The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-12
BANKER DAVIS ON TRIAL
HE Is CHARGED WITH THE EMBEZ-
ELEMENT OF $4,000.
Three Counts of the Indictment NoI-
lfed-Mr. LafOilette's Statement
for Prosecution.

United States Attorney Healing and his
assistant, Mr.. Lafollette, began yesterday
TO try to show Richard c. Davis to be
guilty of embezzling from the Peoples Ma
tional Bank, of Washington of which he
was cashier. Davis in court with his
attorneys, Smiley n. Chambers of this city,
and Clinton K. Tharp, of Washington.
Judge John II. Baker was on the bench, and
the jurymen. most Of whom were farmers,
were as follows: Joseph S. Amos, Kokomo;
James Anderson, New Goshen; c. S. Brent,
Lake Village; Holman Garfield, Sparta;
William COstlow, Kokomo; Joseph Cron,
Bloomington; w. S. Gray, Fowler; Owen
Hathaway. Winamac; Charles Horning,
Logansport; Joshua D. Mcqueen, Clifford;
Wilson Maple. New Point; Isaac Murphy,
Greentown.
The court, on motion of Mr. Healing, mol
lied three counts of the Indictment returned
by the federal grand jury against Davis.
These related to entries made on the books
of the bank. The remaining counts charge
Davis with having embezzled $4,000 from
the bank, and having made false report
TO the government controller of the cur
rency last August. Matthew Burke, presi-
dent of the bank, was the one witness ex-
amined, and the questioning of him will
continue this morning.
1t seemed from the questions put TO Mr..
Burke by Mr.. Healing, and from the state
ment for the defense made by Mr.. Tharp,
that the main controversy will be on the
subject of "creCits." Mr.. Tharp devoted
most of the time TO an attempt TO explain
an exchange OF credits between Davis
and the bank. Davis, il seemed, deposited
certain securities in the bank, creating
credit for himself, and then drew checks
for cash against his ''credit." Mr.. Healing
obtained the information from Mr.. Burke
after a long series of questions. 1t was
difficult for Mr.. Healing and Mr.. Burke TO
come TO an understanding.
LAFOLLETTE'S OPINION OF DAVIS.
Mr.. Lafollette made the statement for the
prosecution. He said that Davis
man of bad habits; that he spent time in
saloons and gambling houses. Davis car
ried money between the bank and the
gambling houses of Washington he said,
and the time lock on the bank vault was
set to close at IL D. m. instead of at the
usual time with banks-6 p. m. Mr.. La
toilette described Davis's method of work
in the bank, as alleged by his prosecutors.
The Cable Sc Coffin Mercantile Company,
of Washington, had note in the bank the
attorney said, for $4,000, and at different
times made two payments of $1,000 it,
These payments were not entered on the
note by Davis, who received the money
Mr.. Lafollette said, and a bank examiner
last August listed this note as an asset of
$4,000.
Mr. LafoIIette also discussed the transac-
tons between the Washington bank and
the Capital National Bank of this city.
Davis, he said. drew drafts amounting to
$4,000 on the Capital National last fall, and
did not enter the charge on the books.
President Burke was greatly surprised
when he learned the amount of the over
draft from the Capital National. and an in
vestigatiOn resulted. Then it was learned
that Davis had similarly obtained and
failed TO record $4,000 from the Union Ma
tionaI of Louisville Mr.. Lafollette told Of
similar matters of this sort. which have
been described in the newspapers since the
exposure of Davis's affairs Mr.. LafOllettC
said that suits had been filed in Washing
ton TO recover thousands of dollars that
Davis lost at games. 1T was only through
the courage of the other officers of the
Peoples National Bank" said Mr.. LafOl-
lette, that it was not wiped out of eX-
istence'