New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-13
DEAN COMPANY'S SECRETS.
KELLER TELLS OF JAMES r. KFILOGG,S
PLAN TO DIVIDE PROFITS

The trial of James B. Kellogg the first of the
Z, . Dean company to face a jury, was begun
yesterday in Part l of the Court of Sessions be-
fore Recorder Golf. The E. S. Dean Company con-
Quoted discretionary pool in stock trading When
it failed in April 1897 creditors TO the amount of
more than 100000 complained that they had been
swindled W. NJ. X. Olcott. then District Attorney
made careful examination of their methods and
on March 90 last the Grand Jury indicted Myron T.
Bernard, Samuel Keller AMI James B. Kellogg for
grand larceny and conspiracy. They all pleaded
not guilty and admitted to bail
Mr. Olcott accepted charge of the prosecution &C
special District Attorney, and Vernon NJ Davis
was retained for the defence, Delos NcCurdz baing
associated with him. Mr.. Davis moved that the
District Attorney be compelled TO state upon which
OF the eight counts in the Indictment against Ke-
logg he purposed to go to trial. The Recorder de-
cined TO make such an order. and Mr. Davis took
exception.
IN MS opening for the people Mr.. Olcott said his
witnesses would show that Of $4,000 sent to the
T. 3 Dean Company for investment in wheat se7 900
was never invested but deliberately stolen nv
agents of James B. Kellogg He declared Mr. Ea
Iogg TO have been the nstigator Of the entire swim
de and said that although 1t was harder to prove
heHogg's connection with the company the Dis
trict Attorney had decided TO bring him to trial
hrst because he was the guilty and deserved
the greatest punishment
MI Olcott called Samuel Keller to the stand and
an other witnesses were excluded from the room.
Mr.. Keller gave his address as No 2O9 West One
stand voluntarily, and that no promise of any kind
had been made to him
Replying to questions he said he was conducting
a bucket shop" with Charles Weinman in No
vember, 1896, when he first met Kellogg. Kellogg
wanted to sell them two-thirds interest in the
E. S. Dean Company for $4,000 The witness said
that the offer declined and Kellogg finally
agreed to take the first $4,000 received after the
formation of the E S Dean corporation. The cir
cular which described in glowing terms the
with which the Dean Company earned from 300 to
400 per cent yearly was read for the record al
though Mr. Davis objected Keller told of the con-
versations he had with Kellogg when he examined
the books. They showed liabilities of $4,000, and
Keller asked him what had become of the money.
kellogg told me- the witness said, a. That's
what 1 grabbed He said would get all that
came in by mail Saturday and Sunday, and could
use il to pay the dividends due the Wednesday
following. He suggested that We form a corpora
ton, as in corporation We could slide out easily
if anything threatened We decided to incorporate
with 81 900 600 capital 1t was agreed that we should
man and myself after the first $4,000 had been paid
weinman e entered the E. s Dean company,s prem
Uses. at No. IS Broadway, Keller mentioned Myron
He was out of work" the witness said. land
was supporting his family kellogg wanted me to
find president for the corporation, and thought
Bernard might earn a couple Of thousand dollars
The witness identified check on the Ganseyoort
S irt aq pav W made to Kellogg by the new
corporation Three other checks, also to ''bearer
between kellogg. Weinman and himself
The petition for the liquidation of the E. S Dean
Company filed in the office of the Chancellor OF
the State of w-Jersey, dated April s. 1897, and
signed Myron L. Bernard, and an order for the
appointment of receiver, were admitted In evil
dence against the objection of Mr.. Davis.
Keller then said Kellogg explained to him that
the Goslir & Co. account was just book account
TO balance sums Kellogg had grabbed The
corporation gave Kellogg receipt for the myth
cal S85,00 that the books showed TO be on hand
in the shape of bonds and stocks. At the sug-
agreed produce the original 1t is said that
the defence will agree that the receipt was genu-
inc. and that the $4,000 actually hand
when IL recepted for.
Keller still on the witness stand at o'clock
when Recorder Golf adjourned the court until
1870 o'clock to-day.