The evening world., 1891-08-14

present the names Of the creditors who make
these charges.
The amount thus involved is said to be sew
eral hundred thousand dollars, for in dis
counting notes for private individuals Backer
usually demanded security az collateral for
the loans, with margin ranging from 10 to
20 per cent OF the face value OF the note.
on the strength OF his financial standing
he would get these notes rediscounted at the
banks without putting up collateral, and, 1t
is charged, would use the securities to pro-
cure loans for his own use
The discovery OF the methods pursued by
Backer certainly places his case in a very pc
culiar light" said Mr.. Untermeyer, 4" for 1t
was at FIRST supposed that the failure was a
perfectly honorable one, and simply due to Or
dinary business reverses and an unfavorable
condition Of the money market.
al do not think that Mr.. Einstein, who is
Mr.. Backer's assignee, would have taken up
the case If he had understood in the begin
ming what the circumstances we're"
Mr.. Einstein was not at his ONCE to-day,
and It was said that he was attending the
funeral Of q relative
Mr. Dyett, his law partner, who is author
lied to speak for him, said that he was not at
liberty TO make any detailed statement in re-
gard TO Mr.. Backer's liabilities, but he de-
clared with much emphasis that the arrest OF
Mr.. Backer was simply an attempt TO use the
criminal process for the collection OF q debt.
"Mr. Backer, he said, is not guilty OF lar
ceny, as he had no intention Of stealing the
property that was deposited with him as col
lateral There must be an intent TO steal at
the time the property comes into the posses
sion OF person who appropr1ates 1t TO consti-
tute crime.
"why, even the Penal Code only makes it a
misdemoanor for q pawnbroker to soil a
pledge without proper authority, and says
nothing about other pledgers.
~ believe that Mr.. Backer has sufflcient
assets now to pay 75 cents on dollar to all
his unsecured creditors, while those which are
secured will, OF course, get everything that is
due to them. He has given up everything,
and his wife has even offered to release her
dover in the real estate which he owns.
AN APT ILLUSTRATION.
"The truth OF the matter is that MI Backer
did business as a private banker and secured
himself by taking collateral from his custom
erss AS long as he was accommodating them
he was a god, but now there is none 80 poor
to do him reverence" added Mr.. Dyett, CIV
ing impressive emphasis to his shakespearian
quotation.
The lawyer thought his client had perfect
right TO use the securities OF his customers
when he got into tight place, and illustrated
his fine point OF law by saying that II he hired
q horse and buggy TO take ride In good faith,
but before he came back he suddenly changed
his mind and decided 70 sell the rig and pocket
the proceeds, he would not be guilty of grand
larceny, but only be liable to q civil action for
the conversion Of the property.
"You can't steal anything In which you
have special property or ownership, as In
the case Of these securities" he said.
Is THIS BLUFP2
Mr.. Dyett added that the arrest OF Mr.
Backer might overthrow the negotiations
which were in progress for q settlement witt
his creditors.
At the Park Bank It was said that Judg,
Harden's note was offered for discount by
Baoker some time after 1t had been delivered
| and that he had been accommodated on the
strength OF his standing in the business com
munity.
~ think" said Cashier Hickox, "that SIR
Backer viii come out OF this thing all right
and pay all his debts. He was no doub
pushed for money, and the securities held b.
MIN had deprecated in value. He thought 4
best to stop and square up, and not get an!
deeper in the hole"
The motion to continue the Injunction OBJ
tained in behalf OF II. Myers & Bros, bankers
OF Savannah, Ca, against the Merchants anC
Central National banks, restraining then
from disposing Of certain securities belonging
TO the firm and hypothecated by Backer
came up to-day before Judge o'Brien in tn
supreme Court Chambers.
The counsel representing the banks wer'
not ready to go on and the motion was ad
journed till next Tuesday. About s75,o0t
worth OF securities are involved In this suit
Of which the Central National Bank hold
about $4,000.
Tho examination OF Backer, who is unde
9l5,0oO bail on the criminal charge preferred
by Judge Harden, takes place at the Tomb
this afternoon.