The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-11
THE BACON TRIAL.
ALLEGED MISREPRESENTATION
TO TREASURY DEPARTMENT.
A Tedious Inquiry-Expert Knauss
Again Testifes Defense Trying
to Reconcile Apparent Discrepan-
cies.

j. IL,
occupied the day in the federal court
yesterday, consisted of a tedious in
curry into the alleged fraudulent en-
tries on the books of the bank and
misrepresentation in a report to the
comptroller of the treasury.
The defense sought to show that
there was nothing fraudulent in the
report to the comptroller, as it gave
a faithful idea of the assets and La
bilities.
j. H Knauss, the expert who ex-
amined the books of the bank, gave
further testimony at the morning ses-
sion regarding the alleged fraudulent
entries in the books. In response to a
question by Attorney NIaginnis he
stated that W. B. Holland was liable
on the books for an overdraft OF S951.S4
but that no mention of this was made
in the report to the comptroller, under
the schedule of liabilities of officers
and directors. He had found also that
James H. Bacon had been reported as
liable under loans and discounts for
$3,317.33, and that this ought to have
, been charged as an overdraft. A sim
liar condition was shown in the case
OF Grey, Ross & Wyatt, who were
charged under bills discount with ST.,
1928, whereas no. note or paper showed
such an obligation, and the amount
due was really on an overdraft.
Given the books, the witness testified
that they proved the total of loans and
discounts on which officers and direc-
tors are liable. to be $SS,9I5.1 instead
Of $685. S94.I9 as represented in the report
to the comptroller.
Mr.. Knauss said that the amount of
overdrafts shown by the banks was
$14,419.S2, and not S., 1898, as stated in
the banks report TO the comptroller.
On cross-eXamination by Colonel
Ellis the witness admitted that the
fact that the Bacon and Grey, Ross 81
Wyatt accounts were charged to loans
and discounts instead of to overdrafts
left the total statement of assets and
liabilities the same.
Mr.. Knauss was retained on the
stand when the afternoon session be-
San, and counsel spent the rest of the
afternoon in wrestling with the expert S
figures and those contained in the
report to the comptroller Attorneys
Ellis and Booth maintained that the
apparent irregularities were due en-
/ tirely to the fact that certain over
drafts had been carried by the bank
under the schedule OF loans and dis
counts, while Mr.. Knauss charged
them throughout as overdrafts.
The total of loans and discounts fur
nished by The bookkeeper was 1881.
S43.07, as compared with the bank S
statement of 1890. 502. 06. Accounts were
gone over in detail by the defense in
an attempt to fill up the gap. The ex-
pert's statement of the amount of over
drafts showed a total of S9,723.S9 more
than the bank had accounted for in
its report. The defense sought to
prove that with this balance, charged
to loans and discounts the difference
in the figures on overdrafts would be
hrsiF Trrrar1 .
ulent intent effectually disposed of. as
far as that part of the charge was
concerned.
This still left a difference of So 064. 90
ana counsel for the defense sought to
prove, in cross-eXamination. that if a
judgment on William Groesbeck and
others for approximately that amount
We're entered under bills discount by
the attorney, it would make the ex-
pert's figures harmonic with the
banks total loans and discounts of
$3.50, 5O2.O6. The witness, however,
claimed that
Judge Maginnis introduced in evil
dence a credit slip, showing that the
bank became possessor Of q note of the
Sanltarium company, and Mr.. Knauss
testified that instead of being credited
TO the bank the amount was placed to
the credit Of James II. Bacon's per-
sonal account. In reply to Colonel FL
us suggestion that the account might
have been carried under a name
asreed upon by the officials, the wit
ness replied that the Sanitarium com
pany had an account of its own. and
consequently should have shown the
debit
J. s. Edmunds was then placed on
the stand, and in response to Judge
MagInnls request, produced a copy Of
the letter OF the comptroller to the
bank officials. supposed to have con-
tanned statements regarding the IN
sound condition of the bank.
Colonel Ellis objected to the intro
duction of the letter as evidence. He
said the original letter had been ex-
cluded by the court On account of II
having been obtained by breaking the
lock of Mr. Bacon's private drawer.
which came under the restriction of un-
reasonable seizure. He opposed the in
( PRODUCTION OF the copy on the same
ground
Judge Maginnis argued that the let
ter was admissible, and cited author
tiles Voluminously. and Attorney. Rootb
was making an argument in favor of
ITS exclusion when the hour for the
adjournment of the court arrived. rrhe
court took the question under advise
ment until this morning at 10 o'clock
- @zse-3-
Mrs. NJ. E. Ford. RuddelTs, His. suffer-
ed for eight Years from dyspepsia and
chronic CONSTIPATION and was finally
cured by using DeNVitt's Little Early
Risers. the famous little pills for ali
stomach and liver troflhle A ~ es,,,,.1.