The New York herald., 1873-12-31
THE Waikiki NATIONAL BANK.

SCHOOL building l0r school purposes.
THE Waikiki NATIONAL BANK.
Trial OF Its President. Ex-senator Will
liam ri. Graham, for Alleged Emhez-
ziement-Opening statement and Tes-
timcny for the PrOsec utfon.
The trial of ex-senator William NJ. Graham was
resumed yesterday in the United States Circuit
Court, before Judge Benedict and jury whose
names we have already published. Mr.. Graham Is
indicted for having embeZZled ABOUT s1730 900, the
property OF the Waikiki National Bank, OF which
establishment he had been President. Mr.. A. II.
Purdy, United States Assistant District Attorney,
conducted the case on the part of the government,
and Mr.. william Fullerton and DIR. John Mcdonald
appeared as counsel Tor Mr.. GrahAn.
STATEMENT FOR THE PROSECUTION.
Mr.. A. II. Purdy, in opening the case to the jury,
observed that the prisoner stood indicted under
the ffty-ffth section of the National Bank act.
This act declared that every president, director,
cashier, teller or agent OF any association who
shall embezzle abstract wilfully msapply the
funds or credits OF the association, shall without
authority from the directors issue put in crcula-
tion any OF the notes Of the association shall be
deemed guilty Of a msdemeanor and upon convic-
tion shall be punished by Imprisonment not less
than five years nor more than ten years. The prs-
oner was indicted for converting and embezzliIig
the funds of the Waikiki National Bank. While
counsel admitted that it was diflcult to prove a
charge OF this character he maintained that all
the circumstances OF this case pointed
conclusvely to the guilt OF the pris-
oner. In November, 1872, the Cashier, Mr..
Horton, disappeared. The President was
not to be found, and the bank suspended. The
directors went to the bank, and there found a
young boy in Charge. On an examination of the
bank and its books they ascertained that the en-
tire capital OF the bank euai OF about siae,ooo
and $25, 900 OF deposits, were gone. Only sum Of
about $500 in mutilated currency remained. The
capital of the bank was taken away by somebody.
The question to be now determined was, VINO
was 1t that took those funds aud embeZzled themy
Horton had absconded and the TACT that he ran
away proof that he was guilty of abstracting
Graham, the President, and had an interview with
HIM. The investigation into the books OF the bank
went back for a number OF years. and would show
that the President was as guilty as the
Cashier 1t would appear that IN February,
@ the ea1s was ~ Rera an doWo and te
general condition OF the bank was bad. Inls cir
cumstance came to the knowledge OF the Comp
troller OF the Currency, who wrote letter to Mr.
Graham stating that Its condition was such as
almost to justify the suspension OF its charter and
that its affairs must be properly conducted for the
future. He NIr Purdy would pick out few Of
the many transactions OF this bank oil which Mr..
Graham mad knowledge, so that the jury, who
were all business men, might understand the case,
as nothing was so fatal to prosecution as to get
into confusion on many different events. He had
no doubt they would give the case strict atten
tion. IL, in bringing any matterin connection with
this prosecution to their notice, they did not quite
inquire about II as they went along. He would
show them oy ~ the evidence Which he pos to
Ter, had STOCK account with
JAY COOKE & co.
for the purchase and sale OF stocks, and that
checks drawn rom the funds OF the Waikiki
National Bank, OF which Mr.. Graham was Presi-
dent were paid on tnat stock account to tue
charged to be misapplcatlon, abstraction and
embezzlement OF the funds OF the bank. The books
Cooke and Co., except that this amount OF money
was paid TO them. II would be further shown that
Mr. Graham took large number Der OF notes which
having endorsed them, sold them to Mr. Galiaudet,
put the proceeds in his pocket and converted
them to his own use. 1T would also be made TO
appear In evidence that Mr.. Conhiin, OF
THE MARKET SAVINGS BANK,
Mr.. Graham and Horton had stock speculattons to-
gether; that the funds OF the bank were used to
carry on those speculationS that three accounts
one in the name Of Horton. Mr.. Graham had THIS
account in his individual name. He took certain
securities which had been deposited in the Waikiki
Bank and deposited them in the Market Savings
Bank as collaterals upon his call loans. After
Conkiin lett the Market savings Bank Graham
came to town and took the securities which he had
lett in the savings bank. The government charged
that in this transaction there Was an embezzle-
ment OF S11.9E 25 and that the books showed no
account between the bank as bank and the Mar
ket Savings Bank. They would show that charge
made on the books OF the bank as a remittance Of
$4,000 to the First National Bank was
not an honest transaction. on the 2eth OF
January 1872 Mr. Graham drew the check
for s1i,e17 rs, and paid it to the Market Savings
Bank. but the check was not credited to that bank
until the 10th OF February, almost month after
Counsel charged that tnat was false entry, and
the jury could readily see how u was So II Gra.
day day the u cheek was drawn his books Would have
shown an overdraft After borrowing $1,000 on
five-twenty bonds; after charging 1t to the First
National Bank as remittance; after Horton ran
away and Graham knew that he had ned, and after
taking all the funds Of the bank, except the mutt
Bank took up the ave.tweaty bonds and handed
them over to his fatner-in.law, Mr.. Denton.
nv that ''Hu'' in his pocket When the nc bank nus
failed Mr.. Shaw, one OF the directors, asked Mr..
Graham TO account for the 3, money, Graham @ told
gave them 10 his father in-law. lie was then asked
what about the 1000. He said he had given that
to his wife; but he went to his house, got the
a. 900 and returned it, and that was all the drec
tors ever recovered OF that large sum OF sl73,oO0
the capital OF the bank. In the cash drawer was
: found a mortgage for about $500. 1t was mort
gage OF Mr. Graham's, and stood cancelled OF
ysso woda a. Be o 's Ins Of
that the money was taken from the cash drawer
by Mr. Graham. He mr. Purdyl had not gone into
r>y, but he would show that all those transactions
wore covered up by fictitious accounts and false
In reply to Judge Benedict, Mr.. Purdy said that
the indictment IN It's first general counts charged
che defendant with embezzllng and abstfactDg
certain large sums Of money. Then there was
specific count that he took s525 and $ll ,917 20.
The indictment charged him with embezzing that
noney-wth abstractin1 II, and also with making
false entries ia the books OF the bank with the aid
OF Horton Replying to Mr.. Fullerton Mr.. Purdy
observed that every transaction was covered by
i've separate counts in the Indictment; and, an
swerlng question IRON the Court, eounsei said the
punishment for the offence was not less than nve
nor more tnan 10 years. imprisonment. Acting
upon suggestion RON the Court. hr. PurdY salu