New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-08
JENNINGS FOUND GUILTY
OF M|SUS|NG FUNDS
Mount Vernon Banker Sentenced
to Six Years for Sky
SCraper Deals.
SHOESTRING FIRST CAPITAL
Raymond, His Cashier, Let on
with Suspended Sentence
Dummy Notes Were
Used.

| Herbert T. Jennings. president o1 tho
! defunct Mount Vernon National Bank,
and Samuel c. Raymond, cashier of the
institution. were found guilty late last
night Of wilful misapplication of the
banks funds. The jury. which went out
at 3 o'clock in the afternoon, brought
in the verdict ten minutes before mid
night. declaring Jennings guilty on all
twenty-five counts Of the indictments
and RAYMOND guilty on all but two of
them. In the case of Raymond the jury
strongly recommended Clemency.
George Gordon Battle. counsel for Jen-
ninge. asked the court to appoint some
dav next week for sentence Judge
Mayer agreed to this, but when Mr.. Bat
tie went back TO the counsels table and
talked for an instant with the two de
fendants he changed his plan and turned
around 70 make application for imme-
date sentence.
Mrs RAYMOND who had been sitting
in chair inside the railing, began TO
sob quietly. Mrs. Hutchinson and Mrs.
Holdridge sought to comfort her. Judge
MAYER evidently was prepared to dispose
Of the case at once. for he nodded his as
sent 10 Mr.. Battles second motion He
sentenced Jennings to six years in the
Atlanta Penitentiary After Mr.. Battle
had made q motion for a new trial in
accordance with custom. Raymond was
called To the bar. Judge Mayer suspend
Cd sentence upon the cashier. explaining
that his action was influenced largely by
the recommendation Of the jurymen.
The charges against Jennings and
Raymond. on which they were tried be
fore Judge Mayer i'm the United States
District Court, were wilful misapplication
of the banks funds. and in the case of
Jennings four counts Of the indictment
charged embezzlement
Herbert Theodore Jennings, president
OF the Mount Vernon National Bank.
lawyer. promoter Of electric railways. Of
national and state banks and Broadway
skyscrapers, was arrested on December
70. 1911. on an indictment charging him
With misapplcation and embezzlement
Of the funds Of the Mount Vernon Bank.
The free use OF the depostors' money
f. which Jennings had resorted in his
capacity as president OF the bank was
largely due to the many risky specula-
tion i'm Broadway real estate in which
he had engaged i'm the last few years.
If WAS the starting of costly buildings on
uotIkng more than a shoestrins that ulti-
uately led to financial straits Of the
bui'ding enterprises launched by Jen-
nings.
The first great real estate scheme
Launched by Jennings was the broadway
and Forty-thrd Street Building Com
many. which erected the Fitzgerald Build
ing II inclosed the theatre now known
aq the Cohan-Harris Theatre, which was
opened with a performance Of Get
pich-Oui.E Waliingford." And, like the
most daring scheme OF this fictitious
genius of easy finance, the enterprise of
Tcnnings was started without the ad-
vance Of a single cent 10y him or the FISK
ot = uenny Of his own fortune.
Eut trouble came while the building
was half finished, and ~ raise the luhuS
,aceesarv for it's completion Jennings
lh,oan ia discount notes made by dunn
mics and the only place he could as
count them was tie Mount Vernon Bank.
Icbu II. Behan. janitor in the Fltzgerati
p,.,idinp. and NJ. f. Killeen, an office
ho,. earning So a week, drew notes AL
a.. reoucst Of Jennings for thousands OF
dollars.
Meanwhile Jennings had started the
Hub Building Company, which had oo-
tanned the ground lease at the northeast
corrar of broadway and 42d street, and
,,rocecdod to build there. This added
now money difficulties and the discount
ing oC notes became a more common
,.roctice AS a result of these real estate
sobaues and come min6r enterprises in
vestcbester jennings caused loss to
,sc Mount Vernon Bank of over 100000
! according to the charges
| q,bo hank had TO be closed on March
| "a 1911. as soon as rumors of the closing
- the First National Bank of Oneonta
! ,,'bicb had also been controlled by Jen-
1 t,,cs reached Mount Vernon. Philip
! ,ciIlinghast was appointed receiver for
! 10 bank. and he had to assess its stock
! r,Iders 500 a share 10 meet the dehclt
| caused by Jennings.
FIRE IN THE BANKERS TRUST