New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-10
STEELE'S Defence OPENS.
WITNESSES FOR THE CASHIER OF THE WRECKED
CHESTNUT STREET BANK SENSATIONAL
TESTIMONY

Philadelphia Dec. 9-Tho Government res;ed its
case at noon to-day in the trial If William steele
the cashier Of the wrecked Chestnut Street Ma
tonal Bank charged with conspiracy with Presi-
dent William II. Sngerly in the misapplcation NJ
the funds Of he institution and making false re-
ports OF the banks condition 10 the Controller Of
the Currency.
Before closing the to-day the prosecution OK
amined several witnesses. among them three Of the
banks directors. MessrS Zeiger Porter and Lip
per. These directors admitted that they had never
made personal examination of the banks affairs.
They had AT times been Informed tha' President
singery had overdrawn his accounts. but they had
every confidence in Presidents financial ability
10 settle in full. They wero amazed when they
learned upon the failure of the bank that Mr.. Sing
erly owed 10 the bank upward Of half million
dollars
Edward p. Moxey. a Government expert. In the
employ Of the Controller Of the currency testified
regarding the fasity of the reports received from
the Chestnut Street Bank He instanced the re-
ports Of May and July 1907. In the former the
Total loans and discounts were given az s213I .l23.
should have been s2i26 700 The checks and cast
items were found to have been s62s3@' more than
The defence then opened. The counsel for the
financial circles Mr.. Singerly was looked upon as
q wealthy man. fully able 10 meet any obligations:
one dollar by reason Of the overdrafs. and any
act of his in carrying these overdrafs was the
fcer under whose instructions he was acting.
Ex-Controllnr Eckels had been subppnaed by the
defence, and was ihe first witness called He
asked If he had, while in Office. insIructe ID
Cashier Steele now to make up his reports rela-
tive 10 loans and discounts and checks and cash
District Attorney Beck objected 10 the question
and Judge Butter sustained the objection. saying
that II Mr.. Eckels did instruct Steele 10 make
his report. that would not excuse Steele from la-
bllity for misstatement of fact.
Mr. Eckels said he had no knowledge OF the over
drafts OF Mr. Singory. Several witnesses werC
then called testify TO Stcele's good character.
Cashier Steele took tho stand and his testimony
In general admission that he knew all The
time OF the condition Of the bank and excessive
loans being made to Mr.. Sngerly. He also stated
that this condition was known by the directors
and also by the officials In Washington.
His testimony with regard TO the officials al
Washington ruled out. Mr.. Steele laid par
iicular stress upon the fact that he never benefit
ed in any way whatever by the manipulation ~
the banks funds by Mr.. Singery. and that h,
never at any time attempted or intended TO with
hold the true condition OF the bank from tho di
rectors and the officials Al Washington
Under Decentralization he admitted that N
knew 1t illegal 10 make such excessive loa n:
as made 10 the late president Of the bank
The defence closed It's case. and District-At
torney Beck made his first address 10 the jury IL
which he withdrew of tho counts in tho in
dic;ment that Of personal n.isa ppcation Of funds