St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-13


debtedness.
KANSAS CITY, Mo-, Dec. 12.-More
racy developments occurred today in
the investigation into the banking
methods of John Reid. the president of
the Western Trust and Savings associa-
tion. 1t appears from today's evidence
that Reid was president, board of di-
rectors, cashier and all other officers
combined. Reid was on the stand all
day, and from the testimony which had
to be pried out of him with judicial
crowbar. it became evident that the
failure was due to one of the most out
rageous swindles ever perpetrated on
Kansas City. 1t was testified that
among other papers debit slip, con-
tanning the only evidence of all indebt-
ness OF John Reid of $4,000 to the bank,
was destroyed on The day of the suspen-
sion. Reid also testified that he took
out of the bank papers representing
real estate which, when the bank was
organized. had been turned in as S27,0 900
of the capital stock of $4,000. and had
substituted property in Kansas City,
Kan, scarcely worth the incumbrance.
The deeds to the bank of Kansas City,
KAN, property were put on record after
the bank had
CLOSED ITS DOORS.
According to Reid's testimony. he
organized the Home Savings bank in
1856. with capital of $50, 600. This in
stitutlon was afterwards succeeded by
the Western Trust and Savings bank.
The latter concern did business until a
law waspasSed prohibiting the use of the
word "bank" by trust companies, when
the word association" was substituted.
Then the banking house of John
Reid" with capital of $4,000. was or
ganized. This bank then transacted the
banking business, and the trust COM
pany. that is to say, John Reid, contin-
ued to deal in commercial paper. Reid
recited at length how the capital stock
of the trust company was paid up. to
the effect that lot of real estate, which
was not worth the encumbrances upon
it, went to make up the associations
stock In trade.
"What else was put into the bank?"
asked Attorney Garner.
II don't know"
"Were not mortgages on property at
Eleventh and Vine streets part of the
capital stock?"
"Well," answered the witness, ssthere
was charge against me of $4,000 on
the property, and l turned that in. 1t
was sort of due DILL" L
What kind of due bill?" asked
Judge Gibson.
The witness was evidently
IN DISTRESS
and his hands twitched nervously as he
gave some evasive reply. He was asked
who signed the paper put in as sic. 600
of the banks capital stock.
He did not recollect. He was asked
if he had signed it. He would not say
whether he had or had not. At this
point A. w. Foster, the former assignee.
whispered to Attorney Garner that on
Reid's orders he had on the day
OF the suspension destroyed the
debit slip containing the only evidence
that Reid owed the bank $4,000.
Reid at first denied all knowledge of
the debit slip. but finally said that the
slip had been Cancelled to Offset a debt
OF the bank to him of $4,000. Here
Retd's memory was woefully bad, aud
it was necessary to call on eX-Assignee
Foster to find out what comprised the
remaining $4,000 worth of stock. 1t
was made up of $4,000 in real estate,
$4,000 TO the credit of John Reid in the
banking house Of John Reid, and $1,000
representing all of the capital stock of
the same concern. 1t will be remem-
bered that when the failure occurred
there was but S22 in the bank to cover
deposits of over $4,000. This was be-
cause Reid took all the real estate Sc
curities out and the title was made in
his name. =,
Further evidence was wrung from
Reid to the effect that all the unen-
numbered real estate and other proper
ties had been transferred to his wife,
and that the encumbered assets had
been left in the trust associations pos
session. Just before closing conrt,
Judge Gibson enjoined Reid and his
wife from disposing OF any of these as
sets. Another point brought out was
that Reid engineered regular "Zimri
Dwiggins institution" having no less
than four banks on his string,