Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1879-03-08
TRIAL OF TREASURER GATES.

TRIAL OE TREASUhhR GATES,
The trial of State Treasurer Gates
which was closed IN Independence las
Wednesday. resulted in his acquftal
The following is the principal evidenc,
in the case and the instructions give,
by the court:
THos. II. MAsTIN.
Direct Exsminatlon-:I was the sss,atan
cashier of the Mastin Bank; l was acquainted
with Gates and the Burneses; PRIOR to June ls77
the Bank of st. Joe was keeping an account witt
us; 1t was opened ut the instance of myself.
saw Mr.. james n. Eurnes for this purpose; l un
derstood this money to be the money Of the Banl
OF st. Joe
By Mr.. Peak-"Why was it that Won went II
Col. Burnes instead OF Col. Gates Pr
The Witness-''I went 10 both Of them: l saw
Col Gates in St. Joe. and told him that W,
would be called upon to go on his bond. an,
would like II part OF the stale deposits; this con.
vcrsation was before he was in office; l had nc
conversation with nm alter this before he de,
posifed with us ;between january 18th and June
18th, 1877, We paid $40 900 of interest on the
public debt; it was placed 10 the credit of thu
fund OF the state commissioners in New York:
have no recollection OF any conversation with
Col Gates in regard to the transfers; &. {.
Burnes and Jamcs n. Burnes, Jr.. compose the
nrm oil Burnes q Co.. OF AtchlsOn; l don't know
for how long u time this interest was calculated
1 suppose II was the interest from the time OF
uepOslt; we allowed the Burneses 10 draw In
terest OH these deposits because at the time of the
failure of the State National Bank Col Burnes
had said to me that he thought it right he should
receive interest on the live money of the state,
that ne might be able to Offset Il possible loss
from the failure of that bank
Cross Examination-''This credit of sl7, 0ss,
resented the amount of money drawn out by
Burnes & Co., by their checks of the preceding
months; Burnes would send slip down. showing
amour: due about the time he drew the checks -
by MIR. Nest-'Did these different checks,
made monthly. show that they were made tor
The Witness-.I haven't the remotest idea
mat this money was paid as Interest; 1 didn't
Know what property the Atchison Burneses had
: was on the faith OF the conversation with Col:
I'm. Burnes that we paid this moneys; l would
not have allowed this overdraft except for this
conversation; ! recoilect that in my testimony
before the legislative committee | said that we
PAID no interest to Bucnes u Co.; 1 was asked
why we didn't pay it for eight months; 1 said
nothing about the overdraft because they asked
the rate OF interest; Il was Elk per cent. for u
third OF the state moneys, and eight per cent.
Tor all excess; Burnes had told me that we were
TO have a large balance during Gates term In
Office; at the time OF the failure OF the First Ma
tionai Bank We assumed one-half Of the loss by
the Bank OF ST. Joe in the State National Of
81. Louis in consideration of a loan OF Slsl 900;
l saw the publication oil II statement of our al
fairs in the Kansas City Journal; the reporter
read 1t to me; it was drawn up by Mr.: J.V. z.
harhes; there were Inaccuracies in it; 1t was
correct in the main; l knew it was published and
written by my lawyer"
ke-dnect-''Th slips sent down from st. Joe
showed the balance due; 1 never heard Col.
Gates Say that he had an agent. except upon the
Witness-stand ut the time OF the attempt to re-
move Col. Coates.'
Re-cross-''We had controversies as to the
amount Of interest; | thought that, in dealing
Win Win me bnIneses OF Atchison. We were dealing
WIN the senior Burneses; l didn't understand
That they represented the Bank OF 81. Joe."
JOHN j. MAsTIS.
Direct Eyaminat lion -..W.s casbi.r ~ tho
Mastln sank, between the 18th of January and
the 29th OF June We sent money to New York; l
transfer OF the account to his credit; the transfer
was made at his instance; the interest was not
paid until the 10th of May; l did not know to
whom to pay 1t and did not wish to pay it until
l had authorization from the proper person; a
short time before the transfer was made Col.
Gates came to me and said that he desired il; a
st. Joe, Transferring the account to Col. Gates;
was said about the interest tor some
time, maybe for GO to 81 days; after that it was
urged upon me that we should assume One-half
OF State National Banks liability; the consid-
Tor this was to be the deposit with us of
one-hait or the state money, anu that no inter-
est should be Charged on moneys in our hands;
after that Col. BurneS began TO urge the payment
OF interest; was unwilling to do this until Col.
Gates TOLD me TO pay 1t Tor the present as we had
been doing; l am not sure as 10 the time OF the
conversation; 1t was James N. Burnes that told
me to pay it to Burnes & Co , of Atchison; l
have never heard Col. Gates say Burnes was hi.
nSNt - IN II ltiG lallo
CrOss-EXamination-:In january. 1878, we
one-half the liability Of SlS5 600 oW ed
by the State National Bank to the Bank OF st.
Joseph; at the time the asset was assumed We
believed the First National Bank would suspend,
anu, In order to get the $l3l 900, l believed it
was Tor my interest to accept this burden; I was
forced by The eSlgencles of my business to do
1t; from the time of the transfer until May 10th
we dld NOT pay any lnteresi; l remember that
before the legislative l said that Col.
GALES SAID nothing about interest but that Rurnes
was pressing me: l don't remember whether or
not ! SAID that l was tired OF paying interest; l
don't think that We had controversies with the
during that eight months as to the
amount of interest due"
BY Mr.. Nest-''Were you not asked before
MAJ the question whether you and the
forth ?'
Al think this was in relation to the time
after the transfer and before SUSPENSION
Q.-'Did you not state that during those eight
m"nths tue Bank OF St. Joe sent clips monthly.
anu did you not answer Yes, sir ?''
Al don't know but did"
" -'Dldn't you state to the committee that
slips passed right straight along"
Al don't know but / DID,"
The Wltness-''FroIn the 29th of June to Nav
10th, 1878, we paid out to Burnes 4 Co., over
$40, COO; l thought that these young men repre-
scented J. n. and CALVIN Burnes; I don't know
but L said before that I was dealing
with the Bank of st. Joe; we owed the Burnes
boys nothingi Burnes & Co. never made any
that l ever had more than one agreement with
James Burnes in regard to This state money; the
arrangement was that we were to nav & per cent.
ior I of the money and 8 per cent. for all sur
plus; The balance in our bank was not TO be di-
1 issued Il deposit ticket to James
Burnes for the SIT, 06a on the 10th of May; l paid
interest because 1 thought We might loose the
met! TO not always do us they con-
tract; had no contract with Gates about inter-
est; | don't know that Col. Gates ever got any of
this money.
The stale here rested Its case; the witnesses for
the defense were then called and testified as be-
low:
COL. ELIJAH GATES.
Direct EXaminatien-..I am the defendant in
This case; | am acquainted with Mr.. j. j. Mas
TIN; l heard MIR. Mastln's reference to the con-
between him and me about interest: |
must say that ! give Mr.. Mastin credit Tor great
err nerve than ! though he or any other man had;
he is the most mistaken man on the face of the
earth; | never authorized the receiving any in
terest from the stale deposits in any way, shape
or manner. or authorized any one to receive any
for me-
Cross Examinalion-'In 1877 | made most Of
my deposits with the Bank DIST Joreph; l knew
that Burnes made large deposits with the Mas
tins; l knew that Mr.. Mastin had paid 1920, 900
in New York l did not know that Mr.. Burnes
largely managed my business; it was at my in
stance that the Bank'ot st. Joe's special account
was trans ferred TO my credit; there never was
any conversation between myself and Mr.. Mas
I'm regardlns interest; l never old him to con-
tinue paying interest, As usual; Mr.. Burnes was
not In Kansas City IN january, 1878, at nv
Mr.. Mastin came to see us; 1 am
toned between Mr.. Maslin and me; and [ never
him to pay interest to any ono; l
want the jury TO distinctly understand it,"
JAMES N. BURNRs.
"In ISL l was a stockholder in the Bank OF
OF ST. Joe. l am acquainted with Mr.. j. j.
Burnes \ Co. Is II firm doing business
In Atchison. Their business is buying and
selling exchange, collecting, etc. In August,
1877, the Mastins were called upon to remit
$3.50, 0PO to New York to pay interest on debt.
1t WAS not done, and | raised the money for the
elsewhere. Within sixty day after the
transfer OF tie account, l notified them that the
failure to make the payment justified me in
calling upon them 10 pay interest. At that time,
nor thereafter, there WAS never an objection
Innde by the MastIns to paving intel est until
1873, after that time they NAV have
! directed the Mastius to nav this
money to Burncs Y Co, of Atchison. Interest
slips came TO me from the Mastin Bank. l
Rurnes " Co. TO draw on the Mastins.
In accordance herewith, neither of the Mas
tins ever said to me that they considered this an
overdrait; | stated to Mr.. Mastin that | was sur
prlsed that he had not made monthly statements
TO Burnes y CO.; he gave me u deposit ticket on
tue loth OF May Tor Sl1, Gt3; that amount repre-
Bank 10 Burns y Co. for interest accruing since
July, 1877, l never paid over to Col. Gates any
portion OF this money and he has received no
or profit from it
Cross deposit ticket read
Kansas City, May 10. 1873. Deposited in Mas
Tin Bank to credit OF Burnes 4 Co., sic, O63 ;
Inns ticket was given with the understanding
between Mastin and myself that II was intended
10 cover drafts made by Burnes & Co.. ! UNDER
stood the money was there In the name OF Gates;
The power which I had over this bank was by
aSreeinent between myself and the Mastins; |
bought l had the right to collect this in terest in
he iaiture of the State National Bank; I did not
this interest; this was not the drst inter-
Est We had received; this obtaining the state de-
eoslts was pressed upon me from the first by the