St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-07-17
SAME AS BOSS TWEED
Methods Of Shotwell, Clerihew
& Lothman Ventilated
in Court.
Peculiar Financial Transac-
tons Of the Firm That
Went to Smash.
Commander-in-Chief Rea Alb
jures Comrades to Eschew
Politics.
Aid. L'HerauIt and SWensen
Lock Horns on the License
Question.

There was large crowd in the munic-
lpal court room yesterday morning. when
the case against Messrs. Shotwell, Cleri-
hew d LOthman, charged with obtain
ing $4,000 from the Nicollet National
bank under false pretenses, was called.
The case opened with Mr.. Clerihew on
the stand. The first part of his exam
ination brought out nothing new, but as
he proceeded it grew decidedly inter-
esting.
did you not know that you had not
money enough in the Nicollet National
bank to meet these numerous small
checks you sent EaSt?' asked Judge
Shaw.
II knew we had enough money there
to meet some of them. These checks
were made payable to George A. Clark
& Co., of New York. There were other
heavy creditors in the East at the time,
however"
'When you drew these checks did you
not know that your credit at the bank
was exhausted"
mo, did not. At the time these
drafts were made the bank had just re-
newed note for us, but had refused to
lCiCW dllOlllcN llOGt lOI WHICH, VIC OuCIcO
our check in payment"
"When you drew these drafts on the
Hanover bank your only hope was that
Mr.. Shotwell would be able to borrow
money enough in the East to meet them,
was it not?''
Yes, such was the case"
did you not know your firm was in
Volved when these drafts were made?"
mo, SIR"
"Had the Nicollet bank refused to
cash any of your paper?"
'It had over $1,000 in checks, be-
lieye. There was no talk of our making
an assignment before Mr.. Shotwell
went East. Just before he went away
we stopped sending our paper to the
Commercial bank for discount because
the bank officials had notified US that
they could carry no more of it at the
time. Mr.. Shotwell drew all the checks
on the Nicollet bank which were not
paid. Before he went away he drew in
all over 500, 900 in checks on the bank.
He borrowed $4,000 on some of these
checks which were not paid by the
bank"
THE ONLY EXCUSE.
"Then the only excuse you had for
drawing these checks on the Nicollet
National bank and getting money on
them was Mr.. Shotwell's statement that
he would provide means to meet them"
'That's all, sir; that was the only eX-
cuee | had for drawing the money from
the Nicollet bank"
"Having you not been doing business
for long time on borrowed money?''
Eyes"
"And yet you thought your firm was
all right and was solvent. did you?"
II did,"
"Hold on there!" exclaimed Mr.. Will
son. "You want to get the witness to
contradict his own testimony, do you,
Mr.. Shawl"
THAT'S just about the size of it,'' was
hew, did you not make the statement to
a commercial agency that your assets
were $2S0,000 above all your liabili-
ties?''
81 object" interposed Mr.. Wilson.
Call his attention, Mr.. Shaw" said
the court, ''to some definite statement,
and then he may answer"
''Well. Mr.. Clerihew, did you not
make such statement to an agent of
Bradstreet's. Commercial agency"'
81 do not know that any such state
ment was made to that agency. l have
seen the agents in the office, however,
and know that statements have been
made to them. Mr.. Shotwell, l believe,
did make such statement After we
had suspended l talked with Mr.. Foss
about this statement"
Ibid you not tel! him that the state
ment was untrue?"
81 did not.'
ibid you not tell Mr.. Foss that the
statement that you came here to Mime
apolis with $4,000 of your money and
$4,000 belonging to Mr.. Clark, was un-
true?"
''No, sir, [ did not, for that money
was gone before came here. l was
not in the bank when Mr.. Foss said
was, and held no conversation with
him."
Cyrus Beebe, the bookkeeper of the
defunct firm, was next placed on the
stand. On June IL, at 1890. he said, he
took the $4,000 check to the Nicollet
bank. and deposited it to the credit of
the National Bank of Commerce of
Providence. This check was deposited
for the purpose of meeting certain
checks there. No objection was made
to receiving the check at the time. sat
l o'clock | saw Cashier FoSs and had a
conversation with him" said Mr.. Beebe.
Mr.. JamiSOn objected to the introduce
ton of this conversation, so it was not
given. Il knew that certain checks. -
continued Mr.. Beebe, "were coming in
through the clearing house about that
time, which we had to meet. Mr.. Cleri-
hew told me to take the check to the
bank"
Mr.. Clerihew was recalled and said he
was certain that the check was depos-
tied in the bank early. This was
DONE" said he, ''for the reason that the
Nicollet bank would hold no checks for
u.s." An adjournment was here taken
until $50 p. m.
THE TALK AT THE BANK.
The same audience that was present
in the morning was present in the after
noon when court convened at 2:30 D. m.
Mr.. Clerihew was recalled and stated
that he was mistaken when he had said
in the morning that he had made no
statement in regard to the firms stand
ing to the agent of commercial
agency. He had made such statement
some time in January to some agent.
This statement was written affair and
had been prepared, he thought, by the
bookkeeper. Mr.. Clerihew was here
shown statement given Jan. 90 to the
Bradstreet agency. which he denied
ever having seen before. But on that
day he he had made a very similar
statement to some agency, he did not
know which one. This statement
showed the liabilities to be S4O2, 413. OS.
Mr.. Wilson wanted to know what
difference this made. and Mr.. Jamison
replied that it would show that Mr..
Clerihew was perfectly familiar with
the firms standing, his testimony to the
contrary Notwithstanding. Under close
questioning Mr.. Clerihew admitted that
he had from time to time made state.
ments of the firms condition to the va
rious commercial agencies. Mr.. Cleri
hew said that when he had conference
with the directors of the NicoIlet bank
John De Laittre had asked him mum.
Der of questions as to whether the state
ment he (Mr. Clerihew) had made to the