Omaha daily bee., 1915-02-24
SAYS DARR SIGNED
MATTERS CHECKS
President Luebben Of sutton Bank
Declares Matters Paid Fifty Dol
lars for Signatures.
EXPLAINS THE JUGGLED BOOKS

While President M. L. Luebben of
the wrecked First National bank of
Sutton alleged during his morning
testimony in the trial Of Attorney
Thomas H. Matters in federal court
that Matters had "kited" $4,000
worth Of checks within about one
year, four women spectators sat In
side the railing of the court room and
orocheted busily.
The connection OF George g.. Darr with
the Sutton bank matters was brought
out clearly by testimony Of Luebben. The
bankers statements in that regard were
the biggest surprise of the morning ses-
sion, his other testimony being a con
tinuation of his Monday story about deals
with Matters, and about the discrepan-
cies and falsifications OF the bank books.
Matters used to write checks for $500
each on the First National bank Of SUIT
ton, and have Darr sign them" Luebben
testified in substance. ''Darr received $50
from Matters for each signature. and he
signed eight Of them, getting 800 for the
use OF his name. Matters had ordered
the bank to charge to the Matters ac-
count all such checks signed by Darn
Honor Darr's Signature.
This explanation by Luehben is en-
phasized by Prosecutor Howell as show
ing what plan Matters resorted to IN
order to raise cash on Sutton bank
checks. The latter checks, according to
assertions made by government attorneys,
would not be honored by Omaha banks,
when signed by Matters, but when signed
by Darr, rich man. they were cashed in
Omaha without question.
District Attorney Howell had Luebhen
explain discrepancies In the bank books.
The banker admitted that some false
entries had been made arbitrarily. but
that false credit had later been made
TO balance each false debit. The entries
were made, he said. to tide the bank over
troubled periods before It went broke.
In one instance. Luebben averred, Mat
ters was used as q ''buffer." without do
ing him any harm and in order to help
the bank when a national bank examiner
was coming to inspect the books. At
that time a credit Of $500 was falsely
placed to Matters account. to make it
appear that the bank had received that
amount and few days later a charge
= ters' account to adjust the matter.
Luebben said that was done to reduce
the overdraft while the bank examiner
was looking over the account.
Luebben testified that Matters correct
overdraft on the Sutton bank was 50. 800
in July. 1913 the last time the Matters
account was checked by before the bank
failed. Later debts against the account,
the bank officials assert. raised the
amount Matters owes the bank to about
$4,000. Matters claims that the bank still
owes him $4,000 and at one time he
claimed $4,000 was due him.
President Luebben, one of the govern
ment's chief witnesses, is also under in
dictment on practically the same charges
at Matters.
During the Tuesday afternoon session
he remained on the stand under cross
examination until adjournment. He was
questioned by counsel for the defense,
who sought to show that Matters really
should have more remittances to his
credit in the sutton bank than Luebben
gives him credit for
First Time Matters swore.
The first time ever heard Matters
swear" Luebben said, "was the time he
exclaimed over the phone. My God, have
those certificates come in?' That was
when the Richardson certificate, which
Matters had said was in his possession,
had really been floated and came into
the bank for redemption"
Luebben also told under cross-examina-
ton that the certificates known as the
Rasmussen certificates. were issued I'm
the name of Miss Rasmussen. Matters
a. 49, -. A. -. =.
ters