St. Paul daily globe., 1888-07-19
CALLED IT 'CHECK KITING"
Some Racy Skirmishing in the Shot.
well -Clerihew Case.
USES OF A BANK PRESIDENT.
Mr.. Lothnlann Is Discharged and Cases
of the Others Continued for
Argument.


again yesterday morning Mr.. Shotwell,
who had been on the rack all day yes
terday, looked worn and wearied. He
had lost much of that easy bearing
which has characterized him thus far
during the examination, and did not
seem to be deeply interested in any,.
thing. Mr.. Clerihew. on the contrary,
seemed to be in better spirits than Oh
the previous day, and smiled several
times during the morning. Mr.. 10th
mann seemed more like an uninter-
ested spectator than prisoner, and
sat reading paper the greater part of
the morning. When Judge Mahoney
finished trying the vags, drun@ and
smaller criminals in the regular GRIM
inal court room he entered the room
where the principals in this case were
in waiting and assembled the bench. AS
as,0p q court convened Mr.. Wilson, for
the defense, stated that he had offered
all his evidence, and John De Laittre,
president of the bank, was called to the
stand to rebut certain testimony which
had been introduced. He was asked
about statements made to him by Mr..
Shotwell and Mr.. Clerihew in regard to
the showing made by the inventory.
"Mr. Clerihew told me-" said he,
''that the inventories fairly represented
the business of the firm for year past.
This conversation was held at the meet
ing of the bank directors
The witness, in continuing, detailed
the conversation that had passed be-
tween Messrs. Shotwell and Clerihew
and the bank directors at the meeting
in relation to the assets and the liabili-
ties. MIR. Wilson next took the witness
in hand and wanted to know if he did
not know better than to imagine that
the books of firm doing a business of
million dollars q year would not
change considerably during year.
Your idea in prosecuting these gen.
tlemen," asked Mr.. Wilson, "is to get
revenge for the loss of this money, is, it
not?"
mo, sir,'' replied Mr.. De Laittre, en-
phatically. THAT is not the reason
that we are prosecuting, for we do not
expect to get another dollar from the
firm. AS president of the bank [ con-
sidered it my duty to bring a prosecu-
ton in case like this, in order that the
bank may be protected"
When asked what question he had
put to Mr.. Clerihew at the bank meet
ing, Mr. De Lattre said: Il asked Mr..
Clerihew if his books showed that for
year past his liabilities had been one
million and forty-odd thousand dollars,
and he said yes.'
Cashier Foss was next called to the
stand. and stated that he had asked Mr..
Clerihew if the estimate made of the
value of the assets in the inventory was
fair one, and that Mr.. Clerihew had
hot
stated that he had heard Mr.. De Laittre
ask Mr.. CleribeW in regard to the
showing made by the firms books. and
had heard Nj. Clerihew's answer.
Mr.. Foss detailed a conversation he
had had with Mr.. Clerihew just
after the suspension of the firm.
Mr.. Clerihew then stated, said he, that
he had never made any statement show
ing the firms liabilities were less than
the assets by some 100000; that if such
statement was made by Mr.. Shotwell
it was all wrong, as the affairs of the
firm were not in such shape.
''Did you ever sell Mr.. Shotwell, as he
says, exchange on an Eastern bank
when you had not money enough there
to pay for it?''
"No, sir, did not; and when Mr..
Shotwell says that he tells what he
knows is not true"
Hold on" interrupted Mr.. Wilson;
''don't show quite SO much animosity in
this case.''
''Well, there is little" retorted Mr..
Foss, flushing up.
That's evident" remarked Mr..
Wilson. smiling quietly.
Mr.. Foss explained the method of
selling and buying foreign exchange on
European banks, and succeeded in
tangling the attorneys and spectators
all up. Mr. Wilson endeavored to show
that it was customary for bank to draw
on another bank where it had nosfundS,
but the attempt failed. A long discus
sion on bills of lading, drafts, notes,
checks, shipping checks and the like.
followed, but nothing of a substantial
nature was brought out.
This closed the case for the state. Mr..
Jamison stated that all the papers which
had been handed up to the court were
offered in evidence. This drew out
that certain papers could not be brought
in evidence, as they had not even been
read. The big fight was on the admit
ting of the statement which Mr..
Clerihew thought he had made to
a commercial agency. The statement
was finally admitted in part, and both
sides were made happy. Mr.. De Laittre
was placed on the stand again and con-
tradicted fatty the statement that busi-
ness men, in buying exchange, followed
the methods which Mr.. Shotwell had
said were generally pursued. When a
bank found one of its customers was
doing business that way it generally
closed its business at once with the man
who was doing it. as it was regarded as
danger signal. There was an interest
ing passage at arms between Mr.. Wilson
and Mr.. De Laittre, during which both
gentlemen roasted one another to their
hearts content, much to the delight of
the audience.
"Anything more about my private
business you would like to know, Mr..
Wilson," inquired Mr.. De Laittre after
MIR. Wilson had asked him where he did
all his banking business.
''NO, l guess. not" retorted Mr.. Will
son, Il was only trying to find out what
you do not know, and | find now that it
would fill very big book. What are
you paid to do as bank president?'
"Well, might say that am paid to
look out for just such schemes for rob-
bing the bank as has been practiced on
us by Messrs. ShOtwell, Clerihew &
Lothman."
1--WE found out what l wanted to
know; you may step down."
Hope you are satisfied"
''Oh. yes, very little satisfies me
sometimes, especially when | find out
man doesn't know much
Mr.. Foss was again recalled and de-
MED that the methods practiced by the
firm of Shotwell, Clerihew & Lothman
were regular. 1T is called check kit
ing, and is usually the last resort of an
impecunious man to raise money, and
in SO cases out of 100 is followed by
failure"
Mr.. Wilson took the witness, and
asked him few questions in regard to
the drawing of checks and drafts on
banks where the drawer had no money.