The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-04-18
QUAY'S STOCK PURCHASES.
Evidence As TO SPECULATIONS WITH
THE STATES MONET.
In One Period of Six Months They AgRre-
gated Half a MIlinn. SnHa nn ENnerI

In One Period of Six Months They AEEre-
gated Half n Million, Says an Expert
Ac~countant-No Interest Paid by Quay
ON Call Loans from the Peoples Bank.
PHILADELPHIA April 1.-THE real struggle
in the trial Of ex-senator NJ. 8. Quay began to-
day. Last week was occupied only by the
sktrmishing for position. There are about fifty
witnesses for the prosecution to be examined.
and 1t IL expected that the expert accountant.
Meysr Goldsmith. will continue ON the stand
all this week proving entries in the various
books. lie had prepared a typewritten state
ment showing the results OF his examination
II the books. and there was an attempt TO have
1t admitted as testimony. but Judge Biddle
decided that although 1t may be referred to bv
the witness to refresh his memory. 1t cannot
be given to the jury, and the intention OF the
att for the defence is to force the ex-
pert to show oil the entries in the books and
prove by them the conclusions at which he
has arrived. The testimony to-day was all in
regard TO the entries IN the books. Every
statement made by the witness was objected
to by the attorneys for the defence. The fight
now will not be over books, but on Individual
entries.
Mr.. Goldsmith In testiiying took transact
lions by periods Of six months. which repre-
scented the settlement periods Of tho Pc ople's
Bank. The first period wac between April 80
and Oct. 81. when the States deposit varied
from S5?0. 900 to $685., OOO. During this re-
riod Quay had $20O.OOO set aside for him and
used SlS5 S55.l II Of 1t. or this amount SAB
POO was spent In the purchase OF United Gas
Improvement. Metropolitan aud Sugar stocks.
The witness said that Quay paid no interest on
the sum set apart for him. but that interest
was paid to B.. J. Haywood. State Treasurer.
and Charles H.. Mckee. The interest was fig
ured on the difference between the amount
Quay was permitted TO borrow and the sum
he actually used. The plan by which interest
was paid on State money, which at that time
was not supposed TO be done. was explained
10 be as follows Interest. was paid BY regular
call loan borrowers. but was not credited on
the books OF the com pany. Instead Of being
credited. the money was used by Cashier Hop
kins to pay interest on the States deposit.
The names of twenty-five call loan borrowers
who paid interest which did not appear ON the
books. but which was said to have been paid
The evidence showed that NJ. i. QUAY Dor
rowed SlS5.s55.l2 on call loans between Aprll
q, ' ias G't and 3D. A lMii' a. S2t ia;7 and I s. 8, ri III Is
between April 30 and Oct; -. lS"L. In, the
period between Oct. 81, 1881. and April 80
ne periods Mr.. Goldsmith figured the interest
si'4n5 si"TG"'a and said quay paid only SSI3a1.2&5.
lie gave these purchases OF stock W quay:
uSt j. and g; s !St3' u UHt' e. G G., I Gr : Ts,.
iop"iitan, $32.t37.50: June IL. is,7. 300 Met
rolo!itan; $2l:n73; june II, lS'i iUO sugar.
SOL $50; total. sl43.2OO., -,
The witness explained how the interest paid
t. Mchee and iin!T5" W. determtned.
taken. then 20 per cent. was deducted for the
bank. Interest on the S2uO;uOU SET aside for
tt"n ON an additional 1000 was made. The
remainder was divided into three parts and
made IN the part Ct the S2OO.O0O set aside for
quay and not used hv him. This interest, was
divided into three parts and "ne rart raid to
the balances on tho loans to NJ. :. Quay during
tie period ficm Anil g Mctober, 1851; were as
ln2.,2: showing that $1,000 had been paid in
.his tine, On @nge II IL, there err Ias a balance nn, Of
AUG; 80. $,;i.N2j: AZ when figure 1t remained
until Oct. 81. the eud OF the reriod.
The witness read the names OF twenty,two
interest was nut.credited on the books Of the
bank. The names Of four nersons VIII did no:
f f. H. !nf Marsh al j. II. ' Mor rHrina a mSIe a. hi +. WtG:
ener. He said that Haywood should have paid
s%S. e Mar q Si?d' T M"srif i9Tio S Sl;Ti y IT,;
OF call loan borrowers who owed interest. paid
it. and were rredite' on the books rs having
the bank appeared among ne call loan Dor.
70 wers. The witness %aNerrea that the amount
paid on the call loans Nv borrowers RenerdllN
which was not accounted for on the books was
S4.S16.4i.
The first period was left at this point. and
the period between Oct. ~. lS!Hi. and April 20.
1877 was gone into aiter Judge Riddle over
ruled an Objection BY the defence. thar the
statute of limitation barred II out. The high.
est amour I Of the state : deposit in this period
was Siilj,OON. The call loans to QUAY aggre-
gated $247 5000. .Quav's stock purchases. it
Was said, aggregated ~S1uo,notWi Ofthis there
was IA balance which had been owing from
lN4-a5 amounting to S4n.lhSHL leaving the
actual purchases at S4'iO.,i2u.2u. The pur-
chases OF stock for this ueriol were specific. 4
dividend Of S5ON was collected on one batch Of
United Gas Improvement stock. AMI was do
Quoted. During this period S3.Wi2.I2 was
paid out in interest 10 the State.
Testimony AT the afternoon session dealt
largely with the periods Of is From Auril
| to oct. 81. 1886 there was from S41O.nOO to
SiilI,OOO Of the commemorative money on de-
post. TON. :. Quay en- call loans was credited
the sum 81 ~. III !tS. of which Sl02.Nbi!'S was
used for the purchase Of stock hy the bank for
VI. s. Quay The interests on the State de-
posits FOR this period amounted to S2,iIl.ll.
At this point the court was adjourned