The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-03-11
THE TRIAL OF
MAJOR BREESE
A Brief History of the CeIe-
brated Case
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1ST NATIONALS FAILURE
WORTHLESS NOTES FOR A VAST
SUN AS ASSETS.
ALL OF THEM SIGNED BY INS0LvENTS
Failure Of the First National Direct Cause Of
Failure Of Western Carolina and Ma.
tonal Bank Of AsheyiIe. Bank
Officers Line Of Defense.


Asheville. n. c., March 10.-(Special.) }
in the trial of w. Il. Breese today a
number of men were examined whose
names were on notes ranging from S400
to $500. Two testified that the sigma
lures were not theirs others that they
signed notes in blank at G. Il. Leonards S
request. S. 7. Dorsett, teller of the
defunct bank, testified that all these
notes We're filed out by Breese. Post
master Rollins testified that he signed
notes for Breese. One was endorsed
paid on account 81, 100" Witness said
he had never paid anything on any
notes. He received statement from
Breese at the time he signed that he
had not received money ON notes and
was not liable. One witness testified
to signing accommodation notes filled
out by Dickersonl A long list of bills
were submitted that had been out of
the bank on Breeses individual account
in the two months before the failure
In the afternoon a long list of notes
were shown D0rsett which he swore were
filled out in Breese's handwriting. These
all were of insolvent persons Many
of these went to the credit of Brecsc
to lessen his oyerdrafts. None of them
we're recorded on the discount register.
Testimony was submitted as to false
reports to the comptroller of the cur
rency, by proving immense oyerdrafts
forN Breese, Dickerson and Penand when
the reports mentioned no oyerdrafts.
This is the fifth time this celebrated
case has been called up in court. The
first time in December, 1897 it was
postponed because Judge Dick, who
presided, considered that public feeling
had become so bitter against the defend
ants that it was impossible then to Sc
cure an impartial jury. The present
date for the trial was set three weeks
ago, when Judge Purnell allowed a
postponement, on account of the absence
of Senator Pritchard, on whom the de-
PENDANTS are relying very much.
The First National Bank failed on
July 81, 1897 The collapse was much
of surprise to the public, whose -con-
fidence the bank officers enjoyed. The
notice posted on the door ascribed the
failure to the stringency of the timess
and the inability to collect debts due.
Ht IISt suSDlCIOu VI dIly CIOOkt0UcSS
was aroused in a week or two when
it became known that the bank held as
assets notes for a vast sum in the ag-
gregate, which were signed by insolvent
persons, and that the signatures to these
notes had been obtained by misrepre-
sentation, and even, as some of the
men whose signatures We're attached
alleged, by forgery. These notes We're
Il bx-f fI,. H.,
President Breese, Cashier Penland or
Director Dickerson. 1t gradually de-
veloped that many of these notes were
signed by insolvent employees of Mr..
Dickerson, or employees of corporations
with which he was connected, under the
assurance that they were merely accom-
modation notes and that payment would
never be demanded of the signers. The
signatures to most Of the other notes
had been secured by G. B. Leonard, an
insolyent contractor and builder, who
had considerable dealings With the bank
men. Leonard secured the signatures
of various contractors, carpenters, etc,
all insolvent, under various pretexts, the
usual one being that he wanted a mum
Der of notes signed, which were to be
filled out for a small amount and to
be used merely as collateral. 1t de-
veloped that subsequently these notes
had all been filed out for large amounts
endorsed by the bank officers, and re-
allied upon r. ID. Mccall, Il carpenter,
is one of those who went SO far as to
declare that his signature as it appear
ed on any of the notes was a complete
forgery. In civil suit at Brevard, to
which Major Breese was one of the
parties, and tried shortly after the
banks failure, Major Breese was rig
orously ss-questioned as to the con-
duet of the bank, and some interesting
testimony was adduced. He claimed
that there was no fraud connected with
the notes, because they We're discounted
abroad on the strength of his endorse
ment and not ON the signature of the
note-makers.
AS to the charge that the bank Off
GERS had borrowed from the bank a
sum of money greater than 10 per cent.
of the capital stock, he said that it had
been done with the consent of the comp
troler of the currency. These state
ments give some clue as TO the prob
able line of defense to be adopted by the
defendants.
About September 10th following the
banks failure, Messrs. Breese, Pen
land and Dickerson We're arrested on
warrants sworn out by Assistant Comp
troller of the Currency Coffin, charging
the defendant with violation OF section