The Anaconda standard., 1895-03-27

| standing of his company. In asking the
permission he exhibited the certificate of
| j. l.. Richards. II. {. kessler and others.
| After Haupt had been carrying on his bus
| mess for some time the witness went TO
| him and told him he could no longer
use the name of the bank as reference.
why did you withdraw permission to
use the banks name?'
| "Ol general principles" replied Mr..
| Johnston.
Mr.. Johnston said that his bank car
| ried the deposits of the Montana Mining,
| Loan d Investment company and paid
| its certificates on Haupt's order, but that
| Haupt had no authority for publishing
that the bank was his depository and that
| the bank would collect aud forward loans
| FOR his concern. While the bank paid
money on Haupt's order the wording of
| his circular was misleading, said the VIII
| ness. AT the time he protested TO Haupt
| against the use of the banks name as ref
erencc he also told him that he should not
use the banks name i'll any way in con-
nection with the concern, but even after
( that haupt still used the name as "depos-
| itory" for the company.
| WV. McCrackin of Hamilton, formerly
president of the Silver Bow National Dlnk.
| testified that Haupt came 10 him with
prospectus and articles of Incorporation
containing the prominent names already
| mentioned, and asked permission TO use
| particular attention to the eminent names
on the paper. and Mr. McCracken SAID he
would be glad TO have his bank named as
reference. Some time after that
stockholder of the bank came to
MIR. McCracken with bundle of
| Haupt's certificates, or lottery tickets, as
the witness called them. and inquired by
| what authority Haupt used the banks
| name as reference Mr.. McCrackcn was
surprised and he called on the other
bankers and representatives from each
called on Haupt and entered an emphatic
objection to the use of the names of
any of the banks in connection with his
scheme. Haupt assured them that he
would change his printing and Mr.. Nc
Cracken said If he did not legal proceed
ings would be instituted against him.
During the conversation between the
bankers and Haupt the latter gave a full
exposition of his business methods and
said that he himself determined who was
entitled to a loan. He insisted that they
were loans and that they were not deter
mined by lot.
"Hou select your customers" he said
"and select mine"
Mr.. McCracken said he understood that
II purchaser of certificates kept up his
monthly installmcnts of 81 for 40 months
a share of stock would be issued to him,
and that each purchaser had tho privilege
of applying for a "loan" each month. The
witness said he had his own opinion as to
the character of the Montana Mining,
Loan Investment company. He be-
lievedit was nothing less than lottery
and told Haupt so but he denied that
there was any drawing.
Thomas \. Hodgens. cashier of the
State Savings bank, testified to the same
effect as the other bankers as TO the
means employed by Hlupt to secure per-
mission to use the banks name as refer
ence. He represented that this company
min nd
Mr.. Hodgens ordered him to take the
banks name off mis- list of references
after the character of the concern became
known to the bank. The witness had n
conversation with Haupt relative to the
methods of his company and he said he
made his loans where they did the most
good.
Mrs. Anderson, a stenographer. testi-
fled that she was i'm the employ of Haupt,
and that he also employed n bookkceper,
She said the company did a big business
and that she mailed large numbers of cir
culars at the request of Haupt. She never
knew of any letters being sent out notify
ing persons that they had been selected
for "loans," and knew nothing about
Haupts methods of making loans. She
rec eived her salary from Haupt.
On cross-examination witness said that
NJ. Bergeron, the man to whom was sent
the circulars contained in the Indictment,
was an agent for Haupt. After the mails
were closed against Haupt, the business
was car ried on through the express offices.
Andrew j. Davis, cashier of the First
National bank, was the next witness and
in substance testified to the same facts
as the other bankers who had been on the
stand, differing only in that his testimony
was still more damaging. He said he had
r1ceivad numerous letters of inquiry re-
garding the standing of the Montana
Mining, Loan d Investment company.
The witness called on Haupt and insisted
that the banks name should be taken
from his list of references and Haupt adj
mitted that he made Misrepresentation
in order to secure the use of the banks
name. During the interview between the
bankers and II aupt the former spoke of
his scheme as n lottery and he insisted that
il was not. He spoke of his loans" as
prizes aad he would correct them. He
was very particular to speak OF his busi-
ness as a loaning business. Haupt talked
freely about the scheme and explained
that he examined the list of
names of those who had purchased
certificates and selected parties to mako
"loans" TO. The "loans" ran for 20 years,
and nc admitted that he took no security
for them and never inquired into The
standing or responsibility of the borrow
era. Haupt said he thought he had
scheme that would protect him from pros
ecution. He explained that in making
"ioans" he placed them where he had
sou many ccFtlllClNes anu NileTe ne nOpeu
to get bigger returns. Mr.. Davis said that
Haupt ''made no bones about having n
sure-thing game.'' The bankers talked
very severely 20 him for using their names
in connection with such scheme and he
promised 10 drop their names.
Mr.. Davis said that his bank received
one certificate for collection from one j.
A. Currau, 4, Ogden. H1upt paid the
certificate. amounting TO so. lie gave a
blank noto to be sent TO Curran to be
signed and Mr.. Davis asked laupt if the
money should not he paid until the note
was signed. Haupt said it made no differ
ence whether hc signed it or not. Tho
note was sent to an Ogden bank and re-
turned unsigned. Curran having refused
to sign it. Mr.. Davis said he received
letter through the mail written by Haupt
Awarded