The Saint Paul globe., 1897-06-05

| II now develops that Charles ZSchau,
| the assistant paying teller at the Ma
| tional German-American bank, who on
Saturday last stole $4,000 in cash from
| the bank, was not a novice at the busi-
ness. While he had not before touched
up the funds of the institution for such
large amount, his peculations in the
| past few months had aggregated
| $4,000, and it was to hide this state Of
affairs that the bundle Of bank bills
was stolen.
Zschau, in his duties at the bank
aside from acting as assistant paying
| teller, was also the clearing house
| clerk, and it was by reason of this po-
| sition that he was able to get away
with $4,000 since Jan. 1 without the
| officials of the bank being any the wis
| er. So cleverly was the scheme work
ed by Zschau that he not only was
| deceiving the officials of the bank, but,
| it is claimed, shut the eye Of the bank
| examiner when that official overhauled
| the affairs of the institution.
Zschau, who, after his duties at the
| bank were over, for the past three
years has been studying to be a law
yer, attended the university law school
nights. Lately, in addition to his bank
and Blackstone studies, he has inter-
ested himself in the wheat and stock
| markets. His salary as a bank clerk
| and what money he had saved melted
| away in the bucket shops like a June
frost, and in order to hold on and re-
| coup his losses he had to secure more
money for margins. He at first took
| $500 from the bank. This went the way
Of his savings, and the bank funds
were touched again for another $500,
which was also swallowed up by the
rapidly shifting market quotations.
After this it was easy to keep pegging
away, and in chunks of hundreds and
| then thousands his peculations increas-
ed until he had used $4,000 Of the banks
money.
| All the while that Zschau was try
| ing to beat the stock market he hid his
stealings from the bank by a clever
| manipulation Of the clearing house
sheets, which were under his personal
| and individual supervision. He in
| tended to graduate from the university
law school last Tuesday, and in the
course of a couple of weeks was to re-
sign his position in the bank and go to
law Knowing that as soon as he left
the bank his defalcations would be dis
covered, Zschau hit upon a plan which
would make good his drafts from the
bank funds and also give him some
| thing with which to live on while his
legal business was picking up in the
| Windy City. Knowing that Paying
Teller Zenzius made it a practice Of
| leaving the bank each morning after
| bringing out the cash from the vault,
he watched his opportunity, and Sat
urday morning when the bundle of bills
amounting to $13,600 was deposited on
| the shelf Of the cage he placed it un-
der the bags, walked out Of the
| bank and handed the money to a con-
federate. Just who the person is he
| gave the money to, Zschau refuses to
say. His confession, which is said to
be in the hands of the officials of the
bank, does not say who the confederate
was, and, so far as could be ascertain
ed, no one has this information except
Zschau and the person he handed the
money to.
The officials of the bank and the
| Pinkerton detectives who have been
| working on the case claim that George
| K. Jackson is the man. Jackson, who
was arrested Thursday night, denies
| this, and so does Zschau. Zschau de-
! MED to his brother that Jackson was
| the individual. Pierce Butler, who has
| been retained by both Zschau and
Jackson, holds to the theory that the
person who received the money from.
Zschau was not Jackson, and yester-
day afternoon Informed Assistant
| County Attorney Zollman that the au-
| thorities or the detectives handling
the case ought to continue the search
for the third person, or rather some
other confederate than Jackson.
What the authorities had to cause
the arrest of Jackson was the fact that
| on Saturday morning the sum of S. 700
was deposited to the credit of his ac-
count at the First National bank.
| There are very few depositors, partic-
| ularly such as Jackson was, that have
| $500 deposits, and this fact, while i.
| appeared noticeable at the time, was
not given much attention. The teller
| who took in the money found some
| fault, owing to the fact that the wrap
| pers had been removed from the bills.
and, instead Of being in packages of
| $500, it was necessary to separate and
recount the entire amount. The disap-
pearance Of the $4,000 from the Ger
man-American bank was not known
at the time and the money was credited
| robbery of the bank was known and
! the recovery of $1,000, which Zschau
had planted near his home,
the deposit Of $500 was COM
mented on, and, as the two amounts
made up just the sum stolen from the
German-American, it was easy to fig
ure the rest out.
Jackson's explanation of the affair is
that he was given something over $500
by Zschau some time ago and told 10
open an account in his own name at
the First National bank. Jackson
did so, and, according to his story. was
| introduced at the First National bank
by Zschau's brother, deposited the $500
and odd, left his signature at
| the bank and took a bank book. This
he claims to have given to Zschau.
| together with several checks signed in
blank. Zschau, according to Jackson's
| story, had told him he was hard up
in a financial way and, as favor, he
had deposited the money in the bank
and signed the checks in blank to ac-
scommodate. him. He denies that he
was, at the First National bank, Sat-
urday morning, or that he made any
deposit on that day, either large or
| small If there was any money de-