, 1898-10-06
.QUAY BOUND OVER
CHARGES AGAINST HIM MADE
KNOWN AT HEARING IN
PHILADELPHIA.
He Is Accused of Specializing With
5000, 900 of the Money Belonging
tG the State-After Giving Bail He
Declares That the Allegations Are
Utterly False.

Declares That h Allegations Are
Utterly False.
Philadelphia, Pa. Oct. 5.-United
States Senator Quay, his son. Richard
R. Quay, and Charles H. Mckee Of
Pittsbung, law partner of Lieutenant
Governor Walter Lyon, appeared be.
fore Magistrate Jermon in the Central
Station court in this city this aftern-
noon.
They came to answer the charge of
conspiracy in the alleged misuse of
public moneys in connection with John
s. Hopkins, former cashier of the Peo>
pies bank of this city. who committed
suicide soon after the failure of the
bank, in March last. Ex-Suate Treasurer
Haywood, for whom a warrant has
been issued in connection with the on
spiracy charges, was not in cour', but
1t is promised that he will be here Fri
day to answer his accuser.
After a hearing lasting three hours,
Senator Quay and his son and Mr.. Nc
Kee were bound over for appearance at
the next term OF court. Bail was fixed
at $4,000 in each case, David H. Lane.
a local political leader. giving bail.
The case now goes on the list for trial
at the term of court beginning in No.
vembei.
The testimony produced by District
Attorney Graham was in the shape of
about twenty letters and numerous tel
egrams, covering a period from Sep
tembe:, 1897, to February, 1898, ad-
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:
a letter and telegram from Haywood to
the cashier Of the Peoples bank, and a
private memorandum book Of Cashier
Hopkins. The lawyers representing the
accused fought hard against the intro
duoticn OF the latter. claiming the
banks books and net a mere memoran-
dun should be offered. but it went in
az evidence, nevertheless.
The district attorney averred that
the evidence he produced showed that
Senator Quay had the use of 5000, 900
of the states deposit of more than one
half million dollars in the Peoples bank
for stock speculation; that State Treas
urer Haywood placed 800, 900 of the
state funds in the Peoples bank On con-
dition that the amount of money be
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
was a violation OF the state
law prohibiting a bank official from
making such transactions, and that the
accused persons were guilty of con
spiracy in joining with Hopkins in
these transactions. The court room was
filled almost to %suffocation with poll
ticians, newspaper men and lawyers.
The attorneys for the defense opened
the proceedings with a ruthless effort
to secure from the district attorney the
names of the persons responsible for
the prosecution. There were only three
witnesses. The first was Thomas w.
receiver for the Peoples bank,
who Is also a special assistant district
attorney. Mr.. Barlow stated that in
his capacity as receiver he opened the
cashiers desk and found among other
things a number Of letters and tele-
and a book containing
in Hopkins handwriting. Mr..
Barlow's services as witness ended with
the presentation of the letters, tele-
grams and book.
Albert l.. Tabor. receiving teller of
the Peoples bank, then identified the
in the book as that of
Cashier Hopkins and also identified a
number Of letters as written by Senator
Quay and Treasurer Haywood to Pres
ident Mechanics. saying that $500. 900 of
state funds would be deposited the fol-
week and that Richard Quay be
allowed to borrow 500, 900.
Through the third witness, Meyer
an expert accountant, who
had worked on the hanks books, Mr..
Graham finally got the red book" ad-
In evidence. Its entries covered
from May l, 1894. to the closing of the
bank, nearly four years later. Only a
entries were read. They showed
between April 80 and October 81,
1897. the state deposits in the bank ran
up from $525. 900 to 1856, 900.
From this total there was a reduc-
ton of 20 per cent. evidently. as Mr..
Graham explained, for the banks use;
an entry less 500, 900, Quay, 1874
For this period the interest was COM
puted in the book az 1894, one Of
which. 1884. was marked, Paid, c.
H. McK." In October. 1896, there was
q coputation of interest on state de-
posits, amounting to $7,353, Of which
S2.641. or .~one-third, was marked
Handed to G. H. Nick" The name