New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-18
QUEER BUSINESS METHODS.
w. VI. KILLDUFF MAKES ADMISSIONS.
HOW CHECKS WE'RE PREPARED AND SIGNED
BY PELL, wALLACK & CO.-oTHER
TESTIMONY AT THE CLAAs-
SEN HEARING.

President Conrad ~ Jordan Of tile Western Ma
! tiOnal Bank was again witness yesterday before
Commissioner Shields in the examination of r. J.
Claassen, who is charged with embezzlng the funds
of the sixth National Bank. lie testified in answer
questions put by United States District Attorney
Mitchell that he had received powers Of attorney for
the transfer of all the stock Of the Sixth National
Bank which had been bought by Pel Claassen and
their associates and had given the powers Of attorney
to Mr. Wetmore, Mr. Lelands counsel General
Foster CIaassen's COUNSEL asked the witness:
What was the value Of the stock Of the Equitable Bank
on January 222 Al do not know, except that tho
amount paid in 1928 for each share
o-What was the value Of the Lenox Hill Bank s,ocki
A-That was considered nice little bank. The stock
was worth perhaps 10 The price paid for 1t by the men
who bought 10 was considerably greater.
O-Yov Mr. Jordan In all your investigations, hays
YOU had any information Mr. Classen personally had
used any OF these securities except the s2OlOOO which
was returned. and the Of $4,000, which has also
been rctumedl A.-No, sir.
William NJ Killddf the partner Of James L. Wallach
in Pc Wallack d Co.. was recalled The check for
$1,000 drawn by Pcll. Wallack & Co. on January
- 10 the order =. J. Caasscn was shown 10 him
lie said that all of the writing on the face Of the cheeK
except the name of the payee, was in MS own hand-
writing. In answer TO close questioning py NJ
Mitchell he said that he drew the check at Pells re-
quest and sent 1t by messenger 10 nave IL Certhe
Mr.. Mitchell asked:
Were you In the habit Of filling out chechs "h'h zen
requested youl Ayes, sir.
O.-Irrsspectyc OF the AMOUNT Ayes.
o-And irrespective Of the amount Of money which
you had IN the bankl A-Ycs. l relied on him to make
IL good in time.
Commissioner shieds-And were you IN the habit f
having checks certified before the names OF the persons
| 10 whom they payable were written mt A-h''.
Q-hon anyone could have picked such check mp ana
used U II 20 had been dropped the street, Ayes
O-Don't You consider that a careless way Of DONG
bu.nes.l Alt may have been careless. but we oid IT,
TIE witness then at Mr.. Mtchelps request pro
duccd few slips II paper, when nc 'aiu lcp'o'
,cnted al Of the papers which lie could ma concern
ing the transactions Of Pcll, Wallack CO. AFTER
.I,nuarv 20. lie thought IL possible that he might
lind other slips.
.Aud would the other slips contain As much
| Information a. these Mr.. Mitchell asked, As no
looked at the few apparently meaningless hsnre'
scattered over the slip, Of paper just ABOUT tne
same the witness answered.
NJ Mitchell asked when Mr. Kilduf first heard
that the bonds were to be received from the sixth
National Bank by Pell, Walllck ~ Co. The witness
said tina, ne first knew Of the matter by oycrheailng
| A conversation between PcI and some one else. Hc
afterXard said Tat Pcn told him Of the transaction
Mr. Mitchell then asked about check for 10000
/ which bore a peculiar Endorsement The characfS
were meaningless without explanation. but the Wit
ness thought that # Wa, the Signature "S. T. Meyer
! s. SON. Nr. Mitchell thought it might be " Never
/ Moore & CO..
/ Edward H. Nyers, Of the firm Of Theodore W.
! Myers a co.. the firm Of which the City Controller -
/ the head produced the chechbook Of the firm, and
showed the three checks agsresating 100000 "nIch
he had paid to 2. l. Meyer They
/ r.nr,.ant.d the money loaned on some
/ ~ fine securities which were taken from
The sixth National Bank The stubs represented that
all the checks were drawn TO the order of = T. Never
d., SON. but of the check, themselves, one for $4,000
wa, 10 the order of : r. Never son, and the Others.
one fr $4,000 and for $1,000 were drawn to tho
order of p /. Meyer. Mr.. Mitchell asked the witness
how he explained the difference between the cheeks
! and stubs lie replied that he did not know how TO
account for it, except that he believed that Mr. Never
asked that two OF the checks be made to his order lie
said that De did not know whether Philip L. Meyer was
Or va, not a member Of the firm Of : T. Meyer son.
/ The witue,, also produced a statement showing the
| bonds bought and sold for :. I. Meyer son by
Theodore W. Myers co.
Se.muud I. Never. who present at the eNamina-
ton wished 10 testify. No other witnesses answered
Mr.. Mitchell, call and MI Meyer was sworn. Checks
drawn I'd the order OF Seemund +. Never a son vera
/ shown 10 him. one for $4,000. another ior
$4,000 and another for about $500. Two 9i 'E;l
bore the sl-ua,ur, ~S. r. Meyer per p. l.: NJ lie
sad that The signatures were not those OF tie firm.
ncr, i'm the nrrn. He said that Philip L. Meyer. who
bias been spoken II As his son. wa~ not member 81
wars lie did not krow the handwriting Of the in
iorsowert ON the checks which had puzzled TIE pre-
ike IT, one Of me other Inducements. he said:
! looked like tie writing Of T. /. Mover lie said; "
& Co. is nor correct Do not owe them but they owe
me- II looks as If they were afraid that they would
| our firm
The examination viii be resumed tomorrow after
several witnesses were summoned Yesterday to te'l
thc Grand JrV 1'put tho banking frauds . inc cru
bank ofc1l, violated tho law. The state laws ar,
t 80 minute or car'tulF framed =, We , f'ogl1i