The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1895-02-14

claim, but he objected. Edmiston said that If
the Eureka Flat farmers did not turn over their
wheat .on their obligations the bank would go
into the hands OF receiver. on cross. examina-
ton he stated that the reason he didn't yield
his wheat upon demand of Edmston was be-
cause of the low price offered.
George w Bradbury, the next witness. was a
farmer. The bank owed him $3.50. he having
run a threshing machine for them, and they
paying him by giving him deposit book and
allowing him TO check against It. one day in
December, 80, he asked for settlement the last
time and Phipps said they were too busy TO bal
| anceup the account. Edmiston spoke up and
said he would arrange the matter before the
bank closed that night-but he didn't. Finally
witness took certificate of deposit for the slo5o,
having found where he could place IL by ell
sorsing 1t, and thus realize money enough to
pay his hands on the thresher.
J. l.. Stubble6cld had lived in walla walla for
many years and was ~ years old. Was a stock.
! holder in the Walla Wala savings bank. and
had $4,000 there on deposit. The certificate Of
deposit fell due on Nov. %, '93, and he went to
the bank to get his money on the 18th. lie b ad
a long talk with Edmiston, who said he couldn't
pay 1t, as the bank was short, aud wanted wit
ness to take another time certificate for six
months. witness finally agreed to take such
certificate for 5000, drawing the 5000 in cash
Cross exam ination developed the fact that he
had owned shares in the bank since 1882 and
that he kept deposit and open account there at
the time 1t suspended payment Asked il he
was not himself n money lender he replied: ~
loan little money-or did, previous to this"
which again brought laughter from all parts of
the court room.
n. 5. Gholson testified to nothing pertinent,
beyond a conversation which showed that Ed.
mission knew the bank 10 be iusolvent when
Manager slime resigned in July, '93. Gholson
went to see Edmiston when the latter was In
jail, and in the talk which followed Edmis.
ton said: "God knows would have laid down
my life for any man who would have come in
and carried the bank through, when Slime lost
his head
I. S. Psge-Had 5000 in the bank, evidenced by
Il certificate of deposit due Nov. 2, '93. few
days previous to that date had conversation
with Cashier Phipps as to drawing the money
out; could not get it; Phipps came down to his
place of business and offered him state warrants
at 80 cents for the claim and he refused after
wards he took 500 cash, 5000 in state warrants
and the remainder was to be paid In warrants
as soon as they came from Seattle none ever
came and he got no more money. Cross exami
nation showed that he had never presented his
certificate for payment after it became due.
David Goldstein-Is a Wslla Walla merchant
Had at divers times purchased drafts or ex-
change from Edmiston personally, one being on
Sept. 6, 1913, and two or three later on New York,
one being for 5000 They came back protested.
The defense objected to further testimony of
this nature, aud the objection was sustained.
H. b. Fuller, walla walla merchant had a
talk with Edmlston Il days after the bank clos
ed. Edmiston said the bank had been in a
breaking condition ever since Manager Slime
had lost his head and telegraphed to Seattle for
assistance. Edmiston said he had kept the mat
ter quiet then, because the bank would have
failed as soon as he told the facts them and that
he had carried the bank through for four months
when it was practically 'busted." On cross
examination witness stated that Edmiston had
told him that the sending of money TO Seattle
and the loss of wheat on Eureka Flats had
ruined the bank.
| Cashier Leon Phipps-In 1891 was employed
| as bookkeeper of the Walla w ALA Savings bank
and acted as such until July 1884, when was
made teller. and in that position paid out and
| received money for the bank. Edmiston went
| to Portland for the purpose Of obtaining money,
and upon his return he told me that he had
| been promised money; but l was informed by
Mr.. Fitzhugh, who accompanied him, that he
had not obtained the money; of which fact
/ Edmiston informed me on the following Sun
day, at meeting held in the private Office of
| the bank, at which George +. Edmiston, J. X.
Edmiston, George L. Fitzhugh and myself were
] present. This meeting was held by appoint
ment OF Mr.. Edmiston for the purpose of look
/ ing through the books OF the bank with Mr..
william Jones, who thought of advancing some
money 10 assist the institution in case he found
the securities as represented by Mr.. Edmiston.
| presume Mr.. Jones did not find the securities
and condition OF the bank as represented, and
this fact was plain to everybody present at the
meeting; and after Mr.. Jones left Mr.. Edmiston
announced his determination TO close the bank
/ on the following Saturday, ana plans were
made accordingly.
| In June 80 there were a number of fraudulent
mortgages made in order 10 raise funds to assist
the bank through the panic Edmiston expect
ed to repay these mortgages from the sale of
4 wheat for which he had taken contracts. amout-
| ing to a good many thousand bushels to the
| bank As soon as the wheat had been harvested
he went to Portland before any of 1t had been
/ shipped ana contracted WIN ballOur, Guthrle *
| Co. for the sale of $1,000 bushels, for which
1 $4,000 was advanced which money was used to
/ pay harvesting expenses. As the wheat came
( in he made more contracts with Balfour, Guth-
rie & Co and instead of applying the money TO
the payment of these fraudulent mortgages, he
used the larger part of it for his individual pur-
| poses and for the support of his Seattle bank
Mr.. S. Z. King was an employe of the bank
sent out into the country to urge the farmers to
deliver their wheat. He worked from early in
the summer till the time when the bank closed,
drawing no money as salary; and the night be
/ fore the bank failed went TO Mr. Edniston and
said there was something like $500 or $500 due
/ to King. and that did not like to see him
1 lose his summers earnings. Mr.. Edmiston re-
piled that King could lose his money along
with the rest of them l insisted that If 1t were
not possible to pay him the money that he be