The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-12-19
KERR'S TRIAL.
Further Testimony About the
DefalcatiOn.
How The Calls Account at the Bank Was
Overdrawn and Funds Not Deposited
to Cover Checks

The tlial of the suit brought by Ernest c.
Stock against James p. Kerr was resumed
before Judge Hunt and a jury yesterday.
The cross-examination of Mr.. Pickering was
continued by Mr.. Daingertield. His replies
were as follows:
90 Monthly dividend statements were made
TO me on the 18th of every month. My clerk
will bring the necessary statements 10 the
court now so that they can prove that the
matter of the interest on the $4,000 note
was not presented
On redirect examination by Mr.. Crothers,
Mr. Pickering said the interest on the note
did not appear in the monthly dividend
statements. He found that although he bad
been signing checks to meet the paper bills
in New York through Donohoe. Kelly 81
Company's bank, yetthe account at said bank
was largely oyerdrawn and the paper bills
were not paid up as he arranged for. He
then discovered that his letters and tele-
grams had been withheld from him at the
office. The checks he had signed for bills of
exchange ON New York to pay the paper
bills had not been covered by deposits, as
he expected they would have been.
One of the monthly dividend statements,
and also the private account book between
Kerr and White, were recognized by Mr..
Pickering and then filed in evidence.
The purpose of the offer was TO show
money advanced by the cashier to persons
not entitled to the same, all being in the
handwriting of Kerr.
The witness explained in reference TO the
bank overdraft that money which came into
their hands was not paid into the bank. l
signed checks which were deposited in bank
to purchase drafts on New York, but in
stead of depoSting the money in bank they
made. away with it. We pay our paper con-
tracts in New York by drafts of DonohOe,
Kelly & Co. The Eastern people did not get
them, although | or Mr.. Fitch had signed
checks. Kerr got the money. The bankers
can explain this matter better than | can. /
found they were drawing checks when there
was no money in bank The amount of
bank overdraft is the amount of the checks
for which no deposit was made. They had
used the money out of the safe and had not
sent checks enough to pay by S23, 900, nor
had they deposited money in bank sufficient
to meet checks drawn.
HIS OWN INVESTIGATIONS.
Mr.. Pickering said that for information
concerning the defalcations he had relied
mainly upon his own Investigations. His
orders were to enter the bank transactions
in the cash account. He did not think all
those entries had been made.
George K. Fitch testified that previous to
November, 2. 1882, THE CALL COMPANY
consisted of Pickering, Fitch and Simonton.
Since the death of the latter the two former
had conducted the business. Witness paid
more attention to the Bulletin business and
Mr.. Pickering to THE CALL Knew Kerr
as cashier, as he called himself, from June
baI bar in
not present at the interview between Kerr
and Captain Lees Got my money and
monthly statements from Kerr. The partners
divided the surplus money each month. The
company did not keep a large amount of
money on hand.
In 1887 Congress passed the interstate
commerce act. 1t was policy to import as
large an amount Of paper as convenient be-
fore the act took effect, as freghts were
likely to be higher afterward. Sent White
to Donohoe, Kelly & Co.'S to see If they
would loan $4,000. He came back and
stated that lie had signed a note for
that amount and had got tie
money. 1 expressed surprise that he had
signed note for THE CALL COMPANY,
such power never having been given him.
He said be understood that wished him TO
do the whole business, and that the bank
readily took the note as signed by him. 1t
seemed to be misunderstanding on his part,
and he was cautioned not to do such a thing
again. l understood the note was paid
within the subsequent two or three months.
MONEY HAD BEEN KEPT BACK.
In reference to the overdraft, the witness
said he could tell what he had been in
formed. I'VE supposed we had money in
Iank. White would come and get checks,
and We supposed drafts had been sent to
New York. We found that the oyerdraft
in the bank was some $4,000, and bills 10
nearly as large an amount not paid in New
York. This money had not been deposited
in bank, but had been kept back by Kerr
and White. had suspicion of Kerr for
few hours at one time. 1t was when Mr..
Pickering and White were out of town.
Kerr brought me check for several thou
sand dollars to sign to pay a paper bill in
New York. knew we had little money in
bank, rs we had just divided. 1t occurred
TO me that Kerr was handling good deal of
money. Went to the bank and told bIr.
Donohoe l lad just signed check for sew
erai thousand dollars, and doubted if we
had that amount of money in bank to meet
it. Mr.. DonohOe went to desk and made
some Inquiries, then returned to me and
said: Indeed, you have not the money
here
The check had not reached the bank,
and went at once to Kerr to keep it until
he had made the requisite deposit. Kerr
told me the check had been sent to New
York, where it would be paid by Eugene
Kelly & Co. Of that city. Before the check
reached that bank the money would be in
bank here. That seemed TO be the way
the exchange business was done for time,
and l Was informed it suited the bank. |
then thought had made mistake IN sus-
picioning Kerr and dropped the matter.
White was the man who met customers of
The CALL and talked with them and M ade
bargains. He talked with me- as nv clerk.
He was overseeing business in some sense.
Younger clerks consulted him about bust
ness. Kerr in his department was supreme.
Can't say what supervision White bad over
Kerr White looked after the business and
Kerr took care of the cash. Don't know
exactly what connection Kerr had with the
ST., 900 note"
HOW BUSINESS WAS CONDUCTED.
Thomas +. Boyle, cashier of The CALL,
testified that he had known defendant, Kerr,
for twelve or thirteen years. "Kerrs
duties when he was cashier was TO receive
the day cash in the evening and pay out
salaries. The front cash-drawer held all
the money paid in each day for advertise
ments aid newspaper sales. In the SUBJ
scriptions received from the country The
money from these drawers was kept in
separate boxes when being handed to the
cashier. The night clerk handed over his
cash each morning to the cashier.
In the cOunter-boOk there are four
columns ruled off for receipts for advertise
ments, sales and subscriptions, and disburse-
ments. The counter book kept all the re-
ceipts of the office. Kerr kept transcript
OF the counter-b0ok. The transcript showed
the receipts and expenses of each day. That
Is the system OF bookkeeping in THE CALL
office. Kerr also kept an itemized CASH
book for sums paid out. While Kerr was
cashier the books he kept were in his own
handwriting, with few exceptions These
exceptions were IN Whites handwriting.
kerr's duties were to deposit the sur
plus each day in the bank. Kerr never said
anything to me about his Indebtedness to
The CALL office concerning the overdraft
matter / received statement from the
paper-house in New York. which made our
account about S23,377. Mr. Pickering
thought that bill had been paid. 1t has
since been paid by checks and drafts on
New York. When Kerr left the employ
ment OF The CALL there was not money
deposited in the bank to the amount Of the
checks which were signed by the firm for
the payment of said statement from New