The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-01-13
MACNAUGHTANS ARRESTED
FOR Conspiracy AND FALSELY GER
TTFYING 4 100000 CBECk.

puN Nno bnlNfu SNtNGN blhNEIN H'NoFhNN
Holds Another Opinion-James Hns to
Give $40 900 Bail and Allan SEA, 900.
James M~acnaughtan. former President OF
the Tradesmcn's National Bank. which was
closed on Oct. 4. and Allan MacnauRhtan. his
brother. who was associated with him In
the M"acnaughtan com panles, were arrested
yesterday by United States deputy marshals in
the office OF Referee ROYAL s. Crane. 23T Broad
way, where they were under examination in
bankruptcy proceedings. The arrests were
made on the complaint OF David H.. Bates. who
succeeded James MacnauRhtan as President OF
the Tradcsmen's. and who Is now Chairman Of
the Liquidation Committee appointed by the
Comptroller Of the Currency on Nov. -.
The MacnauRhtans werc arraigned before
United States Commissioner Shields charged
with conspiracy. The complaint is based on
the following check;
NEw YoRK. Feb. 10. 1897.
The Trsdesmen'A National Bank Of the city OF New
PAY to the order OF the United states Trust Com.
pany OF New York nys hundred aud ten thousand
dollars. ALLAN MACSkuGurAS.
No. a22d.
The check bears this ratification:
Accepted. Feb. 10. 1897.
Pay able through the New York Clearing House.
Tradesmeu's National Bank. TANDY, Teller.
When this check was drawn and certified. IL
is alleged by the banks Liquidation Commit
toe. Allan Macnaughtan not only had no bal
ance In the bank. but had overdrawn his ac-
count sop. 80. The two MacnauRhtans, there
fore. are charged with conspiring to commit an
offence under the United States statutes.
Against James Macnaughtun there is the addi-
! tional complaint that he unlawfully caused the
check TO be certified by William II. Tandy. the
paying teller. which is q crime under the Ma
ttonal Bank act.
Gen. Burnett. the United States District At
torney. denied a statement Of the Macnaught-
ans attorney. Alexander Blumenstiel. that
This act, said Gen. Burnett. was the first
step Of a ennnineIy devised scheme by which,
several hundred thousand dollars"
Commissioner Shields held James Mac.
causing the check, wrongfully to be certified.
and IN S25.09O bail on the charge Of conspiracy.:
s 6aii on Al .the @ sonspirscy ehS MaS n 'Rfbr l1 if }: SsSo
ton Of 40 Columbia Heights, Brooklyn. who
Was 2 director OF the Macnaughtans, New York
the Maenaughtans' Wool Exchange. and Mrs.
Allan Macnaughtan went on James Mac:
325 Clinton avenue, Brooklyn; widow Of George
l.. Pease, former Vice President Of the Shoe
in:law. Allan Macnaughtan.
The Macnaughtans say that they will easily
explained, the $S5lO,GQ0 check, transacti9G, in
lIllS lHSllOn. i lie WOOL EAtUduHt bullullH
was to be transferred By tho Wool Warehouse
Company to The Wool E5ehpngs in EebrTary,
eSsbap sPT an ta aera aaSeSe 0t w S1s @ GG%hse Gtt 81 the the
United States Trust Company whereby checks
T Es5s OK ibe @S1nin z n %f Fsb. 70, T Ts6 sela 14 at the
we're William Macnaughtan, President OF the
Wool Warehouse Company: Toward NJ. Jacobs.
Che trsA Fietehe 81! the he % S2@ P4RR xchane ee2sH vi cor
President; James MacnanRhtan. the President
James W. ClRwsou. the cashier Of the bank.
and the lawyers.
After the meeting Allan Macnaughtan drew
his check on the Tradesmen's for $4,000 to
the United States Trust Company's order. The
company. which was made the registrar of the
stock Of the new Exchange. The trust com
R Rrnyst Cont saSk t !5s s5SSH g. fnS Bsn9 to sRe
order Of Cashier Clawsop. The cashier de-
PDo ositsd mis- s apSs dr1 ;Hr ag gs6%'So i to T AIla1 eb M y
The Wool Exchange was formally orGanized
elected President, Charles Fletcher Vice. Presi;
dent and Allan MaenauSht t.an Secretary and
Value Ssis q $4,000, This i the record in tie
certificate book Of the Exchange.
Allan ,Hacnaughtan. in his examination yes
terday before his arrest. pleaded a bad memory
when questioned by John j. Adams. counsel
Ray. We're Re you a djEsG i Of The e, TrHdesmen's
DA!H ;" remember.'' was ~sst the re- reply HHAH
Why don't you remember
- An event In my lie mas shaken me up.
, "Do You think that event. the closing OF the
bank. has hurt your memory asked Mr..
Think it has" replied Mr.; Mtacns.gghht6a6n6i o.,
asked Mr.; Adams, exhibiting a check,
"A clerk drew It" was the reply. II signed
Did you send that check down to the United
states sd Trust rus r eSmpianyt by a s mes;enSerF' asked
Il think | did, was the rpDly,
Macnaughtan acknowIedSsd that he had is
s sefd 1 liH{' to shf his bother qt hhsFG james s snd l ,S nj% to
Gen. Burnett, after the arrest of the Mac
been made before. but, he was unable to get
sH%ficiept evidence. He was free to say
Tradesmen's Bank. All the facts. he said. had
not come out. and when they were known i
schemed ~clevcrly to wreck tho hank. The pros
will attempt to show that the Mac
eral hundred thousand dollars by foistLng on It
t the Min ,Tn psnt sto C22m NJ any W Stoek E,c bh eEs y
aG psr N Value ,TS S % sii iSGS6 o. '"e WOOL Exchange Oh
: We wish we didn't have it," said President
p AS CHAIRMAN sfi r d. tho LiquidNting Committee
Mr.. Bates made the following statement of the
6enH S. c9 o. dsbs yes Snx H.. hank suspondad
y Win III n $62g g ,3G c aSh II IN ot the faults yaMlts Of Gn The bank *
be entirely good. ms shown by the bank exam
tner's statement a that time; Since that date
time loans. demand loans. and other sources.
81 100000. The. bank was r~eopencd on
Dec. !, 1898. for the payment Of 100
cents, on the dollar on, demand to
all depositors. excepting those who ac-
cepted certificates Of deposit running four
mouths to April I. 1899. $6O5.O0O Since Dec.
l, 1851. 100000 has been paid to the former
class Of depositors. and on Jan. 4. 1S39. three
interest was paid TO certificate hold
ers and also, SO per cent. OF the face OF the GER
tiilcates. This makes an aggregate payment
to dcpositors since the bank closed Of $3.50
900. All notes have been duly paid as they
or three notes of the Macnaughtan compa-
MES. and the Liquidating Committee is now
lie remaining 30 per cent. OF the certificates. a
large amount Of cash now being on hand for
that purpose"
The Trndesman,s stnckholders will meat this