The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-10-06

Philadelphia, Oct. 5.-United State
Senator Quay, his son, Richard r. Quay
and Charles II. Mckee of Pittsburg. Law
partner of Lieutenant Governor Waite
Lyon. appeared before Magistrate Jer
mon in the central station court in thi
city this afternoon to answer TO tn
charge of conspiracy in the alleged mis-
use of public moneys in connection will
John S. Hopkins. former cashier of tn
Peoples bank of this city, who com
mitted suicide soon after the failure D
the bank in March last. EX-State Treas
urer Hayward, for whom a warrant i:
issued in connection with the conspiracy
charges, was not in court, but it is prom
ised that he Will be here on Friday.
After a hearing lasting three hour:
senator quay ana his son and Mr.. Nc
kee were bound over for appearance a
the next term of court. Bail was fixed
at 5000 in each case, David H. Lane, {
local political leader giving bail.
| The case now goes on the list for tria
iber.
The testimony produced by District At
tOrney Graham was in the shape of about
20 letters and numerous kilograms, cover
| ing period from September, 1897. tC
February, 1898. addressed by Senator
purchase and sale. of large blocks OF
stocks and arranging for the placing OF
margins; q letter from State Treasurer
| Haywood to the president of the People S
bank; letter and telegram from Hay
wood to the cashier of the Peoples bank,
| and a private memorandum book OF
Cashier Hopkins.
| fought hard against the iT PRODUCTION of
the latter, claiming the banks books and
not mere memorandum should be Of
| fered, but it went in as evidence, never
| theless.
The district attorney averred that the
evidence he produced showed that SEN
ator Quay had the use of $4,000 of the
states deposit of over 100000 in the Peo-
| pies bank for stock speculation; that
| State Treasurer Haywood placed $780, 900
| 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 assignment of inter-
est 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 prohibit
ing a bank official from making. such
transactions, and that the accused per-
sons were guilty of conspiracy in joining
with Hopkins in these transactions
The court room was filled almost to
Suffocation with politicians, newspaper
men and lawyers.
RECEIVERS TESTIMONY.
The attorneys for the defense opened
secure from the district attorney the
names of the persons responsible for the
prosecution. There were only three wit
nesses. The first was Thomas w Bar
low, receiver for the Peoples bank. who
is also a special assistant district at
torney. 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 kilograms
and book containing memoranda in
Hopkins handwriting. Mr.. BarlowS serv-
ices as witness ended with the Dresenta-
ton of the letters, kilograms and book.
Albert l.. Tabor, receiving teller of the
Peoples bank, then identified the hand
writing 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 Haywood to President Nc
Names, saying that 100000 of state funds
and that Richard Quay be allowed to
borrow 800 900.
RED BOOK ADMITTED.
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
evidence. Its entries covered from May 1,
1894, to the closing of the bank nearly
four years later. Only few entries were
read. They showed that between April
the bank ran up from s525,OO0 to s565, 600
From this total, there was reduction of
20 per cent, evidently, as Mr.. Graham
alleged. for the banks use: then an en-
try, LESS 10000 Quay. 14 days
For this period the interest was COM
puted in the book as 1884 one-third of
which. 1854, was marked Paid, c. H.
Mex" In October 1896, there was
computation on interest on state deposits,
amounting to 1853. of which 81. 45l or
one-third, was marked Handed to c. H.
Mex" The name of &C. II. Mckee: lis
address,. was entered in another part
of the book. In referring to the book
Mr. Graham said that in all entries of
was a deduction of the amount Mr. Quay
had in use and there was never one dol
lar of interest credited against it. He
said there were frequent entries of Due
All through the ordeal Senator Quay
bore an air of compOSure. He prompted
his lawyers frequently and passed judg-
ment on every point raised.
QUAY's STATEMENT.
The senator tonight, in response to an
inquiry for statement, by a reporter of
the Associated Press. said:
81 think that no one who was present
at the hearing today entertains any
doubt as to the trISthfulness of the charge
boldly made by my counsel; that this
enemies of mine, who hide behind the
district attorney and will not permit him
to reveal their names, and that their sole
literature by false charges that could not
be met and answered except on trial in
court.
simply this to say, that they are abso- !
lutely false and wholly without founda-
ton. 1 have always had an account with
the Peoples bank, and have frequently |
instructed Mr.. Hopkins to have brokers |
buy for me stocks which 1 thought were |
likely 10 rise in value, but they were |
always bought with my own money or
upon my own credit, and upon thorough |
~ good collateral, and the Peoples bank /
was always amply protected for any
loans / obtained from it. Not a single |
share of stock was ever bought for me, /
either directly or indirectly. with public /
and my letters. which were Of /
fered in evidence. themselves clearly /
show this. Nor did 1 ever have the use /
Or benefit. either directly or indirectly, I
10 the extent of one penny, of any of the /
states money or deposit in the Peoples /
bank. Nor did l ever obtain from the 1
bank the roen of a single dollar because /
Of the deposit with 1t of the states /
money. Nor do 1 owe the Peoples bank |
a single penny, for every dollar I ever /
from it was promptly paid by /
me at maturity.
LAS to my sons transaction, which was /
legitimate, had nothing what |
aver to do with 1t, except that, having |
full confidence in his ability to pay the |
oan at maturity, / endorsed his paper |
and 1t was fully paid at maturity
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