The Yellowstone journal. [volume] (Miles City, Mont.) 1893-1901, 1894-04-13


date OF the notes 10 their maturity.
When such notes became due he re.
newed them by giving new notes for the
amount OF the old notes and adding
thereto the interest due for the period
lapsed, but such renewals were made to
Indicate that interest would be com
puted from their maturity. When such
notes became due they were renewed.
but no interest added for the second pc
riod. The records of the bank, Mr.. Wal.
lace said, will show that all interest paid
by the said defendant was at the rate Of
i per cent and no period omitted, and
the United States will show further that
10y this peculiar device of maturity and
date of notes, he defrauded the bank OF
over 5000.
4 recess was taken at l. o'clock. and
at o'clock p. III. the attorney for the
government continued his statement Of
the methods used by the defendant as
10 the Withdrawals in the stock trans
actions. up to the time Of the suspen-
sion Of the bank. July % 1893. During
this period the defendant is charged
with having used over $4,000 Of the
banks money. The fact, Mr. Wallace
said. was that during all such transac-
tlons the defendant used the name OF
his father to cover up his excessive bor-
rowing, and through this device was able
TO keep the comptroller of the currency
and the examiners in the dark as to the
real loans to tie defendant In one case
the defendant is charged with reporting
his loans at a sum under the limit. while
in fact the records Of the bank will
clearly show that his real Indebtedness
was $4,000. In this statement the de-
fendant is further charged that he,
knowing there had been passed by the
board Of directors of the Stockgrowers
National bank resolution appointing a
discount board. and that no loan should
be made by any officer Of the bank to
anyone for more than 81 600. or in excess
of such sum unless such loan was
authorized and approved by such board
before such loan was made. took from
the bank for his own use the large sum
of over $4,000, subsequent to the pass.
ing of the resultion up to the
date Of the suspension OF the bank.
Mr.. Wallace closed by referring at
length to the false entry charges, and
the election expense items Of 800 per
month. which the defendant is accused
of embezzlng
All the records Of the bank, including
books. papers and other documents re-
quired in the trial. were now unpacked
and arranged for the actual commence.
ment Of work
The able counsel for the defense now
with watchfulness saw the first witness
called TO the witness st.nd in the person
Of Leo c. Harmon. who was bookkeeper
Of the bank from October /. 1880. to the
date of its suspension and who from
that time has been connected with the
receiyership. After the usual prelimi-
nary questions. the witness identified the
charter Of the bank. which was entered
in evidence. The bills receivable regis
ter" was then presented for identified
ton. The defense objected, claiming
that the witress was not Of age when
acting in the capacity OF bookkeeper for
the bank. The objection was overruled
by the court. who held that il the wit
ness was competent to keep the books Of
the bank. he was as well competent to
identify the records and books used by
the bank. One by one all Of the books
were identified, under the same objec-
tion and ruling. The witness was next
called upon to explain the Office of each
book and record offered, which met the
former objection and ruling. Over half
an hour passed before the witness finish
ed this explanation, and during the re-
naming few minutes he was questioned
as to the import Of all entries affecting
and resulting from the transactions Of
the defendant during 1886, the year in
which the defendant first became Dor.
rover from the bank.
Court adjourned until 10 o'clock to.
morrow morning.
From the close fight being made il is
probable that the Miles City delegation
will be detained longer than was antici-
pated. and it is not improbable that the
trial may last three weeks.