St. Paul daily globe., 1893-03-23
Theosophist Wright, Madame
Blavatsky's Secretary, Is
Here.
Prof. Davidson Tells Of the
Place Dante Fills in
History.

a peculiar method of bookkeeping Is
being revealed IN the trial of George b.
Whitney, who is charged with misap-
propriating funds when acting as man
ager for the Phoenix Packing company,
of Kansas City. in operating branch
agency in this city. MIR. Whitney claims
that a crooked set of books was kept by
direction OF his manager, A. +. Nathan,
of Kansas City, tor the purpose of de-
ceiving the Boston board of managers,
and that while he has not appropriated
a cent wrOngfully, the peculiar method
of bookkeeping is a matter over which
he had no control, and he has been will
fully prosecuted for the purpose of in
ducing him to leave the city. SO that the
Kansas City house could recover on a
$1,000 bond given by the Min
nesota, Kansas and Texas Trust
company to indemnify against
loss by defalcation of Whitney.
1t is now apparent that the rapid prog
reSs made in the trial thus far does net
indicate that the trial will be so short
as expected. The defense came out
boldly yesterday in opening the case by
Otto X. Sauer to the jury, and If all the
matters are gone into, it will drag the
trial to some length, and will probably
bring out peculiar methods in handling
foreign beef IN this city.
The state presented its side of the
case yesterday morning on the indlct-
ment charging the appropriation by Mr..
Whitney of cheek for Sl9S.0j given by
Anton KaSmirsky, the Third street
meat dealer, given for meat purchased.
The state showed that this check had
been paid to Mr.. Whitney and had gone
through the clearing house, and had not
been credited on the books by Mr..
Whitney. Several witnesses were called
to prove these facts and also to show the
method of keeping books by Mr.. Whit
ney and his clerks.
The defense made no objection to the
testimony, and Mr.. Whitney and his
counsel showed no annoyance at the
testimony that seemed to make bad
StlOhlHSs L ntN MOlO Oii bllCll
defense as afterward appeared, and the
line of defense, as Outl ined by MIR.
Sauer in his opening to the jury, made
prOfund sensation in the court room.
Mr.. Sauer began his address at the
opening of the afternoon session, and
spoke for an hour i'll deliberate aud
thoughtful manner. He declared that
Mr.. Whitney had never received a dol
lar III money from the company for
services since he had charge of the
agency. but received meat and made
collections and made returns TO the Of
flee at Kansas City out of his private
account IN many instances. The check
mentioned in that indictment had been
deposited in the bank to reimburse Mr..
Whitney for money paid out of his pri-
vate funds on account of the company.
Mr.. Whitney had come to ST. Paul i'll
1856 from Lowell, Mass. He had been
raised in the business of handling beef.
He was engaged by A. f. Nathan, the
general manager of the Kansas City
packing house, to take charge of the st.
Paul office. He served in this capacity
until that house failed, and then
took charge of the brauch Of
hce of the Phoenix Packing COM
pany, which was called the Phoenix
the general manager for the new con-
Germ that was incorporated under the
laws of Maine, had its board of directors
in Boston and ran a packing and slaugh-
ter house in Kansas City, where Nathan
resides. The Phoenix company had a
capital stock of S2,000,000 and did
business of $780, 900 in this city. Mr..
Sauer declared it was mistake to say
that 81 900 or $4,000 had been miSapprO-
priated by Whitney; he had not embeZ-
zled one dollar. and this IS well known
by the Kansas City manager, who will
not dare come TO the state of Minnesota.
He declared that peculiar method of
keeping books was instituted to deceive
the board of managers at Boston. This
course was pursued by the Kansas City
manager. The business here had never
been profitable, especially while the
Minnesota beef law was in operation.
The custom was to send beef to st.
Paul by the carload and bill 1t
at so much per hundred. The
books were kept on that basis and
returns were made to the Kansas City
Office of the amount of beef sold, and
the sales were charged up at the in
voice price, Notwithstanding the fact
that beef was often sold at lower
price. All these facts were known by
Manager Nathan, who kept duplicate
books at Kansas City. Mr.. Whitney
took charge of the st. Paul Office, and
ran it up to the time of his being dis
charged by Maxwell Hayward, who was
appointed general auditor in the spring
of 1892, and sent here to discharge Mr..
Whitney. In April last Mr.. Nathan di-
rected Mr.. Whitney TO make application
to the Minnesota, Kansas x Texas Trust
company to give an indemnity bond to
the Phoenix company. Mr.. Nathan him.
self made statement to the trust COM
pany to the effect that Whitney had
never defaulted a cent, and did
not owe the company any money.
About a month after the company
auditor was sent to st. Paul to
turn Mr.. Whitney out. Mr.. Sauer then
told how Mr. Whitney had been bounded
by detective and was not permitted to
see an attorney on pain of being ar
rested. A detective followed the man
everywhere, aud Mr.. Whitney was CON-
PEELED to admit the detective to his
home as lodger for over a week, and
the arrest of Mr.. Whitney did not come
until the manager of the Phoenix COM
pany was bluffed into making an arrest.
Mr.. Sauer declared that the books of
account are wrong from beginning to
end, and were kept so at the direction
of the Kansas City Office, and declared
that he would prove all the facts al
legged.
Mr.. Whitney wss called to the witness
stand at O'clock, and testified in, &C
cOrdance with the statements made by
his attorney. The county attorney was
given permission to examine the ac-
count books over night, and will cross
examine Whitney this morning.