New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-29
THE MACNAUGHTAN CASE.
A PRELIMINARY EXAMINATION HELD
BEFORE COMMISSIONER SHIELDS
ALLAN MAcNAuGHrANs CASE ADJOURNED ON Ac-
COUNT OF HIS ILLNESS TESTIMONY AGAINST

ALLAN MACNAUGHrANs CASE ADJOURNED ON Ac-
COUNT OF HIS ILLNEss-TEsTIMONY AGAINST
JAMES MAcNAUGurAN CLOSES.
The examination OF James Macnaughtan ex-
president of the Tradesmen's National Bank and
Allan Macnaughtan. his brother. who a d.
rector In the bank. on a charge OF conspiracy 10
defraud the institution. set for a hearing be-
fore United States Commissioner Shields at 1890
o'clock yesterday morning. There is an additional
charge against James Macnaughtan Of having
frauduently certified having caused to be certi
fed for his brother check for $4,000, when he
had no funds deposit in the bank The charges
are made by PreJident Bates. OF the bank
The defendants are on bail or $4,000 each on the
conspiracy charge. James Macnaughtan is also
under an additional bond OF $4,000 the charge Of
violating the National Banking law. Their counsel
are General Benjamin f. Tracy and Alexander
Blumenstiel The interests OF the prosecution were
looked after yesterday by United States District
Attorney Burnett. James Macnaughtan was pres
ent at the hearing but Allan was not. and a doc
tors certificate presented by his counsel. which
said that he had been confined to his bed for the
last ten days with severe cold. His examina-
tion was adjourned until Monday week.
James W. Clawson. who cashier OF the
Tradesmen's National Bank in February, 1897. when
the alleged fraudulent certhcation OF the check
made. testified that he the $4,000 check
which It is alleged was frauduently certified by
direction OF President Macnaughtan, on February
10 OF that year. He received II and took II TO
President Macnaughtan. who directed him 10 take
It TO the paying teller and have It certified. that
1t would be made good lie did so. and the check
was handed out to Allan Macnaughtan BY
the paying teller. At the close OF business
hours February the record showed that the
account OF Allen Macnaughtan overdrawn to
the amount OF 1892 90 The records for February
h.
Allan Macnaughtan two payments having been
made on his account. one OF $1,000 and OF
$4,000
on cross-examination Mr. Cawson said that TO
the best OF his recollection the certlhcaton OF the
check made about II o'clock in the morning.
He could not say IT what time the payments
credited 70 Allan Macnaughtan made Cen
eral Tracy said he proposed to show that there was
no intent TO defraud, that the ceruhcation of the
check was part OF a plan for the transfer OF the
real estate Of corporation to another; that the
whole business was transacted within an hour, and
the time the check certified the note OF the
United States Trust Company was ready and was
Immediately placed to the credit Of Allan Mac
naughtan. General Burnett said that the charge
against James Macnaughtan was that at the time
the check was certified Allan Macnaughtan did not
have $4,000 deposit 10 his credit It made no
difference whether or not the amount was mace
good during the day.
lis that these two notes were on deposit TO the
credit Of Allan Macnaughtan when the check for
$4,000 was certified"
The witness said that the note for $1,000 signed
by Allan Macnaughtan written out by hlin'
He was asked by General Tracy what the credit 10
Allan Macnaughtan OF $4,000 consisted or ana
replied that It was the personal check Of Allan Mac
| naughtan Mr. Clawson then testified that Alan
| Macnaughtan had given him check for s5o
for 5000 shares OF Wool Exchange stock. He took
the check TO the Wool Exchange and received a
deed OF the company's property. The cheek OF
/ Allan Macnaughtan was made by the United
States Trust Company to Macnaughtans order'
The check was certified about II o'clock In the
morning and Allan Macnaughtan's note was oe-
posted between l and o'clock In the afternoon
| The witness admitted that he was selected as the
person through whom the transfer Of the property
| OF the Wool Warehouse Company to the WOOL h@-
change was to be Effected but could not say
whether or not at the time the check for 1lo""
was certified he knew OF the projected transfer o'
! these properties.
! Mr. Clawson admitted in answer TO Dehera'
Tracy TINT a note for 5000 produced was in his
| handwriting and that IT had been given 10 MN o'
| Allan Macnaughtan at the time the cheek was
certified He held Il until later In the day, ne SAID
when Allan Macnaughtan gave him the check OF
the United States Trust Company In exchange
witness gave the Macnaughtan check lor INV
amount and this placed TO the credit oi AZ
Ian Macnaughtan tn the IradesmehS BUM ~" -
ness could not recollect when the note LOT si0'V"
was placed 10 the credit of Allan Macnauen'a an
NJ flawe0n said he did not deposit the hott ~
s5n0 0,O hut held II as security against the lueh.-
Ncstion OF the check for $4,000. He had ms hotS
In his possession when the check was cer1lheu, anu
nrobably had the other note for $1,000 although ne
was not certain. ~ u ,ho wa q
having teller OF the Tradesmens National Banh'
! testified that the check FOR $1,000 TO Allah Ma
r,,ghtar was certified by him NJ II o'clock on the
morning OF February 10, 1881 ana that ne sa"t II
| 10 Allan Macnaughtan, who was stahdlhs d. o.r
arriination the books TO see II Nr, r5tt He aid
| not know. what the amount OF his account was
Rufus F Nevins bookkeeper OF me oahki ,eSA Ne
maj the credits OF $4,000 and $4,000 TO AIah VIA
a,,rLters account were entered by MN some
time about o'clock on the afternoon OF Sa
N 1907 and General Burnett then announced tha az
- rrosecution rested It's case. and the nearing III
| w p -on - "a ionrned III Monday week.