The Montgomery advertiser., 1904-02-13

- anu aiso as tetier, ot tho Eufsula' National Bank, in the several counts with false entries, en,bessiement and wilfui nnisapplication and abstraction, or the funds of the bank. The govern ment being required to elect upon which or the different classes of mixdemeanors N would prosecute, elected to proceed on false entries. Tho other counts were ac- cordfngiy noi prosed and need not be further referred to.
 The. counts which remain irs the indict. ment are twelve in number. They charge raise entries. as to different itens.. and In different capacities. sometimes as teller and sometimes as cashier; sometimes that the entries were made with intent to de- fraud the association or to injure. it.; sometimes to deceive any agent then ap- pointed. or who might thereafter be ap- pointed by the Comptroller of the Cur rency to examine the affsirs of the as. soclation. It suffices to a proper under standing of the ruling upon demurrer, to state the substances of khe fifteenth count, which states the false entry in the strongest light for the government. That count. after formal predatory averments showing the organization of the bank, and the place and time where 1t did business in this district, and that defendant was its cashier, etc. favers. that defendant did make fin a certain book belonging to, and in use by the association, in trans acting its banking business" said book being particularly described, and "cover- ing 3 period between the 18th of May, 1901. and ending on the sth of October. 1s0i." an entry in words and figures as follows. to wit: Cash items four thousend seven hundred sixty-hve and S2-l00 dollars. It then proceeds to aver "that the entry describing it, in the named book" then and there purported to show and did, in substance and effect, indicate and declare that said Edward B. Young, as such cashier did then and there, at the time said entry was so as aforesaid made, have In his possession ss such cashier, as the property of said association. real. valid and proper cash items, amounting in the aggregate to the sufn of four thousand seven hundred sixty-five and g -100 dol lars." It then proceeds. the entry was then and there false in this, that said entry represented that said Edward B. Young, as such cashier of said association, then and there had in his possession, as such cashier, divers cash items, which when taken and counted together made the aggregate sum of four thousand seven hundred sixty-five and s2-lee dollars, and which said entry purported to show. and did in substance and effect indicate and
 
 Young, then and there had in his pos! session, as such cashier, divers real. valid and proper cash items, amounting>in the aggregate to four thousand seven hundred sixty-five and S2-100 dollars: and said entry so as aforesaid made was false in this, that one of said cash items (which was set ouO being a check drawn on the Eufaula National Bank, to the order of warrants for twenty-one hundred dollars, md cfex an1 k~x,T n treasurer, was then and there at the time of said entry, in truth and in fnct worthless. valueless and fraudulent, as he the said Edward B. Young, at the time said entry was made, well knew" The count concludes by charging that the false entry was made with the intent to deceive any agent then appointed, or who might thereafter be appointed by the Comptroller of the Currency to examine the affairs of the association, contrary to the form of the statute" etc.
 The demurrers raise several objections; first, that the count does not state that the Comptroller of the Currency had ap- pointed, or would appoint an agent to examine the affairs of the bank; second. that the items alleged to be worthless. Fraudulent and valueless might be so, and yet be real, valid and proper items; third, that 1t does not allege wherein the items said to be worthless, valueless and fraud ulent, were worthless. etc; and, fourth, that the count does not charge or al1ege that the entry alleged to be false, did not truly represent a transaction that actu- ally occurred in the business of the bank
 Jones, District Judge.
 The gravamen of all the counts, in re- spect to the check described, or the other designated papers, is that the cashier or teller, as the case may be. made a false entry on the books in his cash items with the intent to deceive. etc. To con- stitute the offense here charged, thero must be Doth false entry and an intent thereby to deceive If the entry Is not false. the intention with which 1t is made, which is only one element of the offence, cannot amount to crime. The language of the several counts as to this matter is specific, and assails the entry as false in one particular only. which, to quote the language of the indictment, Is that "the entry was false in this, that the cash item (descriibng iO was then and there. at the time of the entry. In truth and in fact worthless. valueless and fraudulent" The counts impute no other ground of un- truth to the entry. They afflrm necessa- rily. that the entry in the cash items of the paper, described. was false solely because the paper which constituted the Item was worthless. valueless and fraud uIent. and so known to the cashier when he made the entry. They do not deny that this worthless paper was taken in by the cashier, in a transaction with the bank on the date stated. Whatever pre- sumptions can be indulged as to this. must. of course, be solved in favor of the derendant. Is such an entry a false en- try in the meaning of Section 5209 of the Revised Statutes?
 congress made embezzlement, abstrac- tion and willful misapplication of the money funds or credit of national bank ing associations, and other specific acts by which the credit or funds of a na- tional oank' can be unlawfully imperilled or converted. criminal offenses against the United States; after which. fin the end of the section. 1t punished the making of "any false entry." with intent to de- ceive, etc. Congress had also provided very comprehensive regulations. of which this section forms a part. of the business of national banking associations The Comptroller of the Currency is given large visitorial power over them. Hs nav can on them for special reports and may appoint examiners to ascertain and re. port upon their condition. The law re- QuIres these associations to make renorts to him at specified times, exhibiting their conditions, etc., according to forms pre- scribed by the Comptroller, which reports are not only to be made to him, but to be published at the place where the bank does business-all this. that the public, as we'll as the Government. may know the condition of the bank, and act according ly. In certain contingencies, the Comp. troller is authorized to appoint receivers of such associations. and to wind up their business.
 Having already enacted safeguards for the preservation of the funds and credit