The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-21


action on February was for 5000 bales
which called for margin of $4,000, which
money l furnished over the counter to.
think, Mr. Hayes with the First Ma
tional banks straps around the money,
which was taken from the vaults by me.
The next transaction was on March I,
when l bought 1000 bales of cotton, $1,000,
which was paid over the counter the same
as the other and derived from the same
| source. I lost on the first transaction
$S76O, having placed a stop order
THE closing out was done, I think,
three days after giving the order, prior to
the second transaction. The next transae-
ton was the next day, on March 2, when
bought 500 bales and put up margin
of $780, which was paid by me in the
| same way. Each of those payments was
made to Mr.. Hayes, l think. They had
| young man who used to come around
| sometimes with orders from Mr.. Sims,
but he Is not now in their employ. I
paid the money to the young fellow some-
times
Would Bring Note.
''The boy would bring me a note from
Mr.. Sims telling me what was necessary
and I paved it. The first one he brought
was when I deposited that $4,000 with
him. I did not get the contract at first.
I think Mr., Sims wrote q letter acknowl-
| edging receipt and that was delivered to
me by that young fellow. That was done
think four or five times. The others
were delivered to Mr.. Hayes. Mr.. Sims
would call me up over the telephone and
tell me how much would be enough TO
protect what l already had, and Hayes
would come around and I would pay him
the money
THE next trade was on March 3, $500
bales, calling for a margin of 5000. paid
by me in the same manner out of tho
funds of the bank over the counter to
, Mr.. Hayes. My impression is that was a
loss. I cannot remember to what extent
The next item was on March IA, for 1000
bales, $1,000, paid to Mr. Hayes in the
same way. That I believe was a profit.
think | possibly made $500 on that. The
next was on March o. for $500 bales s5000
And there was also 5000 on March 49,
On March a. $4,000. I do not know what
that amount was for unless had sustain
ed loss on g previous order and that
was the difference between the amount
and 5000 bales. Possibly l ordered them
to close out and the difference in my favor
was 5000. The next one was on March o.
$500 bales, s5O00
And the next was on March 80, and the
next on April for $4,000 for $500 bales. The
next was April "a, $500 bales and S5O0O
The next was two days later, s1625 which
| 10 SApl14iitu III Tie same way as the OIn-
er odd amount, to make a margin good.
The next was on May H. $500 bales for
$4,000.
The next was May 20 when I bought
$500 bales and paid 5000 for them, and
the same day again 5000, making $40 600
that day. The next was May 81. $4,000 on
1000 bales of cotton. The next was June
!, $1,000 for $500 bales, and the next June
49, 5000; June %, 5000; June 20, $1,000. The
last payments were made to Mr.. Hayes
Had 1880 Bales.
THE most ! had at any one time was
1880 bales of cotton. The loss sustained
by me on those transactions during those
dates with Gilbert & Clay was SOL $50, all
of which was with the funds of the First
National bank, taken out of the vaults Of
the bank, right out of the cash and not
out of the reserve fund.
II have known Mr.. Sims two or three
years, l met Mr.. Sims several times from
time to time and discussed the matter
would take lunch with him frequently
at the Metropolitan cafe and he gave me
his opinions on the market and sent me
from time to time cotton letters from
New York, and called me up over the
telephone and would say that he had
received private confidential advices from
some broker in New York, and what he
thought about 1t. He discussed it quite
freely with me. He advised me on three
or four occasions what he thought would
be good purchases or sales and upon such
occasions made such purchases or sales.
Some time about May Mr. Sims asked
me who this man Webster was and later
on. some time after that, he sent me a
T'letter written by himself asking me to
have my friend Webster sign 1t. L turned
the letter over to Mr.. Cooper, the bank
examiner, and have not got it now, but
remember the substance of 1t, which
Ill T..
Of S. NJ. Webster to be opened and closed
by A. r. Chisolm. The envelope, adj
dressed to S. NJ. Webster, Birmingham
Ala, was handed to me by Mr. Hayes
from the office of Gilbert e. Clay. | got
several of those, In fact every time
made a trade l got one of them. 1t seems
that the receipts that I got from these
people were only temporary, which would
afterwards be supplemented by others
from the home office at New Orleans,
which would come to me through Sims
and Hayes. They were addressed to s..
NJ. Webster, care of Gilbert & Clay, Bir-
mingham. Ala and went to their office
and were delivered to me by Mr.. Hayes.
do not believe that any of them were
delivered by Mr.. Sims"
The witness identified number OF re-
ceipts for transactions made. They were
introduced as evidence by the state. A
telegram advising him to play the market
| certain way was introduced as evidence.
Memorandum Book.
| "This is a memorandum book kept by
me, which shows my shortage from time
to time, so / could tell just how / stood
When / took anything out of the cash
1t was added on and wren / got anything
back In the way of profits it was taken
off. l was frequently called up over the
phone by Mr.. Sims whose voice / knew
Nearly every morning he would call me
up and tell me what the Liverpool mar
ket was Those matters were talked Of
over the phone and he frequently called
for margins from me over the phone, and
he would send for them and they would
| be paid Immediately on demand. made a
profit three or four times and they were
turned back to me by them In the shape
| of a cashiers check, and once or twice
| they gave me their own check drawn on
| the American Trust and Savings bank
| of this city. Whenever the mount was
| large he gave a cashiers check payable
to s. M. Webster" (The witness identi-
| fed the checks.)
IT requested them to give me the money
| but they did not seem to want to do it
| and said the best they could do was to
| asye me a cashiers check drawn by the
| American Trust and Savings bank, pay
| able to s. NJ. Webster.
AFTER Mr.. Sims had asked me repeated
| " told him that Webster was a friend
! of mine located at Augusta, Ga. That
| was possibly the middle of June. did not
| have time to communicate with Webster
and get the money after they notified
| me of margins due unless he had been