OCR Text |
Show - g -Ite f; TWICE INDICTED. :ti Is Testifies Before Grand as to Securities. jjl fP' -' Dcc 12 -Trouble for .fc It. Chadwlck Increased at a 'A day. Sho was twice Indicted r Ca u. Jury of Cuyahoga county 3te Ijtlmo friend. Irl Reynolds, v5 2? m court and made cvl-'ii'?uon cvl-'ii'?uon t0 sh,eltl and protect Es'retarv of the Wade Park ii3iWd.a pathetic plcturo as he as C?l,." fl.er nucstlon which Tils Implicit faith In t?ic wom-JT wom-JT financial tfnnsaclons havo Jned him In fortuno and Tr? Jsuch Infinite trouble He 4 . too. that he Htill believes p s Justified. ucry he attempted to evado. l?n, h0 wil3 "shed how much nal estate had passed Into i ita 111 ' Mrs, Chadwlek. Ills jwj yd he requested ihat he be excused from answering. The ciucstlon was not pushed. On the Carnegie Notes. Tho formal Indictments voted against Mrs. Chadwlck this afternoon aro based, ono upon the Carneglo noto for SKO.OOO; which was made payable at the offlco of Andrew Carnegie In Now York city, and the other upon the Carnegie note for J500.0CO, which was payablo at the National Na-tional Bank of Commerce In New York. Undor each Indictment aro two counts, one charging forgery, the other uttering of forged paper Information of tho Indictments was at once wired to New York by County Prosecutor Keolor and ho requested that Mrs. Chadwlck bo Immediately re-arrested If sho secured ball oh the other charges hanging over her. The examination of Irl Reynolds, treasurer treas-urer and secretary of the "Wndo Park bank, before Referee Remington In thu Bnnkruptoy court today, failed to disclose dis-close any nssot that might bo Hecured by Receiver Looser, appointed by the Federal Fed-eral court, but brought from Mr Reynolds, Rey-nolds, In reply to questions: '"She told mo sho was th Illegitimate daughter of Andrew Carnegie." Believed in Mrs. Chadwick. Later Mr. Reynolds, In detailing his transactions with Mrs. Chadwlck, paid: "In all my transactions with Mrs. Chadwlck Chad-wlck I believed from what she told me that Andrew Carnegie was backing her and all her Indebtedness would be paid." lie then added: "And I have not hod anything yet to make me doubt It." Mr. Reynolds was asked If he knew of Mrs. Chadwlck ever having dlnmonds, and he replied that he had seen diamonds that had been pledged In New York, and wore Inventoried at S&S.OOO He had also seen them at the house. They wero contained con-tained In several trays In a box, and Mr. Reynolds caused a ripple of laughter In the court-room when he said: "They wero as nice and pretty a lot of penrlB and diamonds as you ever saw." He did not know, however, where they were now. The witness appeared anxious to help the officials In every way ami volunteered volun-teered much Information. One question ovor, and In r-'ply he was nost pathetic. Tie was asked how much his personal loans to ' hpr amounted to, and In trembling voice, with emotion, ho snld: "Please excuse mp from answering that; I am willing to tell all I know of this affair, but I'm going to stay right here In Cleveland. I'm not going to run away. I'm going to stay here and li:ke my medicine. I wont to see the ether debts paid." Had Known Her for Years. Mr. Reynolds said he had known Mrs. Chadwlck soven or eight years, and Dr. Chadwlck nil his life In detailing how he came Into possession of tho $5,000,000 noto bearing the name of Andrew Cnr-necle, Cnr-necle, ho said. "Mrs. Chadwlck called me to the house. I think It was March 6. 1D0C, and said alio wished to Intrust to mo somo securities. Sho said she had been advised to placo them In the possession pos-session of a third person, and oho wanted mo to take care of the.m." This Is tho package that was opened last Friday night In the presence of Mr. Reynolds and Attorney Stcarn. by Attorney At-torney Andrew Squlro. Tho package was produced In court and Mr. Reynolds identified tho Carnegie noto. the mort-grtgo mort-grtgo deed and the copies of an alleged trust agreement. Continuing, tho witness said: "Sho then handed me a paper to sign." This paper witness did not havo with him. but as near aa he could remember It rend: "I certify that I hold In trust for Mrs. Cnsslo L. Chadwlck securities and a note for 55,000.000." Mr. Reynolds would not swear to the wording, lint It was to that cfTeet. The noto was not Indorsed, but ho had no doubt that the aliened maker of tho note wan back of tho woman. Tho contents con-tents of tho package wero Identified separately by Mr. Revnolds, and at tho request of the examining counsel ho marked each paper as nn exhibit. Tho fc 000.000 noto was marked exhibit "A" and this Is the first time It had been seen outside of the numerous lawyers Interested Inter-ested In the case. Tells a Business Secret. Asked as to tho other transactions subsequent sub-sequent to 1903. Mr. Reynolds said "There is one. It Is a little banking secret, se-cret, but I am willing to toll all She cr.me to me. I think It was In lf04. and said sho had S12.000 In paper payablo at the Prudential Trust company. If I wculd lot her have the money she would put up United Stales Steel bonds In tho morning as collateral. I consulted my company, and with their consent loaned her the money. "Tho next day she brought a package which she said contained $200,000 In United States Stool bonds, and a $250.-000 $250.-000 certificate which , I va3 to hold In trust for her under tho same conditions as the previous package I held thes until a month ago. when In tho presenco of several gentlemen they wore opened. It wai about the tlmo Newton began hla suit. They contained bonds" all right, but they were not steel bonds." When asked what they were Mr. Revnolds Rev-nolds said: "There were five 51000 bonds of the Homo Telegraph company of Niagara. N. Y.. and tlx certificates of the Buckeye Fish company." Repeated efforts on the part of Mr. Reynolds to close up the dealing with Mrs. Chadwlck met with excuse and do-lay. do-lay. Ho was put on time after lime, yet did not lose confidence He detailed ono Instance, that on May 11, 100J. when ho wont to New York expecting to settle the entire affair Mrs Chadwlck was in consultation with a number of lawyers, and after waiting two davs lie returned to Cleveland without seeing her Original Trust Agreement. He had read the trust agreement, but had never seen tho signature. Mrs. Chadwlck had told him the original was In tho package ho held. He confidently believed everything would be paid, up to a week ago. and had no suspicion of anything any-thing wrong until a few days before Mr. Newton brought his suit. Then his attorney, at-torney, Mr. Carver, of Boston, called at the Wade- Park bank and said he understood under-stood he held somo Steel securities of Mrs. Chadwlck's and showed him a paper assigning all her right and title In Reynolds' Rey-nolds' holdings. Several noteH of J10.000 each payable to Dr. Chadwlck had been taken up by Mr. Reynolds. Ho declared they were payuble qut of any moneys that might have been on credit to Mrs. Chadwlck. In tho First National bank of Cleveland on August 20. Some of these were paid, and In Feb ruary or March, 1901. money was placed to her credit In this bank. Mr. Reynolds thought the money came from tho East to pay all these, and felt assured that what he held was all right. Ho was further asaurcd when Judge Olcott of New York camo to Cleveland and was Introduced to him ovor the telo-phonc telo-phonc by Mrs. Chadwlck. Judge Olcott assured him that ho would relieve ?dre. Chadwlck from her unenviable position. Ho knew Judge Olcott was hero because he was assured by a check for $1G00 signed by Judgo Olcott ho received tho next day. Cashed Bogus Check. He last saw her November 10. She desired de-sired to go East, and had no money. He cashed a check on the Lincoln Trust coin-puny coin-puny of New York. It was returned marked "account closed." He took It out of tho Wade Park bank, paid It and had It In his poB3CBs!on. Ho brought tho Newton debt to her attention, and advised ad-vised her to go East and raise the money and settle the whole affair, and ho thought sho went East to sec Andrew Carnegie. Mr. Reynolds camo away from Now York, he Bays, because he did not have money enough to stay there two hours. "Sho ha3 fooled me and many smarter men than me; she has pulled tho wool over everybody's eyes." Then, with a fnlnt smile, as though tho humor appealed ap-pealed to him despito hie troubles, ho paid: "Once she wrote to me to ask If I needed help becauao of tho run on tho bank " Still another Incident was dotallcd by tho witness. "When Mrs. Chadwlck was In Europe," ho ald, "oho wrote that Dr. Chadwlck was In the hospital seriously HI. tho daughter waa also 111, and sh was In nore distress. Emll camo homo to savo expenseH, and hero he was taken with typhoid fever. Sho cabled mo that alio had no money, and I sent her 115,000. "Tho ohock of Emll's lllnexs made her Hfrlously 111, and whon nhc arrived hero Bhe was thought to bo dying. Sho then told me where, if anything happened to her, I would find a lottcr to Mr. Car-ncRlc Car-ncRlc and ho would settlo all her ln debtedness." ' Saw Carnegio Check. Witness had seen no other notes, but had seen a check which was sont to hla house when ho was ill. It was for $60,000 and had Androw Carnegie's namo signed to It. Whether any money was over procured pro-cured on it, ho did not know. As to the value of Mrs, Chadwlck 3 household ratings, Mr. Reynolds thought thev might be worth about $200,000. Ho said he took a chattel mortgage about two years ago. but had never recorded It. This concluded the cxomlnatlon of Mr. Reynolds, and the hearing was put over until Saturday for the presence of further witnesses. Those, It Is understood, aro Mrs. Chadwlck and her son. Emll. If they are not In this city by that time tho examination ex-amination will be put over still further. United States District Attorney Sullivan declared tonight that he would not Insist upon tho personal appearanco of Mr. Carnegie at the session of the Federal grand Jury on Wednesday. "If Mr. CarneKle." said Mr. Sullivan, "Is unable to come, all that will be necessary neces-sary for him to do Is to submit a statement state-ment to tho DJstrlct Attorney in New York to the effect that his henlth will not permit him to travel. If he doos this his sworn statement will go as far with the Jury as his actual presence." Prosecutor Keeler, after the Indictment agulnst Mrs. Chadwlck had been returned, nnnounced the hcyo of securing lndlct-monta lndlct-monta against other persons wno have been concerned In the affair The grand Jury will resume consideration of the Chadwlck caso at 9:30 o'clock tomorrow ' morning. Alleged Carnegie Note. T. K. Whltny. bo'ii of ono of the stockholders stock-holders of the Citizens' National bank of Oberlln, today presented to the Jury tho $500,003 note with the alleged slgnaturo of Andrew Carnegie This note Is dated two days earlier than the one for $220,000, and Is made payable at tho National Bank of Commerce. There has been an absenco of certainty aa to tho existence of such a note. With the possible exception ef Mrs. Chadwlck. Spear and Beckwlth having hav-ing had a gllmpso of It, It had never been seen, not even by Mr. Whitney himself, until It was produced before the grand Jury this afternoon. Tho note had been placed In an cnvelopo, which In turn was In a second envelope, and the two Into a third envelope and sealed. Some dispute between Beckwlth and Spear as to the ownership of tho nolo Is understood to have arisen eoon after Mrs. Chadwlck had presented It to tho bank officials as security for money, nnd It was decided to put It Into Whitney's possession as trustee. Tho latter did not know at the time that It was not genuine Tho other note for $250,000 which figured In the testimony, was made payable at Mr Carnegie's office In New "iork city. Tho ' maximum penalty for the offense charged In the Indictment Is twenty yoars upon conviction. |