Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1899-04-20
THE TRIAL On NJ. s. QUAY
For Alleged Misuse Of the Key
stone States Funds.
THE PROSECUTION CONCLUDES

During the Cross Examination of Ex-
pert Goldsmith, the states Prin-
cipaI Witness, He Was Made to Con-
tradict In several Particulars.
Philadelphia, April 20.-In the trial
of ex-senator Quay on Thursday
of last week several former en-
ployes of the Peoples bank gave evil
dence. Clay Kemble, son of the founder
of the bank, who was assistant cashier
and a director, testified that Cashier
Hopkins was 1.-The whole bank. A
letter introduced in evidence is re-
garded as most damaging against r.
r. Quay, the senator's son. The letter
is addressed to James McManes, presi-
dent of the Peoples bank, by B. J.
Haywood, state treasurer, and is as
follows:
son Monday we will mail you a
check for 100000 for credit of COM
monwealth of Pennsylvania general
fund. which will make a credit to our
account of $500, 600. The understand
ing is that am not to draw against
any part of this deposit until the Hon.
r. r. Quay has paid or arranged salts
factorily to YOU the loan of 100000
which you are to make him next week. z"
The defense objected strenuously to
the minute book, saying that, although
the $1,000 note bears Senator Quay's
Endorsement, he knew nothing what
ever of the letter from Haywood and
had nothing to do with the juggling of
state money indicated by it. Judge
Biddle overruIed the objection.
Friday was taken up in the examina-
ton of experts as TO whether the ia
nous red book" was one of the regH-
lar bank books. Meyer Goldsmith, an
expert accountant, was the principal
witness. and he declared that entries
on the regular books would not be ex
planned except by reference to the red
book" Two items of $1,519 and So
S22. 10. respectively were referred to
especially, but no names were mem
toned.
The first week of the trial ended
with a climax The red book" was
admitted in evidence as a book of the
Peoples bank after final passage at
arms between Mr.. Watson and the dis
trict attorney. The latter also sue
ceeded in having the black book,
called the stock book. both found In
Cashier Hopkins desk. admitted on the
same footing.
On Tuesday the defense had its in
ming, when Expert Goldsmith, the
states principal witness. was made to
contradict himself in several instances.
Witness admitted that If Hopkins had
properly credited Senator Quay's ae-
count with amounts that belonged
there the books would show that at
0f - al
acy. Nov II, 1896. the senator owed
the bank only 1896, instead of over
$4,000, as is alleged.
Taking up the allegation that Sena
tor Quay had borrowed 1885, 900 during
the settlement period ending Oct.
81, 1897, the last settlement before the
bank closed, Mr. Shields forced from
Goldsmith, piece by piece, facts tend
ing to show that in nearly every in
stance the amounts charged to Senator
Quay were really loans to other per-
sons, politicians mostly, for whom
Quay endorsed Where there was a
definite loan to Senator Quay the re-
payment was clearly proven.
Much of the sting was taken out of
the famous shake the plum tree" tele-
gram by the statement that the pur-
chase of Metropolitan stock contem
plated thereby was made with $4,000
of Senator Qnay's own money, his de-
post at that period exceeding $50, 900.
Yesterday, greatly to the surprise of
the defense and spectators, the prose-
cution closed it's case. The prosecu-
ton evidently depends mainly on Ex
pert Goldsmiths testimony to Sc
cure a conviction. AS to what
extent the testimony of the de-
lenses expert, should he be called, may
offset Mr.. Goldsmith's testimony re-
mains to be seen The contention of
the defense in 4. Ument and cross
examination has Teen that the calcu-
Iations of Mr. Goldsmith are not borne
out by the books. but on the other
hand show that MIR Quay did not use
state money nor receive interest on
state deposits. and that whatever loans
he received were made in the custom
airy manner and backed by sufficient
collateral.
Henry K Boyer, ex-state treasurer
and now director of the mint, was
on the stand, and after testifying
to paying interest ia October, 1897, on
call loan asked permission to make
statement in reply to the district at
torney's allegations that he received
interest on state money while state
treasurer from May. 1889, to May,
1891. His request was not allowed,
but the court stated all records of re-
plies to those questions we're stricken
out under the courts ruling.
The last witness heard was Charles
Fl. Mckee. of Pittsburg, who was
originally included in the charge OF
conspiracy with the Quays and Hay
wood. but the bill against whom WAS
ignored by the grand jury. He admit
ted receiving four payments of interest
on the states deposit in the Peoples
bank. and said he received it as an
attorney, and for the purpose of pro-
tecting the bondsman OF Haywood
from loss.