Omaha daily bee., 1895-05-02
NEWS FROM COUNCIL BLUFFS
Richmond Case the Center Of Attraction
in the Federal Court,
COURT RULES AGAlNS7 TIL: O;FtNDANT
Witnesses Testify TO Some Irregular Work
on Rtchmond's rart-Certihcates of
Stock Issued aud Cancelled
Without Authority.

W. S. Richmond Of the Union Building and
Savings association entered the federal court
yesterday morning without the large dia-
monds which were SO important a part Of
his makeup on the opening day Of the trial.
The entire day was taken up with the intro
ductlon Of evidence, the most interesting
being that OF J. T. Ilick one of the three
stockholders who brought Richmond's term
Of office to an abrupt close and had the bus-
ness Of the association put into the hands Of
the receiver.
District Attorney Fulen asked him to pro-
duce a certificate of stock belonging to Mrs.
Mary L. Rhodes of Burlington and to testify
to an examination made by him regarding
the stock. An objection to this testimony
brought on a sharp discussion between the
attorneys and the court. Mr. Fullen said he
expected to show that Richmond without
Mrs. Rhodes authority, had entered upon the
books Of the association her withdrawal and
represented to the association that he had
sent a Chicago draft to Mrs. Rhodes for the
amount coming to her, but in fact turned
the draft over to his mother, Frs. L. NJ.
Richmond, who endorsed the draft.
Attorney Prouty for the defense contended
that this sort Of evidence would not be ad-
missable, because even if 1t should be proved
that Richmond had done all he was charged
with doing, it would not constitute scheme
to defraud" within the meaning of the stat
ute. A SCHEME to defraud'' implied some
thing broad, not merely the making of false
pretenses to deceive an individual. Where
bank had been organized a good while and
for Sptle reason or other its credit had be-
come impaired the cashier would be amenabl9
to the state law, not to the government if
he should wiHte a letter to some one to work
up further business.
Judge Shiras, however held that a scheme
might be devised to defraud an individual
as we'll as the public generally. The United
States had passed the law regulating the use
OF the mails for the purpose Of preventing
people from using the mails to violate the
state laws, and the court must know whether
these state laws had been violated before 1t
could be determined whether the United
States laws had been violated. So Hicks
testimony went in.
Illick further related that in looking over
the books he learned that Mrs. Rhodes had
| never surrendered her stock, and that the
draft had never been paid at any bank in
Des Moines and about five six weeks ago
he called Richmond's attention to the fact
and asked him for an explanation. Rich
mond was unable to explain at the time, but
! said he would look 1t up and let him know
| This he had never done.
| He also learned that ]. x. Smith of Bur-
| lngton had sold eighty acres of land in
| Guthrie county to Richmond and had re-
| ceived in payment an $500 certificate of stock
|
| that this certificate had ever been paid for.
| He called on Richmond for an explanation
| but failed, as in the first instance, TO learn
| anything satisfactory.
In the afternoon Mrs. Rhodes was put
| upon the stand and corroborated Hicks
| statements saying that she had given no
| notice of withdrawal and received no money
| from the association. She did not authorize
| the signature Of the name Of L. NJ. Rich
| mond to the draft, and never had it in her
| possession.
| G. B. Owens, formerly president of the as
| ISOLATION, and Joseph A. Barnhll, formerly
| secretary, told substantially the same story.
| The condition of the company demanded a
| statement to the stockholders, and the latter
were clamoring for it. d. A. Poorman was
| therefore called in and instructed to go
| through the books. Richmond objected to so
| much care being taken as Owens and Barn
| hill thought were necessary, and when they
| insisted he demanded their designations,
| which were soon forthcoming. Richmond
| seemed to have some sort of hypnotic in
| fuence over them; why it was they could
not say but they only knew that they sought
| to avoid trouble and handed in their resig-
| nations, as they were asked to do. Rich
mond then got himself appointed secretary
| and instructed Poorman to merely make out
balance sheet instead of going through
the books and make a thorough checking up,
and Poorman obeyed his instructions. Poor
man was also put upon the stand and cor
roborated these statements.
The evidence introduced by the govern
ment today is likely to be interesting from
| the fact that William w. WilcoXen, the re-
| ceiver, and r. II. Lyman, his book keeper
are to be put upon the stand. They have
made thorough examination of the associa-
tons books and are well posted in its affairs
Here's "a Chance.