The Montgomery advertiser., 1906-08-21
Sims's and Chisholm's s Fixed at S25.OOOEach.
(. M. HAYS ALSO HELDTo JURY
Preliminary Hearing Before United
 States Commissioner.
The DsfauitinE Paying Teller of the First SatlonHl Hank of Birm- iagham aad Employes of
 a BrcIs<rsge Concern.

| Birmingham, Aug 2o.--tspecial J. | The preliminary hearing of Alexander l R. Chisolm. the defauiting paying teller of the First National Bank. took up the entire day before g. B. Watts, United States Commissioner. Chisolm pleaded not guilty and waived exami- | nation. He was used as witness against W. [. sims, and c. M. Hays of the brokerage firm of Gibert 6 Clay. alleged to have been his accomplices ia embedding s100.o00 from the bank. At the conclusion of tho hearings Chisoim's bond was placed at S2b.000. sims's at s2b,0o0 and Hays at s5,0o0. When the case was called at 10 ! o'clock the first witnesses introduced were T. w. Bowron, assistant cashier of the bank, and A. F. Forsythe, an- other assistant They told of the dis ccvery of the shortage. giving practi- cally the same statements. After these two attaches of the bank had con- cluded Chisoim swas called and he was kept on the stand fully an hour dur- ing the morning. At the afternoon session he was again called to the ] stand and testified in cross examination that his speculations of the banks fund began about December IS. 1905, and i that he first took $500. By tho mid- dle of February following his short age amounted to s19.700. This was be- fore he began his operations with Gi- bert & Clay. He said that he realized then that he had gone to a point where he had to do something desperate and he went in much deeper
 The trial was held in the United States District Court room, that room being much larger and more comfort able than the regular court room of the Comnissioner
 Judge Thomas R. Roulhac, United | States District Attorney and his as- slstant, N l.. Steele. entered the court room at 10:12 o'clock They were also accompanied by National Bank Exam
 iner siIas H. L. Cooper, who sat with them during the trial Commissioner Watts took his seat at i0;i5 o'clock At the same hour Messrs Sims and Hays with their attorney, A Q. Lane. came I in.
 The Court Rsona Eificd.
 At this time the court room was l filled. practically every seat being
 taken. Four stenographers were pres- ent taking the evidence. One of these
 stated that he represented P, c. Smith, two the bank and one the defendant. I Chisolm entered the room about go o'clock with deputy marshal. He was
 seated immediately behind the United States attorneys. where he was shortly l joined by his brother and his attor- neys, Capt Frank 8. White and John London. He at once entered into d 1 brief conference with them. At l0:25 o'clock Deputy United States Marshal Ashley declared court open.
 Chisolm appeared in court neatly dressed in a blue coat, striped trous- CTS and small blue bow in his col- lar While he looked worn and harass- ed, he appeared in much better physical shape than at the time of his arrest.
 When Chisolm was called to the stand he was told that he would not be compelled to answer any questions
 that would incriminate himself.
 Attorney Lane asked the witness if he had made request that he be al- lowed to testify. Chlsolm replied l: That has been in the hands oS my lawyer, but I wish to make a complete statement of this whole thing as far as I can recall it: I request that I be allowed to do this"
 Chisolm then testified as follows: {: Age 24 years; employed as paying teller of the First National bank for eighteen months on a salary of S2.000: owned about $3.00O or S4.000 worth of property; was acquainted with Sims and Hays. manager and cashier for Ebert & Clay: had business transac- lions with Sims and Hays, trading in cotton futures. beginning Feb. 5.
 These transaction began by his see- ing Sims and talking the matter over T asked him about cotton and he said. You might make some money out of it." testified Chisolm. T said as pay he said go far as that goes if will never get out; that will be between you and me You can use any name you please. The first transaction occur red Feb 5, when I gave him S10,000 to cover a purchase of 5000 bales of cot ton. This money I secured from the vaults of the bank. It was the bank's money He said that on this trahs- action he lost $S,76o
 Then followed details of the various occasions on which he had pnid money to agents of Sims. He said that Sims would send notes or phone messages of amounts due, and then Hays or a young man who was working for Gi- bert & Cla-' would come around and I would give them the money"
 The interrogoting attorney went Into details of each trade, asking whether or not there was a loss or profit on each trade. The last payment he was sure was made to Hays. The largest contract he held at any one time was 17,500 bales of cotton, and his total losses in his dealings with Gilbert & Clay amounted to S51, $50. He said this amount was all taken from the cash of the bank. not from the reserve funds. but from the current cash The witness testified that he had frequent consultations with Sims in which Sims gave him hIs ideas of the markets and inside information" which he had re- ceived from New York
 Several times" said the witness, he advised me to make purchases and I followed his advice each time. Tn ref erence to the use of the name S. M webster. he said that some time in May. Sims asked him who Webster was, and witness told him he was a friend of his who did not want his name known.
 Delivered to Examiner Cooper.
 And later he asked me-" said wit ness. ito get an order from Webster authorizing me to open and close the trades" Witness said he had delivered this letter to Bank Examiner Cooper.
 An objection by Attorney Lane was sustained. An envelope addressed to s M. Webster, in care of Gilbert & Clay. was introduced and the witness