The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-28
BANKS sWIyDLED EAST AND WEST
Lumber Dealers G,t 5000. 900 on Accommo-
dalton Drafts and Then Fail.

cation
KANSAS CRY. No. Jan. 27.-The Grand Jury.
now In session here. has for several days been
investigating what is said to have been
scheme to defraud the National Bank Of Com
merce out OF sGOOOO.
II Is known that two indictments have been
returned and that capiaseS for the arrest OF
the Offenders are in the hands OF Marshal
Stewart.
The fraud which has caused loss to banks
In several commercial centres In the United
States. was brought TO light by Its Kansas City
ramincations. Its extent. so far as traced. Is
between $4,000 and 100000.
The parties charged with the swindle are the
lumber firms Of J. II. Bemls Il Co. OF
jefferson. Tex. and George W. Howell
& Co OF Atchison. Kan. Banks In
Connecticut. Missouri. Tennessee. Kan
sAs. Nebraska. and Illinois are known to
have been deirauded and the full extent OF the
fraud is not yet fully known. The manner in
which the swlndle was perpetrated was not
complicated one.
Each firm drew accom- m odation drafts on the
other. due principally In thirty. sixty. and
rinety days respectively. The firm on which
on presentation. The draft was drawn
up, SO as to make Ssr.. the ,or AMOUNT 1SS nun in
Dos Of giving It the appearance Of a draft
drawn for the sale of purchase OF lumber in
The drafts were issued several months ago
really in falling circumstances Tho next
step was to go to the banks and. I'M
cashed. About the time the drafts came due
the firms failed. The fact that the drafts were
ts the f iii sG SIR e ss as IS
usual in sight drafts. and covered up the
fraud In regard to the misrepIesentation that
the actual sale OF lumber:
Among the banks which got some OF this
bad paper were those in Dallas, Galveston.
cago. htchison. Kansas St, Louis, Omaha, aud
egn bank, paper. ii is also said that some Of
the paper found its way to Boston.
son, and had an once in tho Keith aud Terry
building and home on tho south
f fisli aSsnas. lie was Involved as defendsnt
in n criminal prosecution for violation OF the
TO he PenitentiAry. but Was pSrdonsd BY Pres
ident Harrison shorttlme before he went out
HowelIs offence consisted in bribing Ed
ward Tibbitts. railway employee at Win
throp. Mo, opposite Atehison. to make false
weight entries on freight consigned by Howell
When Bemis became involved two years ago,
| Howell came to kAnsasiCty from Atehison
on the morning that rePoTts that Bemis was
Involved came out lie took speeia. train at
| Telegraph. and made flying trim to TexeTkanA
| to lend his name TO the aid Of Bemis.
[. j. hito cashier OF the national lthnk OF
| Commerce. was reluctant 10 give any inloTma-
| ton regarding the matter.
" The marshal has requested mo not 10 talk
Of this matter until the men arrested" he said.
Was the National Bank OF Commerce de-
iragded Q, o0oof,r be S was Ss ed onO, ~.
| soms has been paid back"
They wanted to compromise the matter.
and ask eli US several times to do so. but We
| have refused We charge the Bemises with
getting money pr false pretenses The notes
and papers are now died with the Criminal
Court"
The Largest SubAariRs Cable Ewes LAId Il
America.
A submarine cable for the Metropolitan Tels-
phone and Telegraph Company will be laid
tomorrow morning. stretching under tho
East River from Thirty elghth street to Hun
tsr's Point. The cable, which was made By
the Safety Insulated Wire and Cable Company
IN ihla cily Ls the laIgest Of the Kind ever ibid