Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-11-17

on each point and ordered the hearing to
proceed, TO which the defense excepted.
stand and read the description on the dis
count register Of the hank the entries REL
cember s, 1894. The deposit slip showing
The deposit of s15,si5,. tie proceeds of the
introduced. He said he made out the de-
posit slip as he was in charge Of the dis
counts Of the bank. He explained the
canoe of each action. The individual jour-
nal of the bank was then called in and
credit on that date of sl5,a5. A charge OF
$1,000 of the same date was shown on
pGwniey,s account A note of John j;
TO have been paid on that date and with
the proceeds OF the Townley note. Mr.:
vas made and he said he would waive
further testimony on the point until the
question of intent was at issue.
Mr.. Hagerman made but a short cross
examination. He ELECTED nothing of value.
discount register were made in good faith.
but the court said such questions were i'm
proper and 1t was not answered.
Mr.. Walker then resumed his examina-
ton and traced the renewal of the Town
ley note at the bank at the various dates
until near the time of the failure when
$500 were taken out and the notes of the
Hale Harness and Fire Supply Company
LOT Similar amounts were placed among
the assets of the bank. These notes We're
each renewed until on November Il, thir-
teen days prior to the failure of the bank.
there Was renewed for the Hale company
two notes. one for ST. $50 and sL2, zoo.
Mr.. Hagerman asked witness:
Was it not a fact that the notes of
TCwnley were secured by all the stock OF
the Hale Company and is it not a fact
that the notes were changed so the obli-
cation was direct on the Hale company"
The witness declared he did not know
these facts.
Amy national bank examiner or director
of the bank could have taken the books
: and run the record of these notes down,
just as Mr.. Walker has done?' asked Mr..
H~agerman, and Mr.. Covington made an
a slap at the directors or at the national
bank examiner is not known, but it was
B. ". Townley. manager of the Hale
Harness and Fire Supply Company. was
the next witness called, He said he had
been manage of the Hale Harness and
supply company since it was organized
was held as follows: Adam ]. Armstrong,
100 shares; b. w. Townley and L. E. Hale,
1884, he said he owned his residence. worth
Si!vW. on which there was a claim of Loo.
Mr. Towniey then told of his relations
with the bank and how he got the loans
from the bank. He said Adam Armstrong
same to him and wanted to sell out his
of the bank about the purchase. After he
told Mr.. Rieger he had no money to buy
with. he was old to go ahead and pur-
money. He already had bought stock ag-
gregating $3.50 and in December bougnt
$1,000 more. He got the money at the Mis-
souri, National bank and gave Adam Arm
strong a check for s15.CJO. He said AIr.
Rieger spoke to him repeatedly about the
purchase of the stock before the trade was
made.
He admitted to Mr.. Walke that the bus
mess was not a Furnishing one at any time.
I tho I had % nn,. N w. rNt-a @fz- . ~ Tlt1f
Hale. The mpa made some hose reels
and wagons. and about 100 sets of swing
ing harness. and on each set paid a roy
capitalized for sao.Oco. all paid in at the
time. He said the company owned a lot
of patents and patterns; and they believed
they would do a big business. He said
when he got the loan first he gave his
own note. and the bank held the stock,
corporation notes. and the bank held them
at the time it closed. Mr.. Townley thought
tie patterns and patents very valuable
to Mr.. Walker about his purchase of the
stocks or at what figure he purchased it.
NJ. w. Oliver on the Stand.
N. W. Oliver. formerly Of Oliver &
O'Bryan, and of the Standard Liquor Com
pany, was called. He said he gave notes
a~ggregating $4,000 to c. F. Rieger. for
which theIe was no consideration given.
Mr.. Hagerman was attorney for the Stand
ard Liquor Company in a controversy with
the receiver of the Missouri National bank.
Mr.. Hagerman produced the notes Oliver
gave, and with il was a statement that he
owned the stock of the Standard Liquor
Company. and was authorized to pledge it
as security.
He said he gave the notes to c. F. REG
ger for stock in the Standard Liquor Com
pany 10 protect the stock, with the under
standing the notes We're not to be used.
and at the time he did not own the stock
so pledged. While the notes represented
the transfer of S2i go of the stock, he de-
clared the purported transfer was but a
form. but he denied it was done to save
il from the hands of the creditors of
Oliver & O'Bryan.
Mr.. Oliver betrayed a very surprising
: lack of Information about the notes he
gave. ard the obligations of his company
claiming they were only formal. He said
> he had no property at the time the notes
were given. and the notes had never been
) paid.
: The defense wanted to show the value OF
the stock of goods held by the STANDARD
. Liquor Company WREN the notes were
| made TO esta blish the value of the corpo
ration stock pledged, but the court ruled
IL out.
This morning Adam Armstrong will be
called to detail his connections with the
: bank and the Hale Harness and Fire Sup
ply Company.