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DRAWING TO A CLOSEMr. AtwilPs Investigation Nearly Over.C L M railway in the interest of I)e fiance. A meeting was held at Lima.1 was there. Freeman spoke of his ability to float some bonds and stock. Some of the bonds and stock were sent hint at New York. That was some time in the fall. Don’t know how many bonds Sauer owned 111 the Light and Power Co. Have understood that hisownership of the stock was merely nominal. The bonds I brought backTHE FOUTH DAY A BUSY ONE.Synopsis of the Testimony of todayand Last Kvcning.—1The Kxainination Searching and Thorough.fromTheyYorkDidgagecentsToday is the fourth day of Mr. At-wlll's examination into the books of the Defiance Savings bank. The following is the testimony up to the hour of going lo l re*s:333333300000ilcHENBY IOSS .Was re-called. 1 am not a member of Herman Aid Society. Have no interest in it. Frank Smith and 1 never gave our note to German Atd Society. 11 ada settlement with German Aid Society. ______ _____ _Henry Smith and I gave our note for J ment and costs. #500 to the society. 1 paid the note in cash. Interest and all amounted to over $*00. At time note was given did not give them any money. I went on note as security. Gave the note InJune or July I think, in 1803. At least lour weeks after bank failed. I went on note as surety. Sauer owed the society that much money as treasurer.Could not say if Sauer, was on note.I paid all the note. This was after the bank failure. Once renewed note, then paid it. Had no personal interest in note. Only motive 1 had was because 1 wanted to see the note paid. Did not know that bank owed the money. I had to iurnibh the money. Mr. Sauer did not furnish me the money. Never paid any other claims. Don't know that Saner owes other claims of same sort. Don’t think the claim was the same as a bank claim. I nderstood that it was a personal debt oi Sauer, who I understood was treasurer of the German Aid Society. Did not know German Aid Society had any money in qank. Henry Smith brought note to me and 1 signed it with him. Sauer was not present at time note was signed. Note was held by Stull. 1 paid Stull. 1 signed note to help Sauer out.On June 5th, 1893,1 think the sale of dry goods store was made about noon.Was in bank just long enough to make bargain. Was not in bank afterward before bank closed. 1 did not leavebank with a bundle tied up in a newspaper just before bank closed. 1 will tell you now what I remember, I am administrator lor Yiebach estate. 1had all papers for that estate at bank.If 1 took any papers it was the papers oi Yiebach estate. 1 wanted the papers so that 1 could get at them after bank closed. Witness explained the contents of the bundle as being deeds and other valuable papers belonging to Yiebach estate. Don’t know now what kept him at bank all the time they say he was there. Had no money in the bundle. Never got any money back that 1 paid German Aid Society. 1 paid my own money. Did not see Malley or Freisendorfer in bank June 5. Can’t tell just where 1 was all the time 1 was in bank. We had to take store to protect ourselves against paper we were on. Sauer did not say he was gone financially. Smith came up to store and said we had better take the store, lie said bank was shaky and we hud better take the store. Never had any other intimation that bank tf!is shaky.Did not know that bank s money was in the store. Did not know that the #4,600 we paid in cash went to pay $6,000 indebtedness against store.H. O. BAKEK.Am a stockholder in Defiance Savings bank. Think 1 had five shares.Never had occasion to look over the books. Did busin ms there. Greenler,Dyarman, Sauer and myself were partners in Uak l'ark Co. Think #15U per acre was paid for Oak Park uud some lots. It was bought from Greenler and Sauer. Can’t remember when I went into the Oak Park transaction with the others. When Sauer bought the land it was prior to my becoming a partner. 1 never put a dollar in and was not to put a dollar in. Mr. Greenler was toparticipate in the profits first to the extent ot getting his pay for the property.Notes given by partners of Oak Park were not to pay original purchase of the land. I think the notes were given lor improvement of Oak Park property and not lor the land. 1 drew no checks on Oak Park. My only interest In the company was to share in the prolits occuring from sale of lots. Title of Oak Park property ought to be in Greenlei, Sauer’s assignee, Dyarman and myself. 1 have paid some #1,200 to Greenler on my share to Oak Park. 1 have no title at this time. Think deed was made, but I cannot tell where it is now. There is a balance owing Mr. Greenler on Oak Park. Each was to pay #2,100 or #2,200. I paid about #1,200 on mine. Oak Park company owe nothing else but the Greenler claim on Oak Park. Have understood that Oak Park proper has been deeded to Defiance Light and Power Co.. Can’t tell how much there is left of the original oak park land. Am willing to take #500 less than 1 have paid in for my share. The enterprise was a failure financially. On may 9,1803 I deposited #2,000 in bank. That was money I received from Wm. Allen. On J une 3 1 deposited #600 in Savings Bank to credit of Baker Gleason. Was in bank on June 5,1893. Think I was in there in the morning. Have no recollection of talking particularly with Sauer about condition of the bank at any time, except to ask him how things were running. lie always said all right. Have learned to my sorrow about the character of paper Sauer was taking. Witness was shown two certificates of deposit on Savings Bank, one for #2,000, N ov. 6’92 and one for $4,000 Dec. 13, ’92. 1 put that money in the bank. I got credit lor those certificates on my account. I suppose. I have had as high a credit as #18,000 on the bank’s books. (Certificates were marked paid J une 5 on books). 1 never got any such money from bank June 5 1 know of several actual transactions with the bank that my bank pass book does not sho-v,(There was a $6,000 certificate of deposit issued June 5.) I never knew anything about it;was not a party to it.Can’t recollect when 1 had the #2,000 and $4,000 certificates last in my possession. Don’t know who wrote the cancellation on those certificates. I hold no liability against the bank for those certificates. They have been paid. I went to New York once, Jan. 1893, in the interest of the Light and Power Co.Some stock and bonds had been sent toMr. Freeman, of New York, to disposeof and Mr Freeman failing to respond 1 went down to see him. 1 was president of the Defiance Light and Power Co then. When McKinley and Nelson stepped out of that company some bonds came back to Sauer. Frank Freeman and Wm Hellm were connected with a project to promote theNew York went back to Sauer, had disposed of four in New and failed to send the money, not consider the first mortg-bonds worth more than 80 on the dollar. I suppose thefondswere worth 80 to 85 per cent.I bought the stock then was worth about 40 or fifty per cent. Don’t know whether Sauer ever owned a bond of any description or any denomination. Don’t know who got the papers I returned from New York, except that I gave them to Sauer. Don’t know anything about Sauer selling $10,000 of bonds to Defiance Savings bank for $8,500. Never heard Sauer say anything about such a transaction. Witness wished to make a statement con cerning what Mr. Stevens said about paying him $25 not to bid on Stevens land. He wanted everybody to know that Mr. Stevens never paid him a cent lor any such purpose. I told Winn 1 would bid to cover amount of judg-I was authorized as attorney to do so by the company that held the claim against the land. Winn came to me afterward and wanted me to get the original abstract I had made for Stevens, and Stevens had never paid for it. Winn finally paid me #25 for the abstract which 1 had made for Stevens and Sauer when the original loanw as made on the land. I was not present to bid on the land wh**n it was sold. Never asked Stevens for a dollar and neither Winn nor Stevens offered to pay me a dollar not to bid on land.Profoundly GratefulSymptoms of Cancer moved -RheumatismReCuredPROF. ARTHUR GRABOWSKU.I did business at Defiance SavingsBank. Did business there June 5, 1893. Deposited #57. Gave it to cashier— Mr. Smith--who was behind counter. I hink 1 saw somebody else in the bank but cannot remember who. It was after 1 o’clock. I never drew the money out. 1 have placed the account in the hands of an attorney to it it for me. It must tween 4 and f: If), p. m.the deposit.A Chicago Clergyman’s Faith InHood's Sarsaparilla.MG. I. Hood Co., Lowell, Mas#.:14 Dear Sirs: I am profoundly impressed with th© medical virtues of Hood’s Sarsaparilla. Iwan threatened vrlth caacer, and disagreeable eruptions on my back and other places. The cancer was appearing on my Up. Provldontlally I obtained a bottle of Hood's Sarsaparilla, and by the time It was gone, the bad symptoms had nearly disappeared. I have used four bottles, and I believe it hasSavod Me From Prematuro Death,I am now almost 73 years of age and ■ w ork like ft tiger. And I know that Hood’s Sarsaparilla has had much to do with my vigor and strength. I recommended It to my wife, who had suffered so much with rheumatic troubles,Hood’s^ Curestry to collect have been be when I madeTHURSDAY MORNING.II. I'. MILLER.Am stockholder in Defiance Savingse£l-sdirceoe.81-»r.Iyistof5 c)WIsicTienilishetsbank. Owned ten shares, half paid up. Was President of bank. As director I examined into its atfairs ut director’s meetings. The cashier would make statements and we would examine them. Never went to books to com pare cashier’s statements with hooks. Was not aware of the kind of paper cashier was buying. Was nos aware of amount of indorsements made by Mr. Sauer himself. Was in bank afternoon of .1 une 5 about 3:00 or 3:30 p. m. That was the lirst intimation I had of the trite condition of the bank. Sauer hud told directors things were running close and collections were hard to make. Never told me he was frequently short with New York banks. Never looked over correspondence of the bank. Did not know anything about banking business. Did not know until after bank lailed that Sauer had overdrawn #8,000 in his individual account. June 5,1803,1 drew check for #1,500, not #1,000 as bank books show. That check was to pay note of #1,500 I owed at bank. Don't remember just when note was given. Do not think note was given May 0, 1803. Don’t know what entry was made on the books. Did not get any money for the balance of #1,000 charged to my account. Saner asked me to pay the note. 1 thought it was due. To the best of my knowledge did not receive Oct. 3, 1801, #2,000, without checking it out. (#2,000 is charged to transit account on books as taken from witness’ account.) Did not owe bank. The bank owed me 82,070.75 when it failed. 1 keep a regular account with every bank I do business with. Before I go to oank to deposit 1 charge bank with amount i deposit. Did not owe bank anything when it closed. I deposited Friday or Saturday #1,500 and Saturday evening June 3, #700. 1 aimed to keep a balance in bank all the time. (On March 11, 1883, books show over-dratt of #1,480.11 against witness. Donot remember Sauer ever depositing #10,000. (Books show that he did deposit that much at two different times ) Never had occasion to examine bank’s report to Auditor of State. (Other at toruejs wished to ask witness questions and Mr. Miller's attorney, B. F. Fnos, objected. Objection overruled. Mr. Fnos objected to cross-examination ofwitness by attorneys who had commenced suit against witness.) Examination by Slough proceeded as follows: Witness—1 was a director of bank. I was President. Never knew about bond being required of cashier. Mr. Carter was bauk's attorney. Never knew JJiat cashier was required to give boniL I never talked with Sauer about bond. Was present at organization of oank. Talked with Sauer about bank's business affairs. Sauer said the bank was all right. At directors meetings everything was reported all right. Sauer never made statements as to how the deposits and fuuds ot the bank were being invested. Sauer said he was buying good paper. Didn't kuow that Sauer was taking money out on his own account. Don’t know anything about the sale of the Golden Rule Dry Goods store. Sauer and I never talked about Golden Rule store deal. Supposed Sauer was managing the bank as it sliouid be. Never talked to F L Smith anything about Golden Rule store. Don’t know anything about any money being taken out of bank for purchase of shoe store. Don’t know anything about overdrafts on bank’s books on account of shoe store. Don't know what, if any, investments Sauer made with money he took out of bank on his own account. Supposed since bank failure he had invested it in real estate. He did not tell me how much he had invested in real estate. Could not tell at what certain time or place we were when we talked about these things. Sauer always claimed he turned over everything he had for the benelit of the bank’s creditors. Don’t think 1 was in the bank with other directors on the evening of June 3rd, Saturday evening. Sauer stated the bank was all right. Don’t remember that I saw Sauer Sat urday evening, June 3. Kehnast, andSauer and 1 did not, hold any meeting Saturday evening, J une 3. The depositof #700 I made Saturday, June 3, wasprobably New York exchange. Soon as I found the bank was in trouble, June 5, 1 told my boy not to draw another check on the bank. Directors made Frank L Smith assistant cashier, with salary about #800 or #800 per year. It was understood that Smith was to beassistant cashier after a certain date. Smith attended the directors' meetings and seemed to know how business was running. We understood that Smith was capable to help keep the books and transact business. Was not in law ofllce of llubbard or Carter on June 3. Wesnotin Hubbard's office June 4. Assignment was made about 4 or 3:30 June 5 Directors were all present. F I, Smithwas there. At the time I went Into them also with female weakness. In two years she has used about three bottles of Hood’s Sarsaparilla, and today, and for the last six months, she seems like a new being. We areHearty and Robustas tli* young people who live with us. We do want tho afflicted to know what Hood’s Sarsaparilla has done for us, and I feel It a duty to let people know In this way of the help obtained.With grateful acknowledgement to C. I. Hood fi Co. Ritv. O. II. Power, 2924 Hanover Street, Chicago, Illinois.Get HOOD’S.Hood’s Pills ore the best after- dinner pills, assist digestion, euro headache. 25c. per box.bank It was understood 1 should not be required to give my time to looking alter bank, but that Sauer should attend lo the management of bank. I think there was a resolution passed by (he directors at time of assignment. Sauer said he was short of funds and said he fcould not keep up. Sauer did not make a siatement of how the bankstood at the time of assignment.A. SAUER.Was cashier of Defiance SavingsBank. Directors were II. 1\ Miller, W. A. Kehnast. Henry Foss, F. L. Smith and myself. 1 was cashier and transacted the business of the bank. Recognize the books present as books of Savings Bank. (W. II. Hubbard, who was present as attorney for witness, objected to the witness answering questions which might tend to criminate him In a future criminal action against him.) These books contain matters relative to the business of the bank. F. L. Smith was an employe of bank. Couldn't state what arrangements if any was made as to Smith's salary. (Witness was shown a list of notes discounted by bank which books show were not paid; witness said he could not explain all the items without a good deal of time) F L Smith and I composed Arm of F L Smith «Sc Co; were worth 814,000 Feb. 1880. (Witness refused to answer who owned golden rule store or anything concerning its sale.) On June 5 a certificate of deposit for 86,000 was issued but witness could not remember what it was issued for. Defiance Light and I’ower Co’s, books should all te in the receivers hands. Was secretary and treasurer of Defiance Light and Power Company; probably about one year, can’t tell exact time. It was in 1893. (Witness, by his attorney, refused to answer many leading questions concerning the books which were put to him by Mr. Atwell. A long list of questions were asked witness relative to books, nearly all of which he declined to answer. On Nov. 10, 1892, book3 show #825.30 moro paid out than bank had on hand, and on Nov. 15, 1892, books show #1.218 54 more paid out than bank had.) Witness said he could explain when he looked over the books (Witness’ attention was called to certificates of deposit of #2,000 and #4,000 issued to II G Baker. Witness could not explain same without examination and refreshing his memory. There were about forty or fifty stockholders of the Defiance Opera House Co. Miller paid a note of 81.-500 on June 5,1893. There was not a note of #1,500 issued against the Defiance Light and Power Co same date in lieu of the #1,500 payment by Miller. (The master commissioner, Mr. Atwell, devoted a long time in putting questions to Mr. Sauer. Most of these questions witness declined to answerby advice of his attorney, Mr. Hubbard, who was present. All the questions Mr. Sauer answered are as substantially stated above.)Court adjourned until 1 p. m.not answer further questions as to the character of the hook. Declined to at -swer whether it was a daily bunk cashbook. Can't say now if I was at home on Nov. 21, 1892. Did Geo. .Miller de posit 82,000 Oct 3, 1891? Can not explain until I look it up. Think 1 was away some days all day duringtime I was in hank. Can’t recollect that I told Smith liow to handle cash at close of banking hours when 1 was away. Claude Miller ktpt the individual booki of bank. Think that Smith had to correct errors of Claude Miller. I helped to balance up pass books after bank failed. Don’t wish to answer when it was I told directors bank was shaky.W. H.HUBBARD1 have iii my possession assigned to me as trustee, certain certificates of deposit and collaterals belonging to the Savings Hank. Those things are held by me as trustee to collect certain money paid by other parties. Cornt r bank furnished the money for note. 1 know the money did not come from Sauer. I took the notes aud certificates as collateral to protect parties who signed the note to furnish money. The money coming from these coliat-terals was not furnished by Mr. Sauer. Can not tell when these collaterals were assigned to me. It was quite a long time after bank failure—several months.I had no personal interest in these col-latterals. Have no means of knowing whether the collatterals was put up for relieving bank or individual. I understood It was to help Mr. Barney out. Could not state who was on the note for which collateral was given.W. A. KEnNAST.Was stockholder in Savings Bank. Had 10 shares. All paid up. Was one of directors aud also vice president. Never made any special examination of bank. Took Sauer’s statement in part. Was not aware of character of paper Sauer was buying. I had on January 19,1893, two Certificates of deposit and I added enough to them to make one of a total of #10,000. The money that this #10,000 represents was certificates I held and what other money 1 added to make the #10,-000. I got this #10,000certificate ot deposit before dinner January 19,1 think. It was issued for two other certificates I had and a part of my cash balance on my personal account in bank. According to date ihe #10,000 certificate was issued on Jan. 19, and the other certificates were not cancelled until Jan. 20th. 1 had a settlement with Sauer on Jan. 119th. Witness showed deposit slip corresponding with his statement of the transaction. Did deposit in bank #527 on Saturday, June 3. As director did not have time to look at the overdrafts of men who did business with the bank. At director's meetings Sauer did not tell us who had overdrawn. Did not know Sauer was overdrawn #8,000 at any time. Did not koow he was generally overdrawn. Was in bank June 5 when assignment was made. It was about 3 o’clock. I was sent for to come, It was the first I knew of the turn matters had taken. It was when Sauer came down to store and told me if 1 could not raise #10,000 the bank would have to close. Then went to bank. Other directors came in. We then passed resolutions to close business up. Think Hubbard and Sauer was net there at the time. Don’t remember the meeting at which F L Smith was made assistant cashier. Remember of some talk of that kind among directors. I I bought several drafts at the bank, L. L. Smith signed some as assistant cashier. lie worked there a long time. He was a director. Never knew that he owned any bonds. Remember when bank was organized. Don’t know how much actual cash it had. Don’t know whether it was #5,000 or more. Don’t know how stock was taken at the organization of bank. (Books show thatat organization of bank, Smith Co had 450 shares; A Sauer, 10 shares; II P Miller, 10 shares; Henry Foss, 10 shares; W A Kehnast, 10 shares; F L Smith, 10 shares.) Was in bank when It was lirst opened I think. Was at the meeting when officers were elected. Paid one-lialf of my stock in cash, afterwards the balance of lit; #1.000 in all. Don’t know how much F LOnIoncorI*yttlopatlottHeare/or tWO)I*ulBiheHistcT(CTItatIIit25(fSmith Co paid in at start. Can't tell only what I know about. Was at bankdoing business nearly every day. Can’t tell whether 1 was behind desk next day after bank started. 1 never countedthe bank's cash. I made deposit through window on Saturday before bankclosed. Can’t say whether there was much cash in bank that day. We took cashier’s statements for granted at directors’ meetings. Don’t know who made statements of bank to Auditor of State. Suppose Sauer did. I saw printed statements in the paper. Can’t say that I ever compared printed statements with bank’s books. My balance of over #13,0CK) includes money 1 hold as administrator of Geiger estate. Never heard that Sauer was to give bond of #10,000 as cashier. Never heard that he gave one. Sauer is a brother-in-law of mine. My wife is a sister of his. Sauer had real estate at time Savings bank organized. He had been employed in Merchant’s bank. Think Sauer was about 28 years old at time Savings bank was organized. Never had talk with Sauer or Smith about payment of stock of F. L. Smith Co. ut time bank was organized. I commenced business with bank soon as it was organized.Mr. Atwell is still hearing testimony at the time of going to press.IIPLEAD NOT GUILTY.AFTERNOON SESSION.The Trial of Andrew Sauer Set forMay First.Ia. sauer, (continued,)(Witness declined to answer whether F L Smith ever counted cash in bank.) What Smith learned about bank books he must have learned himself. I know he made trial balances. About Greenler note, couldn’t answer questions concerning that note because it would lead to other questions which I would not answer. Did not send Clias Krotz to Chicago to raise money on bank’s paper or certificates of depositor, bank. The Dyarman shoe store was property of F. J. Dyarman. You will have to find out from her or them where her money came from with which to buy store. Don’t know what check of #1,077.80 was issued for. Don’t think Dyarman put any new geo Is in store. Think the store cost between #4,000 and #5,000. Don’t think Mrs. Dyarman lai that much money in the bank, llave no means of knowing what Dyarman was worth. Could not state if hewas worth #4,000. Could not intelligently answer whether Dyarman put in #4,000 in real estate in 1889 with me for I can not now remember positively. (Account of Sauer and Dyarman seems to be overdrawn over #2,000.) Witness would not attempt to explain this without looking at books.Mr. Dyarman and myself did riot try to trade any part of the shoe store to Mr. Krotz. I never had any interest in the shoe store. (Witness was shown what had been claimed was a daily cash balance book of bank.) He said he would not cirll t hat book any tiling. Would not call it the account of the bank at end ot business hours. WouldAndrew Sauer returned to this city last evening in response to a telegram from Officer Eiser.This morning he appeared at ’Squire Orcutt’s office accompanied by liis attorney, W. II. Hubbard. On being arraigned he plead not guilty. Ilis trial was set for 10 o’clock May first. He was required to give a bond in the sum of #500. for his appearance.An Ohio Mother’s Letter.Mansfield, O., March 13,1893.“I have used Dr. Hands Teething Lotion for two years and it gives relief to my children when cutting teeth. My child after having the lotion applied a few times would actually cry for it. I have used Dr. Hand’s Colic Cure and Dr. Hand’s Cough and Croup medicine and can recommend them to all mothers.”—Mrs. M. A. Ridenow. Dr. Hands remedies for children are sold by all druggists for 25c. aprfi eo 1-2Mailatn Frey Concert Company.The Madam Frey Concert Company will give an entertainment at the Pre-byteiian church Wednesday evening, May 2. The proceeds will go towards the erection of a new church building for the Presbyterian church.
Newspaper Details
Defiance Evening News
Defiance, Ohio, US
Thu, Apr 26, 1894
Page 2
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USA 16 Jan 2019
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