Rocky Ford enterprise., 1908-09-25
DEFUNCT STATE BANK
[Continued from First Pagel

IContinued from First Pagel
The defense desired the court to make
ruling setting a reasonable time before
the failure. while the prosecution claimed
they should have the right to show that q
systematic stealing had been going or
for years.
The court held that he would not at
tempt to set any hard and fast rule but
that he would take each matter up on its
merits and that the prosecution had a
right to go back and show any transac-
tons which finally aided in the downfall
of the bank.
Fred S. Fulton. auditor Of the Bankers
National bank of Chicago. was put on the
stand to identify certain monthly state
ments sent out by his bank to the Rocky
Ford bank which showed the credits due
the State bank at the end OF each month
from 1900 till the close of 1907. He
compared these statements with the
books he had present and declared each
one Of them to be correct They also
put into evidence statements for the last
six months Of the year of 1907. showing
the amount of credit at the end Of each
month and also showing the largest daily
credit Of any day during the month. For
all this time the State bank had carried
on their books as an asset S4o.oooas de-
posted in the Chicago bank and also in
the Lincoln National bank. in which they
did business prior to 1900 and which
was succeeded by the Bankers National
Bank.
Walter Task of Chicago was the next
witness. Task was the secretary Of the
Lincoln National bank. They proved by
him thatsseertain remittances. which the
books Of the State bank showed had
been made to his bank. were never re-
eeived. Mr.. Fulton was put back on the
the stand and he was asked about a re-
mit.anes April le. 1901. Of $4,000
This he claimed had never been received
by his bank.
Receiver G. NJ. Hall was upon the
stand all day Wednesday. He testified
that he had found notes aggregatins
S2.l5o gwen By Paul E. Kennedy that
he estimated as worth abaut SO cents on
the dollar. Notes for $500 by Geo. E.
Preble, secured by second mortgage on
land northwest Of Rocky Ford. the re-
caiyer considered worthless. The a. W.
Shelton notes for s+7.z5o 81 he eonsid-
cred worth about rs cents on the dollar.
The receiver had notes Of Cashier E. }
Smith amounting to s25.l6o.45. and IN
der orders Of the court he had taken a
house and lots at valuation Of 81 900
Reports were made Of the amounts
collected, showing that some $4,000
had been collected on the different notes
held by the bank and paid to the banks
that held these notes as collateral seeur-
Ity.
mr. Hall was upon the stand yesterday
and in the course Of MS tsstino7ytoli Of
his experience with the bank ana Presi-
den; GoddInE few days before t1e bank
closed. He was secretary Of the High
| Line Canal company. That company
had on depos.t with the bar. a5ou,
$4,000. On Os3. -. he wished % send
5000 ;o New York city TO pay interest
or bonds an some bo1ds TIA: sere due.
He ws-: . :He bank - Sc: ;5s draf:.
Mr.. Go5G rz sad that owi-E g ;7a inan-
cal eoEeguca II the east i wou,5 5e hard
to make draft. bit ;hsy could make out
thelr cheek and the State Bank would
eertIfy 70 il ana that he woui wire 70
his bank in New York. which was the
Hanover Nauonsl bank. 70 cash this
ehees. This check was made out and
sent in a registered letter to the Morton
Trust company Of New York. bu. was
net paid BY the Hanover bank. The
trus: company wired Hall and returned
the check. On the 5oth Hall in company
with the president and treasurer Of the
High Line company went % the bank and
demanded something with which 70 pay
this interest Mr.. Goddins then demand
ed the return Of the cheek About II
o'eloek on the day the bank failed they
took the check 70 the bank and demand
ed the money or its equivalent Mr.G5d-
ding was behind the -ol7:er and the
matter was referred to him. He said be
couldn't do anything. bct he expected
some parties on the Afternoon train to
buy an irtsres: in the bank II they
came he could fx the matter up. Bu: the
check was never paid.