The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-10-06
To BE Tried at November fern for
Alleged Conspiracy with Cashier
Hopkins to Misuse State Money.
MUCH TESTIMONY PRODUCED
TENDING TO SUSTAIN THE DISTRICT
ATTORNEYS ALLEGATIONS.
The Senator and Son Said to Have
borrowed $3OO,0OO of state Dcpos-
its-Letters and Telegrams.

PHILADELPHIA, Oct. 5.-United States
Senator Quay, his son. Richard R. Quay,
and Charles H. Mckee, of Pittsburg, law
partner of Lieut.. Gov. Walter Lyon, ap-
peared before Magistrate Jermon in the
Central Station Court in this city this after
noon to answer to the charge of conspiracy
in the alleged misuse of public moneys in
connection with John S. Hopkins, former
cashier of the Peoples Bank, of this city,
who committed suicide soon after the fail
Treasurer Haywood, for whom a warrant
has been issued in connection with the con-
spiracy charges, was not in court, but it is
promised that he will be here on Friday to
answer to his accuser. After a hearing
lasting three hours, Senator Quay and his
son and Mr.. Mckee were bound over for
appearance at the next term of court. Bail
was fixed at 5000 in each case, David II.
Lane, a local political leader, going bail.
The case now goes on the list for trial at
the term of court beginning in November.
The testimony produced by District At
torney Graham was in the shape of about
twenty letters and numerous kilograms,
covering a period from early in September,
1897, to February, 1898, addressed by Senator
Quay to Cashier Hopkins, directing the
purchase and sale of large blocks of stock
and arranging for the placing of margins
a letter from State Treasurer Haywood to
the president of the Peoples Bank, a letter
and telegram from Haywood to the cashier
OF the Peoples Banks and a private mem
orandum book of Cashier Hopkins. The
lawyers representing the accused fought
hard against the introduction of the latter,
claiming the banks books, and not mere
memorandum, should be offered, but it went
in as evidence, nevertheless.
THE STATES CHARGES.
The district attorney ayerred that the evil
dence he produced showed that Senator
Quay had the use of 100000 of the States
deposit of over 100000 in the Peoples Bank
for stock speculation; that State Treasurer
Haywood placed 100000 of State funds in
the Peoples Bank on condition that that
amount of money be loaned to Senator
Quay's son; and that there was a regular
assignment of interest on State deposits in
the Peoples Bank to certain accounts, one
third of it going to Mr.. Mckee, all of which
he claimed was violation of the State law
prohibiting a bank official from making
such transactions, and that the accused
ing hands with Hopkins in these transac-
tions.
The courtroom was filled almost to suffo-
cation with politicians newspaper men and
lawyers. Rufus E. Shapley and A. S. l..
Shields, two of the brightest lights of the
local bar, represented the accused. The at
torneys for the defense opened the pro-
proceedings with fruitless effort to secure
from the district attorney the names of the
persons responsible for the prosecution.
There We're only three witnesses. The first
was Thomas w. Barlow, receiver of the
Peoples Bank, who is also a special assist
ant district attorney. Mr.. Barlow stated
that in his capacity as receiver he opened
the dead cashiers desk and found among
other things a number of letters and tele-
grams and book containing memoranda
in Hopkins's handwriting. This book, re-
ferred to by Lawyer Shields as 1.-The red
book" was about a foot square and con-
tanned 200 pages. 1t figured sensationally in
the days proceedings and was the subject
Of much bitter controversy. Mr.. Barlow's
service as witness ended with the presenta-
ton of the letters, kilograms and book.
LETTERS IDENTIFIED.
Albert L. Tabor, receiving teller of the
Peoples Bank, then identified the hand
writing in the boook as that of Cashier
Hopkins, and also identified a number of
letters as written by Senator Quay and
Treasurer Haywood. A number of these
letters were put in evidence, one from
Treasurer Haywood to President Nc
Names, saying that 100000 of State funds
would be deposited the following week and
that Richard Quay be allowed to borrow
100000.
Through the third witness, Meyer Gold
smith, an expert accountant, who had
worked on the banks books. Mr.. Graham
finally got the 'Red Book" admitted in ev-
idence. Its entries covered from May /,
1894 to the closing of the bank, nearly four
years. Only a few entries were read. They
showed that between April 80 and Oct 81
1897, the state deposit in the bank ran up
from $525, 600 to S565 900. From this total
there was a deduction of 20 per cent, evil
IDENTIFY, as Mr.. Graham explained. for the
banks use; then an entry, Less 500, 900,
Quay, lS4 days" For this period the inter-
est was computed in the book $5944. one
third of which, s1194. was marked paid &C.
H. Mckee" In October, 1896, there was a
computation of interest on state deposit
amounting to 81 1853, of which 81. 2.451. one
third, was marked Handed to C. H. Mex"
The name of &C. H. Mckee, lis Diamond
street CMr. McKee's Pittsburg address,,
was entered in another part of the book. In
reference TO the Red Book, Mr. Graham
said that in all entries of the amount of the
state deposit there was deduction of the
amount Mr.. Quay had in use, and there
was never one dollar of interest credited
against it, He said there We're frequent
entries Of due O." due NJ. S. o." and
due Quay"
MIR, ShapIey, after the district attorney
had concluded his presentation OF facts.