New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-25
SIX DUMMY LOANS
JENKINS TRUST DEALS.
Former Presidents Trial for Steal
ing $50, 900 Begins.

Charged with stealing $4,000 from the Jenkins
Trust Company. now the Lafayette Trust Com
pany. OF which he formerly president John u
Jenkins was brought trial in the Supreme Court
BROOKLYN yesterday. In the indictment II was
charged that the theft occurred October %
1901. two days before the bank closed All day
Monday District Attorney Clarke and Stephen &
Baldwin. Mr.. Jenktns's attorney. were engaged In
selecting jury.
Practically the entire day used in the ex-
animation of William A. Conklin. the former sec
rotary of the concern. The books of the company
produced. and the witness, refreshing MS
memory from the accounts, told what he knew OF
the Juggling of 1oans-oans charged up for the
most part to dummies and credited to the stock
brokerage firm of Frank and John G. jenkins, tr
Most OF the testimony centred about six loans ag-
eregating 1857 600. OF these 1000 was charged
against Frederick c. Young. $4,000 to Charles h
Reuter-, $4,000 to Frederick Kaiser, 81 400 TO
Waldo f. Hunter $4,000 to Frederick Jenkins and
s1sSO0o TO the brokerage firm.
Conklin testified among other things. that John
G. Jenkins, who known up to the time OF MS
fathers death a few months ago as John 6.
Jenkins. ir. ordered him TO make out two creul'
slips and carry them as cash paid on loans though
not cent had been paid. They were for Sl99,0U
each Mr.. Clarke charged that this was fraudu-
lent scheme whereby II made TO appear that
the company had nancy on hand than it
really did have. deceiving the directors. The plan
also made more money available for the needs of
the brokerage firm. which had It's offices at NO. q
Broadway Regarding the defendants acts, the
District Attorney said in his opening speech to
the jury:
This money was taken time when the bank
was struggling for existence-at a time when the
directors and everybody else interested We're about
striving to get money TO make the legal reserve
of the bank. He took il without the knoWledse OF
the same time he was pretending to be working 10
get money for the bank After the bank closed II
was shown that by the fOrgeries, fraudulent en-
tries and pretended loans this defendant ar racte
than half million dollars from the me, TAM Ih
and turned it over to the firm of Frank ana J0ih
G Jenkins, jr. The persons who were supposeu 70
be receiving the money from these loans were d
lot of clerks. They never got the hoIe ", IS 60
of Frank and John c. Jenkins, IT, 10 ena o!e II
10 carry on its operations. The ceIenu<.dt TJ
from the trust company the sum o. 81. be
capital of the bank was only So'"oV - 'ii' ~
took more than the capital OF the pank-
LEGALLY the District Attorney declared the bank
could only have lent 5000 0OO4o per cent OF us cap
ital and surplus
Mr. Conklin explained how. just before the CLOS
ing the First National Bank, of which John e.
Jenkins ST. was president. lent the trust company
5000 600 on the promssorv notes in its possession
on October % a call came from Mr. Reuter-. cashier
Of the brokerage firm for $4,000. Mr. Conkin said
that the loans were not good for It, but Mr. Jen-
kins ordered that the additional sum be paid over
and II was done The loan was later transferred 10
the account of the brokerage firm. The cheek
whereby the sum was drawn placed In EVIL
dence The witness also told Of returning, by the
presidents order many of the securities which
were given by the dummies TO secure the l0e IS, -
the broke rage firm The District ATTORNEY declared
that the securities were at the end Slooooo snort