The San Francisco call., 1904-07-02
Loose Leaf System Lacks
Records of Ninety Options
Abstracted About Time
That the Firm Failed
MATTER WILL BE
PROBED BY COURT
Judge de Haven Denies Ach's
Motion to Punish Camp
bell for Taking Books


Co. Just who did the tampering has
not developed as yet, nor has the time
or the act been settled. In addition to
other methods of doing business the
nrm had a system of loose leaf" rec
ords. They were so loose that the rec
ords for ninety options for lots in ware
houses are among the missing. They
are important documents, according to
the bearing they have on the case at
bar, and there is to be considerable
probing to find out just how nearly
criminal the loose system was. w. w.
Topping, the former bookkeeper of the
firm, says the book was locked and the
records safe, but in some mysterious
or loose manner the documents escaped
from between the covers, although he
had the key. This occurred just before
or after the failure. Topping could not
remember many things. He did remem-
Der that the loose system should show
ninety more options than it did, but he
could not say what became of them.
At the opening of the morning ses-
sion Topping returned to the stand and
identified a book offered in evidence
showing the receipts of grain during
the year 1923.
Can the leaves be readily removed
from this book?" asked Attorney
Campbell
Yes"
THE book contains a record of but
fifty eight option lots; yesterday you
said there were 14S, why does not the
memoranda of the other ninety lots ap-
pear in that book?"
"The only explanation ] can offer is
that they were not hypothecated."
lis it not fact that there were other
entries in this book, up to June /,
19O3?''
Il don't remember"
ENTRIES ARE MISSING.
'Will you say that it did not con-
tain list of all the lots in the Pacific
the people to whom the grain was de-
livered or hypothecated?"
Il don't remember"
Can you tell that ninety entries are
missing?"
That is fact"
Attorney Campbell then closed the
book and asked the witness if it were
locked, to which Topping replied in the
affirmative. The key to the book, he
said, was usually kept in his drawer
He did not know just who might have
access to it during his absence, as the
drawer was never locked, but no one
save himself had any particular occa-
sion to use the drawer.
Most of the afternoon session was oc-
cupied in an argument as to the ad-
instability of the cargo invoice book
which shows the amount of grain ship
ped away during the year. The de-
fense claimed that a question had been
raised as to the right of the court to
retain possession of any of the books
and until it was decided nothing should
be read from them. The objection was
overruled, however. The book was ad-
mitted in evidence and Topping pro-
ceeded to read such entries as he had
made in it. These showed shipments
of about $4,000 tons of grain to differ
ent ports during the last year the firm
was in business. Entries made by
others have not yet been read.
During the day there was an inter-
esting controversy regarding the GUS
tody Of the books. In the argument At
torney Campbell said that, although
the books were physically in the possess
sion of the court. they were construct
lively in the possession of the trustee in
bankruptcy, as they were open to the
inspection of any one who cared to see
them.
WOULD KEEP BOOKS.
Attorney Friedenrich, representing
Trustee Wadsworth, said that the
hod
employed by Wadsworth without his
consent when they were in actual pos
session of the Federal court and could
not lawfully be removed without it's
consent. The trustee, he said, never
consented to allow the books to leave
his possession and never would con-
sent. Judge Lawlor reserved his de-
cision and the matter will be further
argued Tuesday afternoon. In the
meantime the contents of the books
are being read before the jury.
Another phase of the case came up
in the Federal court when Attor-
ney Henry Ach appeared yesterday
morning before United States Dis
trict Judge de Haven and pre-
sented a petition signed by ia
cob Eppinger. The petition asked
that Attorney J. C. Campbell and Pc-
lice Detective Thomas B. Gibson be
adjudged guilty of contempt of court
and punished for having, without per-
mission Of the court or of Henry Wads-
worth, the trustee of the bankrupt Ep-
pinger estate, taken away one storage
book, one pass book. one letter book
and certain Cancelled checks and other
papers. The petition accuses Campbell
and Gibson of having "conspired and
colluded together" for the purpose of
taking the books and papers
Judge de Haven denied the motion.
He said that the trustee was the proper
person to make such a motion, the doc
uments being in his custody. Mr.. Ach
took an exception to the ruling of the
court.