National Republican. (Washington City (D.C.)) 1872-1888, 1884-12-06
THE SW AIM TRIAL.
MR.. BATEMAS CONTINUES TO EXPLAIN
THE GENERiIs STOCK TRANSACTIONS.
sualm's Counsel Object TO the Production o
Reports and Accounts, Claiming That There
Were No stocks Delivered argument On
Testimony As to the "Due Bill"

Were No stocks Delivered Argument On
Testimony IS to the "Due Bill"
Yesterday in the Swain court-martial
| the Judge advocate announced tho decision
of tho court that tho question to which
objections was made Thursday, as TO q
conversation had with Bateman by his
bookkeeper concerning one Of Swaim's
checks, might be asked. 1t was asked
the witness, and no reported the conver-
saton which he said was had with him
over the private wirc of the firm between
this city and New York by his cashier,
who W as here, he (Bateman) being in
| New York. 1t related to request of
Gen. Swain to be permitted to draw as
much money out of tho bank rs ho could
get on the date OF that conversation,
| (Aug. 13, 1882
Witness then explained the transaction
of Jan. 26 1862, in regard to tho pur-
chase of 200 shares of Reading half"
stock on Swaim's account, and stated that
the matter was fully explained by him
to Con. Swain when tho, latter com
planned of tho difference between the ac-
count current furnished him and the
Il
| in one OF which he was charged with 100
shares and in tho other with 200 shares.
His testimony was in corroboration Of
that given by tho witness, j. Stanley
Brown, as to this transaction. The
witness testified to tho connection ex-
isting between his firm and their cor
respondents in New York, Nichol, Hatch
& Co, J. +. Trowbridge, and L. ii. Har-
riman & Co. In answer to questions pro-
pounded by Gen. Grosvenor and Judge
Shellabarger, he said that the firms were
separate and distinct. The New York
firm, he said, bought and sold stocks for
his firm, but Bateman & Co. had nothing
to do with the keeping of their books.
At this point discussion sprang up on
request by the judge advocate that tho
witness produce the reports received by
him from his New York agents concern
iny their transactions in stocks on
Swaim's account and the accounts cur
rent Of his firm with the Now York
agents relating to the same transactions,
in the course of which Gen. Grosvenor
of counsel for the accused. again referred
to tho line of defense which he outlined
Thursday, and which ho asserted that
counsel for tho accused would pursue.
Gen. Grosvenor objected to the produc-
tion Of the reports and accounts in ques-
tion. The judge advocate said that the
prosecution proposed to show, not only
that these stock transactions wero re-
ported to Bateman IL Co. by their agents
in New York, but that Bateman IL Co.
were charged with the purchases and paid
for the stock purchased. Gen. Grosvenor
said that these papers were competent
evidence for only one purpose, as showing
the basis upon which Bateman Il Co. made
their reports to Swain. They proved
only what Bateman & Co. said to Swain,
and do not prove the transactions rs they
actually occurred. There is no evidence
before the court, he said. of tho actual
existence of the transactions upon which
these papers are based.
The position of tho defense is, he said,
that If 1t is proved that broker in New
York notified broker in Washington
that ho had bought 100 shares of stock,
and that the broker in Washington
duplicated that statement to the Gus
toner, that is proof only that certain
things were said about the transaction,
but Is no evidence that the transaction
occurred. If the contrary is true, ho
said, it is time that the country knew it.
Mr.. Chandler said that tho gentleman
had admitted the competen cy of the evil
dence, and that its sutliciency is q matter
for argument another time.
The president of the court said he
would note the position taken by counsel,
and thought that sufficient at this time.
Tho witness then produced notices
New York of all the purchases and sales
Of stocks set down in the consolidated
statement furnished by Gen. Swain on
July /, 1882, and the entries of these
transactions in the accounts-current fur
nished Bateman & Co. by these corre-
spondents.
He was asked as to Gen. swaim's knowl-
edge Of tho firms method of doing busi-
ness, and said that Swain had every op-
portunity to obtain such knowledge; that
he was in the bank almost every day
while these stock transactions were being
carried on, and that he was very exacting
as to the state of his accounts.
The witness was examined further as
to the explanations he had given Gen.
Swain concerning his accounts when the
latter had complained that ho did not
understand them. In this matter he cor
roborated tho testimony given by Nr.
Brown. He also testified to furnishing
the consolidated statement of July !,
1882, to Swain, upon the statement of the
latter that he had mislaid or lost some of
the monthly statements furnished him.
Mi. Bateman was next examined as to
the circumstances attending the making
of the due bill" known to this case. Ho
said that Gen. Swain came to him and
sold that he didn't know what no would
do with the $1,000 he had loaned Brown,
when tho latter should surrender it, but
had finally agreed to leave it with the
firm, taking u memorandum, so that no
would know where 1t was. He [Swaiml
had written the "due BILL" and the wit
ness had signed it, and afterward, on the
statement from Swain that there was
some interest coming to him from Brown,
he (the witness) had added the words "6
per cont. interest and 10 per cent" and
handed tho memorandum to Swain.
Judge Shellabargcr objected to the in
PRODUCTION Of this testimony, and asked
the court to rule it out.
A long argument followed on the gues-
tion Of tho admissibility of this evil
dence, which was not concluded until
Immediately before adjournment, and the
motion to strike out the evidence will
not be decided until tho court meets
again.
In response to q request by Mr.. Chand-
ler, Of counsel for tho prosecution, in
which he stated that ho had an i'm
portant case to attend TO to-day, and
that the witness had some important
business to transact, the court adjourned
till Monday.
L.