Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-17
STRANG SAYS BANK
BOOKS WERE FIXED.
Former Paying Teller Declares
Gabell Knew Of Check kiting
Before Failure
LIBERTY BONDS WITHHELD

The totterng condition Of the North
Penn Bank was evident in it's books ten
months before the banking commissioner
closed the banks doors. Elwood II.
Strang, Broadway butterfly" and
former paying teller testified today.
Strang, neatly dressed. but with a
prison pallor on his face. gave his evi
dPnce concisely and readily at the trial
Of William r. Gabell. former director
and clerk. in Quarter Sessions Court
Judge Martin presided. Gabell Is
charged with conspiracy and with ac-
cepting deposits when he knew the bank
was insolvcnt.
"Gabell asked me If things We're so
fixed that the examiners could not dis
cover the trouble" asserted Strang. his
gaze resting moment on the defend
| ants face.
Tells Of Check Kiting
The former teller was liberated tenn
porarily from Moyamensing prison to
| testify. He reviewed the Irregularities
Of the bank and told with much detail
| how il covered up its shortages through
system of check kiting.
| The witness said he had a personal
account with the Franklin Trust Co.
and used it solely for kiting checks for
the North Penn. Strang said his ac-
count with the Franklin Bank was less
than 800 and that he drew checks for
| $1,000 and upward against it every day.
! These checks would be sent to a de-
pository, he explained. and before they
reached the Franklin Trust Co. they
we're met with cashiers checks drawn
against the North Penn Bank.
Strang said he could not prove
whether Gahell did or did not know
about the check kiting, although it was
being done every day. BY this means,
the witness said, the bank was given n
fictitious credit that amounted to be-
tween $4,000 and $40 900 daily.
When Joseph Mccullough. president
of Union National Bank. demonstrated
with him about check kiting. Strang
said he told Gabell he had better ex
plain matters to Mccullough. Subse .
Gabell that check kiting would have to
be stopped and that he would not ac'
cept any more Strang checks. Gabell
according to Strang, told Mccullough
he did not know about it.
"Gabell often asked me, said
Strang, how l could cover the exchange
checks with the Federal Reserve Bank,
| told him ] did not know how to meet
them. Gabell said on the last day the
bank was open he could not meet the
exchanges.
ON the night before the failing
Gabell said he did not think the bank
would open on the next day.
As officials of the bank had sale
shortly after the crash it was impOS'
sible to obtain Liberty Bonds paid for
BY depositors. a clerk Of the Fedora
Reserve Bank, who testified prior t.
Strang. produced evidence to show there
was no difficulty in obtaining Libcrt!
Bonds at any time
Gabell Drew SIS Dividend
l Ciabell was paid $40. his share Of
semiaunual dividend paid by the ban
only ten days before it was closed by IN
Q banking commissioner, Fred l.. Hon
scher testified. Mr.. Homscher is re
$ ceiver of the wrecked bank.
. Walter o. Colhesh, 3O25 Mort
Twenty sixth street. self styled boob
and former general ledger bockkeeper
, had to be pressed repeatedly by Assist
ant District Attorney Taulane when o
, the stand this afternoon.
Colfesh said he had overdrawn hi
own account, his wife's account and th
accounts of two companies he was in
terested in. Charles 4. Amber. forme
state insurance commissioner. no.
II q
$4,000 and $1,000 at time. he as
serted. Checks were "kited' also, h
, said. by J.. T. Carey, generally fo
! $4,000 at time.
, When a bank examiner called July
{ last year, Colhesh continued, he an
Straug took the ovcrdraft CARDS froI
the ledger box at : o'clock that eveniu
/ and concealed them, The ovcrdrafts o
July 10 last year, two days before tn
bank was closed totaled SSOO,OOO. az
cording to the witness.
S Several Young women who had bee
e employed as ledger clerks at the ban
t told how the overdrafts kept piling ur
I One girl said money taken in paymet
| for Liberty bonds was thrown careless
ly into cigar boxes,
k The first witness this morning wa
{ Miss Rose Dotmar, 2S0S North Nine
Y teenth street. She is now employed
" the Girard National Bank and formerl
+ was a clerk at the North Penn Bank.
Miss Detmar assisted in looking ate
e Liberty Bond payments at the detun'
y bank. She testified Gabell ordered h'
2 to tell bond buyers they must wait tol
e weeks after making final payments.
. Miss Dptmar said she became di'
n gusted at the numerous complaints tro
q persons who paid for bonds and new
: received them. Some or the su
q scribers "cussed' her. she said.
Miss Clara Schwartz, who was per
. sonal steuographer to Ralph T. Moyr
p convicted cashier of the bank. said 81
e also had been instructed by. Gabe
2 to give four weeks as the time for bor
deliveries after final payment. Ocrt
Sioually, she testified, officials of Il
bank bought bonds from broker
, this city.