The morning call., 1890-12-18
KERR'S DEFALCATION
Trial of the Suit to Recover the
Shortage.
testimony Given on the Manner in Which
the Cash Disappeared From The Calls
Business Ofic,.

Stock against James p. Kerr was COM
menced yesterday before Judge Huat and a
jury. The morning session and part OF
the afternoon were taken up in empaneling
The following jury:
John Huber. g. A. Amerup, NJ. Grimm,
Samuel Shaten, u. NJ. Leavitt, ii. W. Willard,
James Higgins, Charles b. johnson, Joseph
Barnett, George Rosenberg n. l. smith ahd La
Van Laak.
Plaintiff was represented by Attorneys L.
A. Crothers and w. C. Belcher. ana defend
ant by ". Il. Daingerfeld and G. w. Nc
Enerney.
The complaint sets forth that on July /.
1852. George X. Fitch, LUring Pickering and
James W. Simonton were copartners under
the finn name OF SAN FRANCISCO CALL
COMPANY. On November 2. 1SS2, James
W. .Simonton died. The business has since
been continued under the same firm name
by George X. Fitch and Loring Pickering.
On June s, 1889, James i. Kerr, cashier for
said finn, as justly indebted to the SurYiv-
ing partners IN the sum of S25.0 600 upon an
account for money heretofore had and re-
ceiyed by him. For value received the
Clainlagainst Kerr las been assigned by
the surviving partners 10 Ernest Z. Stock.
No pant of said claim has been paid and
Mr.. Stock prayS judgment against Kerr for
$4,000 and interest thereon from June 8,
1889. and costs Of suit.
SHORTAGE IN ACCOUNTS.
In his answer Kerr denies that there is
any money due iron him to said firm, and
AYERS that prior TO June l, 1889, John White
was business agent OF The CALL Company :;
=" that The pretended cause of action in the
complaint alleged consists wholly of short
age in the accounts of said firm, some of
which arise out of conversions by said
White, 10 his own use, OF moneys of said
firm"
a large book was produced by Mr.. Dam
gelheld, who stated that II was bill of par
tculars for the defense. He urged tia,
jury should not pass upon the merits of the
case until a referee had taken an account as
between lie parties, as provided for by law.
He said that the bill OF particulars con-
tained some $4,000 10 10000 items, and it
Hou.d be almost impossible for a jury TO eX-
anime them. He moved that the examine
ton OF the account be referred to a referee.
Mr.. Belcher said If il was found neceS-
sary to go to referee the jury could find on
special issues and al accounting could be
had afterward. The defendant had had au
expert accountant going over HE CALL
books and there Is no necessity for refer
ence now.
Judge Hunt though, it better that a jury
should pass upon special issues, and then,
IL lound necessary, al accounting could be
taken ~ referee. The motion 10 refer
was denied.
In his opening statement to the jury, Mr..
Crothers said that Kerr was accountant,
treasurer and cashier OF the San Francisco
Call Company. When Kerr left the en-
ploy OF said company on June s, 1889, his
books showed a heavy shortage in cash.
He is responsible far that shortage and
should pay it. This action is brought to re-
cover tile amount lost by the firm through
l. g. I'll
eeiyed by Kerr were turned over by him to
White, the business manager. Kerr is
called upon TO show what became of the
money unaccOunted for.
MIR. PICKERING's TESTIMONY.
Loring Pickering testified that he is one of
the paltners of the San Francisco Call
Company. George X. Fitch and himself
are the surviving partners of said firm.
The other partner, James w. SlmontOn,
died on November =. 1852. He knew de-
tendant Kerr, who went into The CALL
business Office eighteen or nineteen years
ago as d clerk and WAS appointed cashier on
June /, 1873, position he held until June
s. 1889.
kerr's duties were to keep the books, re-
ceiYe all the cash and pay all bills except
Ing the larger ones, which he mad no author
ity 10 pay without consulting the firm. He
was appointed cashier at the request of
White, who was then cashier, but wished to
devote more time to enlarging the business
oil the firm. Kerr was made custodian of
the finances, and lie kept only transcripts of
the eOunter-bOokS.
Mr.. Pickering said he was present at an
Interview between Kerr and Captain [. w.
Lees. The interview occurred after the de-
falcation became known, and Kerr desired
his presence there. Mr.. Stock, Mr.. Croth-
ers and Mr. Hurlbert were also present
During the interview, which lasted an hour,
Kerr admitted having taken money repeat
eddy from the hrm, but declared he had paid
ii back. He also acknowledge ed to having
advanced to White moneys belonging to the
hrIn, and said he knew he had done wrong,
and his only excuse was his friendship tor
White.
He also admitted to Captain Lees that he
had taken handouts of money from the treas
ury 10 give 10 White, and when the Capital
asked MIN why he did not complain 10 the
firm about White, he replied that he was
friendly to White and felt sorry for him.
Kerr said that a portion Of the stolen money
went to pay the expenses of the Breeder
aud Sportsman, paper owned by White
and himself.
CONFESSED GUILTY KNOWLEDGE.
Kerr confessed to a knowledge of short
age in his cash, but expressed great sur
prise, MIR. Pickering said, when told the
shortage amounted to S4S,6 500 AT the time
OF the Flamant mattel Kerr expressed wish
10 leave his position.
Referring them to the note for SI2,OO0
which was signed by White without
authority from the firm, and the date of
which was July 6, 1887, Mr.. Pickering said
that the money received from the bank on
that note was entered in the books as dis
bursements, and not charged to cash; 'sn
that somebody must have kept that S12, Co.,"
lie remarked. The entry was made in Kerr's
handwriting.
a small accountbook was produced, and
was recognized by Mr.. Pickering as one
VIII h had been found in a drawer in the
luSIQesS office IL nod 20
the amount OF $500 of moneys belonging To
the firm, which had been advanced by Kerr
to w hItr on receipt of tags for each loan.
Kerr admitted to Captain Lees that he had
made the loans as represented in the book,
and had written the entries therein.
The assignment of the claim of the SAN
FRANCISCO CALL COMPANY to Mr.. Stock
was also produced ana admitted in evidence
Resumlng his testimony Mr.. Pickering
said that Kerr was not authorized to draw
the frm's money from the bank unless the
checks were signed by the firm. Kerr during
the interim told him that White was gambling
and attending horse-races; that he, Kerr,
had been acting IN similar manner; that
they had become mixed up together, and
that he had advanced the money belonging
TO the firm to White on account of his friend
ship for him.
TWO KEYS TO THE SAFE
Under the cross-examination of Mr.. Dan-
gerfeld Mr.. Pickering said that Kerr COM
menced to receive all moneys immediately
after having been appointed cashier.
could not say if there was any cash in the
sale when Kerr became cashier. Isaw White
give Kerr key for thes afr. did not know
there were two keys for the sale until after
the deialcation was exposed.
know that White could not have paid
out to the compositors the amount of money
taken from the firm, for Kerr was the only
one authorized to pay out money. The
amount paid the compositors was from $500
to SllOO each week. White acted AS cashier
for three or four months in 1855, think.
while Kerr was absent in New York.
Kerr kept the cash-books and prepared
the monthly dividend statements. White
was not business manager after Kerr be-
came cashier. Mr.. Fitch and myself always
have acted as business managers, and White
acted under our instructions. When dis
missed Kerr on June s, 1889, White acted as
cashier Kerr did not give me weeks no.
tce.
found out ne was off to horse-races,
and for that and other reasons / per-
emptoriy dismissed him. kept close su-