Los Angeles herald., 1905-04-01
HAYS ATTORNEYS
HOPE FOR VICTORY
PROSECUTIONS CASE APPEARS
TO WEAKEN
Affairs Of the Orange Growers Bank
Aired In the Federal Court---Mcs
Daniels Testimony Con-
sldered Important

torneys for the prosecution to prove
the reorganization of the orange Grow
ers' bank of Riverside met with O
severe shock yesterday in the United
! States district court, and the question
which is now uppermost in the minds
of those who have followed the case is:
'Twill the fate of Tom Hays be weighed
by the jury which has been selected to
try the case?"
The proceedings yesterday were
marked by an all-day fight between the
contending attorneys over the alleged
reorganization Of the state bank, under
the provisions of the national banking
laws.
1t is claimed by the prosecution that
the Orange Growers bank Of Riverside
was reorganized into the Orange Grow
ers' National Bank of Riverside be-
between March 2S, 1908, and July of
the same year.
The attorneys for the defendant
claim that when the Orange Growers
National Bank of Riverside was ush-
cred into existence that a new bank
was thereby organized, and with no
cution to prove the reorganization of
the old bank into the new.
Show Transfer of Assets
AS point of law it is contended by
the defense that in order to make out
a case the prosecution must show the
transfer of assets from the state to the
national bank in order to prove the al
legged deficit.
1t is also contended by the defense
that unless the prosecution can prove
the reorganization of the bank the
governments case will become a rank
fizzle.
The testimony introduced yesterday
tended to show that Hays, the secretary
of the bank, while it was a state as we'll
as a national institution, had full sway
to do as he pleased in his work and per-
formed important labors carelessly.
Missing minutes, especially those which
reported the meetings of stockholders
and directors, at which preliminary
steps were taken looking to making the
Orange Growers bank a national insti-
tuition, was the subject upon which
United States Attorney Valentine
worked, while the defense objected
strenuously and bitterly fought every
point
Congressman NJ ]. Daniels. at one
time president of the Riverside bank
was billed as the prosecutions star wit
ness, but on cross-e1amination by the
defendants attorneys the force and eff
feet of his testimony was materially
weakened, many of his answers no.
being even responsive to the questions
propounded to him by the attorneys 70,
the defense.
As a sdelight in the now celebrated
case, the defense drew from the wit
ness a brief story of his congressional
campaign in 1902, at which time it is
claimed that Hays popularity elected
Daniels to congress.
Daniels Testimony
Daniels testified that he had gained
his first knowledge yesterday that the
minutes of the directors meetings had
not been entered in the regular minute
book of the bank.
In explanation of the gaps which
seem to appear in the minute book the
defense esayed to show that the de-
fendant spent most of his time during
the summer and fall of 1902 in cleo
tioneering in behalf of Daniels, who
was subsequently elected to congress.
Gaylor Rouse, a ory goods man of
Riverside and member of the board
of directors of the Orange Growers
National bank, was the first witness
called TO the stand.
Rouse testified that at a meeting of
the banks directors March 23, 1903,
Hays officiated in the capacity of Sec
retary. and it was at this point in the
proceedings that the story of the miss
ing minutes was first brought to light.
WAS record of that meeting
taken?" asked United States Attorney
| Valentine.
MIR. Hays took the minutes roughly
on sheet of paper" replied the wit
ness.
He also asserted that he has since
been unable to locate the minutes, in
spite of the fact that he has made
several searches through the papers Of
the bank.
did the directors or stockholders OF
the bank hold any meetings between
June 2S 1902. and July /. 1908, which
We're not reported in the minute book?!"
The witness replied in the affirmative
and declared that Hays had reported
the proceedings of each meeting on
slips of paper
At the conclusion of Congressman
Daniels testimony an adjournment was
taken until 1O:3O o'clock next Tuesday,
at which time additional witnesses will
be called by the prosecution.
Rates 90 san Joaquin valley
Tho southern Paclno Will have on sale
| every Tuesday until further -lotice round
trip tickets 10 various points In the san
Joaquin valley. The rates are from Los An.