Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-10-06
The Trial Of brown
Some Interesting Testimony in
Case-Against the Storm
Lake Banker
HAD BIG PERSONAL ovEkDRAFT
Government Trying to Show That
Brown Had Passed Worthless Ger
tificates to Branch Banks When He
Knew They Were lnsolvent-Em-
pIoyes Give Testimony.
Special to Times-Republican.

| Special to Times Republican.
Sioux City, Oct. Elm the trial OF
| W. E. Grown, the Storm Lake banker
charged with fraudulent banking, some
! interesting testimony has been devel-
oped. The government is trying to
prove that Brown used the Farmers
and Mechanics bank of Linn Grove
and. Sioux Rapids in order to reduce
his personal overdraft at the First
National bank of Storm Lake through
the means of passing worthless certi-
ficates of deposit from one bank to the
other.
Brown, accused Of falsely reporting
to the comptroller of the currency and
classifying the books of the First Ma
tional bank of Storm Lake, sat I'M
moved throughout the trial, toying with
a pencil or marking down figures on a
piece of paper. The testimony in lues-
ton was given by y. r. Crowell, who
"a number of years was bookkeeper of
the bank at Sioux Rapids.
} Crowell testified that the Farmers
and Merchants bank Of Linn Grove
and Sioux Rapids were owned by
Brown. The direct examination was
long, but the gist of his testimony was
that Brown finding he had personal
overdraft of s10.sOO in the First Ma
tional bank of Storm Lake issued a
arfSF na t4 0P %Io
Rapids bank to the one at Storm Lake
for $4,000, thus leaving the personal
overdraft of $4,000. This transaction
took place when H. W. Mayne was
cashier Of the bank at Sioux Rapids.
Shortly after the deal Mayne shot
himself and the bank went into the
hands of Receiver F. F. Faville. The
latter, on investigating, found that 10
record of the issuance of the certif-
cate of deposit was kept on the books
of the bank at Sioux Rapids.
Who arranged these transact tons
he was asked. :
"Mr. Brown
"How could he issue the certificate
Of deposit from the bank at Sioux
Rapids without it getting on your
books"
Mr.. Brown kept blanks for this i;Gr-
pose at his office at Storm Lake.
Further testifying Crowell sad in
order to balance out the account at
the bank at Sioux Rapids, Brown he'd
Farmers and Mechanics bank at Linn
Grove.
1t is expected the government win
try to prove that Brown knew that the
two smaller banks were insolvent at
the time the transactions took place.
The defense on cross examination
gained stronger point when 1t made
Crowell admit his knowledge of these
transactions was not thorough.
Alexander was put on the stand In !
the forenoon, and said he was en-
ployed in various positions in the bank,
At the time of the smash he was
director of the bank, his business being
in making loans and dealing with farm,
sales etc. Brown, he said, looked af-
ter the making Of the large loans and
had charge of the hiring of the men
employed.
He testified that Brown on November
II told him to write a letter to the
Des Moines National Bank asking for
the loan OF $4,000.
What conversation did you have In
regard to the writing of the letter."
asked Attorney Healey.
Brown said that our reserve was
too low and told me that the account
Of $4,000 would not be checked against
the Des Moines National Bank"
Alexander.s testimony, for the gerat-
err part, dwelt with the request of the
loan Of $4,000 from the Des Moines
National Bank. Browns contention
that the bookkeeper forgot to make the
entry on the date the certificate Of de-
post was issued was to some extent
refuted by Alexander who said that in
the usual course Of business. such en-
tries were recorded on the same date,
Or. if not, almost surely on the next.
Testimony favorable TO the prosecu
ton was given by John H. Blair, vice
president of the Des Moines National |
Bank, late yesterday afternoon. Mr.. |
Blair said he remembered the transac- !
ion Of the First National Eank of I
Storm Lake asking for the loan of $10,- /
100 and he also remembered the Des
Moines National Bank refusing the re-
1uest. His testimony had the effect OF |
'efutfng the contention made by Brown
n which he says that it was customary
or the Des Moines National Bank to
oan money to the First National Bank
If Storm Lake.