Omaha daily bee., 1899-03-07

w. Loomis, f. S. Parmelee, Thomas Fl.
Walter, George F. Crandall, C. MacMiller
and o. &. Raney.
Explaining the Issues.
Opening statements were made on behalf
Of both the state and the defense before the
taking of any testimony began. County At
torney Shields said he will show that
systematic embezzlement was going on for
| period of ten years from 1887 to 1897 by
a process Of pretended salary advances
through sight drafts upon the company's
treasury. The shortage eventually became
so great that Cashier Don NJ Chamberlain
was informed of it, but was prevailed upon
| to keep the matter quiet. Ultimately, he
said, Mr.. Morsman was advised by Sudbor-
ough In 1896 OF the situation with the eX-
ception of misapproprations within the
three years time UP to that year. From
September 20, 1895, to December of that
year the sums taken made a total of 81 900
Mr.. Shields said further than it was admitted
to Mr.. Morsman that between SIS 900 and
| $4,000 had been abstracted from the COM
pany's eXchequer previous to 1898. The
| method resorted to, he explained, was by
a system of refund and advance accounts
which were not included in the auditors
| monthly statements.
The attorney for the defense gave the
same explanation OF the shortage to the
jury as was given when Auditor w. f.
Bechel was on trial, namely that the money
was used by the authority of the company
for the purpose of maintaining lobby at
Lincoln to prevent legislation believed to
be inimical to the company;s interests He
said the evidence will show that at the
| time the different sums alleged in the
present case We're taken, Sudborough was
! the Lot for la
that the company deemed it cheaper to
have man in the legislature than on the
outside and that all the various sums
amounting to the total of 81 900 from Sep
| temper % to December l. 1896, were used
| in the furtherance of his campaign by the
| companys express authority. If the county
attorney should be allowed to produce in
evidence items taken prior to the three
years limitation Sudborough's counsel
! threatened to meet every bit of the state 3
/ evidence" in that particular
| mot a cent of money has passed through
! the hands of Mr.. Sudborough without eX-
press authority since 1890" said the attorney
for the defense "If Mr.. Shields was not ordi-
| narily so fair / would say that in bringing
up these old matters he was trying to pref
udice the jury, but ! will repeat that ever
! since the spring Of 1890 not a dollar has
! been used by Mr.. Sudborough without eX-
| press authority of the Pacific Express com
! pany. If, Mr.. Shields is allowed to bring
before you evidence on any of the trans
/ actions that occurred before the three years
! time we will meet every bit of it, For
! months the company has had the Pinker-
| ton Detective agency in its employ and since
! Mr. Morsman has gone out of the COM
! pany Erastus Young has been doing his
| utmost to fasten the shortage upon some-
! body The best evidence they have on tho
other side will come through Andy Hunt,
an acknowledged defaulter who has paid
! back to the company S32 900 of the money
he took. Andy Hunt has turned over Sl2O,-
600 worth OF stock (supposed to have been
Colorado mining stock worth sl5, 900 and
he has paid back one item of $1,000 and
another OF $40 900 What money Mr.. Sud
borough is charged with having taken came
into his hands for a specific purpose and
| We VIII produce evidence to prove this -
The defense moved to have the state com
PEELED to elect on which counts it would
prosecute, but court overruled this.
Andrew j. Hunt was the first witness
! called. He was allowed TO explain the
method of bookkeeping and how the short.
/ age occurred.
Nothing of any great consequence came
out In witness testimony, save that, in
! cidentally, three expense envelopes" a
check on the office bank" and several au-
dtor's drafts were offered and admitted,
and Hunt identified them. The last of these
exhibits, an auditors draft for 81 900 dated
December 2, 1896, he admitted having drawn
up and signed and endorsing il himself, but
he said he did so at Mr. Sudborough's di-
rection. He stated that the purpose OF this
$4,000 draft Was 10 bunch all the other items