New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-10-06
QUAY AND Associates HELD.
CONTINUED UNDER BAIL AFTER PRE-
L1MINARY HEARING IN PHILA-
DELPHIA.
THE PENNSYLVANIA SENATOR SPEAKS IN HIS
OWN DEFENCE.

Ahn PENNSYLVANIA SENATOR SPEAKS IN HIS
OWN DEFENCE
Philadelphia. Oct. 5.-The hearing In the cases of
| United States Senator Quay his son. Richard r.
| quay. and Charles H. Mckee, OF Plttsburg on the
chargc OF using State funds in the Peoples Bank for
speculative purposes for their own profit. was begun
pciore Magistrate Jermon at the City Hall shortly
AFTER noon to-day. The cases had attracted great
attention and the hearing-room crowded 1t
was the general expectation that a hearing would
De waived and the be disposed OF in n few
minutes. This. however proved TO be incorrect
theory as counsel for the defendants made
hard fight the point of insufficient evidence TO
establish prima facie and combated tho
prosecution at every point District-Attorney
ptaham called the receiver and the teller Of the
Peoples Bank. who testified to having found GER
tam letters and kilograms the desk OF Cashier
hopkins, after the latter's suicide. which docu-
fnents. 1t was claimed implicated the defendants in
a conspiracy with the cashier for the use Of the
funds The Dlstrict-Attorney presented as evil
dencc these letters and kilograms. The first letter
presented was one from State Treasurer Haywood
10 President McManes OF the Peoples Bank The
letter was dated July & 1895 and informed the presi
dent that the States deposit in the Peoples Bank
would be increased from 100000 to $4,000 the
following week provided Richard X. Quay was
permitted to borrow 10000. A telegram dated
week later from Haywood to Cashier Hopkins
was next presented which Informed the latter OF
tho letter to tho president OF the bank.
Evidence was presented to show that the loan
70 Richard r. Quny had been made. Cross-exam-
nation elected tho fact that the loan had been
cancelled since the bank had gone into liquida-
ton which was in March last Other letters and
kilograms were read several OF which were from
Senator Quay to Cashier Hopkins directing him to
buy or sell certain shares of stock and giving d.
through the brokerage firm Of George a. HUM. OF
:, II was shown that the promised deposit re-
ierred 10 by State Treasurer Haywood was made,
s.~@O being deposited on August /. 1886. and 100000
IA, "A telegram was produced from Haywood to
II Possible. to buy 100 shares of Metropolitan Rail,
way stock at 10. 100 shares at 100. 100 shares at
besides tho letters and kilograms. private men,
orandum-book of Cashier Hopkins was introduced
the red book" about foot square. and con-
i Ia two hundred pages ], figured promnently
After ali the letters had been read the mem
e sne was em Nav & 10 e s
Of the closing Of the bank period OF nearly r four
showed that from April &c. 1897 to June To- period
OF iOriy-sS days; the st9te deposit in the hank
So Co., from June 10 TO October 81 i was s, $780, csy
cent, evidently, as Mr.. Graham explained for the
banks USE then an entry loss SC Sgay @
in the book as ksi4 one-third Of which ss g
was marked paid. &C. H. Mex In October 1856
pos amounting P to s7s g. Of which
onc-third. was marked .Handed t. c. II Mch-
DIR. McKee's P,tsburg address was entered in
another part OF the book In referring to the BOOK
OF the State deposit there was deduction OF the
amount Mr. Quay had IN ne ana tnee was sd
there were frequent entries of Due q Due NJ
Mr. shapley. who represented Mr.. QUAY, after
the District Attorney had concluded his p resGnIa
there is not an instance to prove that either SEN
ator Quay or his son Richard engaged N sp pea
dercd bought shares OF stock. which they paid for
with their Individual funds; and that is proved BY
At tho Conclusion Of tne hearing senator QUAY
his non and Charles Mckee were held in $500
the charge of conspiracy in using the STAT funds
profit
Senator Quay tonight spoke as follows:
think that no one who was s present az az IN, the
today h dha4se a Sody made by my
counsel that this proceeding was ns,itu ind by
pistrict-Attorney and will no, permit him TO re-
veal their names and that their sole purpose vas
charges that could not be met ana answered except
ON trial In court. 49, A .
hearing | could not he permitted TO make any de-
fence show the falsity Of these cnarses ana ny
less attempt TO do so at this time and IN such a
proceeding But YOU may be sure that nave I'M IN
in a court where both sides can be heard, and
after that TO expose Legally and punish 10 the
MY counsel assure that not a scintlIa OF
legal evidence was offered to-day TO justify the
issue of a warrant binding over ,,
LAS 10 the charges themselves: nave. SIMPLY
wholly without foundation ] have always had an
account with the Peoples Bank, and have ire
quently instructed Mr.. Hopkins TO have brokers
buy for me stocks which thought were llkely 10
rise in value but they were always bought with
nv own money or upon my own credit and upon
thoromghly good collateral. and the Peoples Bank
was nlways amply protected for any loans OBJ
tanned from II Not single share OF stock was
ever bought for me. either directly or Indirectly,
with pubiIc money. and my letters which were
offered in evidence themselves clearly show this.
Nor fid | ever have the use or benefit either
dlrectly or Indirectly, 10 the extent OF one penny
OF any OF the States money on deposit at the REQ
pies Bank Nor did ever obtain from the bank
The loan OF a single dollar because OF the deposit
with IL Of State moneys. Nor did owe the Peo-
borrowed from II was promptly paid back by mo
at maturity. ,, - -
las TO my sons transaction. which was per-
fectlv legitimate transaction. had nothing what
ever TO do with IL. except that: having ful CONN.,
dence in his ability pay the loan at maturity.
indorsed his pa pers and II was fully paid at ma
turity -
III the president OF the bank wanted an assur-
ance from the State Treasurer that he would IN
crease or would not decrease the line OF deposits, IL
himself was one Of the Treasurer's bondsmen. ana
was as everybody knows. most amply responsible
financially but had absolutely nothing TO DO with
IL and had no knowledge Of l., and my son GER
tairlv did no wrong in borrowing money belonging
to the Peoples Bank upon notes secured by col
lateral which notes, with interest, nave all peeh
fully paid.
DEATH or MRS. JOHN ". KELLER