New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-07
BANK AFFAIRS.
JAMES MACNAuGHTAN QUESTIONED
REGARDING LOANS AND DEAL
INGs WITH THE WOOL
EXCHANGE,

ENCHAN'rf
lanes Macnaughtan former president OF the
Tradesmen's National Bank. who filed an indlvinua
ao,,,or IN bankruntcv with liabilities sll295So and
nominal assets tei;c2l. was before Royal > ei"'
referee in bankruptcy, at his Office NO 20 hro'u-
way for examination by creditors yesterday Alper'
Blumenstiel appeared as attorney Tor MI Ni"o-
nauehtan There were about twelve creditors pres
emit and the examination was conducted ny eA
congressman John J. Adams. attorney for the
Tradesmen's National Bank.
The principal purpose Of the examination was ~
SHOW what money Mr. Macnaughtan had drawn or
allowed 10 be drawn out OF the bank, when hau
been put into various outside companies III ""''
the Messrs Macnaughtan were Interested Se'e'"'
checks OF 500 900. which had been pald' were eN-
hihted and then placed in evidence one OF .le
checks was dated February 10. 1897, for S%o,v"'
drawn on tho Tradesmens National Bank by Alan
Macnaughtan.
Another was copy Of check drawn by the
United States Trust Company on the Mammalian
Company for $4,000 to the order OF james W.
Clawson (who was cashier OF the Tradesmeh
bank) and another check OF Mr.. Cla"son
on the Tradesmen's bank for $4,000 dated Feb
ruary 10 1897 The Wool Exchange was organized
on February TO- 1891 and. according TO the minutes.
$4,000 capital was paid In cash. Mr.. Macnaughtan
was elected president at the first meeting. The
stock was subscribed by three persons. the Messrs
Macnaughtan and another person.
Mr. Macnaughtan at first could not tell whether
he subscribed for $lG oco Of the stock until he saw
.he papers The stock book was shown to him. and
ne admitted that he subscribed for 100 shares OF
the stock valued at $4,000. Asked II he paid the
money into the United States Trust Company. he
~epied that personally he did not. The check for
$4,000 drawn on the Tradesmen's hank by Allan
Macnaughtan. shown to James Macnaughtan
by Mr. Adams James Macnaughtan admitted hav
ing 1t before. and said he had instructed the
cashier paying-teller OF the Tradosmen's bank
10 pay ii.
Asked If his brother Allan had $4,000 on deposit
in the bank. he replied: Il suppose he did He
did not remember whether he looked at the books
to see. To the question Were YOU in the habit
OF certifying checks when depositors had no money
The ledger OF the Tralesmens bank was pro-
duced and Mr.. Macnaughtan was asked to look at
did not owe $500 to the bank Mr Macnaughtan
replied. That aces not follow; the book does not
indicate what he had TO his credit at the time the
The ledger showed $500 in pencil and certihcation
for $4,000 In ink. Mr.. Macnaughian also said tnat
he saw on the book corresponding credit or $olU-
Co., but that part of his answer was stricken out.
Mr.. Macnaughtan was asked II he MADE any ar
ransements with any one in the ntted states
+-radesmen's bank on February 10. iss7. He an
swered that he did not remember. Mr. Adams sug-
gested that II was such a large amount 10 whlch
Mr Macnaughtan replied. Not what We were
handling"
raushtan was asked II Mr. Clawson did not draw
check PAYABLE TO Allan Macnaughtan. The an
for $500 G)0 payable 10 Allan.
Odd Cashier Ciawson have such amount
standing to his credit Al don't know. he must
have had 1.-THE check good.
Mr. Macnaughtan was also questioned in regard
to various other loans. the sale OF the Wool Elk
change Building TO the Wool Exchange. the price
fixed being $l.1Oc,), and the capitalization Of sev-
the Western National Bank Mr.. Macnaughtan said
Re arranged the loan, but it was negotiated by H.
J. -dorse. -
Mr.. Macnaughtan said that he borrowed 10000
from the Western National Bank FOR himself The
minutes Of the Wool Warehouse Company were pro-
duced by Mr.. adams to show that the loan OF
$500 000 was for the Wool Warehouse Company. and
also a copy OF a deposit slip Of the Tradesmen's
bank OF August %. 1897. showing that $500 90 was
deposted to credit OF James and Allan Mac
naughtan. Asked II Il Wool Warehouse loan
why the money deposited In the names Of the
Nlessrs Macnaughtan Mr.. Macnaughtan answered
Simply making transfer OF money"
Odd you draw the money out % the Trades
mems bank the next day? Al don't know;
don't recall II.