The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-08-15
BACKER'S EXAMINATION.
He Is HELD IN FIFTEEN THOUSAND
DOLLARS BAIL.


street Practice-Backer's Defense.
He Never Intended to Steal the Secu-
rities-The Case to Await the Action
Of the Grand Jury.
New YoRK, Aug. 14-Abraham Backer.
the one time-millionaire and note broker,
whose failure for 100000 few weeks
ago set Wall street in futter, after a
brief examination in the Tombs police
court to-day, was held to await the action
of the grand jury on q charge OF grand
larceny.
The charge is brought by William Har-
den, judge of the city court of Savannah.
Ca, who came all the way to this city to
institute the suit.
Justice O'Reilly fixed the bail for Backer
at $4,000. Frank Rothschild, merchant
at 800 Canal street. became security for
Backer's appearance before the grand jury.
JUDGE HARDEN ADJoURNs HIS COURT.
Judge Harden adjourned his court in
Savannah so as to be present at the exami-
nation.
Mr.. Dyett of the firm of Townsend, Dyett
& Einstein, counselors for Backer, con-
Quoted the cross-examination OF Judge
same as set fourth in the affidavit upon
which Backer's arrest was made.
JUDGE HARDENs STORY.
Judge Harden's story was that on March
"A, 1891, be delivered to Backer his promis-
sorry note for $4,000, which Backer was TO
get discounted, aud deliver the proceeds 10
him. Backer, as a condition of the nego-
tiations, required that Harden should de-
poslt with him collateral security for the
payment of the debt at maturity. The
negotiation Of this loan was made through
Mohr Bros. of Savannah.
number of letters were then produced
which were written by Backer to Mohr
Bros, arranging for the discounting of the
note.
sECURlTIEs DEPOSITED.
The judge said that he deposited seouri-
ties Of the Central Railroad and Banking
Company of Georgia, amounting to a par
value Of 80. 700, and certificates represent
ing ninety shares of stock of the
Savannah Gas Light Company, with Back
er, upon an agreement that the securities be
held for the payment of the debt repre-
sented by the note, and that the collateral
should accompany the note and be returned
to him upon the payment of the note.
RENEWALS OF THE NOTE.
Two renewals of the note were made, and
the negotiations were pending for further
renewal when Backer & Co. assigned for
the alleged benefit of bis creditors.
When Judge Harden learned of the fail
ure he wrote to d. j. Sullivan, Backer's
confidential clerk. He learned from him
and also from the Merchants Natio'a al
Bank and the National Park Bank that
Backer did not use the Central railroad
debentures at all, nor the stock of the Sa-
vannah Gas Light Company to secure the
discount of the note or the renewals of it.
THE CoLLATERALs NOT DEPOSITED.
He did learn, though, that Backer had
secured the renewals of the note from the
hanks without depositing the collaterals.
These collaterals, when Backer assigned,
were transferred to the Merchants National
bank upon the loan gotten by Baoker for his
own use and benefit.
Judge Harden said he had called on
Backer at his office last Wednesday to in
quire about his securities. not villing to be-
leve that Backer would hypothecate them.
He then learned from Backer that he had
pledged them.
II asked him how long ago, and he re-
ferred me to Sullivan. and there learned for
acertainty that they had been hypothe-
cated,n said Judge Harden.
THE SECURITIES HYPoTHECATED.
Daniel Sullivan, Backer's confidential
clerk was placed on the stand, and swore
that the first record he had that the COL
lateral had been hypothetical was July Is,
1891. There was no record to show that
they were ever taken out. He said that
Backer never used colsterals as security in
discounting note.
BCKBER's DEFENSE.
Lawyer Dyett moved for disnission on
the ground that no larceny had been
proved. The theory was. he said, that
backer had on fraudulent representations,
taken the note to be discounted and appro-
prlated to his own use the proceeds. The
lawyer cited a number of cases in substan-
uatlon Of Baoker's position. The matter
was between Harden and Backer. Thelat-
Ter was pledged, and by rehypothecating
tne collaterals did not commit larceny.
WALL STREET PRACTICE.
1t is a common practice on Wall street.
sad the attorney. There was no evidence
snow that he desired to get the note dis
V0unted. Backer," he continued, "wrote
Mohr Bros. (who wrote him a reply re-
saTding the discounting of Harden's note),
mat he personally would make the loan,
noten
hacker," he said, never intended to
eai the securities. At the time such thing
failure never entered his mind.n
BACKER HELD in $15. 5.OOO
ai'er few remarks by Judge Harden's
toIasei, the case was closed and Baoker was
a a ~ $4,000, which was furnished, to
await the action Of the grand jury.
THE DRBAMS SRIzuRRs.