The age-herald., 1901-04-30
CIGAR MANAGER PAID AMERICAN
 OFFICERS MONEY Factory Man Tells of Giving
 $1O5O Commission SOME SENSATIONAL EVIDENCE Trial of Captain Feed, Former Comm.ssarH iaS 3egln NAVAL OFFICER MAKES ADMISSIONS Lieutenant Townley Says he collected $20o0 as Commission From Castle
 Bros, Who at First Were
 Reluctant About Matter.
Trial of Captain Feed, Former CommissarH iaS 3egln
NAVAL OFFICER MAKES ADMISSIONS

Manila, April 29.-The trial of Capt James c. Reed, former depot commissary at Manila, who was arrested fortnight ago for alleged participation in the com missary frauds, was begun here today, and bids to develop into celebrated case. Captain Reed is charged with soliciting and receiving bribes and with other of ficial misconduct.
 At the beginning of the trial. counsel for the defendant objected to the juris- diction of the court, alleging that under an act promulgated in 1901, officers of the regular establishments are ineligible as members of court-martial to try an of ficer of volunteers. The defense further deny that state of war existed in Ma nila today. and alleged that the provost marshal. Gen. George Davis, is unauthor- ized to convene a general court-martial and iptimating that as General MacAr- thur virtually preferred the charges against Captain Reed. the orders direct ing his trial by courtmartial should come from Washington The defense further objected to the fact that several mem bers of the court were of inferior rank to Captain Reed. All these objections were overrued and the hearing of testi- mony was begun.
 MT Schindler, manager of the Alham- bra cigar factory, testified that in No yember Captain Reed had told him that Major George B. Davis. who was the depot commissary before Captain Reed. but who was sent to the United States on sick leave and whose name appears on the books of Evans account, govern ptp Manila. the re- cipient of 5000, was 5000 short In his accounts.
 Continuing. MT. Schindle testified that those having profitable contracts with the government were asked to assist in mak- ing good Maj Davis deficiency Schindler gave Captain Reed $l05o which was 2hs per cent commission on the cigars sold to the commissary department during the time that Major Davis was depot commits sary at Manila
 An officer named Franklin. who was as- sistant commissary, testified that on March IS, following the direction of a superiar officer, he obtained 5000 from Major Davis and paid this money over to Schindler.
 Inspector General Darlington testified that during the preliminary investiga- tion of the commissary scandles Captain Reed admitted his recovering money from Schindler and others and gave as dn excuse that the money recovered was intended to cover Major Davis shortage.
 Richard H. Townley, of the navy, tes- tifed as result of a conversation with Captain Reed. he went to the commits sary department and asked for 5000 and 2 per cent on sales. he (Townley) acting for another party. He went to Castle Brothers and asked them for $20O0. Cas- tie Brothers were reluctant to hand over this sum. and Lieutenant Townley ex- plained that Captain Reed was in posi- ton to advance the interests of the firm, and that 1t would be advantageous to Castle Brothers to oblige him. Lieutenant Townley testified that he further ex- plained to Castle Brothers that Captain Reed might allow them use of govern ment lighters and possibly be less rigid in the inspection of goods purchased. Lieutenant Townley said he thought Cap- tain Reed was doing a noble thing in at- tempting to protect the character of a brother officer. He also said that such transactions were not customary in the navy.
 When cross-questioned Lieutenant Townley said. rather sheepishly. that he was not so sure that he was doing right in taking the witness chair.
 Col. Charles A. Woodruff. chief of the subsistence department in Manila, ex- p1ained the circumstances of Captain Reeds appointment and described the du- ties of the depot commissary, not know ing whether the accounts of Major Davis were correct or not, Colonel Woodruff explained that on December 30 Castle Bros. aroused his suspicion by intimating that money was being collected by an off, cer of the commissary department Later Colonel Woodruff sent for Captain Reed who admitted receiving rebates for the purpose of covering the delinquencies of Major Davis. The testimony of Colonel Woodruff is unfinished and other wit nesses are awaiting examination