New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-21
TO SHOW CHECK K|T|NC'
Witnesses in Reichmann Trial
Tell of Large Drafts.
BOUGHT ST0CKS:GAVE NOTES
Declare No Money Was Paid and
Shares Were Placed in Car
negie Safe Deposit Vaults.

negle Safe Deposit vaults.
The prosecution continued Yesterday II;
attempt to prove that Joseph Il. Reich
mann. former president of the Carnogi,
Trust Company. was guilty OF signing a
report to the State Banking Department
which carried as due from banks" fc'
titious items useful in check ki.ing opera
lions To this end it put on the stand four
out-of-town business men. on three OF
whom drafts had been drawn by concerns
in which both Reichmann and William J.
Cummins were deeply interested.
Incidentally. T.. w. II. Ball. the Carneeia
Trusts auditor. was allowed 10 testify on
cross-examination not only that Reich
mann signed the report in question with
ont looking at it, but that the report. as
originally drawn up. carried the Northern
Bank loan Of $4,000 a. borrowed money,
and that this was changed to appear as 4
participa ton transaction in the final draf,
on the advice of NJ. W. Iutchins. CHEZ
examiner OF the state Banking Depart
ment.
The Northern Bank loan is tho "consid-
Grafton" alleged In the charge that Charles
r. Hyde. former city Chamberlain. was
bribed 10 increase the deposits Of city
money in tho Northern Bank. Apparently
neither prosecution nor defence WISHED 20
continue along this particular linz after
Mr.. Ball was excused.
District Attorney Whitman and John
Kirkland Clark. Assistant District Attor-
ney. wanted to prove the alleged classifying
Of the check kting'' operations. IL was
explained. before plunging into the North
ern loan. They consider they have already
proved. through the testimony of Bradley
Ward Bank. that the Carnegie Trust Com
pany had contingent liabilities in drec;
contradiction Of the report
Although Robert Pringle OF the Chicago
Board Of Trade had not finished his testi-
mcDy when court adjourned Monday,
Martin ] Condor. president Of the Amer
lean Snuff Company and director of the
Carnegie Trust Company, was called as
the first witness yesterday morning. Mr..
Condor identified an agreement by which
for 5000 600 81 per cent Of the stock OF the
Vita Colorado Mining and Smelter Com
pany was transferred 10 The Merchants
and Manufacturers Securities Company,
oe which Joseph b. Reichmann was presi-
dent. Having established Reichmann's con-
nection with the mining company, Mr..
Clark called George u. Crabbs. president
of the Philip Cary Manufacturing Com
oany. Of Cincinnati 10 testify concerning
a draft on him drawn by the mining com
pany.
Refused 10 Pay Draft.
Mr. Crabbs was 4 director Of the Car
negic Trust COMPANY lie said. however.
that he had never authorized any one to
draw upon him in the name Of the Vita
Colorado Mining and Smel,cr Company,
and that he did not pay the draft Of
$500. But the draft. dated August 70.
was paid September 8. 1910.
William 9. Wachs, vice-president OF the
German National Bank Of Cincinnati. then
testified that the draft had been presented
to his bank for collection. and he had
talked about Il with Cralbs, who said he
did not know anything about IT, In the
mean time the Carnegie Trust Company
sent him two letters, signed by Z. l..
Smith. vice-president. asking his bank e.
hold the draft first until August g and
then until September ?. kilograms fol-
lowed the letters, ending with a remit
lance Of the amount by the National Re-
serve Bank.
Mr. Crabbs also told about an agreement
signed December Is. 1909 by him Robert
Pringle, Martin J. Condor, William J.
Cummins and Joseph j. Reichmann. the
terms Of which provided that Mir. Pringle
should negotiate four notes for $4,000 each
with the Carnegie Trust Company To buy
go shares OF the trust companys stock at
rs. II was further stipulated IN this agree
ment that the other signars should guar
antee Mr.. Prinsle against loss, and that
the stock thus purchased should be placed
in box in the Carnegie Safe Deposit
vaurs
Did YOU put mp any money when this
stock vas bought" was one OF the qucs-
tons put TO Mr. Pringle on his being re-
called to the stand.
u did not" he answered
Did YOU ever sec the stock"
No
Tho witness was asked 10 tell some more
about the draft Of $3.50 drawn on him
August {. 1910. By the Merchants and Mann
facturcrs' Securities Company. He said
money for its payment was deposited 70
his account By an unnamed person or con-
Germ. Until Monday. he said he could not
remember ever having heard Of tbc Aler-
chants and Manufacturers Securitics Com
pany.
Thought Notes Were Cancelled
Although MI. Pringlc had said D., Was
under no obligation TO the Merchants and
Manufacturers Securities Company which
could warrant draft upon him, stephen
G. Baldwin. counsel for MIR Reichmsm
tried hard TO show that because OF the four
notes signed by the witness he did owe
money 10 The Carnegie Trust Company. a
closely allied concern. But Mr.. Pringle I'm
sisted that he had paid the one Of the -four
notes FOR which he vas in reality response
bic. according 10 tho agreement on MAY y
1910 and that by August {. the date or tho
draft. he supposed the three other notes
bad been cancelled.
John Hetterman. 2 cigar manufacturer.
OF Louisville. enjoyed much the same rc-
latiouship to the Carnegie Trust Company
and Reichmann and CumminS that Mr..
PringIe did Hc..too. had bought the tru-t
company's stock with notes. aggresauns
$4,000. the stock being placed IN vault
Of the Carnegie safe Deposit Company.
The Merchants and Manufacturers Securi-
ties Company had also honOred him with a
draft for 5000. which he had not paid
Although NJ Hetterman said he did not
owe tie Merchants and Ianufacturcrs'
Securities Company cent Mr. Baldwin
tried 30 show that in his case too. h was
morally bound 10 honor draft which he
knew emanated from Cummins. in whose
bank his notes we're outstanding
But here again the question OF whether
these notes We're outstanding at the date
Of the draft. August 90, 1910. was raised.