The morning call., 1895-02-07
THE PHANTOM ASSETS
How the Pacific Banks
Cash Fluctuated.
DORM DREW LARGE CHECKS.
But lie Had Only $3.50 With Which
to Pay Them.
HcDONiLDS PROSECUTION RESTS.
4 Continuance Is Granted to Allow the
Defendant to Prepare a New
Defense.
HtDOyiLDS PROSECUTION RESTS.

The first part of the Mcdonald case was
day morning when the prosecution rested
its case. An adjournment was then taken
until this morning to allow Mr.. Livernash
to prepare line of defense suitable to the
occasion. He had been much surprised at
the line of examination taken by the prose-
cution, he said, and he would like to con-
suit with his associate, Judge Darwin, as
to what evidence they would submit for
their side and what witnesses they would
summon. Most of their outlined defense
would have to be abandoned and he de-
sired the court to allow him some little
time in which to prepare new one. The
court therefore granted a continuance
until this morning at 10 o'clock. This
statement of Livernash is generally sup
posed to mean that the defense of insanity
will not be presented.
Frank B. Goewey, formerly assistant
receiving teller of the Pacific Bank, was
the first witness called yesterday morning.
lie was in charge of the @ to Y register
during 1892, but though he admitted the
entry of 100000 to the credit of NJ. H.
Sherman he could not recall the circum-
stances of its deposit.
Emil bPIItTIldnD, the Dirk SdCCOulltdlI,
was then recalled. He was shown the re-
ceiving tellers cashbook. lie identified it,
and then, under direction OF the District
Attorney, he proceeded to read the record
of the miscellaneous cash account from
December 81, 1892, to January 7, 1894. On
December q the book shows there was
S5341 AZ in the account; on December %
there was $3101 06; on December 30,
| S4375 II; on December 80, $3132 SO; on De-
H., IIT no
in four days of $412, 449 AZ in this one ac-
count Continuing, the witness testified
that on January 3, when the bank closed
at the end of the first day after the holt
DAYS, there was on hand in the same
account $311 400 80, a reduction in one day
| OF Sl04, 161 81. On January it fell to 1903,
| All 10: January it fell to $204 ,331 81: On
| January it was $102 300 81, and on Janu-
arv it went back to S30S5 81, or Just about
$47 from where it started before its big
| lump of over 100000. January L, 1898
was the time when the condition of the
| bank was noted for the Bank Commission
| erS.
| There was but little cross-examination
regarding Bettermann's testimony. Ii
| only drew out, by question from the
court, that the checks were counted as part
| of the assets of the bank. They were also
cassed as liabilities, but the immediate
| effect of their presence was TO swell the
amount of money apparently ready to
| meet drafts on the bank. BettermanI
was subsequently, recalled and testified
that check made by NJ. ii. Sherman hac
| lain uncollected in the bank for some time
| and had then been returned to the maker
! 1t had not gone through the Clearing
| house, nor had any other OF the big checks
Walter Young. assistant manager OF the
Bank of British Columbia, was the mex
witness. He had been accountant IN tn,
| bank, where he is now employed, during
| 1892. He was asked whether ID. s. DorI
| had had an account in his bank at thai
time. and after scanning the index he saiC
Dorm had not. A subsequent search de
veloped the fact that Dorm had small
account, which, upon investigation, proved
to have been about $500, on December 81
! 1892. This was the day Dorm drew hl
check for 100000.
| C. G. Cody, detective, was then called
and was asked if he had made diligen
search for D. S. Dorm, but Liyernash OBJ
iected to the question. He said the alb
sence of any witness, be it from whateve
cause, is apt to influence a jury against thu
| defendant, and he did not think 1t shoult
be submitted in evidence. He cited au
thorities on the subject, and the question
was withdrawn.
| Livernash then made his request for :
continuance, the prosecution having with
| drawn Cody and announced that their eyl
dence was all in. The continuance wa
granted, and the defense will start thi
| morning.