The New York herald., 1872-12-05
THE Waikiki BANK DEEALCA.
TION.

Gho Arrest OF the President and Flight
of the Cashicr-A Curious hut Not I'm
usual Mode OF Winding UP q Bank
COncern-The Examination OF the De-
fnutting President, Graham, Postponed.
Yesterday Ex-senator william NJ. Graham, late
president Of the Waikiki Bank recently exploded,
was again brought before Commissioner Osborn in
the United States Court, on the charge OF having
0mbezzled 100000 from the Waikiki National Bank
of Middletown, Orange county, OF which he had
been President Charles H. Horton, the cashier OF
the bank, Is included in the accusation; but Mr.
Horton has not been taken into custody, and it is
generally believed that he has left the country.
Several OF the directors of the bank were
present; and the defendant, an elderly and feeble
gentleman, apparently in poor health, was in at
tendance with his counsel, Mr.. Charles S. Spencer.
Shortly after eleven O'Clock Mr. Scdgwick OF the
United states District Attorneys office. came be-
fore the Commissioner and stated that he must ask
m adjournment OF the case until Friday at eleven
O'Clock. he said that the District Attorney was In
attendance at the funeral Of Mr.. Greeley, and Mr..
Purdy, who had charge Of the case, was not
present. he lfr. Sedgwick) had no knowledge OF
che case, and all the gentlemen OF the Office who
regularly attended to criminal matters happened
TO be absent. He further asked for the adjourn
.ment on the ground that the United States Bank
papers OF the bank refused to produce them ex-
cept on subpoena from the Court. summonses had
been applied for last night at a time when it was
mot possible to issue them. The gentleman who
had those books and papers could not be here until
the day after tomorrow, and he tMr. Sedgwck)
senting the bank to ask for an adjournment until
chat tiTne ssH tatt
case. lie submitted that when any party applied
f0r q warrant against another and caused that
others arrest he had no right to do it unless he
was ready with the testimony to support it. De-
PENDANTS In nineteen cases out OF twenty were ar
rested without expectation; and in that case the
defence but when prosecutor Obtained the sAa ar
rest OF party ne was bound to be ready from the
he nsa 70 fh to @
somebody had told Mr.. Bromley that this defendant
had been guilty of embezzng the funds OF the
indictment against him for perjury could not be
had against him. But the affidavit stated
a1 S except e noss Ss the on
OF the bank, and that amounted to moth
tng. Here was an old and respectable citizen
taken away from his home and neighbOrs into
foreign country upon an affidavit which stated
nothing except on information and belief. Mr..
Bromley was in court he might be examined now;
there dancing attendance upon the officers OF the
bank. Before this step was taken, 1t would have
been proper to produce the examiner OF the bank.
This should have been done II the directors OF the
bank wanted to 90 on with the examination. Be-
BIueo, buOulu DC feluemUcTeu tHHb UIll5 was u
Joint charge against Mr.. Graham and Mr.. Horton.
Mr.. Horton had ned and Mr. Graham, who had
been twice senator in the State Legislature, and
for thirty years connected with the bank-having
acted twelve years In thc capacity OF its President
dld not run away; he stood his ground He de-
manded an Immediate examination. Mr.. Graham
was now broken down man, in poor health, and
n ne was sent to prison his death might be the re-
sulk. e.
Mr.. Purdy, who had just put in an appearance.
replied that he was unable to go on with the ex.
animation for various reasons Ii was the absolute
right of the District Attorney to adjourn the case
He believed that people charged with offences had
renamed as long sixty days in PRISON unit wit
nesses could be found. Mr.. shaw, an important
aminer must be summoned. He would not pro-
duce the books and papers OF the bank without
subpoena.
Counsel replied that II Mr.. Purdy kept defendants
In prison sixty days waiting for witnesses to ap-
pear against them, ne had done wrong. Nothing
could justify the detention of an accused party
except some positive and decided evidence ponts
ing 70 ms guilt In this case they were informed
generally that Mr.. G1ahain, as President OF the
bank, and Mr. Horton, as cashier, at some time or
other within two years. ron November, 1870,
20 November, 1872 had embezzed the
mnds OF the bank and ma5e false
entries IN the BOOKS Mr.. Graham was camoring
for an examination. He wanted 10 have one i'm
medlately. When did the examiner take charge
MIR. shaw, the important witness ior the govern
ment, get sick Was there anybody there who
could tell him ? Mr. Bromley could have brought
down transcripts IRON the BOOKS The Cashier Ii
might he, had gobbled up all the means OF the
bank, and 1t was not right 10 arrest man frat
aud then 20 around dsbng for evidence.
commissioned Osborn. wntle admitting the right