Evening journal., 1898-10-06
QUAY IS REMANDED.
Bound Over to Next Term
In $4,000 Bail.
CASE TO Be TRIED IN NOVEMBER.
rhe Testimony nt Yesterdays Hear-
ing-District Attorney Refuses
TO Tell Who Is Responsible
For the Prosecution.
PHuLADELPHIA. Oct. 6. = Unite

PHILADELPHIA, Oct 6. - United
States Senator Quay. his son, Richard
R. Quay. and Charles r. Mckee Of
Pittsburg, law partner of Lieutenant
Governor Walter Lyon, appeared be-
fore magistrate in the central station
court in this city yesterday afternoon
70 answer TO the charge Of conspiracy
In the alleged misuse of public moneys
in connection with John S. Hopkins,
former cashier Of the Peoples bank Of
this city, who committed suicide soon
after the failure OF the bank in March
last. Ex-State Treasurer Haywood, for
whom a warrant has been issued in
connection with the conspiracy charge,
was not in court, but it is promised
that he viii be here tomorrow to an
swer TO his accuser.
After a hearing lasting three hours
Senator Quay and his son and Mr.. Nc
kee We're bound over for appearance
at the next term Of court. Bail was
fixed at $1,000 in each case, David II.
Lane, local political leader, renewing
the bond for that amount which he had
entered when the accused men were
given preliminary hearing on Mon
day. The case now goes on the list for
trial at the term Of court beginning in
November.
The testimony produced by District
Attorney Graham was in the shape Of
about 20 letters and numerous tele-
grams covering a period from Septem-
Der, 1897, to February, 1898, addressed
by Senator Quay to Cashier Hopkins,
directing the purchase and sale of large
blocks of stocks and arranging for the
placing OF margins, n letter from State
Treasurer Haywood to the president of
the Peoples bank, a letter and tele-
gram from Haywood to the cashier of
the Peoples bank and a private mem
orandum book OF Cashier Hopkins. The
lawyers representing the accused fought
hard against the introduction Of the
latter, but 1t went in as evidence new
ertheless. The district attorney averred
that the evidence produced showed that
Senator Quay had the use of 5000, 900 OF
the states deposit Of over $500, 900 in
the Peoples bank for stock spscula-
tion; that State Treasurer Haywood
placed 100000 of state funds in the
Peoples bank on condition that that
amount Of money be loaned to Senator
Quay's son; that there was a reg
ular assignment of interest on state
deposits in the Peoples bank to GER
tain accounts, one-third of II going to
Mr. Mckee. all Of which he claimed
was violation of the state law pro-
hibiting a bank official from making
such transactions, and that the accused
persons We're guilty OF conspiracy in
joining with Hopkins in these traasac-
tlons.
The hearing was scheduled to begin
at noon. Long before that hour the
courtroom was filled by a crowd of poll
ticians, newspaper men and lawyers.
Senator Quay pushed his way through
the crowd to the space IN front Of the
magistrates desk promptlyat 12 o'clock.
He was accompanied by Richard r.
Quay. Mr. Mckee, Lieutenant Governor
Walter Lyon and Bondsman Lane.
State Treasurer Beacon occupied a seat
nesr the district attorney. Rufus e.
Shapley and A. S. L. Shields repre-
sented the accused. Mr.. Graham. who
conducted his case without assistance,
arrived soon after.
The attorneys for the defense opened
the proceedings with a fruitless 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. Barlow receiver
for the Peoples bank. who is also a
special assistant district attorney. In
answer to questions by Mr.. Graham. 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 a
book containing memoranda in Hop
lSins' handwriting. This book referred
to by Lawyer Shields as "the red book"
was about a foot square and contained
200 pages. It figured sensationalI in
the days proceedings and was the sub
ject of much bitter controversy. After
Mr.. Graham had obtained possession Of
the letters kilograms and book Mr..
Barlow was excused, and Albert T.. Ia
bor, receiving teller of the Peoples
bank from 1896 until it closed on March
26 Of this year, was placed on the stand.
He identified the handwriting in the
book as that Of Cashier Hopkins and
identified a number of letters in Senator
Quay's handwriting written to Hopkins
and bearing dates from early in De-
cember. 1897. until February. 1898; also
letter written by State Treasurer
Haywood from Harrisburg to President
McManes of the Peoples bank on July
81, 1896. but said by District Attorney
Graham to have been inclosed in an en-
velope to Cashier Hopkins, and a LETT
ter and telegram from MIR. Haywood to
Hopkins.
Mr.. Graham did not succeed in get
ting the "red book" in evidence until he
placed his third witness, Meyer Cold
smith, an expert accountant who had
worked on the banks books. on the
stand. Mr.. Shanley protested that all of
the rules of evidence were against the
admission of a private memorandum
book in the manner sought by the dis
trict attorney and insisted that the
banks books should be produced. The
magistrate finally stated that this case
was of such public Importance that he
felt constrained to admit anything that
would throw light upon the transac-
tions. The lawyers for the accused were
compelled to acquiesce in this view.
After all the letters had been read
they got down to the memorandum
book 1t was stated that the entries ex-
tended from May l. 1894, to the date Of
the closing of the bank, a period OF
nearly four years. only a few Of the
entries were read. They showed that
from April 80 to June Is. 1897, a period
OF 40 days, the state deposit in the
bank was s555,00O from June Is to June
19, S555.00O and from June 19 to Oct. 81