The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1906-12-06
NO REAL ACCOUNT
BEHIND THE PAPER
Lifted By Notes to Bank. Says
President Thompson
Sensational statement Made In Re.
gard 10 Affairs Of Rehkopf
Concern.
DETAILS OF THE TRANSACTION

George C. Thompson. president oil
the American-German National bank
sprung another sensation in the T.
Rehkopf Sadd.ery company bankrupt.
cy case by declaring in a deposition
that he learned just before the assign
ment OF the e. Rehkopf Saddlery com
pany, that alleged accounts and
drafts against customers OF the +.
Rehkopf Saddlery company. which
we're taken up by certain notes OF
the officers of that concern, did not
represent goods sold at all.
The deposition of Mr. Thompson
was taken in connection with the OBJ
jections OF several creditors 10 three
notes OF b. M. Philley, to Il. p. Reh-
kopf. and endorsed by Il. Rehkopf
and the Il. Rehkopf Saddlery com
pany. per b. NJ. Phllley. secretary. to
the bank for SIS, 5S4.S6. The bank
claims these notes were renewals of
previous notes deposited with the
bank to cover any overchccks Of the
corporation or bad drafts and ac-
counts of the customers of the sad
dlery company in the future.
According to Mr.. Thompson these
notes were made absolute property OF
the bank shortly before the assign
ment of the concern to cover an over
check of $500 and $4,000 in
worthless papers.
MIR. Thompson said he thought the
notes and drafts OF the concern were
all good up to the time OF the as
signment
On examination he was asked by
J. c. Flournoy
"Mr. Thompson, will ask you to
explain TO the referee what sort of
accounts with drafts attached, the
notes that you have been asked about,
guaranteed: what sort they took up
or became responsible for?
Mr.. Thompson-"Th were put
theI~ to secure drafts that they would
make against their customers for
goods they claimed they shipped to
customers. which accounts, covering
the same, were assigned to u.s."
Flournoy-"Dida any OF the pur-
ported accounts and drafts, which
these notes we're given to take up, act
ually represent any goods shipped to
any customers OF the Il. Rehkopf Sad
dlery company"
Thompson-"Nearly all these
drafts that we're taken up by these
three notes represented sums for
which no goods had been shipped. a
few of them represented sums where
drafts were drawn for more than the
goods shipped amounted to. think
probably one-half dozen out OF hun
dred we're In the shape described"
Referee-"Do you mean to say that
the items stated in the accounts were
not actual items OF goods shipped"
Thompson-'T mean 10 say they
did not ship the man any goods at
all"
rlournoy-"I viii ask you TO tell
the court how Il Is that you know
these accounts were false and fraudu-
lent"
Tbompson-"Th first knowledge
received was from Il. Rehkopf him
self about two or three days before
assignment. The second knowledge
received of It was from Mr.. Philley
on the next morning
Flournoy-"Did not John c. Reh-
kopf the vice president, bring you an
itemlzed statement and tell you it con
tanned an nemized statement OF those
that we're false and fraudulent"
Thompson-"In his conversation
with Others he called them 'swaggles.
In his statement with me he called
them overdrafts."
Flournoy-"I VIII ask you III tne
Rehkopfs, both of them, did not re-
quest you to take up those fraudulent
papers with these $4,000 collat'
erals?"
Thompson-'Yes."
In answer to question or the
referee Mr.. Thompson said:
1--WE we're talking over his ahair'
(meaning E. Rehkopf's) and said
Z 4 understand that there won't b
$4,000 of our commercial papers
bad"
ellis answer was, Stop a minute
Your commercial papers are not a
good as you think they are
81 says, What is the matter will
them?'
HE says, We'll, they are not pa