Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-08-27
THE TIBBITTS CASE.
IT'S HEARING BRINGS OUT SOME
INTERESTING FACTS.
Mrs. Howett Believes Tibbitts to be
an Innocent Sufferer-LOcal
Financiers to the Front.

FinancierS to the Front.
The examination of r. P. Tibbtts for
fraud and ENLIGHTENMENT was resumed in
the Police Court yesterday morning. Mrs.
Howett, wife of the absent President of the
concern, was placed on the stand, and the
hearing of her testimony continued until
noon. She did not spare her recreant hus-
band in the least, whom she referred to as
a swindler and repeated her former. story
of his swindling practices in Louisville.
But as regards the defendant, Tibbitts, she
seemed to have changed her mind since his
arrest. She said she did not believe him
guilty of deception or fraud, but was of the
opinion that he was made the dupe by
HOwett. She seemed to be thoroughly
posted on all the business of the Pacific
Coast Provident and Building Association,
told how its business had been conducted.
how the Directors each month divided the
surplus funds among themselves, etc. Ac-
cording to her statement but 600 of the 931
subscribers had paid their dues. She denied
| having made any statement to H. c. Me-
| gerle rejecting on Tibbitts. In short her
testimony, so far rs Tibbitts is concerned,
was calculated to eXonerate him from any
blame for the miSmanagement of the aSso-
citation.
AFTERNOON SESSION.
| At the afternoon session the testimony
| of H c. Mcgerle on crOsS-eXamination was
| taken. The witness went on and explained
TO the Court his understanding of the ori-
gin and nature of the association, all of
which did not materially differ from his
| statement previously made public through
the press. The gist of it was that as long
as new members were secured the success
of the :: enterprise was assured but
whenever the machinery stopped the whole
| thing must of necessity go to pieces. In
der the charter the association was to run
for fifty years, during which time the in
tcntion was to have a reserve fund set aside
from the profits, of which the members re-
manning were to be paid their dividends at
the expiration of the existence of the asso-
citation. The plan, he thought, was good
! one if properly carried out, and the men,
bership was kept constantly on the in
crease He believed that Messrs Howett
and Tibbitts had been guilty of fraud, in
never intending to conduct the affair hon
estly.
Redirect: If continued, the last mem
bers taken in would receive their profits
from the reserve fund, but up to this time
no such fund had been created
i. +. Amsden was next called by the
prosecution. He testified that he was one
of the incorporators, and Tibbitts was a
Director and President. Witness held
eight certificates in the association. Some
he had bought from outsiders, but each
Director was entitled to one share Wit
ness has had no connection with the nsti-
tuition since early in June last Tibbitts
was the first Treasurer, but resigned in
March last after which witness was chosen
by the Directors his successor. While
witness was in the institution one-lifth of
the moneys in the expense fund after pay
ing expenses was divided among the Off
GERS as salaries. Witness thought that the
plan was n good one if properly carried
out Individually, witness thought he had
induced perhaps twenty persons to join the
institution. Witness could not say that he
had ever known of any improper act on the
part of Tibbitts.
j. NJ. Henderson, who was Director in
the institution was next called. He gave
brief history of his connection with it.
and how he was induced to become mem
Der. On incorporating the affair, Mr.
Megerle the President, was to have ten
cents for every certificate signed as his
salary Witness was elected Vice Presi-
dent, and did not like the idea of having
Tibbitts act as Treasurer. Some time after
ward Nh Amsden came to witness and
asked him if he would take $25 for his in
terest in the institution. Witness said he
would not. He was then asked if he would
take $50 or 500. The latter sum he said
he would take; but it was not forthcom-
ing. Later on he was requested to resign,
l,..,r,.., Of Ati init
ested objected to having him in He there
fore rendered his resignation. Witness
believed that Mr.. Amsden's effort to have
him get out was to save him any unpleas-
antne5s, rs he had induced him to join.
Howetr was the person who did most of
the talking and explained the workings of
the association. Tibbitts kept in the back
ground. Circulars We're sent out with wit
ness name on them after he had resigned.
This he objected to. and gave notice to
Howett that if his name was not with
drawn he would publish a card disclaim-
ing any connection with the concern. Wit
ness here explained las others have done
the general plans and workings of the in
stitution.
Mr.. Amsden then resumed the stand and
explained the circumstances under which
he asked Mr.. Henderson if he would take
a certain sum for his interest in the asso-
citation If Henderson had consented TO
sell out, he (Amsden) would have made a
direct offer, as he believed that he would
have made money out of it.
The prosecution here rested, and Mr.
Devlin, counsel for Tibbitts, moved for Il
dismissal of the charge. He proceeded to
argue in favor of a dismissal, and briefly
reviewed the transactions of the associa-
ton. lie held that there was nothing to
show that TbbittS had been guilty of any
dishonest act; that he had simply drawn, as
others had, small proportion of the pro-
ceeds of the association for his services.
| There had been no testimony to show that
! Tibbitts had ever carried OFF a cent belong
! ing to it; in fact, that there had been no
| evidence taken to show that any actual
| embezziement had been committed by any
one, certainly not by the defendant.
| The Court denied the motion for a dis
missal, and after brief recess the defense
proceeded with its testimony.
STORY OF THE DEFENSE.
| J. W. Higgins testified that he became
member of the association last February,
and altogether had eight certificates. lib
| bits desired witness to take a Dictatorship
in the association, but as he intended to
| leave the city shortly, concluded not to &C
| ccpt. TibbittS told witness that a young
/
| him 10 visit her at Reno, and he was going
there intending to remain about eight or
ten days Witness was an agent for the
association, and received a commission
| of 3 for every member he OBJ
tanned He figured out the benefits
to be derived from the association,
and believed the plan Of the association an
! excellent one. He understood that no part
of the $40 TO be paid by the members was
to go TO their benefit, and neither did any
person he had got to join. The members
were to receive their benefits from the as
seSSmcuts, the first of which was to be
levied next January. Thereafter an as
sessment was TO be levied every month.
Witness thought the plan such good one
thaishe bought eight certificates of men,
ber hip; had heard all the evidence in the
cast ,and there WAS net one thing that oc-
cured that he did not understand was in
compliance with the rules of the associa-
ton. He thought the association was all
right and that great fuss had been made
| Inf tptbip,, II on ,,-oS