Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-05-29
BADFOR brown
The Prosecution Against Failed
Bank President, Claims
Credits were Worthless
REPORTS CLAIMED TO BE FALSE
Brown is Accused of Making a False
Report to the Comptroller Of the
currency-Defendant Also, Among
other Counties, Accused of FaIsify-
ina His Personal Account.
.snoo,., 70 Tines-Republlcar.

Special to Times-Repupucah-
Sioux City, May 29.-ln the feaerai
court trial of w. E. Brown, presldene
of the failed First National BANK OIL
storm Lake. who is charged with max
ing false entries in the banks BOOKS
and false reports to the comptroilef VI
the currency, the government has rest
ed it's case.
AS far as the trial has proceeded,
evidence introduced to show the loi-
lowing specific transactions has been
brought out:
That Brown created a fictitious ac-
count of $40, 900 with the Des Moines
National bank.
That Brown created a fictitious ac-
count of $4,000.
That Brown reduced an overdra1t
account $4,000.
That Brown swore falsely in the
matter Of collateral for loans.
That Brown falsifed accounts OF
personal indebtedness and also that OF
officers Indebtedness.
That Brown falsifed accounts rel
alive to worthless accounts.
These charges have been brought out
by the government and it is presum-
ed that 1t will be on these that it Will
base it's case before the jury. In the
first transaction Brown is alleged to
have sent a certificate of deposit to
he Des Moines National bank, which
.,o, .at,,roa3 h,yf xt-hfch WAS never
theless entered on the books and in
cluded in the report to the comptroller
of the currency.
Claims Credits Worthless.
In the second case Brown in his re-
port to the comptroller of the cur
rency, gives an item approximating
S17,O 900 as money due the First Nation
al bank of Storm Lake from other
banks. The prosecution contends thai
S12, 900 of this money was due from
the Farmers and Merchants bank of
Linn Grove and the Farmers and Mer-
chants bank of Sioux Rapids, which
were then in a state OF insolvency;
and that the remaining $1,000 was due
from a man named Lally, but on a note
against which there was a prior claim.
The prosecution holds that Brown
knew the condition of his two private
banks at that time, and also knew OF
the nature of the Lally loan. There
fore when he mentioned this sum in
his report as being due from other
banks, ETC., the government claims he
did so with intent to deceive the comp
troller of the currency.
In the third point the prosecution
holds that Brown reduced his personal
overdraft $4,000 by means of a check
on the Farmers and Merchants bank
of Linn Grove, which was then prac-
tically in a state Of insolvency, as
known by him.
Claims Reports False.
In the fourth charge the government
accuses Brown of making a false re-
port to the comptroller of the currency,
1t says hat he made an entry in his
report to the eeffct that he, states that
he had borrowed no money at the time
Of the report. The government claims
that he had $4,000 in certificates of
deposit, for all of which he had given
certain collateral.
In the fifth instance Brown is ac-
cused of having falsified his personal
account to the comptroller, when he
placed his Indebtedness as s7,592.2s.
The government claims his personal
Indebtedness was $69,912.
In the last point Brown is charged
with misrepresenting and falsely re-
porting the amount of worthless ac-
counts. In his report to the comptrol-
Ter these were given as $712.75, while
the government claims the total was
$55,426.23.