New-York tribune., 1907-10-27
CLEARSCHECK MYSTERY
Jackson Names Nan in Knicker-
booker Incident-NOt Illegal Paper.

booker InClGcnt-NO IUegGL Paper.
The identity of the man whose name was in
,rsed in the list of receivers suggested TO At
carney General Jackson, and whom the latter
declined 10 consider because he had endeavored
20 secure an illegal" check for about 81 000.-
ooo from the possession of the Knickerbocker
rrr,st Company, was revealed yesterday. The
A+tornev General admitted that the man to
boro he referred Friday was John Quinn,
counsel for the National Bank of Commerce.
ar Jackson was inclined 70 modify his state
>,oeut on Friday as to the character of the check
end the motives of the banks counsel in at
ter,nting to get it from the Knickerbocker Trust
Con7Dany He admitted that his statement in
connection with the matter had been based
simply upon the report made to him by the
Acting State Superintendent Of Banks.
The check to which the Attorney General re-
,orred was one for S960,0O0. which drawn
nv the Trust Company of America. of which
oaklefgf Thorne is president, the Knicker-
borker Trust Company on Monday, October Il
,,r Thorne SAID yesterday that the check had
been deposited at the National City Bank on
rruesdav morning October %. between 8 and
o.S0 o'clock The deposit of the check with the
National city Bank was proper proceeding
and in entire accordance with the understanding
a. ;he financial district that single check VIII
Ne accepted UP to $50 o'clock for clearance as
~ deposit of the day preceding
The check was. in fhe usual order or business
cent TO the Clearing House on Tuesday morn
,rr the day the Knickerbocker Trust Company
closed its doors. and was included with other
checks which were presented 70 the National
Rank of Commerce, and paid by that institu-
,ion which was the clearing agent OF the hnlck-
erbocker Trust Company in clearing its debit
balance for the day. AS is usually DONE the
paper with all others which had been cleared
for the Knickerbocker Trust Company by the
National Bank of Commerce. was forwarded at
once for verihcation TO the offices of the first
mentioned company.
The day following the suspension of the
Knickerbocker Trust Company an official Of the
National Bank of Comerce. in looking over the
clearances of the day preceding. noticed the
amount Of the check drawn by the Trust Com
pany Of America, and Mr.: Quinn. as a precau-
tionary measure, asked A. c. Judson, the chief
bank examiner for permission to examine the
check with a view to protesting II II necessary.
Mr Judson declined, however, to allow the
check TO pass out of his possession even tenn
porarily but on consultation with the Attorney
General allowed clerk from the bank to make
a copy Of the paper. The check was not pro-
tested, 4 receipt for It. together with all other
clearings made for the Knickerbocker Trust
Company on October %, being held by the Ma
tional Bank OF Commerce.
The Attorney Generals statement In regard 10
the matter Friday brought forth a statement
yesterday from Julien T Davies, OF Davies.
Stone & Auerbach, counsel for the Knicker-
booker Trust Company, after a consultation with
the committee Of reorganization OF the board OF
directors Mr.. Davies's statement says that Mr..
Judson. after explaining the facts Of the mat
r1A RnfplkerhOrIxer'S Gtata3 1ar
he never expressed to anybody the opinion that
there was anything irregular in the transaction.
When Mr.. Davies read the statement OF the bank
examiner 10 Mr. Quinn. the latter confirmed it
Mr. Davies declared that neither his firm nor
any OF the directors OF the Knickerbocker Trust
Company had been in any way connected with
the making Of the request TO examine the check.
Otto T Barnard. president of the New York
Trust Company, who was appointed a receiver,
together with Ernst Thalmann and General
Henry c Ide. the application of the Attorney
General, did not qualify for the place yesterday.
Mr. Barnard said it extremely doubtful
whether he would accept the place, as. with the
press Of duties in his present position, he was
uncertain if he would be able TO devote s1he
time necessary for the proper conduct OF the
receivership. According to Mr. Davies. Valen-
tine P. Snyder, VINO suggested for the re-
ownership, had declined 10 permit the use of his
name
There was full attendance OF the committee
Of reorganization at the trust companys Offices
yesterday morning. At its close Mr.. Davies said
plan for the resumption of business had been
worked out sufficiently TO enable the committee
70 make public the details in to-morrow's news
papers A. Foster Higgins the president of the
company, said that il would probably be a
month at least before the Knickerbocker would
be able TO resume business