New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-13
MACNAUGHTANS ARRESTED.
ACCUSED IN CONNECTION WITH TRADES
MEMS BANK CHECK.

EACH HELD IN $4,000 BAIL FOR EXAMINATION
ON ruEsDAY-rAKEN INTO CUSTODY AT
ALLAN MAcNAuoHrANs ExAMIFA-
TON IN BANKRUPTCY.
There was n dramatic climax at the examna-
ton Of Allan Macnaughtan yesterday at the
office Of Royal s. Crane referee In bankruptcy.
at No 237 Broadway Mr. Macnaughtan had
been under examination for over an hour oy
ex-Congressman John ]. Adams attorney for
the Tradesmen's National Bank, when. JUST
as Mr. Adams asked the last question. United
States Denuty- Marshals Blake and kelKer
appeared in the room and arrested both Allan
and his brother James Macnaughtan. who was
present on a warrant issued by United states
Commissioner Shields. James Macnaughtan
was charged while president OF the Tradesmens
National Bank. February TO- 1891 win
having falsely certified check Tor SoiVV"'
drawn 70 Allan Macnaughtan's order on the
Tradesmen's National Bank. when the latter
had no money in the bank, and Allan "aS
charged with conspiracy in the matter Inc ar
rest was made under Section 520S Of the Re-
vised Statutes The Messrs. Macnaughtan were
Immediately taken from Referee Cranes once
TO the office OF United States Marshal Henke''
and we're at once led before United States COM
missioner Shields. who held them In SZoVV
bail each. The hearing was set for TUESDAY
next Alexander Blumenstiel. counsel for the
Macnaughtans. declared that the certihcation
was simply a technical violation OF the law
that the Tradesmen's National Bank did not
lose dollar by it, and James Macnaughtan
said that the books would show that there was
a sufficient amount to the credit OF Allan to
pay the check They took their arrest coolly.
A SIGNIFICANT QUESTION.
When the examination Of Allan Macnaughtan
was begun yesterday morning one OF the hrse
questions asked by Mr.. Adams was II he was
director In the Tradesmen's Bank on Febru-
airy 10, 1897. Mr.. Macnaughtan said that ne
did not remember he could not recollect when
he was elected although he knew he was
director for some time, but could not tell the
date Mr.. Adams pressed him with questions
on that subject but he would not admit that
he was a director on February 10 1897, the
date when the $4,000 check was drawn. Mr.
Macnaughtan declared that 1t was all a matter
of record He could not tell the date OF his
election for obvious reasons. When asked what
the reasons he said that he had had such
a shake-up In October last that 1t had destroyed
his memory somewhat. and he would have to
refer to the records before he would swear
The reason for Mr.. Adamss persistent ques-
lions whether not he was director OF the
bank on February TO- 1897 was made apparent
later on. when both Of the Macnaughtans were
arrested. Mr. Macnaughtan remembered draw
ing the check for $4,000 that day. He
said: Il signed It and gave 1t to a messenger
to be certified; the messenger went down to the
United States Trust Company, received their
check and brought It back"
To the question Where were you when you
signed the check?" he answered that he did not
know: had not the slightest recollection. Mr..
Adams then asked: did you ever draw
check for such large amount before?"
At this juncture Mr.. Blumenstiel. attorney for
Mr. Macnaughtan, said that he did not see the
use Of asking such questions, as the Trades
mems Bank not out dollar for a minute,
the check OF the United States Trust Company
came back and II simply an exchange OF
checks for transfer of money in the sale Of
the Wool Exchange Building. The bank did not
lose a dollar. and nobody was out a dollar.
Allan drew the check for $4,000. arranged
with the United States Trust Company that I'm
mediately on receiving the check the trust COM
pany would give its check, which latter check
went back to the Tradesmens Bank. One check
cancelled the other. The bank was not out a
cent, Allan was not out a cent; In fact. the
check went through the Clearing House before
the bank paid out dollar, and the Trades
mems Bank had the $4,000 for one day.
Mr. Macnaughtan admitted that he had
ranged with the United States Trust Company
before the check went down that It's check
to be given in place Of his, Asked IL he sent a
check for 100000 Of the Wool Exchange Com
pany, drawn by him treasurer with the
other check for $4,000 to the United States
Trust Company he answered that he did not
remember. 1t part Of the same transaction,
and was paid to Mr.. Clawson for title to the
building. Acting for the Wool Exchange, he
had handed 1t to Mr. Clawson in the presence
OF the lawyers.
DID NOT REMEMBER.
Mr. Macnaughtan was next questioned as TO
when he drew the Wool Exchange check on the
remember and the minutes Of the meeting were
produced but they did not refresh his memory.
The minutes showed that he was elected treas
urer OF that company on February 10, 1897. To
the question Bearing in mind that you were
not elected treasurer until the afternoon OF that
day. do you think you would have drawn a
check treasurer prior TO that hour|' he re-
Piled. Il don't think would
Did you sign t? the next question.
II have no recollection" the answer.
Concerning subscriptions TO the stock OF the
Wool Exchange Company, he said he signed a
certificate for 1867 shares of stock Issued TO
himself also 1910 shares issued to James Mac
naughtan and 1870 shares to Mr.. Fletcher.
Did you pay into the Wool Exchange the
money S1G6 100 in CASH." was asked.
He replied: why. yes" He then explained
that he paid II through the United States Trust
Company by the check for 100000 drawn on
the Tradesmen's Bank. That check paid all the
stock issued, 100000.
Mr. Macnaughtan was also examined concern
ing securities OF the Wool Warehouse Company