Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-03-04
Four New Complaints Lodged
Against President MacDiar-
mid and Cashier johnson
preliminary EXAMINATION ON
lnformations, Charging Perjury, En-
bezzIement and Conspiracy Filed
Against Mac Diarmid-Johnson Also
Charged With Perjury - Johnson's
Hearing on in Justice Milards Court.

Four additional charges, in connec-
ton with the conducting of the Green
Mountain Savings bank, We're lodged
late Tuesday afternoon against the
president, DIR. Stuart b. Mac Diarmid,
and the cashier, Donald A. Johnson,
both of whom are in Jail here charged
with misconduct and fraudulent bank
ing. Each OF these new charges is OF
a serious nature, and one involves 9TH
err stockholders of the bank.
Mac Diarmid, in addition to being
accused of fraudulent banking. is now
charged with perjury, embezzlement
and conspiracy, and Johnson is &C
cused of perjury in addition to re-
ceiving deposits when he knew the
bank to be insolvent +. E. Roberts,
Of the state auditors office, is the COM
plainant in each instance.
AIeqe Perjury in Affidavits.
The charge of perjury lodged against
both the president and cashier Is
based on affidavits made by both men
to the state auditor, regarding the
number of shares each held in the
bank. as is required by law. The
complaint alleges that both on June 5,
1907. Mac Diarmid and Johnson made
affidavit that they were stockholders
in the bank, and that MacDiarmid
swore that he owned sixty shares OF
its capital stock, for which he had
paid $4,000. The information against
johnson alleges that he sWore that ne
was the owner of ten shares, for when
he paid $1,000. Both are alleged TO
have sworn in their affidavit that their
stock was paid up in full, when they
knew that neither had the shares, or
had paid up for the amount given IN
the affidavit. 1t is not known what
Mac Diarmid's holdings were, or the
amount he had paid up, but Johnson
is said to have admitted that he had
but one share.
Mac Diarmid Makes Loan.
The alleged peculiar and entirely ir-
regular way in which President Mac
Diarmid secured a loan of $500 for
himself from the bank, is the speci1c
charge contained in the complaint al
leging enlightenment. This information
saws that on Jan. IS, 1908, Mac Diarmld
cased to be converted to his own use
$1,000 of the banks money, without
the loan having been made upon the
order of the board Of directors, and
without an order or authority having
been entered upon the records OF the
bank as required by law. 1t charges
the loan was made by Mac Diarmid to
himself, with intent to defraud the
bank
Others Are Implicated.
E. l.. Collins, tie Omaha director
into whose hands it is charged the
missing certificates Of deposit passed
and Miss Helen j. Edwards, the banks
auditor. also Of Omaha, and Cashier
Johnson are all implicated with Mac
niarmid in the complaint which al
leges conspiracy. This charge says
specifically that Mac Diarmd conspired
with the persons named to knowingly
accept deposits Of money, currency
bills of exchange and notes and checks
for the bank when it was inso1vent
with the intention to defraud. Forrest
Gustafson is named as a depositor from
whom deposits were received during
insolvency.
Hearing Progresses Slowly.
The preliminary examination OF
Cashier Johnson, which was begun be-
hind closed doors at the request of
Johnson's attorneys in Justice Millard's
court, is progressing slowly. Much at
tention has been paid to the details
Of the witnesses testimony by both the
states and Johnson's lawyers. When
the hearing adjourned for lunch today
the cross examination Of the fifth wit
ness was in progress. The hearing may
be finished tomorrow, and it may con-
tinue thru to the next day, depending
on the number of witnesses to be ex-
amined.
Bank Examiner on Stand.
Leland Windsor, of Des Moines the
bank examiner who was in charge of
the bank Immediately after it was
closed and who investigated it's condi-
tion and accounts, was the first wit
ness put on the stand by the state
Tuesday afternoon. Windsor's testi-
mony tended to show the insolvent
condition of the bank, as he found it,
aud Jchnson's knowledge of it's insolv-
ent condition.
This latter testimony is based on
knowledge that Johnson could not
avoid because Of his intimate relation
with the banks business, and state
ments he is alleged to have made to
Windsor.
This morning F. e. Roberts, of the
state auditors department, was put
on the stand, after the s-examina-
ton of Windsor had been completed.
His testimony was largely corrobora-
tive of what Windsor had given touch
ing the banks condition.
Depositors Testify.
The other witnesses who testified
Tuesday afternoon were J. A. Lynch,
w. NJ. Pierce and Forrest Gustafson,
all of Green Mountain. Gustafson and
Pierce both swore that Johnson had
accepted deposits from them a few
days before the bank was closed. GUS
tafson said he had deposited $50.
Lynch's testimony was to establish the
fact that Johnson was cashier of the
bank, and in charge of it,