Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1908-05-06
NJ. c. HAeAN TEsTIFIEs THAT
EDWIN c. STORY DID NOT EN-
TER TRUE BALANCES.
ALSO DECLARES THAT DEFEND
ANT MADE FALSE REPORT
TO BANK COMMISSIONER.
DEFENSE WILL ATTEMPT TO
SHOW THAT SHORTAGE WAS
CAUSED BY oVERDRAFTs.
Madison, April g

Madison, April 80.
That false entries were made on the
books of the Citizens State bank of
3elleville by Edwin C. Story, former
cashier of the bank, was the import
ant evidence produced by the state in
the municipal court yesterday at the
preliminary examination of Story,
who is charged with having emoezzled
$23,35505 of the banks moneys, of
making of false entries in the books
Of the bank, of making a false report
to State Commissioner of Banking NJ.
c. Bergh and of keeping false ledger
accounts.
Attorney ]. NJ. Clancy, who is de-
Tending Story, announced that he
would not produce any evidence at
the examination After adjournment
for the day he stated that the defense
will attempt to show that there was
no embezzlement but that the short
age was caused Nv overdrafts
1t was also brolgAt odt by the state
that Story placed to his credit $500
which was deposited in the bank on
the account of Guss Mas Mr.. Clan
cey said that this would also be sat
isfactorily explained at the proper
time
Tells Results of Examination.
Milo C. Hagan, deputy bank exam,
liner, was the principal witness for the
state. He made an examination of
the bank which led to the sensational
disclosures. He said that April 10
last he found on the ledger of the bank
an item of $3,13454 which was repre-
scented to be the balance due the Citi-
zens' State bank from the First Nation
al bank of Monroe. He also discovered
an account of $5,795.5S, purporting to
be the balance due the bank from the
Merchants Loan & Trust comparJ of
Chicago.
Mr. Hagan testified that under the
date of January 2 he found in the
books of the ban'- a balance of
$6,077.Ss which purported to be due
from the Chicago concern while the
true balance was only S1,077S5. He
said the change was brought about
by converting the figure l into 6.
''The purpose of changing the fig
ures was to initiate the assets of the
bank" remarked Attorney General
Gilbert
False Entry of Remittance.
Another important witness for the
prosecution was John Strahm, cashier
of the First National bank of Monroe.
After going through the usual pre-
Lminaries as to qualifications Mr..
Strahm stated that the Citizens State
bank of Belleville and the First Ma
tional bank of Monroe drew on each
other back and forth.
Strahm stated that the Citizens
State bank of Belleville made remit
tance of $540.23 to his bank January 3.
Mr. Gilbert asked if shortly before
! or after that date the Belleville bank
RENTED $2.540.23.
NO such amount was mentioned, .
replied Mr.. Strahm.
Mr. Strahm stated that the true bal
ance due his bank from the Belleville
bank April 10 was s1.,5S6 60 and that
instead of the Belleville bank having
a credit it was indebted to his bank.
Then the Citizens State bank did
not have credit of $3,13354 in your
bank at that timer Intercepted Mr.
Gilbert.
NO sir" replied Mr.. Strahm.
Upon being recalled to the stand Mr.
Hagan testified that in examining the
affairs of the Belleville bank he dis
covered in the books the item of
$54023 which the bank remitteG to
the First National bank of Monroe
January 8. He said he found the
same amount entered in the journal
but in the loose leaf ledger the
amount so RENTED was put down as
$2,540.23
This means that the account has
been padded $4,000" declared Mr.,
Hagan.
Declares Statement Was False.
Mr.. Hagan testified that in his re-
port to the commissioner of banking
of the condition of the bank at the
close of business hours April 10,
Story declared that the loans and dis
counts were s97.344 and that the de-
posts subject to check and the de-
posts on time certificates aggregated
$lO6,196.55, while in truth the loans
and discounts were sSS,844 and the
deposits subject to check and deposits
on time certificates $109,6s6.55.
Before signing his name to this re-
port Story certified to the following
which was read into the evidence:
II hereby certify the above state
ment to be correct"
The states testimony showed that
the total imitation of false figures ag-
egates s16,520.14 without taking
into consideration the conditions exist
ing between the Citizens State bank
and the Merchants Loan G. Trust
c0mpany of Chicago, testimony on
which will be heard later in the exam
xnation.
Before the cross examination uf Mr.
Hagan. Iver Ruff. assistant cashier Of
me Citizens State bank. was called
"a the stand to identify the handwrit-