The Saint Paul globe., 1897-06-05
Had Been Helping Himself to Coin
and Cunningly Kept the Fact
Concealed From Everybody.
TRIED TO BEAT The STOCK MARKET
Gives Up Everything He Knows Except the Name of
the Man to Whom He Handed the Big
Wad of Money,

| posted to his account it was by some
| one else.
AS a matter of fact $500 was de-
| posted in the First National bank tC
Jackson's account Saturday morning
| and this was done to prevent the S. 00(
| shortage which ZSchau had been car
rying on the National German-Ameri-
| can clearing house sheets from becom.
| ing known. AS soon as Zschau had
| made away with the $1360O package
| he Immediately filled out a check, one
| Of the blank ones which had been
| signed by Jackson on the First Ma
| tional, for $4,000. The check was made
| payable to Joseph Jockey, cashier OF
| the German-American bank. Zschau
| evidently knew just how much money
Jackson had to his account in the First
National bank, and he also must have
known that the person to whom he
gave the $13,600 package, even if it
was not Jackson. would at once take
S., 700 of the bundle and deposit it to
Jackson's account. With this knowl-
edge he placed the check signed by
jackson and made payable to Jockey
in the clearing house and the paper,
having been stamped by him, went to
the First National bank Jackson
having an account there sufficient to
meet the check it was honored and the
German-American bank account credit
ed with $4,000. This squared the de-
falcation Of Zschau from the German
American bank, and if the larceny Of
the $4,000 could have been laid to
some one other than ZSchau, the pro-
gramme as laid out would have car
ried, and the fact that Zschau had
been stealing from the bank would not
have been discovered.
AS it is now Zschau has confessed all
except that he reiterates that Jackson
was not the one to whom the money
was handed Saturday morning. Jack
son was arraigned in the police court
yesterday afternoon and the prelimin-
ary examination was postponed until
Tuesday afternoon at 2 o'clock There
was no request made for bail and the
prisoner was committed to Jail. The
preliminary examination of Zschau is
also set for the same afternoon.
The talk made by Attorney Butler
about there being a doubt as to the
connection of Jackson with the deposit
at the First National bank on Satur-
day morning and the statement of
Zschau that Jackson was not his con-
federate in the larceny of the $4,000,
resulted in the president of the Ger
mana merican bank, ]. W. Lusk,
Zollman having a conference.
After this the two paying
tellers Of the First National bank, who
were present when the deposit was
made to Jackson's account Saturday
morning, visited the Office Of the coun-
ty attorney. The party consisted of
President Lusk, of the German-Ameri-
can bank; Superintendent Weber, of
the Pinkerton agency; Messrs. A. F.
and j. E. Nienhauser, of the First Ma
tlonal, and Assistant County Attorney
Zollman. Word was sent to the sheriff
and few moments later jackson, ac-
ccmpanied by deputy, was ushered
into the office. The prisoners stay was
| short. and when he came out of the
room he was in very nervous condi-
ton. 1t was given out that both the
tellerS from the First National bank
had identified him as the person who
had made the $500 deposit Saturday
morning.
Seen later in the Jail, Jackson said
he was innocent of the charge. He
could talk, but had been advised by
his attorney to have nothing to say
about the case.
On the next floor Of the jail Zschau
passed a very uncomfortable day Seen
by a reporter for the G O the young
man rolled over on his bunk and COW
ering his face with his arm mumbled
that ne was indisposed and did not
care to talk.
President LuSk Of the German
American bank, seen yesterday, said
the statement that Zschau had been
stealing for years from the bank was
incorrect. The young man had by
manipulating the clearing house sheets
held out $4,000 Of the banks money.
This, however, had been made good
by the amount taken from the bank
Saturday morning and deposited in
the First National. In addition to
this $1,000 had been recovered where 1t
had been buried near Zschau's home.
This left the total amount which the
bank stood to lose in the neighborhood
Of $500, which was amply covered
by the bond given to the bank by Louis
Eisenmenger and Peter Thauwald,
which was in the sum of 100000
Supt. Weber, of the Pinkerton
agency, speaking of the case yesterday
afternoon, said there had been no new
developments. He secuted the idea
that there had been a third party con-
nected with the taking of the money,
and said there was no doubt in his
mind but that Jackson and Zschau
were the only ones connected with the
affair. The tellers at the bank had
identified Jackson, and what made it
very clear to him that Jackson was at
the bank when the $500 deposit was
made, was that the deposit slip was
in Jackson's handwriting. If, as Jack
son claimed, he had no knowledge of
deposit slip for $500 within an hour
after the bundle of money had been
stolen from the bank. Zschau, Supt.
Weber said, had spent the money
filched from the bank in the past few
months in dabbling in wheat and
stocks. AS to the particular bucket
shops in which the money had been
lost Supt. Weber either did not know,
or else did not care to say.
1t looked last evening as if there
was some hitch in the matter of the
bond given by Zschau to protect the
bank The bond was given nine years
ago, and Louis Eisenmenger, one of
the bondsmen, when spoken to regard
ing the matter, said he was through
with the business.
E. P. Sanborn, attorney for the Ger
man-American bank, refused to talk
about the bond given by Zschau and
would not even listen to a question as
to the point made that the bond was
for some reason not a valid. one.
The ,thirty-eight members of the law
class at the university Of which Zschau
was a member are each and all broken
up over. the confession of their associ-
ate. The members held an indignation
meeting the night following Zschau's
arrest, and the next day, although
none Of the class had received their