Omaha daily bee., 1895-03-24
FRANK DORSEY FACES DUNDY
Arraigned on Four Indictments for Misap-
plication Of Ponoa Bank Funds.
HIS PLEA WITHHELD PENDING ARGUMENT
Motion to Reduce His Bail Denied and
Hearing on Motion TO Quash Put
Over Until Next Week
Gadd's Penitent Letters.

LINCOLN March 23.-(Special) Frank NJ.
Dorsey, ex-cashier of the wrecked First Ma
tiona bank of Ponca also director of the
defunct bank, was arraigned before Judge
Dundy this morning in the United States
district court on four indictments, charging
him with the misapplication of bank funds
to the amount of sac, 900. These indictments
are about two years old. and for the past
three terms of court Dorsey has been at
large, without the formality of giving bond
for his appearance to answer to the serious
charges. but he has held himself ready for
trial during all this period. with the ex-
ception of one continuance, granted on the
ground of Illness. Judge Dundy denied a
motion to reduce his bail bond to s2,50O, and
his attorney, G. NJ. Lambertson, filed a mo-
tion to quash the counts in all four of the
indictments, with the exception of three
| counts, to which demurrers will be entered.
Dorsey's plea was withheld pending the ar
! gument of this notion which will not be
| heard before Friday of next week.
Judge Dundy said he would hear counsel
on the motion to quash in the Outcat case
| at the same time, Mr.. Lambertson represent
| ing both bank wreckers.
GADDS LETTERS IN EVIDENCE.
sensational feature of the Nathan T.
| Gadd trial today was the introduction in
| evidence OF the letters written by Gadd to
| Receiver Whitehead of the Broken Bow land
| office from Austin, Tex, where the defendant
went broke, after returning from Mexico.
| The letters were those of a man broken in
spirit and pocketbook. The writer described
| his agony of mind, and said he had never
| known moments peace since the defalca-
| ton. He asked the receiver to forward
money for transportation to enable him to
l return and StrDiphtap ha oH}
| books, declaring that he was willing to take
| any punishment that might be inflicted
rather than have Mr. Whitehads political
| enemies make capital of the embezzlement
| against him. As to the cause of his crime.
| Gadd said no amount of pressure would ever
| induce him to reveal it, but he would say
| that 1t was done to avert a more terrible
| thing which was at the time hanging over
| him.
fellow clerk of the defendant from the
| land Office identified Gadd's initials, which
| were dropped below the name of the re-
| cever on the receipt books of the Wells
| Fargo and Adams Express companies. These
| books show that many packages of money
| containing 5000 and over in nearly every
instance, were received by Gadd and never
| accounted for on the land office books. Re-
| ceiver Whitehead took the stand and cor
.. roborated the testimony of Judge Reese
| saying that Gadd had stolen something over
| $4,000 in all, which the witness had been
| compelled to make good at the general land
| office in Washington. Witness sent $50 to
| Rev. E. p. Wright at Austin. Tex, and the
| latter purchased Gadd a ticket to Lincoln
| No hope of immunity was held out to Gadd
| to secure his confession. which was made
| fully of his own accord. Mrs. Gadd was
| in the court room and wept bitterly while
these incriminating letters we're read to the
! jury.
LINCOLN LOCAL NOTES.
DR.. F. d. Grim. coroner of Lancaster
county, handed in his resignation this morn
| ing, and the county board appointed Dr.
| Fl. ]. Winnett to serve out his unexpired
term. DIR. Grim intends making an extended
southern tour.
The Grand hotel has been sold to E. M
Bates by the State Realty company of Kan
sas City. The consideration was $S5, 900.
Judge Holmes in the district court this
morning sentenced George Bradshaw tc
| eighteen months in the penitentiary for day.
light robbery.
The depositors of the broken Nebraska
Savings bank are informed by the attorney
| that they will receive moiety of theil
deposits If they desire to settle with the
bank for 20 cents on the dollar. Parties de-
string to accept the compromise are re.
quested to call at the office of the attorney
A. r. Talbot, in the McMurtry block.
E. NJ Bates has purchased lots to f
| in Bigelow's subdivision from the State Re
atty company, the consideration being $685.
000 This is the Grand hotel property.