The daily morning journal and courier., 1898-10-06
SENATOR QUAY BOUND OVER
HIS SON AND CHARLES 1T. M'KEE
 ALSO HELD.

Bail Fixed at S5,OOO ina Each Caso-Let-
 ter Introduced Dated July 5, 1896,
 From the Then State Treasurer Hay-
 wood, to President McManes, of the
 Peoples Bank, Saying the States De-
 posit Would be Increased from $50O,-
 900 to S6O0,OOO the Following Week
 Provided Richard R. Quay Was Per-
 mitted to Borrow S1O0,OO0.
 Philadelphia, Oct. 1.-The hearing of United States Senator Quay, his son, kee of Pittsburg, law partner of Lieu tenant Governor Lyon, on the charge bank for speculating purposes for their own profit, was begun before Magis- room was crowded with prominent pol iticians, lawyers and others. Counsel
 
 point of insufficient evidence to estab- fish prima facie case and combatted the prosecution at every point The defence used every endeavor to force the prosecution to show wh had insti- gated or inspired the charges. In fur therance of this object, Rufus E. Shap- ley and A. $. L. Shields, counsel for defendants, endeavored to have called as witness Detective Myers, who had made the affidavit upon which the war rants of arrest were issued. District Attorney Graham, however, claimed that he had other evidence to establish case and refused to call Receiver Bar low of the Peoples bank, who testified to having found certain letters in the desk of Cashier Hopkins.
 Certain memoranda of Cashier Hop- kins were presented and against the admission of this evidence defendants counsel made strong objection. The district attorney finally presented as evidence certain letters and telegrams. The first letter was from State Treas urer Haywood to President McManes of the Peoples bank. It was dated July 25, 1896, and informed President McManes that the states deposit in the bank would be increased from S500- 900 to $500 900 the following week, pro- vided Richard R. Quay was permitted to borrow $100,000. A telegram dated a week later from Haywood to Cashier Hopkins was next presented, which notified the latter of the letter ito the president of the bank. Evidence was presented to show that the loan to Richard Quay had been made Cross examination elicited the fact that the loan had been cancelled since the bank had gone into liquidation. which was in March last.
 Other sletters and telegrams were read, several of which were from Sen ator Quay to Cashier Hopkins direct ing him to buy or sell certain shares of stock and giving directions relative to the transfer of other stock through the broker firm of George A. Huhn of Phil adelphia. It was shown that the prom ised deposit referred to by State Treas urer Haywood was made $500,000 being deposited on August 1, 1896, and $100,- 900 on August g. A telegram was pro- duced from Haywood to Hopkins dated November 20, 1896, requesting him, if possible, to buy 100 shares of Metropol- itan Railway stock at 110; 100 shares at 109; 100 shares at 10S, 100 shares at 107, and 100 shares at 106.
 District Attorney Graham in the course of some remarks averred that the evidence produced showed that Senator Quay had the use of s20O,O00 of the states deposit of over $500,000 in the Peoples bank for stock specula- ton and that there was regular as- signment of interest on state deposits in the peoples bank to certain ac- counts, third of it going to MT. Me Kee, all of which he claimed was a vio- lation of the state law prohibiting bank official from making such trans actions and that the accused persons were guilty of conspiracy in Joining with Hopkins in these transactions
 The memoranda in Hopkins hand writing is a book referred to by Lawyer Shields as "The Red Book" about foot square and containing 200 pages. It was stated that the entries in the book extended from May i, 1894, to the udlt pl tlts 'olLS ol thC poiih, o PS riod of nearly four years. Only few of the entries were read. They showed that from April 30, 1897, to June 15, period of 46 days, the state deposit in the bank was $525000; from June 15 to June 19 it was $555,000; from June 19 to October 31 1t was s565,00O. From this total there was deduction of 20 per cent, evidently, as MT. Graham explained, for the banks use; then an entry 'loss $200,O00 Quay 1s4 days" For this period the interest was com- puted in the book as S5,944 one-third of which was marked paid ''C. H. Me K" In October, 1896, there was a com putation of interest on state deposit amounting to $7,353.33, of which $2,451.- Il. or one-third, was marked handed to c. H. Nick" The name of "C. H. Mckee, 11S Diamond street." was en- tered in another 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 credited against it. He said there was freuuent entries of due M. $. o." due o." and due Quay"
 MT. Shapley after the district attor- ney had concluded his presentation of Tn all these