New-York tribune., 1909-01-29
SHIFT In COW CASE
PLACES BLAME ON SUICIDE
Witness Tells of MarsCelPs alleged
Part IN Mcclure Transaction.


More Of the banking methods of William Cow, on
trial before Justice Crane. in the Supreme Court
Brooklyn, on a grand larceny charge in connection
with the wrecking of the Brooklyn Borough Bank,
were shown yesterday in the testimony Of Arthur
D. Campbell, the cashier, who turned states evil
dence. He the stand nearly ali day. ms
testimony making up the bulk of the prosecution
case. District Attorney Clarke will rest for the
prosecution when Mr. Campbell concludes his testi-
mony to-day.
The cashier who escaped trial on the same indict-
by testifying the people, testified yester-
day that Mr.. Cow foated the Excelsior Fire Insur-
ance Company by illegal use of the FUNDS OF
the Borough Bank, that fraudulent and unsecured
notes. signed by irresponsible persons, were USED
by the defendant to cover his oyerdrawn account
and explained the details of Mr.. Cows alleged ap-
preparation of the Carrie Mcclure account OF
s145,OOO
Mr. Campbell's testimony Of the part Of Howard
Maxwell the suicide in the alleged theft of the
Mcclure money generally accepted as an AID
TO the defence. The defence was further strength
ened by the statement of Robert ]. Cuddlhy, the
Mcclure executor. that he had difficulty IN
drawing money the account at any time, and
that he had withdrawn the last dollar and closed
the account on the day the bank collapsed
Richard w Jones. jr.. formerly president of the
defunct Oriental Bank of Manhattan. was cross
examined by Martin W. Lttleton. attorney for Mr..
Cow, and told much the story of the de-
fendants alleged financial feat in acquiring
$1,000,000 for his International Trust Com
pany outlined by District Attorney Clarke
on Wednesday. Mr.. Jones said. however, that the
$l45,000 in MCGUIRE money already credited to
the International Trust Company when the Oriental
Bank made its loans aggregatng S150,OoD, whereas
Mr.. Clarke stated the s145.OO0 the last item
secured.
After Mr.. Cuddihy had been cross-e s-examined and
Arthur d. Campbell started his history Of the
wrecking of the Borough Bank it became evident
that much of the blame for the Mcclure transac-
ton would be put on the shoulders OF Mr. Maxwell.
the bank president who shot himself after being
indicted. The witness said that after the $l450O0
had been deposited to the Carrie Mcclure account
Mr.. Cow instructed him over the telephone not 10
loan any of the money, because ii wouldn't remain
there long. and not to tell Mr.. Hurley. vice-presi-
dent of the bank, about IT, because he might want
TO borrow the money.
Mr.. Cow called me on the telephone on the
morning of September 90 1907" said the witness,
land asked to draw a cashiers check for
S145.Oo0 and send it him in New York. 1
asked him what TO get for It, and Mr..
Maxwell who was in the same with Mr..
Cow. to the telephone.
II asked him what I going get for the
S45,OOo Mr.. Cuddihy is going to give check
for It, he replied He told me that it was all
right, and that 1 should send the check
made out the check on the Borough Bank to the
International Trust Company. and sent it over to
Mr.. Maxwell. 1t came back paid. 1t was Endorsed
TO the Oriental Bank and signed by Howard Max
we'll. as president on October l Mr.. Maxwell told
that Mr.. Cuddihy would give US a check for the
amount very soon. The next day he said he hadn't
received the check yet. but told TO credit Sl4,
coo the Mcclure account which 1 did.
when young Mr. Mcclure called soon after to
get some checks certified I told Mr.. Maxwell
there was money there. and he instructeE me to
transfer sos 900 in the chairnan's fund which he
controlled to the Mcclure account A day or two
later sl2 O0 more was transferred from the chair
mans fund to the MCGUIRE account The account
was finally made up when Mr.. Maxwell brought a
check for $4,000 signed by Frank w Doolitte. Mr.
Cows secretary. l Immediately credited 1t TO the
Mcclure estate
Henry NJ White a bookkeeper, identified the en-
tries which showed the history of the deposits and
Withdrawals in the Mcclure account, as recited by
Mr.. Campbell.
Mr. Clark asked the cashier about the S25oo0o
Maxwell note on the Borough Bank.
Was this note. usual with notes given
by the Borough Bank entered in your books"
mo, It was entered" Mr.. Campbell re-
piled. Mr.. Cow asked me October "a II there
wasn't some way the notes could be entere z on the
books but I told him there wasn't" Mr.. Camp
bell that although 1t the custom TO read
all the large notes the directors meetings, the
Burr, Jenkins Maxwell notes were not men
toned. The largest individual loan prior to Sep
tember %, 1907, $4,000, he said
The hotation of the Excelsior Fire Insurance
Company taken up. Il told Mr.. Cow in August,
1907" testified Mr.. Campbell, that he could not
draw out money because the fund very
Sl37 500 TO other members OF his Excelsior Fire
Insurance Company from the funds of the Borough
Bank as follows: John S Jenkins $l3,250; e. B..
Armstrong loans of SS6.750 and $375Ooi Eugene Van
Skirk two loans of $4,000 This money will never
go out of the bank Cow said to me, until il goes
into the International Trust Company and be
safely carried, because OF additional privileges we
will have then The reserve fund was then less
than Is per Of the deposits. which is Illegal
MIR. Campbell testified that the defendant can
OVerdTa%n creditiug
with the following notes. which were never made
known the members of the beard of directors
and remained unsatlshed in the bank until late In
October, when it failed: By James Bartlett a
negro hotel porter. March o. 1907, $500 James r.
SudwelI. March Z7. 1907, $25,OO0 Charles Pfeiffer
August o. 1867 $21 600; Charles Pfeifer September
g. 1907 $4,000; Herman Vet. February Is, 1906 So
204 49,
The only note Endorsed that Of Herman Veit,
TO which Mr.. Cow affixed his name on It's second
renewal.
The trial continues to-day the defence opening Its