Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-03-16
TWO |NO|CT-
MENTS FOUND
Against Aaron HerShfield and
Leo Harmon
OF THE MILES CITY BANK
The United States Grand Jurors Com
pleted Their Lab0rs Today
and Adjourned.
OF THE MILES CITY BANK

IlC IL otoNSs SioANA J"4SA~
pleted their labors today and made their
final report to Judge Knowles, who, after
thanking them for their services, dis
charged them.
In all the grand jury brought in II in
dictments, only a few of which, how
ever, have been made public. 1ndict-
ments were found against Aaron Hersh-
field and Leo Harmon, the former the
president and the latter the cashier of the
Miles City National bank. Their bonds
were fixed at $1,000 each. Mr.. Harmon,
who is in the city, promptly furnished the
bonds and will appear before Judge
Knowles at a later date.
In the Hershfield indictment the first
count recites that Aaron Hershfield, on
the 18th day of August, 1896, in the
county of Custer, was president of a ma
tional banking association to wit: The
State National bank of Miles City, II
that the said Hershfield did then and
there with intent to injure and defraud
the said banking association, unlaWfully
and wilfully misapply the funds and
credits of said banking association of the
value of SIG. 200, by ~surrenderinS to him.
self a certain promissory note executed
and delivered by him to the banking as
ISOLATION, said note being for the sum
of SIS, 900, dated June %, 1896, and payable
on demand, and upon which note there
had been unearned and unpaid as inter-
est thereon the sum of 81, 200, which said
surrender was made to himself by the
said Aaron Hershfield without his paying
or causing to be paid to the bank any
thing in lieu of the said surrendered
note of any value whatever, save the
fictitious notes hereinafter set forth,
which notes We're then and there and at
all times wholly worthless. Thu indict-
ment further charges that Hershfield,
knowing himself to be solvent, substi-
tuted in lieu of the note two certain
other notes, each payable - months after
date, one Of which notes purported to be
signed by one William Thompson and
the other by one Henry Metcalf. the
notes becoming a part of the assets Of the
bank. 1t is alleged the notes We're worth
less and of no value whatever, and were
not in fact signed by the said William
Thompson and Henry Metcalf, and were
in truth fictitious, and the names signed
thereto fictitious. all of. which W~as-known
to Aaron. Hershfeld.
The second and. third counts charge
him with making a false entry in the
bank books relating to the notes.
The fourth count charges him with
making a certain, report of the condition
of the bank to the comptroller of the
currency on July IA, 1896, without the
knowledge or consent of the anking
association. in which it was shown that
he had borrowed $ S,932.S7, which in SUBJ
stance exceeded the limit prescribed by
Section $500 of the Revised Statutes of
the United States; that the said entry
was false, for the reason that the amount
owing by Aaron Hershfield to the bank
ing association was in excess of that
amount and was the sum of $37 ,612 %, as
he, Aaron H~ershfield, then and there we'll
knew, and said Hershfield intended
thereby to deceive the said comptroller
| of he r11rClnaV and fn lnaairo onr, ,,~-4
who might be appointed to examine the
affairs Of the said banking association.
The fifth count charges him with hav-
ing, on November 81, 1896, ~misapplied the
funds and credits of the Miles City bank
by allowing the National Bank of the
account of the Miles City. bank a per-
sonal obligation of $3.50 so, which was
due and owing from the said Hershfeld,
and for which the Miles City bank was in
no wise liable or responsible.
The sixth count charges him with hav-
ing, on December ?. 1896, m%isapplied the
sum of $4,000, funds of the Miles CITY
bank, by permitting the First National
bank of Minneapolis to charge to the
Miles CITY bank a personal obligation of
the said Hershfield.
The Indictment against Harmon re-
cites that he was the cashier of the Miles
City bank; that on May 7, 1896, he re-
N'> VIM vi lHC SuI-
rency as an available resource of the
bank the sun of S6i, 1875. IA, as being due
from the National Bank of the Republic.
when the sum due was only $14, 1875. IA.
The second count of the indictment is
to the effect that on February Is. 1897,
Harmon made another report to the
comptroller Of the currency showing,
under the head of Liabilities of Officers
and Directors that Aaron Hershield
was indebted as a member of the firm
as payers in the sum of Sc, 23S. 40, and as
%indorser and %guarantor in the sum of
$28, 200 and on overdraft 1878. 13, which
statement was false, in that Hershfeld
was indebte to the bank individually
or as a member of the firm as payer in
the sun of $35, S42.4
The third count recites that Harmon,
on the 18th of March, 1897, reported to the
comptroller of the currency, under the
head of Loans Exceeding the Limit
that Hershfield owed $685. 40, when in
fact it was $37, 500 .03.
The fourth count makes the same al
Legation on a different date.
The fifth count is to the effect that on
October 3, 1897, Harmon, in his report
to the comptroller, under the head of
balances Due from or to Approved Re-
serve Fund.- stated that the bank had an
available resourc of Sal, S11 go from the
First National bank of Minneapolis
which statement was false.
There were eight witnesses examined
by the jury, as follows:
J. E. .D'Carle E. T.. Wilson, c.. H. Loud.
George H.. Hyde, S. R. Flynn, L. W.
Stacy, Charles Clary and Pierre Wibaux.
Rocky Mountain Mineral Water has