The record-union., 1898-12-15
DRAGGING WEARILY ALONG.
ONLY ONE WITNESS WAS EX-
AHMED YESTERDAY.
Secretary Fields Of the Building
and Loan Commission Tes-
titles to His Acts.

The case of T. W. O'Neil, receiver,
against the National Bank of u. y.
Mills & Co. was resumed yesterday be-
fore Judge Buckles.
An offer to introduce reports by the
Building and Loan Commissioners as
evidence by the prosecution was oD-
3ected to and a long argument ensueo
between counsel as to whether 1t was
subject for cross-examination or not'
Mr.. Fields, Secretary of the Building
and Loan Commissioners, being on the
stand. The objection was sustained py
the court.
Mr.. Fields proceeded with his tesu-
mony and explained how the reports
were prepared, taking into considera-
tion the reports of a. year before, ano
said that by comparing the two reports
together, of 1895 and 1896, he was able
to prove the assets, liabilities, receipts
and expenditures and detect mistakes
and omissions, without coming to Sac
ramento to visit the associations Office
and examine it's books. He showed
where he had found some slight errors
and omissions, which were Strengthened
out when he pointed them out. He had
d
share in calculating the value of the
different series but not to any amount
that affected their value materially.
There was no mistake in the sixth
series. The total difference amounted
to S27. There had been a few mistakes
in addition and substraction, that were
corrected. He found the statement OF
mortgages and property correct, as far
as he could remember. He took care 10
obtain information as to property ano
values before submitting the report To
the commission. He did not know
whether or not the Commissioners IN
vestigated the value Of the association
property He took no steps himself 10
do So His recollection was that he was
IN this city in February, 1896, when the
sixth series was paid off, and had two
or three days previous examined the
books Of the association. He had OBJ
tained permission from the Building
and Loan Commissioners to do so, al
the request of Mr.. Alsip. He was here
simply in a private capacity and had
Strengthened out the report of 1898.
He identified the report Of the Rsso-
citation for 1896 and said that he wrote
the body of it under similar conditions
TO the work he did in the report OF
1895. Mr.. Alsip wrote asking him tC
come up and apportion the profits, as
he did not understand the technicalities
and also to make out the report from
the books of the association, which
We're closed up. Alsip had made trla
balance and got stuck. When witness
came, Alsip presented him with mass
of figures to unravel. Witness made
the additions, determined the book
values and apportioned the values OF
the stock himself from the figures fur
nished. After he had completed the re-
port he left it with the Secretary OF
the association and told him it was cor
rect as shown by the books. In addl-
ton to this report, he made a report &c
the officers of the association, which
was shown by counsel and Identified by
him, and which was correct, accord
ing to the book.
Being asked in reference to a ledger
Of the association, whether he found in
it any annotations in HIS handwriting,
he replied that all the closing entries
were in his handwriting. He had col
lated figures and tested them and when
through that work had balanced the ac-
counts brought down the balances and
placed under each red rubber stamp
with his initials, showing they had been
compared. All the entries in December
1896, were his, and the accounts We're
correct according to the books.
The ledger was offered in evidence by
the defense in connection with the re-
port of 1895 Mr. Fields specified the
entries that were in his handwriting
there being a long list Of them. They
were all correct, he said, according tc
the book and as compared with the
ledger He had made a report and left
it with the Secretary that agreed with
them, and identified that report wher
shown him, and said it agreed with the
assets and liabilities. The report was
offered in evidence. He explained how
he arrived at the assets and liabilities
saying that there were two classes OF
accounts, general and representative
and detailed the items belonging tc
each class. Delinquent dues Of an as
sociation are classed as assets always
The liabilities Of $129, ,525 were veri-
fed by him, checking it up from the
ledger account. In these are bills pay
able to various parties, list Of which
he gave He had verified the various
ing an item showing S142, 600 he read
the items aggregating that amount anc
said it was not in his handwriting. An
other place showed that there were two
notes of So, 600, each due to D. Q
Mills & Co., and that in his report they
were set down at S4S, ,525. and he was
asked how he explained that fact
whether by payments or some Other
means. He replied that there were Other
notes that made an aggregate Of 500,
800 due Against these were payment:
aggregating 81, 80, reducing the tota
amount to S4S,5
There was also a note of $4,000 Il
fhe Farmers and Mechanics Bank
which was similarly reduced by pay
ments amounting to $500. leaving {
balance of S33, 100. The interest ac
count was separate and in ascertainins
the amount of interest paid was from
the information he received from thos
keeping the books. There were items
in the books indicating that payment
had been made of the interest, which
was practically done every month. II
had verified them as we'll as he coul'
without going to the banks. He ha(