Savannah morning news. [volume] (Savannah) 1868-1887, 1884-12-05
SWAIN ON A NEW TACK.
HIS DEALS WITH BATENIAN NOW
CLASSED AS GAMBLING.

Gen. GrOsvenOr Trying to Spring the
"Baby Act' on the Court-Phrase-
OlOgy Furnishes the Field for Inces-
cant Legal Tilts-Banker Bateman in
the Witness Box.
WASHINGTON, Dec. A new line of
defense was opened by the counsel for the
accused before the Swain court-martial
this morning. In substance, it is that the
stock transactions between Gen. Swain
and Bateman & Co. were illegal because
there were no actual transfers of stock.
and that any pretended claim of Bateman
Il Co. upon Gen. Swain for losses in these
transactions could not be received in a
court of law.
The point was made by Gen. Grosvenor. OF
the counsel for the accused, IN an argument
upon the propriety of the question asked by
him in the course of his cross examination OF
witness j. Stanley Brown. He had directed
ms cross examination of the witness to pro-
curing testimony as to the manner in which
operations IN stock were conducted by Bate
man Co.. and the witness had testified that
tn9i tnS custom OF the hrm was TO purchase aud
sell stocks on the order OF persons operating
with them through their agents in New York,
and that where such operations were carried
on on margins stocks were not transferred to
the individual for whom they had been pur-
chased, as the broker in New York in such
cases put up the difference between the pur-
cnasers margin and the value of the stocks,
ana the stocks were transferred to him.
LIMITING AT GAMBLING.
Gen. Grosvenor then asked him II, in point
Of fact, on stock transactions by Batemsn &
Co. for Gen. Swain, the transactions on Gen.
Swaim's part were not simply that he
(Swaim) bet 10 per cent. of the value of q
certain number of shares of stock that that
stock would at certain time be worth so
much money. The prosecution objected to
this question. and Gen. GrosvenOr modified it
frsaa aafiA
such circumstances was not simply that Gen.
Swain put 10 per cent. of the value of a
certain purchase to indemnify Bateman 4
co. against fall in the value of the stock.
The witness answered that such was
substantially the character of the
tFansaetGaa iran aiPaa ana tSen Gen Grosyenor
when the amount put up as indemnity failed,
Gen. Swain did not forfeit any right to the
interest he had in the stock purchased unless
he put up more margin.
The prosecution objected to this, as asking
the witness to state questions of law. Mr..
Chandler in making the objection said that he
was willing that the witness should state the
facts. but should not be called upon to state
questions of law, as although his information
as to the facts was accurate, his information
as to law was apparently not.
Gen. GrosvenOr, in reply, said that the
court must see what in the end the defense
would claim in this case, which. he said, will
be that anv pretended claim of Bateman &
Co. upon Gen. Swain growing out Of these
gambling transaction, on which he could not
recover.
THE RECORDS OF THE COURTS.
In view of this, he thought it very impor-
tant that the facts in the case should be fully
stated. The courts, he said, had held that
transactions in stocks in which no actual
transfer of stocks took place are fraudulent.
After some further argument Gen. Grosvenor
withdrew the question objected to and put it
in different shane, when an objection was
again interpOsed. This was repeated several
times, and finally the question "What was the
course OF the business followed by Bateman &
Co. in these transactions" was allowed. The
witness answered that the course of dealing
was to require o customer to put up
margin of 10 per cent, and when that mar
gin became nearly exhausted and the market
looked as though it would go still lower, the
customer was called upon to furnish more
margin, otherwise the stock was sod when
his margin became exhausted. That was the
course of dealing between Bateman & Co. and
Gen. Swain.
Witness Brown was finally released. and
Mr.. Bateman, who preferred the original
charges against Gen. Swain, took the stand.
The only thing that he was allowed to tell
was that a statement of Gen. Swalm's stock
transactions, rendered in July, 1882 showed a
profit to Gen. Swain of 1910, which amount
was placed to Gen. SWaim's credit.
Prompt objection was made by the defense
to all the questions asked Mr.. Bateman, and
the remainder of the day was spent in
Wrangling.