The age-herald., 1898-10-06
QUAY BOUND
 OVER ON BOND Bail Was Fixed at $5,OOO in
 Each Case. THE CHARGE OF CONSPIRACY In Alleged Misuse of Public Money < : -ersd Against Him. EvIDE5SS 9lN SHAPE OF LETTERS SE
 Fr c. quay Directing Cashier Hopkins < in Stock Speculation PRODUCED BY PROSECUTION District Attorney Averred That the Sen ator Had the Use of $2Oo,OOO of
 States Deposit to Use
 in Speculation.
c. quay Directing Cashier Hopkins in Stock Speculation
PRODUCED BY PROSECUTION

Philadelphia, October, 5.-United States Senator Quay, his son, R. R. Quay, and c. H. Mckee, of Pittsburg, law partner of Lieutenant-Governor Walter Lyon, ap- peared before Magistrate Jerman here to- day to answer to the charge of conspir- acy in the alleged misuse of public money in connect on with John s. Hopkins, for mer cashier of the Peoples National bank. of this city, who committed suicide last March.
 After a hearing lasting three hours Sem ator Quay and his son and MT. Mckee were bound over for appearance at the next term of court. Bal was fixed at 5000 in each case, David H. Lane, local polt- ical leader going ball. 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 teleSrams covering a period from September. 1897 to February 1S98 addressed by Senator Quay to Cashier Hopkins, directing the purchase and sale of large blocks of stocks and ar ranging for the placing of margins, letter from State Treasurer Haywood to the pres T telegram from Haywood to the cashier of the Peoples bank and privatae memor- andum book of Cashier Hopkins.
 For Stock Speculation.
 The district attorney averred that the evidence he produced showed that Sem ator Quay had the use of $200,000 of the states deposit of over $5OOO0O in the Peo- ple's bank for stock speculation; that State nlacnd S101 GOO of state funds in the Peoples bank on condition that the amount of money be loaned to Senator Quay's son; and that there was a regular ass gnment of interest on state deposits in the Peoples bank to certain ac- counts, one-third of it going to MT. Me- Kee all of which he claimed was viola tion of the state law prohibiting bank official from making such transactions and that the accused persons were guilty or conspiracy in joining with Hopkins in these transactions
 The court room was filled almost to suf- location with politicians, newspaper men and lawyers
 The attorneys for the defense opened the proceedings with fruitess effort to as- certain the names of the persons responsi- ble for the prosecution. There were only three witnesses. The first was Thomas W. Barlow receiver for the Peoples bank, who is also special district attorney. MT. Barlow stated that in his capacity as re- ceiyer he opened the dead cashiers desk, and found, among other things, number of letters and telegrams and book con- taining memoranda in Hopkins handwrt- ing MT. Barlow's service as witness ends with the presentation of letters. telegrams and books.
 Identified the Handwriting.
 Albert Tabor, receiving teller of the Peo- ple's bank then identified the handwriting in the book 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 Hay wood to President McMannes, saying that 5000 OO0 of state funds would be deposited the following week, and that Richard Quay be allowed to borrow $10O,O0o.
 Through the third witness, Myer Gold smith an expert accountant. who had worked on the banks books, MT. Graham finally got the fred book" admitted in evi- dence It's entries covered from May l. 1894 to the closing of the bank nearly four years Only few entries were read. They showed that between April 30 and October 31 1897, the state deposit in the bank ran up from s525 GOO to $565,o00.
 From this total there was deduction of 20 per cent evidently. as MT. Graham ex- plains, for the banks use, then an entry, Hess $200,000 Quay, 1A days"
 For this period the interest was computed in the book as s5,594 one-third of which, s1 .9S4. was marked "C. H. Mex"
 Oay Did Not Pay Interest.
 In October, 1S96 there was a computation of interest on state deposit amounting to s7, ,733, of which $2,451, or one-third, was marked Handed to c. H. McK." The name of "C. H. Mckee, 11S Diamond street, (Mr McKee's Pittsburg address), was en- tered in anotoher part of the book.
 In referring to the book MT. Graham said that in all entries of the amount of the state deposit there was deduction of the amount MT. Quay had in use. and there was never one dollar of interest cred ited against it. He said there were fre-
 
 lContinued on Second Page.1
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