjury IN swearing to false
statements OF tho banks condition
| Yesterday afternoon President Ira aphagen, Coun-
| sellOr Beekman and some of the directors Of the
| Savings Bank held consultation at which II was
agreed that the appointment OF receiver az con-
templated by Mr.. Kelsey. Commissioner of Bank
| ing and Insurance, would not bo conducive TO the
best interests of the institution and its deposit0rs.
1t determined TO prepare and present petition
to Chancellor Runyon, asking Inn to permit the
affairs OF the bank 10 be wound up by one or IN ore
OF the trustees. The following statement of the
banks tuaIclal condition at the time that the doors
were closed was attached 10 the petition:
Mortgages S237, $40 90
Interest thereon 9,443 80
Real est ate 1l5,750 90
Furniture of bank ACKNOWLEDGEMENTS. 4.024 23
Furniture OF lodge room. 4,677 90
Casb...... .............................. 427 30