Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-05-26
More Light Thrown on Transac-
lions of President Brown of
Failed Bank
DEFENSE TRIES TO EXPLAIN
Receiver Wilson Says His Report Diff
fers $4,000 From That Of the Accus
cd Banker-certificate Issued to
Deceive the comptroIIor-outIine Of
Defense.
Special to Times Republican.

Sioux City, May 26.-Abner J. Will
son, receiver of the First National
bank OF Storm Lake, who was on the
witness stand in federal court yester-
day In the trial of w. T.. Brown,
president of the bank, who is charged
with making false entries in his books
and making misrepresentation to the
comptroller of the currency, declared
that the difference between his report
as receiver and the report sent out by
Brown to the Washington authorities
amounted to $57.97O.90. This relates
to the condition of the bank November
IL, 1905, for which date the comptroller
asked for a report of the banks con-
dition.
The difference lies In the classifica-
tom of various funds. Mr.. Wilson In
his report states that In his report the
sum is put down as borrowed money,
and in Browns report to the comp
troller Of the currency 1t is classed as
certificates of deposit.
The attorneys for Brown said that
lulS dl(L llOL llltdIl lIuCH OTe Way OF
the other, as both certificates of de-
post and borrowed money are liabil-
tiles, the difference being merely in
classification. The total amount is
made up Of various items and was ar
rived at after much delving into the
bank books.
According to figures shown to the
jury by Mr.. Wilson. Browns report to
the comptroller at the close of business
on November IL, 1908, showed resource
es of $296,53203, while Wilson'S fig
ures, taken from the books of the bank
for the same day show resources of
$276, 1898.
The receiver also testified that while
Brown had sworn to the comptroller
that his personal liabilities were only
$7,592.2S, he had found them to be $685.
912 Mr. Brown also showed that the
personal liabilities of the officers of the
bank were $11,147.92, and Mr.. Wilson
showed them to be $75,2S7.s3.
The receiver testified that Brown
swore that the Security Trust and
Savings bank Of Des MONIES owed the
Storm Lake bank s5,3os.30. when in
reality 1T owed the Des Moines bank
tl1at much.
Borrowed for Himself.
what is the reason for this dis
crepancy between the report you made
as receiver and the report Brown sent
to the comptroller Of the currency?"
Mr.. Wilson asked.
THE sum lis divided into two loans"
explained Mr.. Wilson. 1.-The books OF
the First National bank of Storm Lake
show that Brown credits himself with
the sum Of S12,579.S2, due him from the
Farmers and Merchants bank at Sioux
Rapids and the Farmers and Mer-
chants bank at Linn Grove. AS both
these banks were owned by Brown, I
just put down this amount as an over
draft of Mr.. Browns individual ac-
count"
Mr.. Browns Defense.
Attorney j. M. Parsons has outlined
Mr.. Browns defense as follows:
cit is quite evident said he, 'that
is a common usage for country banks
to borrow money at statement time
Our defense will be that Mr.. Brown
had no idea of either defrauding or de-
ceiving anybody. When the certificate
of deposit was sent to the Des Moines
National bank Mr.. Brown never doubt