Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-12-03
TEzE SWARM COURT MARTIAL.
thc Cross-ExaR,ian:iono of y. Stanley
SfcHu-sscn. SWaim's Stock Trans.
2CfiOe,a.

htOoH-Sscns SWaiEn's STOCK Trans.
actions.
The cross-eyamlnation OF Mr.. ]. Stanley Brown
before the Swain court martial, with the discus
son of points raised during its progress occupied
al yesterday afternoon. He stated that his portion
OF the profits OF the banking frl Of which he was
to pay Gen. Swain 10 per cent during tie tine he
held the lean OF $500 from the latter. was $500
Gen. Swain had waived the payment OF his per-
centage this sum. and also OF the per cent in
terest which he (SwaiIn) was TO have been paid on
the total loan. He was examined at great length
as to the various stock transactions between Gen.
Swain and Bateman & Co, and incidentally as 70
the Specification Of the terms .lCng" and "short'
as they appeared in the accounts; also, as TO the
manner in which Gen. SwaiE's arounts were CON-
puted. Gen. Swain had frequently complained TO
him that he did not understand the accounts as
rendered TO him. The first or these complaints WAS
made when the first account or Gen. Swaim's stock
transactions was rendered, AMI they continued uTl-
W ts VINE the witness severed his connection
with The bank. The judge advocate objected TO a
cfosS-examination opening up the entire book &C
counts or Swain With BatemaH.
Judge Shellabargef inst ted that it was proper
for him 70 impeach the account put In evidence, by
showing that IL is wicked and Infamous by what is
left out OF IL.
long discussion followed. during which Mr.
Chandler said that it was tliing with the court TO
entertain IL hour after hour with the pretense that
Gen. Swain did not understand an ordinary bust
ness transaction. A secret session or the court
followed the discussion. and subsequently the
judge advocate announced the decision that IL IL Is
proposed on crosS-eXamination Of the witness TO
attack the validity OF the statement OF account or
July l. ISS2 as to the balance from previous trans
actions, the defense viii De required to state the
items forming that balance which are objected to-
or the items claimed to be omitted therefrom
otherwise such subject as matter OF defense shall
DE postponed 10 due season. The members OF the
court, after adjournment. called at the White
House and paid their respects 10 the President
To-DAY's PROCEEDINGS
When the court assembled this morning. Mr.
Shellabarger, calling attention to the ruling OF the
court last evening, requiring the accused to point
out items OF account which lie proposed TO attack,
submitted the following Statements OF items
Claimed TO be erroneous, the purchases and sales OF
stock mentioned not having been authorized by
Gen. Swain. Jan. 1G-Depos.J OF $50 omitted
Jan 25-PuTchase OF geo Reading At O. q: So 4S7.5Q
March 1l-Furchase OF 100 Reading at 53lc 50 6SI
March 1l-sold 100 Reading ut -; $2,6iS75. March
l6-Soid 90 Reading 1T 5S; S5.Ss7.5O April S-SOld
100 Central Pacific COX; s9.0i2.5u. April Is-Pur-
chased 100 Lake Shore at 10: sl.0l25O. April Is-
Sold 100 Lake Shore at 1025r: siO2S7.50 May q
SOFA lOV New York Central at 1857; 2l25S7.50 Juno
10 16EStra interest NY. Central, 90 as June II
Purchased 100 New York Central at I2 y: s13 2S1-
so March 23-PUrchased 100 Central Pacific at W III
S923l.50. May 1l-DepoSit OF 81, 600 omitted This
statement" Mr.. Sheiiabarger continued, sis con-
fined to items prior TO July, 1882. The accused Will
In addition TO the above items, seek TO attack
items not above named, both before and since July
list, 1882, and reserves all rights In that regard and
valves nothing by submitting this statement" MI
Shellabarger also, under the ruling or the court,
made yesterday, asked an order for q SUBPOENA
duceS tecan upon Bateman a Co. to produce the
following books and accounts: First the accounts
in the books OF original entries or the purchase and
sale OF all stocks claimed TO have been purchased or
sold fOrGen. Swain in 1882 and 1888 Including books
showing orders for such purchases and sales: sec
ond books showing copies of all notices sent toCpn
Swain or purchases and sales OF stocks his ac-
count: ana third books showing the original entries
or all Items OF account between Gen. swain and
Bateman Il CoaS they appeared in the consolidated
account placed In evidence before the court OF In
Quiry.
The subpoena asked for was issued, and sent out
Tor service upon Mr. Bateman.
MI Snellabarger asked 10 have the croSs-examf-
nation OF Mr.. Brown suspended until the defense
duced.
The judge advocate objected to this and the
court sustained the objection.
TIE CRoss-EXAMrsATIoN OF MR. BROWN
was then continued. Nj. ShellabaTger submitted
check drawn by D. G. Swain on the Metropolitan
national bank in favor OF Bateman g. Co. for $3.50,
dated January 10Th, 1882. This check the witness
said. was not placed on the account OF General
swain, and 1t was not deposited by General
swain. III was check given 10 Bateman Co.
In payment for some Ivanhoe stock, purchased for
Mr.. Judd. The witness was shown another check
by o swain on Norton Bliss & Co, OF New York tor
SlOOo. which cneck he said was delivered to Bateman
q Co. by Swain, but cid not appear in any account
between Bateman q Co. and Swain. The wit
ness produced the note given by him May Is. 1892
to Gen Swain for the loan OF $1,000 This note was
for one year. at per cent. but surrendered and
Cancelled July 10, 1882 Ii secured by transfer
IL
ranch, then and now owned by the witness In Kan
SaS. and in addition by promIn.SSOry note for
$1,000 secured by deed Of trust on the property
1918 Massachusetts avenue. This money
was used as part OF the capital OF Bateman d Co.
When witness left the firm he gave General
Swain draft OF 5000 on BateInan & Co.. which
draft Gen. Swain presented TO the bank July Goth,
and, on his own yolition, had the amount carried
TO his own account. The witness had personally
attended to the sale OF Reading for Gen. Swain on
January Goth. The purchase made by him on
verbal direction given 10 him by Gen. Swain. That
was the only transaction OF the kind he could teS-
tify to absolutely as having been conducted by him
personally for Gen. Swain. Witness thought that
there was a conversation between Gen. Swain and
himself about the refnveStment with Bateman d
co. OF the $1,000 loaned upon his retirement from
the firm. The witness best recollection was that
no decision was reached. The terms upon which
the witness had had the money were discussed. 1t
was arranged that witness was discharged from
liability to Swain, and Swain became the creditor
OF Bateman q Co. TO the extent OF the loan which
had been made to the witness.
A question By Judge Shellabarger as TO what
margins Gen. Swain was required by Bateman e.
Co. to keep up to cover his stock transactions was
objected to by the judge advocate, but the objec-
ton was oyerruled by the court. The witness an
sWered that the agreement between Gen. Swain
and Bateman Co. was that margins were TO be
required to the extent OF 10 per cent Of the value
OF stocks purchased but that the amount deposited
as margin fuctuated owing 10 the fluctuations OF
the stock market 1t was, however, he said the
duty OF Gen. Swain to supplement his margin
when 1t fell below 10 per cent