New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-30
THE COURTS.
TAINToR,s STOCK sPECULATIoNs

A NEW TRIAL TO BE APPLIED FOR
In the United States Circuit Court, yester-
day. the trial OF Frank L. Taintor charged with embez
zug the funds Of the Atlantic National Bank cane to
abrupt yet not altogether unexpected termination
Judge Benedict ruled against the defense on point of
law. directed the jury 10 aud verdict Of guilty, and
said that his ruling could reviewed by his associates
motion for a trial.
At the resumption OF the trial. Mr. Carter argued
further upon the question Of law which was raised on
Tuesday ana reported in Wednesdays TRIBUNE He
cited several other authorities In support OF his position
and claimed that proof OF Taintors bank surround
ings" during the period covered 10y his alleged
olense would throw Hight upon the motives
by which he actuated IN his stock opera
ratiOns he entitled 10 1t. Tantors intention
said Mr. Carter, il what must get at; II he specu
lated with the funds Of bank for the purpose Of ben
citing the bank. that is thing; II he speculated
with the funds Of the bank with the intention merely Of
deriving private, individual advantage, that quite,
another thing Suppose that Tainor had been success
ful in his stock operations he would have been praised
not tried a criminal"
United States. DistrctAtOrney Bliss produced several
authorities which were, he claimed, against the ad-
mission OF the evidence question: and said that Mr.
Carriers position IL Is right TO DO wrong you
nope to DO good thereby"
After further discussion, judge Ben iedict said:
have examined this question fully, and have no
hesitation 10 the course lOr me to pdrsuo IN tnls
fully docs act intended the necessary Consequences
OF that act 10 conceded. find nothing la the statute
which makes this rule nappcabic TO the charge against
the prisoner III would Dc enough 10 lhs cue "oius %
the reported IL "a RUSSELL 645. Ii does not require
"a corrupt motive as an ingredient OF the OHehse'
When does what is 'llesal he must incur the
necessary consequences Of the act There Is nothing IN
the statute preventing the application OF chat rule IN
thls case but hhd one characteristic Oh this particular
case To which the rule applies; thaJ IS the taxing the
FUNDS OF the bank and depostng thom as mlrslhs on
stock specuation-. That rule has been applied TO
forgery and to OF simple respass In eases
matter OF fact. that there no intent TO AJure the
person as charged IN the Indictment except
was held that the real intent Was 10
iuJure auother person Ihat was a case OF ass ul'
reason for not applying the rule 10 case Ike
this On consideration II will appear that injury to
national btug was the necessary result Of such act
because the instant the act was committed risk Was
thrown ON the bank, and no circumstances, no good
motives coud prevent the acc rom being followed by
the risk winch stockholders and dcpOsitOrs were not
allowed To take, even had they desired II.
Take the case in another aspect THIS Is not merely
private injury. National banks are, IN certain sense,
pubic Institutions. There was, then, INJURY TO the
puuc from the OF the capital III such business as
The prisoner engaged i'm; and tor that reason, such
the one IN question should De considered a. Iuy
within the rule There Is still another aspect Of this
case. 1uis Transaction must come within Inc rule ~
having 40 legal Justification or excuse. IL must
therefore, come within the general rule. The
authority OF tAe directors, II gwen would AFFORD
no justification OF The act They hId no power To
authorize They could not authorize naD TO take
the capital OF "A national bank and transform II into
margins STOCK spcculatOns. Ii has Deon urged that
this construction OF the law Is nadmissble because u
nterferes the workings OF banks. It was also said
that circumstances might arise where II would be nec's
sarg Tor bank directors to exercise war powers ad naC
any rule tending 10 transfer them wound be nappcd0ie
Now my opinion, bank directors nave no war powers
Intended by statute 10 DC brought within the rule.
No clerk director, cashier OF bank can under
cTrn,nsf,nccs do what the prisoner has done without
being guilty OF q IL act that presumed re-
atiOns bank property, aud To the property Oh
public the act involved moral turpltude by Of the
character OF operation TO winch the funds OF inc bank
weredeyoted therefore follow" as 3 Ihe
| /. htf N slI "A
knowingly transfers It's capital into margin Tor stock
specuaOns, he intends TO niure the corporation That
intent rs sufcient II such an intent exists.
eral what Other Intent exists and 30 rule IN this
ANY evidence showing any other intent, looking 10
possible ultimate benefit To the bank, Is immaerl and
could only distract the minds Of the jurors, anu prevent
them from applying the law to the facts. THIS ruling
leaves the question as very simple transaction, and l
| 90 not hesitate 10 rule 80.
Mr. Carler-Your Honor's decision far az TO
say that banks who help each other by pooling green
backs" should be in licted and hope the DistFicAt-
tofney will see that they indicted.
Judge Benedict don't know anything about pool
| ing greenbacks :" have dealt exclusively with the
question raised. and ! see reason for changing NY
ruling.
Mr. Hail. think that your HOnor's ruling to the
extent OF excluding evidence OF character and TO the
extent OF excluding evidence that there no intent
| TO defraud the bank.
Judge Benedict don't understand that II excludes
evidence OF character have decided the question on
| broad grounds, and shall adhere TO my ruling
Mr. Hail. would like ask your Honor the follow
ing questions: DO you not that the question OF
| em5ezZlemeut can be tried by jury How shall We
| prove absence OF fraudulent Intentf
Judge Benedct-If find that am wrong in this mat
ter you can have new trial The question OF the ex-
clusion the offered evidence can be argued before
myself and my associates; II they disagree with me- |
shall submit, OF to their views but II am right
| in my ruling take IL that your defense is gone.
Mr.. Carter-Under your ruling must say that you
have fairly preserved the rights OF the prisoner
After a long consultation with his associates, Mr. Hail
| made the following six offers OF proof
FIRST Defendant insists that in addition 10 testimony
already in the case, the prosecution mu. offer denee
intent to inure and defraud the Association ana
| in support Of sucn allegations in the indictment
Secondly: Defendant for the purpose or seeking 20
prove absence OF intent on his part to defraul as
alleged in Indictment offers to prove that IN his
drawing out from the general fund OF the Association
| the various moneys and credits specified In the
different counts OF the Indictment as being msappl-
cations embellishments thereof with intent 10 IN
lure and defaud the Association his acts therein were
known the President and some OF the directors and
that they either acqmesced ill., not opposed by
or encouraged by the President and some oI the
Thirdly: Defendant offers evidence to show also that
in act set up in the Indictment ne lutenued us
purchases OF stock for the account ana Deneht OF the
FoSrthiy: Defendant offers to prove that his general
character for honesty is good and that this 10 not an
offer any OF the offers made for the purpose OF
controverting commission OF OF the acts OF with
drawing funds set up IN the Indictment ana ABOUT When
testimony has been received but Tor the purpose Vi u
/ the specific intent aVerreu IN edcn count
FifLv: The defendant offers to prove, with the like
latter purpose that he derived no pecuniary proht from
any act regarding which evidence has been received.
nor any personal advantage Also that he, while cashier
during the dates included In the Indictment was IN me-
general conduct ambitious and Jealous by endeaVors
| and acts TO advantage the Association.
aSiIhiy: Defendant offers 70 prove facts (short OF
proof OF direct authority the Beard OF Drector tend
fnS 10 show that he himself believed the time OF the
commission by him Of any acts charged In the indct-
meut and as TO which evidence has been given That
such acts were sometimes done with the knowledge "
inc and some OF the directors OF the Assoe
| ton.
Mr. Bliss-I object to those offers being received.
| Judge Benedct-I rule them out.
| Mr. Hall-we except TO the ruling