The sea coast echo. [volume] (Bay Saint Louis, Miss.) 1892-current, 1902-07-12

Pals 10 Agree, and Mistriai Is En-
tered.
A startling denouement in the
State Treasury cases occurred DUR
ing the trial at Jackson this week
of Phil A. Rush, when Il. T. Raj
ford, the cashier of the Treasury
under Showers, who is under in
dictment for embezzlement of the
funds of the Treasury, took the
witness stand for the State and
disclosed the matter of the loan
of 100000 of the Treasury funds
last August to John Armistead,
president Of the Mercantile bank
of Memphis, who borrowed il for
Frank Jones, of the Memphis
Straat. pa;lsuay 6se~pany. In. hia
testimony Raiford reviewed the
transaction frum start to finish,
giving everp detail of how he and
Rush had made the agreement
with ArmIstead, and how the
money was carried back and forth
to Memphis by Armistead and
on one occasion in Rai-
ford's hip pocket.
During his testimony Raiford
also stated that Treasury Showers
had habituall made deposits of
the Treasury funds in the banks
of jackson on security. He said
Showers did not knowof the Arm
istead loan, but that Showers had
constantly made the deposits In
the jackson banks. These state-
ments of the witness were made
against the rulings of the court
and over objections made by the
defense. Witness always got in
his answers before the court ruled.
During his examination Mr.. Raj
ford admitted that District Attor-
ney Greaves had promised him to
nolle pros his case if the witness
would tell the whole truth about
the Treasury loan on the witness
stand. Raiford said the District
Attorney did not tell him what to
testify, or what testimony would
be expected, but simply said If he
would tell the whole truth his case
would be nolle pressed. This
means that MIR. Raiford is now
outof the case. Mr.. Raiford said
in connection with the loans OF
Showers to local banks that none
of the money had ever been loaned
to the jackson Bank.
In a personal statement to O
Times Democrat correspondent
after he came off the stand Mr..
Raiford said that his testimony
was not a surprise to the attorneys
for Mr.. Rush as they knew that be
would testify, and knew also that
his testimony was available to the
court in several different ways
1t was in the testimony taken By
the Legislative Investigating COM
mittees and it was also known To
Governor Longino and Auditor
Cole. He said also that he knew
all the time that he knew he
would not be prosecuted, as he
had the assurance of both the
Governor and Judge Powell on
this point before that of the Dis
trict Attorney. Mr.. Raiford's
statement on the witness statement
on the witness stand was su bstan-
TALLY as follows:
"Met Phil A. Rush at the Ed
wards House in March, 1901.
Rush was attending a meeting OF
the Mississippi Fire Insurance
Company. Approached Rush and
suggested to him the feasibility OF
lending out some State Treasury
fund. Discussed the legal phase
of the matter as to whether it was
a violation of the law to take mo-
ney out of the Treasury and we
came to the conclusion that it was
not q violation. Witness told
Rush that Treasurer Showers was
letting three of the banks in Jack.
son have money from the Treas.
ury. Mr.. Rush told witness that
he thought he could make ar.
rangements for placing some OF
the Treasury cash. Several
weekSlater Mr.. Rush came down
to jackson, accompanied by John
Armistead, of Memphis. Ralford
Ruso and Armisted then had a
conference and it was agreed
that Mr.. Armistead was to have
$100, 600 on loan at 3 per cent.
"Mr. Armistead produced as
security for the loan note for
1000 signed by Frank Jones
of the Memphis Street Railway
Company, and produced as COLA
toral to secure the note $3.50, 900 of
Memphis Street Railway bonds
and 100000 Of the Mercantile
Bank stock. Raiford and Armi-
stead then signed a contract for
the loan. Witness did not re-
member whether Rush signed the
contract or not. II was signed in
duplicate and was to the effect
that 3 per cent. interest was to be
paid for the loan. Raiford was
to get 81, 200, Rush $500, and the
remainder was to 60 to Armistead
After the contract was signed in
duplicate, Raiford kept copy
and Armistead took the money to
Memphis. Showers did not know
anything about this loan to Armi-
stead, because he had numerous
deals of the same kind on foot
with the banks in jackson. Under
the contract the money was to be
kept by Armistead for one year,
andif it became necessary to re-
turn it to jackson to be counted he
time it was kept in jackson was to
be deducted.