The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-03-28
HALDORN HAS THEFL00R
Addressing the Jury In the Case Of L.
l. Hanpt.
THE CLOSING TESTIMONY
Some Light Shed on the Method OF
CapitallzIng Mining Companies
Vast Sums That Repre-
sent Nothing.

trlal was Nht ChANSN 1850"
co1rt this morning, the governments tes-
timony having been concluded, George
Haldorn moved that the court instruct the
Jury for a verdict of acquittal on the
ground that the government had failed TO
make out O case. The indictment charges
that Haupt sent his loan and investment
circulars to one Bergeron ut Winnipeg,
Manitoba, with intent then and there to
defraud the said Bergeron. Mr.. Haldorn
said that the testimony. so far from
showing that Bergeron was defrauded,
actually proved that he made money out
of the concern and that he was an agent
for the company and n partner in II. III
was proyed to he an absolute impossibility
TO defraud Bergeron for the reason that
he was n party TO the alleged fraud. Mr..
Haldorn said that the pith of the indlct-
ment was contained in the allegation To
dcfraud Bergeron, and the testimo ny
showed that Haupt's intention was
directly the contrary.
Mr.. Haldorn evidently had n surprise
| for the government in his motion, but
| Mr.. Shelton had a greater one for Mr..
| Haldorn. Mr.. Shelton called attention TO
the fact that under the rule OF the court
| motion to instruct was a notice that the
defense rested It's entire case on the
| motion.
| This was news to Mr.. Haldorn and he
| protested that It would be unfair to COM
| pei the defense to risk its case on the
/ motion to instruct.
| The court said that in criminal cases
| motion to instruct jury rests on me
grounds that the plaintiffs case is the de-
PENDANTS case, and that il is not proper
| TO make such IA motion il the defendant
expects to introduce evidence.
Mr.. Haldorn withdrew his motion and
NJ. NJ. Miller, general manager OF the
Ill xnFtfn
Tense. He had copy OF his paper OF
| Sept. "a, 1892, containing an alleged dis
| patch from the papers regular" cores
pondent ut Washington, stating that the
| postmaster general had failed TO IND
| law which excluded the circulars OF the
Montana Mining, Loan & Investment
compan ny from the mails. Mr.. Miller was
| sue that the telegram was not printed at
the instance of Mr.. Haupt but that it came
from the Miners regular" correspondent
at Washington. Mr.. Miller said the cor
respondent was n thoroughly responsible
man and he believed that the dispatch
was based on reliable information OBJ
tanned in Washington.
IF IL Is IA fact that at that very time
there existed an order from the postmas-
ter general excluding the company's busi-
| ness from the mails, what would you say
as TO your dispatch being based on false
| information"
Mr.. Miller couldn't say how about that.
| Judge Dingevon, n mining broker, was
| next called and testified as to the methods
| of capt. alzation, and he said II was the
| custom to initiate the stock and he cited
| the fact that tho Massachusetts and Mon
tana Gold Mining company, in which ne
was interested, was capitalized Tor b,OOO,-
900, while the value or the property was
| merely nominal and yet represented the
entire capital stock. Mr.. Dingevon also
| said he knew of a case where a company
was capitalized for $50. 5000, while the
property il represented was worth only a
few hundred dollars. Capitalization is
largely fictitious.
"What would YOU say as a business
propositions" asked Mr.. Shelton, ''where
an individual locates 10 mining claims
does little or no work on them, organizes
| a company with a capital stock OF Sl2,OOO,'
600, divided into 100000 shares, then gives
| a quit clam deed to the company for all
! the property, in consideration of the en-
tire capital stock-in such case what
would you say as to the good faith OF tho
transaction and the probabilities that tho
: property would be developed from legt
innate income from the sale OF stock!
An objection to the question on thu
ground that il was not proper cross-eN
}, animation was sustained.
81 w. "A. Nichols, another mining broker
| of varied experience, testified turthe
about tho fictitious capitalization oil min
| ing companies and said 1t was quite the
1 | usual thing.
Mrs. Anderson, Haupt's stenoRrapher
. | was recalled and identified an agents
statement filled out by the man Bergeron
She also identified a note signed by J.
/, Curran of Denver, given for loan sc
cured by HIM, a blank form of application
for n "loau." and the company's check
in payment.
On cross-examination Mrs. Andersen
) said Curran was an agent for the compan
, but she could not say that agents secure'
| all .afh
$ chasers had to sign an application Tor
"loan" before "loan" is made.
"Do they sign it before the DRAWN
| takes place." asked Mr.. Shelton.
j. ~ don't know that there is drawing.
K NJ. l.. Holland, was recalled and ident
v fed resolution signed by himself and [
Q j. Stevenson as trustees of the Montan
q | Mining, Loan * Investment company
J, transferring the stock from Haupt 10 oh
company and then transferring 5000
n shares back TO Haupt.
Pat Comba testified that he and thre
!, other men worked on Hauprs claims fo
= four months during 1892. tic also di
i. some work in 1893. and thought the wor
!, was worth about $1,000. On cross-eNam
J, nation Comba said he did not know u
!, which particular claims tho work wa
"a done.
- This concluded the case for the defcns,
Haupt was not placed on the stand. Nj
Haldorn reviewed his motion TO have u
= jury instructed Tor n Ncruict OF not gum
u aud Mr.. Shelton replied to IL to the effeS
10 that tho crime charged against Haupt WI
3 that he sent the circulars of his fraudulei
- scheme through the mails and 1t made n
n difference who they were sent TO.
e Judge Knowles overruled MIR. Haldorn
,. motion. saying that the allegation that
q was Haupt's intention to defrau
+ the man Bergeron, was mere SUI
IS plusace as the oifcnsc charge
: was tho sending of the objeetionab
y matter through the mails. After Il
n courts ruling the arguments we're begu
u by Mr.. Shelton and he was followed
u Mr.. Welcome and Mr.. Haldorn for Il
defense. The latter talked to the ju
about the failure of the prosecution
Ia | shnu. 1hnt Rerrernn was delrAmle d. al