Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-03-01
MAY LOAN SELVES MONEY
Decision is Sweeping and Holds There
is No Provision for Punishment Of
Bankers Who Loan Banks Funds to
Themselves and Thereby Wreck the
Institution.
pecial to Times-Republican.

Scott county court charged with ems
bezalement, affects not only every 9TH
err Indictment against him but almost
all of those against his son. Arnold
Beuthien.
Under the ruling Of Judge Bollin-
ger section 1869 of the code of Iowa
under which Mr.. Beuthien was irdict-
ed does not provide q punishment for
the offense, and hence the crime there
In defined is in reality no offense ac-
cording to the laws OF the state of
Iowa.
The decision Is most sweeping in it's
nature as it practically decides that
Arnold Beuthien cannot be held UNI
der the indictment to which he plead
ed guilty yesterday and to any of the
indictments, in fact, that have been
brought against him under the. sec
ton of the code named above.
Decision is Sweeping.
More than this it holds that under
the laws Of the state of Iowa all Off
Ger of "a bank can loan money to HIM
self without the express consent of the
OOStLN Va alISSlOlS titiu AAlll 1S SdiA Nv
deemed guilty of no crime under the
statutes of the state Of Iowa.
The decision affects every banking
institution in the state and establishes
precedent in Iowa on this section Of
the code.
When a statute does not provide a
punishment it is held that there Is no
crime, hence the use of funds ass sta
ted above cannot be held as crime
To Attorney Louis Block is due the
exposure of the defect in the statute
and to his diligence in studying the
law under which Mr.. Beuthien was
held does that gentleman. owe his sud
den release from custody and to whom
Arnold Beuthien will undoubtedly owe
great shortening Of his sentence
should he be held on any.
The statute practically ties the hands
Of the county attorney. Mr.. Hamann
has secured all possible evidence In
the case, but with the decision that the
statute is not OF value he can scarcely
make move. y.
Practically Frees Beuthien.
The charges that have piled up
against Arnold Beuthien in each in
stance, with the exception of one or
two perhaps, are all based on the sec
ton named above, and as there is no
other section on which he cap be held
IL the decision stands, it means that
he is, free from the Indictments.
Attorney Block held that it was the
punishment that made the crime and
in the absence of the former there was
no crime. In this instance he s. ted
that it would be impossible ind
a punishment for the offense. He
claimed that this was a specific charge
of embezzlement and that 1T was not
vided that embezzlement should be
be sentenced as If guilty of larceny.
In this Z ba held that the es-
sential fas in the case were the
kind of ensa cement that it could be
held to he ard he argued that could
be construed to include the crime
which was stated under section 1869
of the code.
BeutF1ien Released.
Judge Bollinger then made the en-
try that Martin Beuthien should be
discharged and the bail exonerated and
the old banker who had been on trial
for an alleged crime found himself at
liberty on the charge on which he was
held County Attorney Haraann inn
mediately entered an exception to the
decision.
While Mr.. Beuthien is held on two
other indictments, they are all indict-
ments under the same section and If
me could not be held on one he could
not on the other, hence the. decision
practically renders. him free man. At
least he is free until the matter is
taken to a higher court, if it is, for
final adjudication.
Arnold Beuthien Free.
The decision, however, has a more
far reaching effect. BY the direction
of his attorney, Louis Block, Arnold
Beuthien came into the district court
yesterday and entered plea to two
indictments for embezzlement One
was for the embezzlement of $4,000
and the other for the ENLIGHTENMENT of
$1,750. Now Attorney Block states that
the indictments were brought under
the same section as that on which Mr..
Beuthien was released. Such being
the fact, Arnold Beuthien cannot be
sentenced, as the law provides no pun
ishment for him.
What effect this will have on Arnold
Beuthien's ultimate liberty is hard to
state. Nearly all of the indictments
under which he was held are under the
same section. He is held on a charge
of forgery, however, and it is claimed
that one Of the counts against him is
for embezzlement that would make the
offense punishable the same as lar
ceny; in other words that it includes
more than borrowing money from the
bank for his own private use. Should
this be the case, this section will not
aid him in those indictments.
The release Of the elder Beuthien
and the situation in which Arnold
Beuthien comes is a tribute to the leg
al ability of Attorney Block. Since he
has had the case he has been busy on
it night and day and it was due to him
that the error in the code was hunted
out and his client was released.
Not only this but he has hunted up
a defect in the state laws which will
affect every state and savings bank in
Iowa 1t means that its officers can
handle money for their own use with
out asking the directors 1t means all
so, perhaps, that the next legislature
will see to it that the section of the law
is amended SO that it can be of some
force, but in the meantime Attorney
Block has succeeded in clearing his
clients. The decision also ties the
hands Of the county attorney in cases