Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-04-18
KEYSTONE STATE
BANKING WAYS.
The Quay Investigation Drags Its
Slow Length Along.
SOME THINGS IN HIS FAVOR.
Bxpcrt Meyer Goldsmith subjected
TO a tiia,d cros.-sssaniinstion-ue
Makes Important Admissions.

Philadelphia. April is.-when the
trial Of ex-senator quay opcncd to-
day. II was evident that from the brief
examination OF Meyer Goldsmith. the
expert accountant. by Dlntrict Attor-
ncy i,oihcrmcl. that Judge uiddic'H de-
ciuion yesterday. ruling out testimony
relating to other than the alleged spccl-
ilo conspiracy prevents the revelation
81 many alleged mnnipulauona by state
troaaurcfH and othcrH of the State
funds on deposit In the Peoples bank.
MIR. Goldsmith was ON the stand for
less than ave minutes today before be-
Ing turned over % the dtbinsc for
cfoss-eNamination. In that time Mr..
Rothcrmci brought out the fact that
on August sist. 1896. 10000 was de-
posted In the bank by State Treasurer
Haywood. making the State deposit
aRgrcgnto 100000 Two days later a
loan OF 100000 was made 10 Richard
u. quay on note endorsed by senator
quay. The witness said the books did
not show whether the loan " 100000
was paid on or not IL has been stat
ed. however, that the loan was repaid
after the bank closed ON March aiih,
lsgs.
To whom was interest paid. n any.
on the 10000 OF state money de-
poalici-" asked the district attorney.
To the State treasurer"
Sir. shields conducted the croau-cS-
animation.
The witness was aucutioncd about his
experience ~ an expert. He SAID Ills
calculations were based upon augErH-
tons from the rcd book" followed by
am examination OF the other books.
long line ~ questions upon what the
witness based his calculations OF inter-
cat were thsn asked. The replies gen
orally were involved. but the witness
Indicated that he obtained the rate OF
Interest from the current prices In the
money market. ana not as the result
OF "a guess
The attention OF the witnesses was di-
rected 20 hts testimony that the books
showed Mr. quay owed tiAs,is5.is at the
end OF October airt. 1897. lie was told
to show wherc such evidence appeared
IN the books. This ncccasitntcd the Wit.
ness coins over cncii' took bearing On
the account aud consumed much time.
The defense confined the witness TO
the regular books OF the bank and
without reference 60 the red book %
the bank and without reference to the
red book" black book and blue
book"
IN pursuance Of this ts7.ssiiG We're
the fotal leans charged against VT,
quay. There were also numerous
crcdits, but balancing the figures lcft
the Indebtedness as above. This loft
difference OF ti.s $50 In the amount
Of fisi.sff.is testified to by the witness
yesterday M having been loaned to
senator Quay during the six months
ending October diFt. 1891. The diHcrup-
ancy was accounted for. however, by
the production Of the black book OF
entries showing purchases Of Mrtrupol-
ltnn and sugar stocks To the value OF
tisS. $50.
air Shields claimed that tho witness
had no right 60 charge against Senator
quay these purchases OF stock since
thoY were bought through local
stock brokerage nrm aud carried by
them ON fnargin, ana that not dollar
was loaned by the bank on the trans
actions. The witness was compelled
TO admit the truth OF this. The
black book " tho volume In which
Cashier Hopkins kept his entries OF
stock transactions. Mr., Shields
brought from the witness the ndmiH-
sion that an apparent loan OF sb1,-
hlo,i2 should he reduced tit, s50rccoived
through the closing OF deal In United
Gas stock. that the books also showed
further loan OF 5000 charged 10 Sen-
ntor Quay was paid by man named
Andrew. that loan OF iis.9i5 charged
To Senator Quay was apparently
loan 10 GOV. liastlngs; that an item
of sa,2o0 In senator cuny'a loan ac-
count was an obligation OF man
named Ahorn. that other items nggrc-
eating $4,000 charged To senator quay
were obligations of other people. The
successive admissions ~ the witness,
Mr. shields argued. showed that Of the
APPARENT loans TO senator Quay ~
sisss55.i2 during the six months under
discussion. an or nearly all constituted
the obligations OF other people; In oth-
or words. that senator quay was nm en-
doraer nrN therefore only a tentative
debtor OF the bank.
Recess until o'clock.
Al ,ho afternoon session Mr. Shields
took up senator Quay's letters 10 Hon.
klns which have been published one
II haze az nuhn's 900 shares Metro
polltnn, Take u mp for me-"
Tho witness stated the books did not
show that the request was compiled
with, Another read:
give uoo, HUM $4,000 for me and
nnnd me u note"
This was not done.
The telegram 81 February .. 1895,
reading, Get out at profit check on
you FOR 5000 was referred 20. The
witness turned 10 senator Quny'a ae-
count IN tue ltlttf ana ttAtlNt' tnut
on the date the Senator'S balance was
sia.Sass7. A. a fact he ala not check
on the bank FOR that amount No
check was paid for the Senator until
February H. when his balance was $780,
7Gs. 20. and he drew on that day &i1,227.-
81. The next telegram was dated 81.
Lucia, Fla. Feb, II, 1885 reading, III
you VIII buy ana carry 1900 Met for
me, l win shake the plum tree" The
witness admitted that az the time the
famous telegram was sent Senator
Quay had balance Of over 500. 900,
THE books show that $4,000 WIS drawn
from Mr.. Quay's account and paid 90 q
broker for use ~ margin FOR this
transaction IN Metropolitan. Mr.,
Shields said the books showed that
Nov. II. 1896. the beginning ~ the perl
I'd for which senator quay N INFLICTED,
his total Indebtedness to the bank was
$50, g92 and on Nov. 30. Il was $50 G9ii2
The witness was asked II II was not a
fact that senator Quay's Indebtedness
at the end ~ November that year
would have been only sS.20i.67 had the
proceeds ~ q large block Of United
Gas stock sold on November o.
amounting TO si2i,3ts.l6 been
credited to his account. A partial
credit for this sale OF ssssst.a7 was not