The herald., 1898-10-06
SENATOR QUAY and SON
HELD FOR TRIAL LIKE VULGAR
CRIMINALS
THE EVIDENCE PRODUCED
Tends to Show the Use Of State Funds
for Purposes of Private
Profit
Associated Press Special Wire.


PHILADELPHIA, Oct. 5.-United States
Senator Quay, his son. Richard r., and
Charles H. Mckee Of Pittsburg. law part
ner Of Lieutenant Governor Walter Lyon,
appeared before Magistrate Jermon In the
central station court in this city this after
noon to answer to the charge of conspiracy
IN the alleged misuse Of pubic moneys IN
connection with John S. Hopkins, former
cashier Of the Peoples bank Of this city,
who committed suicide soon after the fail
ure of the bank in March last. Ex-State
Treasurer Haywood, for whom warrant
has been issued in connection with the con-
spracy charges, was not in court, but it IS
promised that he will be here on Friday to
answer his accusers.
After a hearing lasting three hours, Sem
ator Quay and his son and Mr.. Mckee were
bound over for appearance at the next term
of court. Bail was fixed at $1,000 in each
case. David H. Lane, local political
leader, giving bail. 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 telegrams
covering period from September, 1897, to
February, 1928, addressed by Senator Quay
to Cashier Hopkins. directing the purchase
and sale Of large blocks of stock and ar
ranging for the placing Of margins; let
ter 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 memoir
andum book of Cashier Hopkins. The la W.
yers representing the accused fought hard
against the introduction of the latter, MAIN
tanning that the banks books and not the
mere memorandum should be offered, but
it went IN evidence nevertheless.
The district attorney averred that the
evidence he produced showed that Senator
Quay had the use of 100000 of the states
deposits Of over $500 900 in the Peoples bank;
that State Treasurer Haywood placed $780,
900 Of state funds in the Peoples bank on
condition that that amount Of money be
loaned to Senator Quay's son, and that
there was regular assignment of interest
on state deposits in the Peoples bank to
certain accounts, one-third of it going t.
Mr.. Mckee, all Of which he claimed was
in violation Of the state law prohibiting
bank official from making transactions.
and that the accused persons were guilty of
conspiracy in Joining with Hopkins in these
transactions.
Albert L. Tabor, receiving teller Of the
Peoples bank, then identified the hand
writing in the book as that of Cashier Hop
k.ns, and also identified a number of letters
as written by Senator Quay and Treasurer
A number Of these letters were
put in evidence, one from Treasurer Hay
wood to President McManes, saying that
100000 Of state funds would be deposited
the following week and that Richard Quay
be allowed to borrow s10O, 900.
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 evil
1ence 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 30 and
Oct 81. 1897, the state deposits in the bank
IAN up from $685. 70 s5S500O From this
.otal there was a reduction Of 20 per cent,
evidently, as Mr.. Graham explained fer
The banks use; then an entry LESS $780,
100, Quay, 1S4 days"
From this period the interest was COM
puted in the book as s59A. one-th.rd Of
which, 1884. was marked paid c. H. Nc |
K" In October, 1896, there was computa-
Ion on interest on state deposits amount
ng to 1888, Of which s2451. or one-third, was |
marked Handed to C. H. Mex"
The name Of c. H. McKee, lis Diamond
street (Mr. McKee's Pittsburg address). |
vas entered in another part of the book.
In referring to the book, Mr.. Graham !
'aid that IN all entries Of the amount of |
hn Tn har
he amount Mr.. Quay had In use, and there
vas never cne dollar Of interest credited
gainst it. He said there were frequent
'ntries Of Due - -" due M. S."
md Due Quay"
All through the ordeal Senator Quay bore |
IN air of composure, prompted his lawyers
frequently and passed Judgment on every |
'oint raised. He claims that the prosecu-
ION is the result of political anita gomisms.