New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-15
MR. JORDAN ON CHECK-KITING.
PELL SOMETIMES HAD TIE USE OF BIC
SUNS BY THIS METHOD
MORE TESTIMONY GIVEN IN THE ExAMXAT1o,
OF p, j. CLAASSEN.


Conrad " Jordan, president of the Western Ma
tional Bank, was again a witness yesterday on the
examination before Commissioner Shields of p. J.
Caassen who is charged with embezzling over
100000 of the funds of the sixth National Bank
while acting its president Mr.. Jordan had pre-
pared statement of the bonds belonging the bank
which had been recovered and returned to the bank
1t conceded with Bank Examiner Ilcpburns state
mcnt of the missing bonds, except $4,000 in Occur
d'Alene bonds was unaccOuntcd for when Mr.. Jor
dan testified lie returned to the Federal Building
however, later with the information that he had found
the Occur dAlenc bonds, which were held by sheldon
& Co. Thus all the bonds missing when Bank tx
amner Hepburn closed the Sixth National Bank have
been restored
United states District-AttOrncy Mitchell examined
Mr. Jordcn to discover, if possible, how the bonds
had been used. Mr. Jordan said that he coulh
not tell about all the securities 1t was "a piece
meal business" one transaction was loan by tho
Western National Bank January ~ to T. H. Meyer
for which 100000 Of the bonds which had been
taken from the bank formed the collateral security
The loan paid on January 20, and the bonds were
sent back to the sixth National Bank Bonds TO the
amount of $4,000 placed with the Holland
Trust Company security for loan of 100000
drawn by James A. simmons Mr.. simmons PAID
$4,000 of the amount and then reimbursed Mr. Jordan
for $4,000 which he had advanced to obtain the
bonds and return them to the sixth National Bank
Mr. Jordan said That lie acted IN ms olNldual 'dpdN
in these transactions for Edward King and Mr.
Wetmore.
Mr.. Mitchell asked tho witness about the "hting
of checks which he had spoken Of at previous scS-
sion of the examination. Mr. Jordan said that " 10
kite checks man draws a check on a bank IN which
lie had no money. lie deposits in another bank and
receives credit for il. lie makes out new cheek
the second bank and uses that. lic draw, another
check the second bank aud puts II III the hrot bdhA
10 meet the original check. The iact tat TWO Gay $
elapsc before the operations Of the clearing hou'c
complete each transaction enables tue " 'lc a
hitter 10 keep fictitious balance VINE he ha9 u'c
of the money. Mr. Jordan said that be discovered
the methods of the firms engaged IN lhai business IN
connection with the banks which were closed by ms
experience with two checks drawn by Icll on mo
St Nicholas Bank, which were returned a. not good on
Bank. John eatcrlee q Coz George IL. Pcll, i. J..
Never. \. L. Meyer and pcll. Wallack & Co.. were
engaged in the busuc~, ~ litinC checks drawn ON
the LcnoX Hin and Equitable banks. and leil nag
admitted 20 him that he sometimes had the use ~
100000 by this means. Mr. jordan said mat a. MS
bank the redemption agent of the Equitable BaAK,
Il became responsible for bad checks received
Edward ID. West. a bO0kkcopcr iu the National PARK
Pauk, was called by Nj Mitchell aud produced an
abstract Of the account Of =. 7. Claasson with the
bank for January. lie produced also some deposit
slips. but said that Mr. Claa.>cn's checks hod been
surrendered when The account was balanced on January
-. General Foster. Claa~~cn's counsel. showed lV
this witness that Claassen had kept an account III the
bank for many
The examination will be resumed to-day.