National Republican. (Washington City (D.C.)) 1872-1888, 1884-12-04

Consolidated Statement Found, Hut Ex.
planned ny lis Belng "iIalf Stock"
In the Swain court.marlial yesterday Judge
shcllabnrger submitted statement, which he
asserted that he wns entitled to present under
the ruling of the court before adjournment
Tuesday covering errors and omissions, al.
legged By the defense to have occurred In &C.
counts between Gen. Swain and Bateman IL
Co. prior TO June /, 1892. Tho list Of these
errors and omissions cover deposits alleged to
have been omitted from the account furnished
swain, purchases and sales of various stocks
alleged to have been made by Bateman & Co.
ON Swalins accc INT and claimed by swain to
haze been made without authority from him,
aud items Of interest charged up against
Swain on Bnteman's books. which Swain
states were orrOncously charged against him.
Judge Shellnbarger said that the accused
would, In addition to this statement, seek to
attack other items not mentioned In 1t but oc-
curing before and since the period covered by
that statement; lie also submitted motion
asking for subpoena duces tccum for the pro.
duction in court of the books OF Bateman Y
Co., showing the purchases aud sales of stock
by that firm on account of Gen. Swain during
1882 and 1888, the books showing the orders
for all such purchases and sales, the books
showing the copies of notices Of such pur.
chnsos aud sales sent to Gen. Swain, and the
books showing the original entries OF all items
OF accounts between swain and Bateman y
Co., which appear In tho consolidated state
ment of account furnished by Batoman Il Co
to Swain on July ], 1881
Tho order was issued by the court, and Judge
Shollabarger then asked that the further cross
examination of the witness (Air. Brown be
postponed until to-day, In order that the dc
tense might have an opportunity to examine
the books called for I'm the subpoena. he stating
that this examination was necessary for q,
further cross examination of the witness, The
defense were willing, he said, that In thu
meantime tho examination OF other witnesses
might proceed.
The prosecution objected to the granting o
this request by the court.
The judge advocate said that the order OF tn,
court for the production OF tho books directed
that they be produced for tho purpose of cross
| examining the witness now on the stand will
reference TO items occurring In the accoun
furnished Swain by Batcman Il Co. on July l
1882. III the defense wished TO examine thes,
| books for the purpose OF preparing their de
tense II would he said, be necessary for then
to ask for an order Of the court for the book
| Tor that purpose.
| Mr.. Chandler said that the policy OF tho dc
Tense seemed to be to seek under the order o
the court TO get the books Into court Tor tn
| purpose of opening mp an inquiry as TO all Gen
| Swaim's transactions with Batenian q Co. Ill
did not understand that tho ruling of th
court allowed any such thing.
The court into secret session to consider tn
| question, and when the doors were reoponet
1t was announced that the motion had beel
oyerruled.
| The crossexamination Of the witness tMr
| Brown then proceeded. The court ruled on
the first question asked by the defense
whether Swain had not deposited $1,000 will
Bateman d Co. prior TO July !, 1882 on tn
ground that by the ruling of the court tn
| cross-eXaminaton of the witness with refer
ence TO the account of July /, 1882 was to b
confined to items objected TO by the defense
/ I'D tssl a.. l,ny lrnN
that account.
Tho witness was then examined as to III
loan Of 5000 obtained by him from Gen
Swain and Its transfer to the latter upon tn
| retirement of the witness from tho firm q
Batenan & Co. He stated that upon his re
tirement from the firm 5000 had been place
| TO Swaim's credit with the firm, and tho latte
had been debited with 81. 600, the amour ofth
unpaid en-, cheek dr. drawn by swain In his favor
ton OF the further REIMBURSEMENT of :thesmonc
| by Swain was not settled, although witnes
thought that 1t had been discussed by Swain
| Bateman, and himself
ACQUISITION by Judge Shellabarger as to whG
margins Gen. Swain was required by Bate
man a. Co. to keep up to cover his stock tran
actions waa objected to by the Judge advocate
but the objection was oyerruled by the cour
The witness answered that the agreement b,
tween Gen. Swain and Bateman & Co. wa
that margins were obe required TO the exter
Of 10 pc cent. of the value of stocks purchased
but that the amount deposited as margi
huctuated, owing to the fluctuations OF th
stock market. Ii was, however, he said. ii
II duty of Gen. Swain to supplement his margi
when 1t fell below 10 per cent.
The witness was at this stage of the procee'
ings subjected to n long cross-examinatiC
with respect to the various transactions
stocks on account OF Gen. Swain, ret down
the consolidated account furnished Gel
Swain on July l., 1882 The cross-eXamin,
ton was conducted with the ad of the bool
| Df IQtpman ~ IN md aa a. oh liam ~ lal
vassed the various steps In tho. transaction
which 1t referred were traced through Il
several books In which they were recorde'
a, and the record examined by the witness an
In the case of each transaction the orde
upon which the purchase or sale was mad
was asked for and the record of the purchas
or sale, and the copy of the notification Of Il
ont in the books, all these steps being accou
panied by u searching examination of Il
witness as to his knowledge of every transa
ton.
was examined in this manner were the pu
chase of 100 shares of Reading ut 53h c
March II, 1882, and the sale of 100 shares
Reading at % on the same date; tho purcha
Of 200 shares OF Reading at "a on jan.
Lake Shore at ITO, and the sale on April
1882 of 100 shares Lake Shore at 1927; Il
purchase on June ", 1852, of 100 shares Ne
York Central at 1921 and the sale on June
| 1882 of 100 shares of New York Central at IL
The witness testified with regard to the pu
chase Of 100 shares of New York Central &
June II at 1929, and the sale OF 100 shares
New York Central on June nj TO- that q
examination of the consolidated account hl
nlshed Gen. Swain led him to believe tn
100 shares of that stock were sold short f.
swain on June ut 126, and that the II
shares purchased on June IL at 1887 were pu
chased for him TO cover these shorts"
With respect to the transaction of Jan.
1882, In the purchase OF 40 shares of ReadiI
at 81, which IL one of the items In the co
solidGted account objected to by Swain In Il
statement submitted to the court as hayir
been purchased without his authority, Il
purchase aud sales book was shown to bear
entry OF the purchase of 900 shares, but u
copy of the notice of the transaction sent
Gen. Swain showed tho purchase of 100 shar
only. The witness testified that mistake Id
been made by the clerk who wrote the motto
who did not understand that this stock was
.'half' stock, and that 900 shares should be 3
down in the notice ipstad of 100
The cross-examination proceeded tedious
in this manner for an hour and half, VIII,
Judge Shellabarger said that he had conclud,
this part Of the cross'eXamination of the W
ness but that Gen. Grosvenor had some quG
lions he would like to ask the witness. lie
GrOsvenor, he said, was not in the city, b
would be here to-day and he asked tn
luther examination OF the witness DO POI
poned until then,
The court agreed 10 the request and q
journed until to-day
Tho Crescents Social Club.
4 a.