Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-02-15
Public Accountant Who Ex-
amined Bank Said It Was In
solvent Before Failure
PERSONAL NOTES WERE GIVEN
Note Which M'cutchen Had Given tho
Bank for $50, 1874 Among the Assets
NO Money Consideration Appears
to Have Been Given for the Note
The Proceedings.

against Fred McCutchen now being
used IN the trial Of the case in which
he is charged with fraudulent banking,
dIsclt:-es that when the E. H. Nc
Cutcken & Company private bank at
Ho.stein failed, the creditors employ
ed L. A. Cannon. a public accountant
from Sioux City, and he testified be-
fore the grand jury that not only was
solvent for a year and half
Among other things Cannon found:
"On September 26, 1902, E. H. Nc
Cutchen executed personal note in
favor of the bank before the death of
McCutche,n and the closing of the
bank There was included in this note
an amount of s36,194 for which no
money consideration appears to have
been given
e. H. MeCutchen died on January 13.
1904, of pneumonia, and that night it
was discovered that the bank was
short in the neighborhood of 100000.
This disclosure was probably as much
of shock to Fred McCutchen as to
anyone else, if not more SO.
Popular sentiment is with Fred Nc
Cutchen. He was young and had the
implicit faith and confidence in his
father that every young man should
have, anc If there was anything wrong
with the bank he knew nothing OF 1t.
and had every belief that his father
would be able to stem any tide of fl
nancial distress that might turn
against them.
In fact the people at large believed
that e. E[. McCulchen was one of the
richest men in northwestern Iowa, and
it was not until the evening of his
death that the disclosure came.
Brother Against Brother.
1t was a pathetic incident when yes
terday afternoon Mr.. Bevington, on be-
half of the state, called to the stand,
Carl McCutchen, a brother Of the de-
fendant, and for two hours tried to get
him to incriminate his brother. There
forced to testify against his wife, and
that no wife can be forced to testify
against her husband, but the law says
you can force brother to the stand
and force him to testify against his
brother II you can trap him.
Carl McCutchen was the best Wit
ness that has ever taken the stand In
the local courts, and Bevington, with
all his cunning, at least met his match.
and in mere boy at that. Instead OF
discriminating his brother he made
good witness for the defense, and the
state was unable to even fluster him.
Tho McCutchen Bank Books.
The state evidently plans proving
that e. il. McCutchen and e. H. Nc
Cutchen & Co., were one and the
same, and that e. II. McCutchen was
in reality the whole banking firm. The
state will also try to prove that the
bank was not only insolvent just pre-
yious to the death of E. H McCutch-
en- but that it had been insolvent for
a year and a half, or since September
26, 1902, when E. H. McCutchen gave
his personal note to E. III. McCutchen
& Co., for $96,66S.83.
When Carl McCutchen was on the
stand the states attorney presented
scores ard scores Of pages in the bank
books ard asked him to identify the
hand writing Of the various men who
worked ON the books, including the
handwriting and figures of his brother.
John Scott Of the Northwestern bank
Of Sioux City, was placed on the stand
by the state to compare hand writing
and figures on the books Of the defunct
McCutchen bank.
The state has called thirty-two wit
nesses thus far and both sides will
have a hundred more including six
experts