The New York herald., 1922-10-24

PATRONS SCARE CASHIER


ruptcy OF William III. Mckenna &
Co., stock brokers. who failed October
s, was largely a mad scramble to see
who could get possession of the few
thousands of dollars the firm had in
the bank at that time. according to
testimony made public yesterday by
Arthur l.. Ross, attorney for Re-
ceiver John l.. Lyttle.
At least forty customers madG de-
mands upon the uptown office alone,
at 25 West Eorty-third street, and
two of them on the day of the bank
ruptcy became so insistent that John
A. Pothoff, the manager, remained
In his office, refusing to see them,
while Leo Joseph Harkness, the
cashier, shunted them to the down.
town office to get rid of them. Even
after they were gone, Hardness testi-
fed, he was so Hurried he could not
"'They We're very excited" he said.
"and was afraid of them. | didn't
know but that down town they might
send them back, and God knows what
they might do to me-"
Only Nine Got Anything.
Out of the forty customers who be-
sieged the uptown Office for their
money. Pothoff testified. only nine got
anything. One of those payments was
only $3.63, and with the exception OF
William f. Oil of 1s6 East 1Q9th street
the highest payment was SOS. Mr.. OH
was Pothofrs butcher. lie got $500 OF
a $500 equity. Four days before the
bankruptcy Pothoff drew out 5000 add!-
tional to send to OIL, but hustled 1t
back to tho Hartman National Bank
when the bank notified him the account
was overdrawn.
On the day OF the bankruptcy. just
before the receiver was appointed Po-
thoff met Algernon Brown, McKenna's
partner, at Delmor.ico's and they fig
ured out that there was still $1,000 let
in the bank and drew check for that
amount.
For the three days following the bank
ruptcy confusion prevailed among the
principals and department heads of the
firm. It appears McKenna and Brown
could not find Pothoff and they tele-
phoned Mrs. Pothoff and told her her
husband was crook. Similar frantic
efforts were made TO get hold of Hark-
ness, who found a strange note LEFT
at his house telling him he had better
sec Brown. Both Pothoff and Hark-
ness were accused Of making away with
the uptown Offices strong box before
II developed that it had been taken
away by Mrs. Muriel Jensen. the tele-
phone operator.
McKeuna Questions darkness.
Finally, four days after the bank
ruptcy. Hardness got In touch with
McKenna and learned the cause of his
anxiety He said McKenna told him:
Ibid you know your books are not
right and there has been some funay
work with checks?"
McI<enna and Brown had discovered
that certain checks were not properly
accounted for in the check book.
Hardness said he told Mckenna he
ddi not know that. 1t subsequently de-
vcloped that j. l.. Turner. a chief clerk
OF the Hartman National rank, few
Hardness to indorse a number of checks
which the bank already had cashed.
amounting to $4,000 or more The
Checks previously had been signed only
by r. Il. Sacken. an employee of the
firm.
1t was brought out in the testimony
also that Turner met Pothoff In the
Grand Central station and delivered to
him six or more vouchers on the day
after the bankruptcy. That meeting.
according to Pothoff followed an earlier
call by Pothoff at the bank for some
vouchers.
Pothon testified that he was particu-
iarly interested In getting back from the
tank the voucher for the 81 900 which
be and Brown had drawn that day.
"Why were you so interested in get
ting hold of the particular vouchers?'
Fothoff was asked.
II did not like the actions OF Mr.
Brown" he said. when i called him
Up / could not locate him.
At the Hartman National Bank it
vas stated yesterday that the matters
referred to in the testimony were ''of
no consequence" Tut were done regu-
lsrly. 1t was explained that the bank
vas notified OF n change OF authorized
signatures after the checks had gone
through.
Mr.. Turner testified before Referee
Peter II. Olncy that he gave the vouch-
ers to Pothon In order TO obtain addi-
t;onal signatures on them also. He said
tnst everything was mot according to
Hoyle' and he wanted It fxed up.