The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-10

In the trial Of James H. Bacon in the
federal court yesterday, the same tao
tics as those followed by the United
States the day previous were adhered
to. an attempt being made to show that
certain entries made on the books re-
garding Sanitarium stock were fraud
ulent.
The defense claims that nothing as
yet has been shown which places their
client in any danger, and that, when
they get a chance, they viii success
FULLY refute everything which has been
sworn to by the witnesses for the prose
cution. Counsel for Bacon manifest a
great deal of confidence and are max
ing a hard fight. Judge Maginnis, on
the other hand, is pressing the cause
Tor all there is in 1T.
THE EX-CASHIER.
f. L. Holland, ex-cashier of the bank,
was placed on the stand, and remained
there during the entire morning SIS
sion He testified as to the manner of
keeping the books, and said the Boston
system had been employed. The prose-
cution offered the witness some credit
and debit slips found among the bank s
effects and when objection was made
posed to show by the slips that the
bank was credited on its books with
SaniIariun stock at a time when there
was no Sanitarium company in exist
ence
In this connection, Judge Maginnis
produced a slip, on which the bank was
credited with Sc, 16S in stock of the
salt Lake Bath & Sanitarium Co."
This was found to be entered on the
sf-fn dc who
examined by the witness. There We're
several other entries of the same kind,
dating into December, with the eXcep-
ton that the remainder were credited
in the books and slips as Salt Lake
Hot Springs Sanitarium Co." The to-
tai amount credited in this way was
$55, 2S1.51.
The slips were all. testified the wit
ness, in the handwriting of James H.
Bacon. the defendant. Mr.. Holland adj
United, after repeated questioning, that
the slips for $4,000 in the name of the
Bath & Sanitarium Co.." must have
referred to the present company, as
the amount was credited in connection
with the other Sanitarium entries
On cross the witness re-
membered the entry of $50. 2S1.51 on Oct.
10th, and $25, 900 on Dec. 10th, both rep
resenting the valuation of stock ac
quired in the Sanitarium company.
F. L. Holland was examined again
briefly, when court reconvened in the
afternoon. Asked as to whether he
knew that the $4,000 valuation on the
banks books represented 80 shares of
capital stock, the witness said he did
not. He did not know that national
banks had no right to acquire stock,
bonds or mortgages, except when held
to secure debts.
jeremiah Schenck was put on the
stand and asked what had become of
two notes, with Sanitarium stock at
tached as collateral, supposed to be in
his possession and having on them the
names of +. Rogers and E. II. Hackett,
both stockholders in the Sanitarium
company.
Mr.. Schenck thought they were in the
vault of the bank. but changed his
mind upon DISCRIMINATION, and said
he had turned them over to Bacon, and
that they We're now paid and cancelled.
EXPERT TESTIMONY.
]. H. Knauss gave some expert testi-
mony regarding the books of the bank,
which he had examined.
Questioned as to what the credit and
debit slips found at the bank showed,
he said they Indicated that the bank be-
came owner of Sanitarium stock TO the
extent of the amount indicated on the
slips.
Asked concerning the regularity OF
the papers found by him in the bank.
witness replied they were in excellent
order. There was one or two minor
records missing, but that was all.
Asked if he found ali debit and credit
slips ON the stock and bond account.
witness replied that he had.
Answering questions by the attorney
for the United States. the witness de-
scribed q note for $14,575.5S It began
prior to May s, 1898, and was given the
bank by the Palace Livery stable. It
was due May of the same year and
was marked as paid on March g. 1893.
The history of the note was demanded,
and Mr.. Ellis filed a large alliterative
objection.
The court sustained the question as
to manner and form, and Mr. Ellis
breathed peacefully. while his colleague
Mr.. Booth, heaveG large sigh of sat
isfaction.
Judge Maginnis. however, put it in
another form. and in response the wit
ness gave what purported to be a his
tory of the note, refreshing his memory
from printed slips, as he proceeded.
Booth made an objection to this meth
cd. which was oVerruled and an eX-
ception taken to the ruling. Mr.. Booth
declared that as the slips read from
had been taken from the bank; as they
were the property of the defendant by
reason of having been made by him
and were in possession of the United
States simply because the officers con-
fiscated them. it was making the de-
PENDANT testify against himself to have
them used in this way. Judge Marshall
did not view the matter in that light.
The witness said the note of $14 600
and over began with one by H. NJ Ba-
con for about $1,000 and a livery ac-
count of $500, and interest added. The
total amount of the one note when
finally completed was $14,575.5S. This
was discharged by charging that sum
to the stock and bond account.
THE sANITARIUI PREMISES.
In this connection it may be stated
that the defense will base a good share
of their action on this transaction,
claiming that the Indebtedness of Mark
McKimmins to them concerning the
Palace Livery stable was cancelled. by
the taking Of the premises, converting
them into the sanitarium and issuing
stock to cover the amount.
There was a great deal of talk con-
corning another note of $4,000 which
was givel. the bank and stock issued.
but the details were so tedious that it
would require a page to tell ali def
nitely However, it would seem that
this note was cancelled by the issuing
of sanitarium stock which was charged
to The stock and bond account
Juse before the close Maginnis asked
the witness TO state the condition of
the balance on the books as shown to