The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-25
MIR. KERN BEGINS.
He Uses Bitter Invective Against the
Defendants-Wr. Winter Concludes.

AFTERNOON session MT. winter TOOK up the
counts Of the indictment alleging that the
defendants aided and abetted Haughey in
the making Of certain false entries upon
the books of the bank There are two
classes Of counts charging false entries, the
difference being in the intent charged. One
class of counts charge that the false en-
tries were made with the intent to deceive
and defraud the association. while another
class of counts relating to the same trans
actions charge that the intent was to de-
ceive the officers and agents of the govern
ment. Mr.. Winter said there was no contro-
versy in the evidences; that all the trans
actions were correctly recorded ON the
books of the bank, and there was no false
entry in the sense of the wrongful record
ing of the transactions. He said, however,
he anticipated. from expressions of the
court and the line of evidence followed by
the government. that the jury would be
instructed that the deposit of paper upon
which credit was received, which was
known by the bank and the depositor to
be worthless, would constitute a false en-
try in the law. The jury in a federal court
is bound by the instructions of the court
as TO what is the law, and are not as in
the State courts, the exclusive judges Of
both the law and the fact. Proceeding upon
the theory that the instructions Of the
court upon the law applicable to the case
would be as he had stated, Mr.. winter
took up the evidence introduced under the
counts charging false entries for the pur-
pose of demonstrating that the paper was
not worthless and did not constitute false
law given as the probable instructions of
the court He took up each piece of paper
made the basis of any charge OF false en-
try and traced it through the various
transactions, until he finally came TO the
paper which was given in renewal of 1T and
which was in the hands of the receiver OF
the bank at the present time.
The purpose of this detailed presentation
TO the jury was to show that all of the pa
per was secured by the bonds and mortgage
upon the property of the company, which
the defense claimed was ample security TO
the bank for the debt of the company. He
argued at some length the point upon the
bonds to the bank as security for its debt,
which had been questioned by the govern
ment. He aytrred, as proposition OF law,
was equally effective with a formal au-
thorization in writing, and that Ii was COM
petent to prove by parol evidence that the
authorization had been verbal On the ques-
ton of the character Of the paper drawn
or accepted by any of the branch concerns,
Mr.. Winter argued that 1T was all worth
its face, or at least believed to be so by
both Haughey and the defendants, because
back of IL was the credit OF the cabinet
company and the worth OF its entire prop
erty, which, he said. was worth at least
half million dollars and shown by the ev-
idence to have been worth over sIOO,VOV
In conclusion Mr. Winter said: Now,
gentlemen of the jury, have consumed
great deal of your time in going through
that / would not have done my duty TO
my clients had 1 done less than / have.
The defendants simply ask that you do
them justice. That is all they have right
to ask If they had committed any wrong
the opportunity has not been lacking TO
them TO escape. The deputy district attor-
lit nod a
that YOU make an example of these de-
PENDANTS. If an example is to be made 1t
should be made of the man conducting the
bank. and not the depositor who borrows
money from the bank upon terms dictated
by the bank. But the example that 1T is
most important should be made is the ex-
| for the purpose of examples, but for rem
dering justice. And now as to this poor
man Reed. The evidence clearly shows
that he is not responsible for anything
| that was done out there. F. A. Coffin is
alone responsible for. everything that was
| done, and his conscience is clear OF any
| faint of wrong doing. If there is anything
| that F. A. Coffin regrets 1t is that his
perhaps nistakes..has placed the liberty, of
| defendant, a. s. Reed, in jeopardy"
Then, again referring to the appeal of
| defendants, Mr.. Winter, with much pathos
! referred TO the crucifixion of the Savior
as an example made in obedience to pop
; uar clamor.
MN DTOlA>Os
| 1t was just 3:55 O'Clock ,~nen Mr.. Winter
closed his argument, after having spoken
| for eight hours in benalf of the defense.
Mr.. Kern Immediately began the second
argument for the government In opening
his argument he said the case, which had
| proven a memorable one in its length. in
| it's incidents and in it's Importance, was
| fast drawing to q close He also prefaced
| his remarks with the usual phrases ex-
| pressing the unpleasantness of the duty
| that devolved upon him TO prosecute the
defendants and then proceeded to a sort
| of historical sketch of the national bank
| ing laws, and a particular exposition OF
/ the sections of the law upon which the
| indictment against the ceIendants was
| based. He said the only safeguard to the
| public was the punishment of men who
| violated the provisions of the law. The
| to the depositorS or the stockholders the
money which lost to them through
the disregard of the law. The only thing
! II could do was TO rigidly enforce it's law
/ and infiict the punishment provided for its
| disregard. He entered into sarcastic in
| vective against the defendants and their
| transactions with the bank, and then took
! up a history Of the various concerns upon
| which money was borrowed from the
| bank, saying the purpose OF their organi-
| cation was immaterial, but the question
| was upon the purpose for which they We're
| used.
In this connection he read a letter from
| +. A. Coffin TO his brother, p. Il. Coffin,
| in which the former suggested that the
| company turn over 10 the veneer and panel
company all of the property belonging to
| that department, and that il be charged
| with goods sold TO ii, and keep a separate
| bank account. The same letter suggested
| a similar course with the other companies
| and that by this means a large part of the
debt could be carried "a acceptances be-
| tween the various companies He COM
| mented upon the evidence showing that
the managers of the New York and Boston
| branches did not know anything of the
hx
| which they were employed
] Then upon the question of the drafts OF
| the branch concerns not being sent for
ward for collection, and the explanation
| OF the defense that the defendants knew
nothing of and had no control over the
sending forward OF drafts. Mr.. Kern re-
ferred TO the evidence of the two drafts
| sent forward to New York and Boston "a
! get them out of the way OF the bank ex-
aminer and the information given Reed
| that such had been done and the latter's
kilograms recalling them. Upon this evil
| dence Mr.. Kern asked the question eff II
was the custom 10 send these drafts for
/ ward, why did Mr.. Haughey notify Reed
/ that these two drafts had been sent and
tell him the reason for sending them?"
| At this point the court adjourned till
| this morning.