The Helena independent., 1894-12-09
HANKS TURN NOW.
The Defendants Story OF His Connection
With the Merchants Bank Of
Great Falls.
HIS ASSETS WERE ABOUT sl2o,ooo.
Tho Reasons Given for Negotiating the Oil.
iorent Notes and the Transfer
Of His Ranch.

The cross-eXamlnntlon OF Or. A. r.
Burrctt the treasury expert, was con-
I cluded In the United states court yes
tcrday and then the government was
I through with ats case against VIII
Hanks whom Il charges with mlsappro-
priatlng $4,000 OF tho gunds az the Mcr-
chants National bank. of Great Falls
Lawyer Carter then made the opening
statement for the defense He said that
Hanks had pursued a course of recti-
tudc IN the community OF Great Falls
/ that any man might be proud or lie
spoke pf the organization OF the Mer-
chants bank In 1890. ard OF the sub
sprbcrs 90 the stock who failed 20 make
good their subscriptions Hanks was
then in prosperous circumstances, OF
good credit and regarded by all as an
J cnterprising young business man.
| When some OF the subscribers TO the
, stock of the bank failed to make good
their subscriptions, Hanks. in order 10
facilitate the organization, put In his
own note which. Il was the understand
Ing was 10 be carried along until the
stock should be sold to other parties.
This note Hanks carried along until the
bank closed, reducing IL as sales OF
stock were made. Then. IN 1891, when
George II. Wells decided 10 withdraw.
Hanks and other directors of the bank
decided TO take up his stock This ac-
faa T.r h, It,
cago bank. Later the bank needed
money and the S2S.O0O note was nego-
tiated.
AT the beginning OF 1898, Lawyer Car
ter claimed. Hanks Indebtedness to the
bank individually did not exceed $90,-
600 while he had property worth $780,
OVO Then there came over the country
a most unexpected succession OF events.
Houses of long standing. with ample
assets. became involved in one common
and destructive ruin. The Merchants
bank, OF Great Falls, became involved
in the general difficulties which beset
the country. Depositors OF the bank.
either through fear or necessity. with
drew their deposits. In July, 1898. the
Merchants had reached condition
that human foresight could not have
anticipated IL was condition be-
yond the contro! Of Hanks. Mr.. Carter
then reviewed all the transactions
Hanks had with the bank and held that
they were perfectly legitimate and
meant not 10 harm the credit OF the
institution, but 10 assist II in the course
Of business.
G.. p. Downing and Valentine Loben-
heimer were the first witnesses for the
defense. They were examined mainly
as to the value of Hanks ranch near
| Great Falls. one considered IL worth
sl50anacre.t the other knew OF Hanks re-
| fusing TO give an option for $4,000 on It.
Both witnesses testified 20 Hanks rep
utatlon for integrity being good
The defendant was now called Ia the
stand. At this point the prosecution
announced that il had elected 10 stand
on the nine counts OF the indictment
charging misappropriation and the
! four charging false entries. and not TO
ask for conviction on the nine charging
abstraction. Col. Sanders said IL that
was the case he would ask that the
| jury be instructed to acqult, Judge
I Knowles said he would oyerrule the
motion and Col Sanders took an ex-
ceptlon.
Hanks then began his testimony. He
commenced with his birth in Crawford
county o.. IN 1860, and gave the story
OF his life down to the time he settled
in Great Falls in 1885. and started the
Tribune. He afterwards went into the
real estate and Insurance business, and
in the spring Of 1890 organized the Cas-
cade bank. He owned one-eighth of
the stock OF that bank. Later he helped
organize the Merchants bank. All the
stock Of the Merchants was subscribed
10 prior to the opening OF the bank.
haV An ma ~ nj ffnN "a
number Of the subscribers did not re-
spond, and one large block Of stock in
particular was not taken. Cashier
Wells put IT, his note to carry part Of II
and Hanks put On his note to carry the
rest. The understanding was that as
fast az the stock was disposed Of the
amount received should be taken from
either Of the notes. Hanks then traced
his note as n was reduced until 1t got
down 10 $500. when it was replaced by
the Benson note.
ON Jan !, 1891. Hanks said his prop
crty holdings consisted Of his l60 acre
ranch near Great Fans, half interest
I'm 800 acres of coal land In Colorado,
Interests in the Frisco townsite al Mel
hart, the Columbia Falls townsite and
the Highland park addition 10 Great
Fails, three-cighths interest In
The Insurance business Of himself
and Fullerton, worth $1,000, a sixth in
tgrest in the Liberty mine, worth $1,000;
tom shares in the Goodrich Lumber COM
pany, worth 81 250; some $4,000 shares
VI stock IN the Cornucopia Mining COM
uHuy. on which he would have realized
nt one time 30 or 4D cents a share, and
part Of which he did sell FOR rs and 20
ccnts. third of the Baltimore,
Slaughter House and Little Six lOdes
Lar Barker. worth $1,000, a quarter in
I.rDet In the bond on the Mnginnis
mime M Maiden, $1,000 shares Of the
y CASCADE Gold. silver and Prospecting
Icumpuny. worth cents "A share 10000
shares or the Brlt Mining company,
which had sold for 10 cents a share,
| 40 600 shares OF the Savage Mining COM
pany, worth 10 cents n share, 10000
shares ur the Bear Paw, worth 10 l2lt
cents "A share. and an interest 10 the
/ Sweet Grass Cunl company. Altogether
witness figured up that his assets ln
/ 1891 aud 1892 ana on March ], 1885,
amounted To $l2o,Doo.
/ Coming to the Burgess transactions
. Hanks said he considered his interest
bon the Mnrlnuls min" bond IN 1894 was
never less than 100000 j r. ArmuE-
ton and T. T.. Collins had offered him
SlGuO0 for % half of his quarter intrr-
sst lu the bond. Hanks said that Cash
lrr wit ana himself owned half the
bond aud w, II burgess the Other half,
The matter of the transfer OF The Great
Falls ranch tu l.. II. flcrshiield was
thuu taEpn up Hanks said he decided
TO l.. H. HprHhncld 100 acres Of the
ranch tp cuvcr the note IN the Mer-
chants bank VI Helena. BY doing 40
hr expected no get relief from the Hell
cna bank for that at Great Falls All