The record-union., 1898-10-06

PHILADELPHIA, Oct. 5.-United
States Senator Quay, his son, Richard
R. Quay, and Charles r. Mckee of
Pittsburg, law partner of Lieutenant
Governor Lyon, appeared before Magis-
trate Jermon in the Central Station
Court in this city this afternoon to an
swer to the charge of conspiracy in the
alleged misuse of public moneys in
connection with John S. Hopkins, for
mer cashier of the Peoples Bank of
this city, who committed suicide soon
after the failure of the bank in March
last. EX-State Treasurer Haywood, for
whom a warrant has been issued in
connection with the conspiracy charges.
was not in court, but it is promised that
he Will be here on Friday to answer 70
his accusers
After a hearing lasting three hours,
Senator Quay and his son and Mckee
were bound over for appearance at the
next term of court. Bail was fixed at
So,OO0 in each case, David Fl. Lane, a
local political leader, giving bail The
case now goes on the list for trial al
| the term of court beginning in No
Vember
The testimony produced by District
Attorney Graham was in the shape of
about twenty letters and numerous tel
egrams, covering a period from Sep
tember, 1897, to February, 1898, adj
| dressed by Senator Quay to Cashier
Hopkins, directing the purchase and
sale of large blocks of stocks and ar
ranging for the placing of margins: a
letter from State Treasurer Haywood
to the President of the Peoples Bank:
letter and telegram from Haywood to
the cashier of the Peoples Bank, and a
private memorandum book of Cashier
Hopkins
Inc lawyers representing the accused
fought hard after the introduction of
the latter. claiming that the banks
books, and not a mere memorandum,
should be offered, but it went in as ev-
idence, nevertheless
The District Attorney averred that
the evidence he produced showed that
Senator Quay had the use of $500 OO0
of the States deposit of over $500 900
in the Peoples Bank; that State Treas
urer Haywood placed 100000 Of State
funds in the Peoples Bank on condi-
ton that the amount of money be loan
ed to Senator Quay's son; and that
there was a regular assignment of in
terest on State deposits in the Peoples
Bank to certain accounts. one-third of
it going to Mr.. Mckee, all of which he
claimed was a violation of the State
law prohibiting a bank official from
making such transactions, and that the
accused persons were guilty of conspir-
acy in joining with Hopkins in these
transactions.
Albert l.. Tabor, receiving teller of
the Peoples Bank. then identified the
handwriting in the book as that of
Cashier Hopkins, and also identified a
number Of letters as written by Sena-
tor Quay and Treasurer Haywood. A
number of these letters We're put in ev-
idence, one from Treasurer Haywood to
President McManes, saying that $780,
U0O of State funds would be deposited
shat week and that Richard Quay be
allowed to borrow 100000.
Through the third witness, Never
Goldsmith, an expert accountant, who
had worked on the banks books. Mr..
Graham finally got the red book ad-
mitted in evidence. It's entries covered
from May l. 1894, to the closing of the
bank, nearly four years later Only a
few entries were read. They showed
that between April Both and October
81, 1897, the State deposits in the bank
ran up from $525, 900 to $3.50, 600. From
this total there was a reduction of 20
per cent, evidently, as Mr.. Graham ex~
planned, for the banks use; then an
entry less S200,000, Quay, 1S4 days"
From this period the interest was
computed in the book as $5,944, one
third of which, S1,S94, was marked
paid, c. H. Mex" In October, 1896,
there was a computation of interest on
State deposits, amounting to S7.353 of
which $2,451 or one-third was marked
Handed to G. H. Nick"
The name of &C. H. NICK, 11S Dia-
mond street" (Mr. McKee's Pittsburg
address) was entered in another part
of the book.
In referring to the book, Mr. Gra-
ham said that in all entries of the
amount of State deposits, there was a
deduction of the amount Mr.. Quay had
in use and there was never one dollar
of interest credited against it. He said
there were frequent entries of ''due
O., r" due NJ S. O. and due Quay"
All through the ordeal Senator Quay
bore an air of composure. He prompted
his lawyers frequently. and passed
judgment on every point raised. He
claims that the prosecution is the result !
of political anita gOniSmS