New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-17
US. SEEKS WRECKERS
OF BAY0NNE BANK
Washington Agents Listen
to Oneida Milling Fail
ure Evidence.
JERSEY INSTITUTION
CASHED ITS PAPER
Girl Witness Admits She Was -.
c. Jaffe Company" Concern
on Paper.

u va. made evident yesterday that the
federal government proposes TO prosecute
those responsible for wrecking the First
National Bank. OF Bayonne. y. j.. now
In the hands OF receiver, when
representatives OF the Department OF Jus
tice sat AT the elbow Of Judge George 3
Russell. Of Canastota, in the Federal
Building. and listened TO the evidence
on the causes leading up 10 the failure OF
the Oneida Milling Corporation. OF Oneida
y. Y. whose paper helped force the bank
TO close its doors.
Judge Russell ordered that transcripts
OF the evidence taken be furnished 10 none
but representatives OF the government
and the lawyers representing the trustee
in bankruptcy of the Oneida concern the
hank and the Bank OF Buffalo, a large
creditor.
The evidence showed that paper or the
Oneida company was placed In the bank
where IL still is; that many or its cnecAs
issued to persons who had no claim upon
the company were cashed through the
hank. some through firm having no cor
porate existence. and others through NJ.
NJ. Hart, Inc, OF No. il5 Nassau street
OF which Max NJ. Hart who has ire
quently figured IN the courts, is president
The Oneida company. capitalized TOT
s1sO 900. has a modern plant, and up 70
few months ago enjoyed an excellent line
OF credit. For a year UP to last summer
II was owned by Andrew S. Work, a chi
cago note broker. who about that trne
sold control 20 Adolph F.. Wupperman q
=
Co. OF New York. for $1,000 In cash ana
securities for $4,000 more. on which ne
has not collected. According TO work the
corpora ton Immediately ceased to Griid
grain, but took to grinding out notes ana
checks instead much OF this paper ma
ing its way into the Bayonne BANK. As
result OF this financing Work. VINO re-
mained as president OF the corporation
found himself threatened with suits from
all points OF the compass on notes Issued
by the corporation. and he Immediately
caused a petition in bankruptcy to be fled
Since then II has developed that ABOUT
$1,000 in paper of the corporation ~
outstanding. Assets OF the corporation
ere about one-thrd of that amount Inc
great bulk OF the paper is said 10 De
valueless as against the corporation.
4. Frank Stafford. jr.. of Brooklyn
bookkeeper for the Moissant Information
al Aviators Company and until recently
bookkeeper OF A. Il. Wupperman & Co.
Of this city. was the principal witness
Yesterday. He had a poor memory. lie
testified that he received many chechs
made payable to his order by the ONEIDA
Milling Corporation, though that concern
owed him nothing. These, he testiiled'
he cashed through an account he had
with his aunt In tho Corn Exchange
Bank. and turned the proceeds over 10
Zimmerman. Other checks he made over
n Max NJ. Hart. without even taking
the amount.
Other checks, he said went 70 the }. -
Jaffe Company. q concern consisting OF
Miss jeanette c. Jaffe, onetime stenogra-
pher to Hart. The chief business or
Wupperman & Co. he swore, was han
ding paper of the Oneida company.
NI,ss Jeanette c. Jaffe. lively brunette.
who was sure of herself at all times foi-
lowed Stafford. She said she was ice
7 G Jaffe Company. though she never
signed any checks or. so far as she knew
did anv business through the First Ma
tjonal Bank of Bayonne, where hart hed
opened an account in the name OF the
Jaffe company. Checks for several thou-
eand dollars, indorsed by the concern
hearing her name and signed by the
Oneida company, were. she said indorsed
by Hart. ,..-
Edward B. Russell. an assistant casmer
~ the First National Bank OF Bayonne'
identified notes Of the Oneida company
which had been discounted by his oank'
The hearing Will continue to-day "Heh
II IL expected Hart will be witness