The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-20
swINDLER REDS Story.
Convicting Evidence in His rial at
Kansas City.

KANSAS CITY, Mo-, Dec 12.-More
racy developments occurred tfday In the
investigation into the bankifg methods
of John Reid, the president Il the West
ern trust and savings association. 1t
appears from today's eyidenee that Reid
was president, board of dired tors, cashier
ard all other officers conf oined Reid
was on the stand all day, ana from the
testimony. which had to bejpried out OF
him with a judicial crowbfr' 1t became
evident that the failure WIS due 10 one
of the most outrageous yswfndleS ever
perpetrated in Kansas CPy. 1t was tes-
titled that among otherI papers debit
slip, containing the only evidence OF an
Indebtedness Of John Hfld OF SIV'OVo TO
the bank, was destroyf on the Gay or
the suspension. Reid fso testified that
he took out Of the Hnk papers repre-
senting real estate wBch When the oank
was organized had Yeen turned IN as
$4,000 Of the capital stock or Soo'VVV ana
had substituted p-onfrty in Kansas City,
Kas., scarcely worn the ineumorance-
The deeds to the Ank OF Kansas City,
kas., property weT put on recon- ailer
the bank had clos4 its doors.
ganized the Home savings bank in 1886
with capital of $4,000 This institution
was afterward succeeded by the West
ern trust and swings bank. The latter
concern did business until a law was
passed prohibiting the use OF the word
bank by truSt companies, when the
word association" was substi ted.
Then the banking house of John Reid
with a capital stock of $1,000 was or
ganized. Thislbanls then transacted the
banking busi1ess, and the tf1ISF. com
pany-that ID to say John ReffAcon
.tinued TO dead in commercial paper.
Reid recitef at length how the capital
stock OF the TRUST company was paid up,
to the enec5 that lot OF real estate
which was lot worth the encumbrances
upon it welt to make up the associa-
tons stocktin trade.
What el4 was put into the bank?''
asked Attorney Garner.
II don't bow"
Were NOT mortga ges on property at
Eleventh AM Vine-sts. part Of the CAPT
tai stoclx2''
We'll" answered the witness, there
was chargt against me of $4,000 on the
property arll I turned in that 1t was
sort of "a dde bin"
What X nd of a due bnI?" asked
Judge Gibs@n
The witnj IS was evidently in distress
and his ha3ds tVfitched nervously as he
gave some bvasiVe reply. He was asked
who signed the paper put in as $4,000
of the bangs capital stock. He did not
reply. He Fas asked if he had signed it.
He would mot say whether he had or
had not kt this point a w Foster.
the formerN assignee, whispered to Attor-
ney Garterl that on Reids orders he had
on the day Of the suspension destroyed
the debit Slip containing the only evil
dence that lReid owed the bank 10000
Reid al first denied all knowledge Of
the debit dip. but finally said that the
slip had bfen Cancelled TO offset a debt
Of the bahk 70 him of $4,000. Here
Reds me1ory was woefully bad. and it
was necessary to call on eX-Assfgnee
Foster to find out what comprised the
remaining $4,000 worth of stock 1t was
made up Of $4,000 in real estate, $1,000 to
the credit tof John Reid in the banking
house of Jfhn Reid and 5000 represent
ing all OF Pie capital stock Of the same
concern. It VIII be remembered that
when the failure occurred there was but
$22 In the bank 10 cover deposits of over
thirty thohsand dollars. This was be-
cause Reid took all the real estate Sc
curities ogt and the title was made in
his name