New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-16
CHECKS, BONDS AND LOANS.
HOW PELL AND HIS FIRM DID BUSINESS.
TESTIMONY AT THE CLAAssEN HEARING BY
r. b. R-OSEVELT, w. NJ, KlLDUFF
AND OTHERS.

terday in the case of p. j. Claasseh uc'ciVP0N '
interesting testimony to the mcthouS VI uooteo 49,
Pcl and his associates. United states DlSul'V.A'
torney Mitchell called as the first witness oil inc uay
Frederick Worth the paying teller OF the Natlohai
Park Bank lie showed statement OF Claasseh ;
account with his bank in January. on January -
Claassen deposited checks for $4,000 eaoh ur@"
Oh the Lenox Hill and Equitable Banks and are"
| check Of $4,000 against thcm and the checA WIS
certified.
W. g. Gardner cashier Of the st. Nicholas Bank'
produced the account Of George ii. Pcll as agent
There was no record Of any deposit after January
% when the books balanced at the request OF
Mr.. KilduH Mr.. Mitchell asked about the S-7'ooV
check drawn by Pcll on January %. The witness
said that II was certified against $4,000, winch was
deposited on that day. Mr. Gardner teStlned '"a'
late in tho day Pen brought in three checks nclud-
ing the two cashiers checks, one for Soo'ooo anu
one for go 900 on the Sixth National Bank. Mr.
Gardner said:
When the check, were brought in It was Just
before , O'Clock | looked at them ana was sun
Colson said they we're all right so accepted t th
| one Of them the check drawn by COlson I'd tlo
order Of Per walack & CO.
Robert h. Roosevelt, president OF the Hoiiahu
Trust Company, was the next witness. Mr.. Mitchell
asked
bid Won have any negotiations with J: A. simmons
on January 2il A-lc'; he wanted a Iah oi
large one. and / made unusual inquiry, and then l
made the loan
Tho note from which simmons had torn of tho
signature shown to the witness, and he Identified
H. He said that the securities are correctly dc
scribcd on the notes.
MIR Nitchcn-How and when were the notes paid
A.-On January 20 Pcll came to my ohcc, ne laN a
certified check for 900 the II. Nicholas banR.
lie asked 10 take IT and give him all the securities
except $1,000. That aroused my su,peIoh'. se h
check good. and then gave up par @d t'I
security and kept enough to cover the Slo'VoO'
aitcrward received check from Nr. jordan Tor the
balance and surrendered the other securities 70 MN
Edward H. Myers ~ Theodore W. Myers Co.,
testified in answer Mr.. Mtchclrs question that he
mad received 100000 in securities from PhIp L.
Meyer Mr. Never he said had been In the habit Tor
wear, Of con. into the firms Office and leaving stock
To- Doe sold ON January - he left Sloo'ooo IN ono
hatch and received the three checks in payment
lie brought in $4,000 tho next day and later brought
I'm another batch OF $4,000. ID closed his account
on February !.
william VI. Kidun one Of tho partners in Pell'
Walack 6 Coz gave some peculiar testimony showing
the manner in which tho transactions connected VIVA
the vrcchiug Of the banks were covered up. lie sad
that DE wa, an Insurance agent aud member Of inc
firm q Poll Wallark & CO. Who are the otAer
members" Nr. Mitchell asked.
Charles T. Wallack" tho answer.
O., not George II. Pcll one Of the partners A
P.ll Ia. not been a member OF inc HIlh lo' '"'''
ua, pcll to Your knowledge signed any docu.
mcnt- with the name Of IciI' "@lIA'A " O''' ~
% hasn't Mr. Wallach authorized him sometimes
~ Ialint he been authorized by the hrml Al
d. pd rem over sign checks with tho firms name
g, them $50. -.r.
Mr. Mitchell showed the witness the receipt tor
-s.- 900 IN securities. signed with the name Of Pel
WallAok & Coz and asked him Il Pcl had not signed
that lie said, Yes With my authority Inc VII
r... finally admitted that Pc was authorized to sign
note, and other papers for the firm. but not to sign
checks.
Nr. Ntchcn-Ilavc Won an entry Of this s622o
IN -cctiritIc, On your books Al don't know.
d. I'D you know Pcn was to sign this receipts
~ ni vonr firm, receive these bonds7 A.-Wcll.
tl,, r..-. not delivered To- me, they were taken To
" Mo wrote The body of the receipt Al. X.
va Wbcrc1 An his office at 40. q Broadway.
. Whore the bonds there when be DIRE" up The
How and he make MP the receipt A.-From
U' nora. ,.,t y'li.r tho slips wore made mp
4 Mr. Poll Nr Never and I. ~ our own once.
m ",,rr.' , ,ry .0try Inn your books Of the
r,c,.pt Of the C,.h.crs cheek tr $4,000 A.-rhcrc
#" ,.'' ror what did Won receive the check, At
va for luau. 90 shares Of the LenoA hilI ana
N'5'''i bd H. firm, own such rona-' A.-Ycs.
n i,,v did me frr cc 'hc $50 shares in the
Equitable Bank. A.-For h,lWn- To organize the
TIE witness then said that he was ono Of the or.
r,u.lcr, 81 the bank. acting at the request Of Mr.
simmons. lie could not remember the names 81 the
other inoorpomtors but thought that watson ""'lcN
and T. L. Never had something 10 do with IT, lie
was a.-cd what Pcll did ia connection with the hrm
H. sad That he made loans. Mr. Mitchell asked the
vItuo., 4 PeI divided the securities when he got hod
~ t.cn The wines said that some were given to
Meyer. but h. did not know what became Of the
others Tho witnc-- them at Mr.. MITCHELL request
produced the check books. stubs and some Of the can
ccIcd check, Of the firm. The hfm had accounts at
the Lcnox HI Tmk, the Equitable Bank and the
Third National Bank.
Mr.. Mitchell cNamncd the books at a recess Of the
examinations aud then questioned Mr.. kildut about
them
o.-Takc the Lemon i'm check book, do the stubs
show the amount Of the chccho' thc n,1o "L tn"
they were drawnl A.-Thc stubs show the amounts up
to January -, but not since thal daic. ,,,.t ,ho
Q.-Was no record kept Of the accounts win inc
bank A.-Not except on slips, which made ont.
C.-Tahc his chcckbook Oh the Equitable Bank,
what does that showl A.-That shows the same
Mr. Mitchell then called the Witness attention to
the fact that there were In the chccL-book great
many unused checks, which were signed in blank,
some with the name, Of James \. simmons, and some
with that Of Pcll and some with the firm name.
O.-rlcy signed checks Unfortunately all in Tho
same book! Att looks 50.
Mr. Klldufs individual chcckbook on the LenoX
I'M Bank had entries on the stubs after January
~ although many checks had been cut out The
check book on the Third National Bank had tie entries
on the stub, usual in the books OF business firms.
Mr. Mitchell called upon the witness to explain
how the account, of the hrm had been kept recently.
lie answered
made mcmOrandums Of the transactions on slips,
and MT them under a weight my desk When 1
came 10 look for them could not find them: asked
The once boz about them and he did not know any
thing about their disappearance; ] was very much
surprised
OWN YOU make further attempt to- ind those
papers Al Will
The examination wa5 then adjourned TO Monday
at ] O'Clock.
pRJV ,TE DETECTIVES CHANGED WITH FRAUD