The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-12-14
SANITARIUM STOCK

was worthless.
SANITARIUM STOCK.
Regarding the sanitarium stock ir-
regularity, Mr.. Lazier said he had
called Mr.. Bacon's attention to the ex-
cessiVe valuation placed upon the
stock, which was figured to be worth
Sl50,000 when the bank had only ex-
pended about $4,000 in securing the
stock and making improvements. He
called attention to the transfer of 100
shares Of stock each to John L. Law
son, E. H. Hackett, Lewis Hobeman,
l.. E. Clark and Fernando Royce each
of whom had given a note for $4,000.
which was never intended to be paid or
an obligation on the maker, and which
carried the stock of the Sanitarium
company as collateral. Upon inquiry
regarding the financial standing of
these men. the examiner found that
all of them, except Mr.. Lawson, were
financially Irresponsible LAWSON
note, he found, was held at the bank
as non-negotiable paper.
The accounts to which irregu-
lar assets were attached were re
viewed in detail on cross-exam-
inatiOn, and Mr.. Lazier explained
that most of the securities We're old
and be-fingered and worthless. At
were labelled as bills receivable. We're
some memorandums for various sums,
averaging from 500 to 500. These
amounts, Mr.. Lazier maintained, ought
to have been charged as overdrafts.
AT the afternoon session, Mr.. Lazier
was again recalled. In answer to cues
lions by Colonel Ellis he said he had
Informed Mr.. Bacon at the time of his
investigation of the unsatisfactory ma
of
tiles. On further redirect examination
Mr.. Lazier said that even when an
oVerdraft note was given for a debt,
1t was still justly chargeable to over
drafts and could not properly be en-
tered as loans and discounts. Colonel
Ellis wanted Lazier to quote some au-
thority for his Statement, but> Lazier
said that it was merely a custom
known to all national banks.
j. H. Schenck, secretary of the san
itarium, was asked by the prosecution
to bring in certain books. Attorney
Ellis objected to their Introduction, but
this was overruled, and while Mr..
Schench was sealing the part of the
book which had nothing to do with the
Bacon transaction, the prosecution put
Judge Judd, a former director of the
American National Bank of Salt Lake
on the stand.
JUDGE JUDD.
The prosecution sought to elicit from
the judge secondary evidence regarding
the letter of the comptroller to the
bank, in which he referred to the I'M
satisfactory condition of the institu-
ton. In response to a question, Judge
Judd said he was not sure that he
could not give the substance of the
letter, and Colonel Ellis promptly
wedged in an objection to his giving
testimony. Judge McGinnis then cues
toned the witness as to his knowledge
about the statement in the letter that
the banks condition was unsatisfac-
tory, but Colonel Ellis objection to this
was sustained and the answer not al
lowed.
a $4,000 NOTE.
John L. Lawson was the next wit
ness called. He was asked regarding.
a contract between him and J. H
Bacon by which it was agreed that
he was freed from any obligation to
pay his note to the bank of $4,000. on
which he secured 100 shares of sani-
tarium stock
Attorney Ellis made an objection
and as a response Judge McGinnfs
said he expected to prove by the wit
ness that he never was supposed to
pay the note, and that he had surren-
dered it to Bacon.
Attorney Ellis said Bacon got the
note with the other bank assets. and
the evidence was excluded by the
court, because no consideration was
apparent on the contract.
Then we rest" said Judge McGin-
mis-. ~
FOUR COUNTS DISMISSED.
Attorney Ellis arose at this point TO
state that he wished certain counts in
the indictment against the defendant
withheld from the jury, and upon his
motion the jury was given recess of
nan an hour to enable the defense to
go into detail upon the subject
Attorney Ellis claimed that the first
two indictments, in which it was
claimed that the bank had never pos
sessed the 250 shares of sanitarium
stock, valued at $4,000 had not been
proved by the prosecution, and that
IN reality 1t was negatived by the testi-
mony of H. NJ. Bacon and the two
Hollands
The third count was objected to be-
cause it recited three separate charges
and upon the suggestion of the court
CoIoneI Ellis made a motion that the
prosecution be required to elect which
OF the three charges he would stand
upon. The three charges were as 70 .
false report on overdrafts, the non
possession by the bank of 555 shares
OF san1tarium stock, and the alleged
false entries under the schedule IF
loans and discounts The REMAINING
hve counts he wished discarded. as in
substance they were contained in other
counts.
Attorney Booth made the claim that
the prosecution had not proved that