The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-27
ORDERS
PAINE'S
RELEASE
Court Says It Has Not Been
Shown That Stock Tip
Man Committed Crime.

CUSTODY. N1~ce-ChancellOr Howell Saiu
there was nothing in the complaint or
the testimony that proved the defend
ant had committed a crime in issuing
circulars stating that he possessed
knowledge that was valuable concern
ing the future value OF certain stocks.
Ralph Lum, Of Guild. Lum & Tamblyn,
made the demand today before Vice-Chan-
cellor Howell that Paine be given his
liberty on the return of the writ Of habeas
corpus obtained by him last Friday after
Mr.. Paine had been arrested on complaint
of Detective Sergeant Frank Tuite and
committed by Police Judge David T. How
ell. Paine is now under bail.
Mr.. Lum made the demand on the re-
turn made by Sheriff Sommer. which set
forth that Mr.. Paine had been deprived
of his liberty IN accordance with the
statutes. and In consequence of the war;
rant issued by the police court Judge.
Paine was taken to court by Constable
Mulcahy. of the sheriff's office. to which
officer Paine surrendered himself this
morning.
Charles NJ. Myers, assistant city attor-
ney, who appeared COR the city authorities,
declined to traverse the return on several
grounds. He said he had not been In
the case until yesterday and was I'M
familiar with the points at issue. He asked
for a continuance.
Mr.. Dum insisted that because of Mr..
Myers's unpreparedness the court would
not be warranted in depriving his client
of his liberty. This view seemed to be
that held by the vic~e-chancellor, who re-
marked TINT inasmuch as the sheriff had
produced the prisoner in court In custody
of a constable and that as counsel for the
city was not prepared to traverse the re-
turn, Mr.. Lum was entitled to nave the
court make practically the same inquiry
a committing magistrate should do, to as
certain whether or not the prisoner was
arrested on adequate evidence.
This Is the first time, so far as I
know, the Court of Chancery has been
asked to take evidence in a criminalNcase,"
remarked the court.
Mr.. Myers argued in opposition that the
prisoner was not suffering or under any
hardship because Of his arrest.
why should Mr.. Paine want to evade n
trial of this case before a jury of twelve
men," asked Mr.. Myers. and he proceeded.
IF his business was proper what has he to
fear? Does he want to go out and say the
Court of Chancery gave him his liberty and
then assert that his business is legal and
the Court of Chancery says So"
Il he won't say that. That will be
attended to-" remarked the court, adding
"a writ of habeas corpus brings before me
the body of Paine, The sheriff says that
he. Paine. is deprived of his liberty by
reason of a warrant sworn to by Frank
w. Trnite. which charges that Mr.. Paine
obtained money on false pretences by at
tempting to obtain money by giving in
formation on stocks.
Whether the prisoner has been guilty
of the commission of a crime
under the statutes is a matter 1
shall not inquire into. but 1 rave been
called upon to hear testimony of counsel
for the prinsoner to ascertain whether his
arrest is in accordance with the provisions
set forth in section "a, and l. will do that.
| will go as far as. a committing magis-
trate might"
Mr.. lutte was then called to the stand.
Tuite was asked to explain TO the court
the evidence that was produced before
Police Judge Howell. and Tuite read
over the circulars and letters which have
already been published.
do you charge that any of the people
to whom Mr.. Paine was in correspondence
have made complaints against him?' asked
Mr.. Lum.
mo: / won't say that replied the wit
ness.
Then vour warrant was based entirely
on your view that he was selling informa-
ton which YOU believe is false?'
The witness endeavored to show that he
had evidence in the letters read in court
that Paine asked for money from his GUS
toners for the alleged information his let
tiers and circulars contained.
How do You know he asked for money
or that the information he gave his Gus
toners was false?" pursued Mr.. Lum.
Tuite then produced n letter from Presi-
dent Stevens. Of the Chesapeake and Ohio
Railroad. received by him early this
month. which has already been published,
the gist of it containing a denial that
Mr.. Stevens ever gave Paine valuable in
formation about his railroad.
Tuite then read the copy of a circular
letter sent out by Paine, in which 1t was
suggested that the recipient join in a CO.
operative stock purchase. The witness held
that the words mo account taken for less
for money.
Have you any other evidence on which
to. base your charge that Mr.. Paine OBJ
tanned money under false pretenses?'
o cross-examination by Mr.. Myers.
Tuite said the evidence he gave before
Judge lowell was practically. the same as
made today before the Vice-Chancellor.
AL Lhe conclusion of Tuite's testimony
the Vice-Chancello ruled that he would
near other witnesses. even though they
Judge.
Mr.. Myers then called Charles E. Ente-
mann, a postofice inspector.
Mr.. Entemann at first declined to answer
when he first met Paine, but when directed
to answer by the court he said IL was in
August, 1906, in Elizabeth.
The witness testified that he had talked
with Paine at the time mentioned about
the information he said Mr.. Stevens had
given him. 1t was corroboratiye OF the
by Tuite.
In argument Mr.. Lum contended that
there was no valid charge whatever against
his client. He declared that the letter of
Mr.. Stevens did not deny the statements
made by the Paine circular. He commended
also that his client had spent many times
the amount specified I'm the letter to obtain
He said:
"He asked no one for money; he asked
them to join In certain operations with
others"
Mr.. Lum analysed the contract which
was signed by all of Paine's customers,
and he held that 1t proved that he did not
receive a dollar except from the profits
earned by his customers and that these
profits were derivable from this informa-
tion. Counsel ridiculed the method fol-
lowed by the other side In the prepara-
ton Of the papers. He said as q matter
Of law the charges must fall, but that his
client wanted to know wherein he violated
the Law.
HE has been charged with obtaining
money under false pretense." declared Mr..
Lum. Where is the evidence? Where is
the money? Where is it.? Where Is It?
Whence did 1t come?
They don't show n scintilla Of evil
dence to prove any of the charges. There
is no proof that he made false representa-
on any representation whatsoever"
WILL REPRESENT LETTER-CARRIERs