Evening star., 1899-04-18
Cross Examination Of Expert Witness
in Quay Trial.
TELLS HOW BE GOT His FIGURES
Attorney for Defense Causes
Modification of His Estimates.
OUAY'S DEBT TO BANK


opened today in the trial of ex-united
States Senator Quay it was evident from
the brief examination of Meyer Goldsmith,
the expert accountant, by District Attorney
Rothermel that Judge Biddle's decision yes
terday ruling out testimony relating to
other than the alleged specific conspiracy
prevents the revelation of many alleged
manipulations by state treasurers and 9TH
ers of the state funds on deposit in the
Peoples Bank. Mr.. Goldsmith was on the
stand for less than five minutes this morn
ing before being turned over to the defense
for cross-eXamination. In that time Mr..
Rothermel brought out the fact that on
August 3, 1885, 100000 were deposited in
the bank by State Treasurer Haywood,
making the state deposit aggregate $6U0,O0
Two days later loan of 100000 was made
to Richard R. Quay on note indorsed by
Senator Quay. The witness said the books
did not show whether the loan of 100000
was paid off or not.
1t has been stated, however that the loan
was repaid after the bank closed, on March
-. 1898.
ITO whom was interest paid, if any, on
this 100000 of state money deposited?''
asked the district attorney.
TO the state treasurer
The Cross-Examination.
Mr.. Shields conducted the cross-examina-
ton. The witness was questioned about his
experience an expert. He said his calcu-
lations were based upon suggestions from
the red book" followed by an examination
of the other books. A long line of ques-
tions upon what the witness based his cal
culations of interest were then asked. The
replies generally were involved but the
witness indicated that he obtained the rate
of interest from the current prices in the
money market, and not the result of a
guess.
The witness attention was directed to
his testimony that the books showed Mr.
Quay owed 1881 at the end of Octo-
ber 81, 1897. He was told to show whore
SUCH evidence appeared in the books. This
necessitated the witness going over each
book bearing on the account, and consumed
much time.
The defense confined the witness TO the
regular books of the bank, and without
reference to the red book" black and
blue" books. In pursuance of this he said
SoI I,0o.12 was the total loans charged
against Mr. Quay. There We're also numer-
Gus credits. but balancing the figures left
the Indebtedness above. This left a off
ference of s12S,350 in the amount of slS5,-
S55l2, testified to by the witness yesterday
as having been loaned TO Senator Quay dur
ing the six months ending October 81, 1897.
Discrepancy Accounted For.
The discrepancy was accounted for how
ever by the production from the "black
book of entries showing purchases of
Metropolitan and sugar stock to the value
of S12S, $50.
Mr.. Shields claimed that the witness had
no right to charge against Senator Quay
these purchases of stock, since they were
bought through local stock brokerage firms
and carried by them on margin, and that not
a dollar was loaned by the bank the
transactions. The witness was compelled
to admit the truth of this The black
book" is the volume in which Cashier Hop
kins kept his entries of stock transactions
Mr.. Shields brought from the witness the
admission that the apparent loan of $5I,-
505. Il should be reduced S14,S5o received
through the closing of a deal in United
Gas stock; that the books that show a
further loan of 5000 charged to Senator
Quay was paid by man named Andrews;
that a loan of $1S,955 charged to Senator
Quay was apparently loan to Gov. Hast
ings; that an item of $500 in Senator
QUay's loan account was an obligation of
man named Ahearn; that other items aggre-
eating s15,500 charged to Senator Quay
were obligations of other people. These
successive admissions of the witness, Mr..
Shields argued, showed that of the ap-
parent loans to Senator Quay OF $lSo,S5o.l2
during the six months under discussion, all
or nearly all constituted the obligations of
other people; in other words, that Senator
Quay was an indorser and therefore only
tentative debtor of the bank. i
Credits Due Mr.. Quay.
MIR. Shields got the witness to state that
the books show that on November II, 1896
the beginning of the period for which Sen
ator Quay is indicted, his total Indebtedness
to the bank was $s9, ,s9229, and on Novem-
ber 80 it was $70695.42. The witness was
asked If it was not a fact that Senator
Quay's Indebtedness at the end of Novem-
Der that year would have been only S,201. 81
had the proceeds of a large block of United
Gas stock sold on November ., amounting
to $121 343. 10, been credited to his account.
A partial credit for this sale of 93S43I
was not entered until November "A. Mr..
Shields brought out through the witness
that all of the proceeds of the United Gas
deal were not credited to Senator Quay's
account until eight months after the stock
had been sold, and that if the money real
ized had been credited properly and prompt
ly the senator's indebtedness would have
been only SS,201.67.
Mr.. Shields asked Goldsmith If he did
not find in the black book that Hopkins
received the money not credited to Mr..
Quay's account. Witness admitted this,
but said he did not refer to it in his testi-
mony because the figures conf1icted with
Senator Quays balance as shown by the