Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1901-01-12

ueleliSe moved TO QuaSn SeVefal counts
of indictment, but the motion was over
ruled.
Herschfeld was put on the st and and
testified that he had been in the bank
ing business since 1867. and as president
had full control of the State bank of
Miles City. The cashier was Leo G.
Harmon. The bookkeeper was at first
a young man named Hoge, but after
wards John E. Decarl was in charge.
In regard to the substitution of the
notes of William Thompson and Henry
Metcalf for $500 each for his own note
for $4,000. he said the cashier one day
suggested it would be good idea to
divide up his note. and Herschfield said
he would rather have the paper cut up.
1t was merely question of changing
the form of debt. He substituted the
notes of Thompson and Metcalf, which
We're amply secured by his own collat-
elal. namely. 500 shares in the Herself
field Cattle company. at par value of
500 each. Metcalf was a man he en-
played around the house. He had heard
recently of his death. Having charge
Iof the discount register, he entered the
transactions as they occurred. The re-
port to the comptroller of currency was
made out by the cashier. He examined
the inside sheet, containing the matter
published in newspapers before attest
ing 1t, but did not examine the outside
sheets. giving synopsis of assets and
liabilities. HarmOn's statement that he
CHerschtield) directed Harmon to make
the entries alleged to be false, he de-
clares vas itself false.
AT one time he was worth over s. a.
900 above all liabilities, his property con-
sisting of bank stock, real estate, mines
and stock in the cattle company. :ind he
considered he was amply able to pay all
his debts in full. In explanation Of the
transactions with eastern banks. he
said notes for $500 We're placed with
those banks secured by bank stock of
par value of $1,000 for each note.
In a conversation he had some time
before. ROsenbaum Bros. and company
Of Chicago, had told him they would be
glad enough to accommodate him with
loan at any time, so he sent $4,000
worth of collateral to them with the re-
quest that they deposit that amount to
the credit of the State National bank in
banks at Chicago and Minneapolis. In
anticipation of this deposit. he had re-
quested those banks to transfer the
charge from his own account to that of
his bank, but Rosenbaum Bros & Co.
wrote back that in consequence of a
panic they could not make the advance
II was customary with banks to make
entries in anticipation of deposits. At
that time 50, 500 was a small matter to
him, for he had plenty of money. He de-
MED telling De earle that Thompson and
Metcalf lived in Helena: he said he had
known Metcalf in Helena.
The collateral was left in the Miles City
bank to protect it in the SO, 500 transac-
ton. In February, 1897, he went east,
taking with him large amount of Sc
curities to raise money for the bank. He
obtained $4,000 from the First National
Bank of Minneapolis, and $50, 900 from
hte National Bank of the Republic in
Chicago, where the money was placed to
the National Bank of the Republic in
did this with the knowledge of the d.
rectors. While he was in the east an
investigation of the bank wah made and
it was found all right. but shortly after
his return he resigned the presidency
voluntarily. because his health was bad
and he could not give it's affairs his close
attention. He denied all intent to nissan
ply funds in taking up his $4,000 note,
or to deceive the comptroller of the cur
leEcy or the bank examiner.
Under cross examination by district
attorney Rodgers, Hershfield claimed he
still owned all his stock in the Mer-
chants National bank when it failed,
II was not true that ten shares was all
he owned. The rest of his stock had
been charged against his brother for as
sessment, thought the brother claimed
it belonged to Aaron Hershfeld. He had
no private letter book and kept no copies
of private letters, but did SO in the case
of bank letters. He had asked his broth
er in Helena to advance $4,000 to cover
the notes, but failed and was forced
to admit that though he claimed to have
been worth 100000 al that time, he could
|! not raise $4,000, but made the excuse he
Il was i'll at that time. He did not know
| how much his debts We're then, but adj
mitted owing the Merchants National
bank 100000. which he called small
!. amount The fortune of 100000 he
|. claimed to have had over his debts had
| gone in paying debts, as he had LOST
i 500, 900 in the Merchants National bank
/ and his securities had gone at forced
| Gales for 80 or 40 cents on the dollar. He
itdenied having taken stock in the Hersh
| field Cattle Co.. which had been put
up as collateral for $4,000 note and Sent
| it east to secure notes for $4,000.
The case will probably close this after.