The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-26

ed $4,000 in the checks and the bank
holds $3.50 of them. The banks doors
are still closed. but the officers say it
will reopen for business early next
week. The report of it's condition may
be made today.
in the fall of $780," said Mr.. Crosby
yesterday to a reporter for The
CT | o e. Il do not recall just how /
became interested in them. but at first
he allowed only and 10 per cent dis
count The notes were for five and six
weeks and they seemed in every way
regular. l always dealt personally with
Scuthall. He would telephone to me
that he had $500 or $500 of the checks
and l would go to the Army building
and get them. Southall always said
that the men had come up and deliver
ed the checks to him to convert into
cash.
Il made several Investigations re-
garding the character of the time
checks at Rock Island. 1 wrote to En-
gineer Mckenzie, who was Southall's
superior, and his replies. though guard
ed as are all official communications.
were satisfactory and l continued
to invest in the checks.
Took Them Up Then.
"Southall usually took up the checks
within six weeks after their issue and
he never failed in a payment until the
time Of the panic in 1898. Then he be-
gan to be slack in his payments and
when l made inquiries he said that the
delay was due to the failure Of the de-
partment officials to sign the proper
acquisitions. He assured me that the
ADDrOnri3
as soon as the acquisitions were sign
ed the checks would be paid
L afterwards read in the papers dis
patches from Washington containing
statements which confirmed Southal.
AS he afterwards took up the checks
and paid them in full I regained cor
hdence and continued to- deal in them,
About the first of July l was square
with the time checks. l closed out my
holdings and was money in pocket.
But Southall came to me later and
induced me to buy some more of the
time checks. He did not tell me that
he was no longer connected with the
government, and l went into the deal
again. | loaded myself up with $40, 900
of the paper and unfortunately got
the bank into 1t. But the bank is all
right. 1t will not be affected.
RouEht Four Weeks Ago
to four weeks ago. During the fall 1
went to the Army building for them. l
always found Southall in his office and
transacted my business with him thern
Mr; DuShane was usually present. but
took no part in our conversation.
4 do not know whether he had A
knowledge of our business. He never
made any comment.
But of late [ went to Southaus Of
flee in the National German-American
bank building for the checks. Southan
never had the checks there, but went
out. saying he would go over to the
Army building for them. He would
return a few minutes later with tbs
checks and L would take them.
Washington Officials O. X.
But Southall has not redeemed any
checks issued since July l. 1 wrote to
certain officials in Washington and was
informed that the checks were all
right There was no intmation that
Southall was not still in the employ
of the engineering department. So I
was treasured and l kept on buying
the checks
But Southall's failure to take UP the
paper made me suspicious and last FRI
day | met SOuthall and told him tina,
L believed his checks were bogus He
was very indignant and assured me
that they were as good as gold But
the following day my brother. Alton
crosby, of Willmar. asked Mr.. Du Shane
about the checks and Mr. Du Shane told
MIN the checks were worthless
Then L notified my friends and
Southaips arrest followed.
The government may not be respon-
sible for this fraud. but it is certainly
guilty of gross negligence in leaving q
tn y
public. I hope that the government
Will come to the relief of the poor peo-
pie who have lost all their money in
the time checks. 1t has a number of
precedents to warrant it in so doing.
Il was told by Southall when [ took
the paper that L was the only person
whom he was dealing with. 1 did not
suspect that any other man was deal
ing in the checks. That is what we all
thought
Nearly every church in Merriam
Park has it's funds deposited in the
Merriam Park bank, and it's suspen-
sion has caused them no little emba,
rassment. 1t was said that the min
listers of one or more churches were
personally interested in the time
checks, but that statement was denied
last evening.
One Clergyman Victimfzed.
There is one clergyman in this civ.
however, who has been caught bv
Southalls checks. He is the Rev. Ed
ward c. Mitchell. pastor of the Swed-
enborgian Church of the New Jeru
salem, who has $4,000 tied up in the
worthless paper
Il did not buy any of the time
checks" said Mr.. Mitchell last even
ing to reporter for The Globe, but
L accepted them as collateral fer loans.
1 supposed they were good. 1 did not
speculate In the paper. and I don't
want any one to think that have been
shaving paper. I believe I shall not
lose cent"