Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1908-05-07
:. c. STORY WAS ORDERED TO
FIRST GET GOOD SECURITY
FROM CHEESE BUYER.
so SAY SOME OF THE DIRECTORS
OF CITtZEiIS' STATE
BANK.
MILO c. HAGAN TESTIFIES AS
TO FALSE ENTRIES
IN LEDGER.
Madison, Nav s

Inc defense OF Edwin G. Story,
charged with embezzlement of
$4,000 as cashier of the Citi-
zens' State bank of BeIIevilIe,
rests upon his claim that the money
was advanced to Henry Elmer, a
cheese buyer of that village, whose
account was largely overdrawn. This
defense involved absolute disobedi-
ence of the commands of the president
of the bank and the board of direct
ors, who had the matter of Elmers
financial standing under consideration
and ordered Cashier Story not to al
low the man to overdraw unless he
deposited good security. The exam
ination yesterday included the testi-
mony Of a number of the directors
to the effect that Story was forbidden
TO advance money to Elmer without.
good security. Further evidence
shows that much false bookkeeping
was practiced by Story in the accounts
of this man Elmer. In the month Of
February, 1906, appear ledger entries
purpOrting to show that Elmer paid
in cash some $4,000 to wipe out over
drafts, but no journal entry or any
other entry or memorandum appears
in the books of the bank, simply a
cash credit in the ledger account in
Elmer's name. Sometimes when Ell
mer seems to have paid In a small
amount, he would be given credit in
the ledger for as much as $1,000 more
than he seems to have paid. The FL
mer account is most remarkable for
being crooked and out of agreement
with the other books of the bank.
Elmer is a peculiar character in ap
pearance. He is unschooled, says he
never kept any accounts or records
of his business put all the money he
got into the bank and drIw checks
when he needed money. He denies
that he owes the bank any such sum
as Story now claims, and declares
that Story has not asked him for
settlement for Is months.
Paid $500 at Bank.
Christ Erb, farmer near Belleville,
was called by the state to testify
relative to $500 which he paid off on a
mortgage held by Gus Mas and
which amount of money Story is al
legged to have credited to his own &C
count. Mr.. Erb said that he secured
a loan of $3,700 from Mr.. Mas
through Story and that he deposited
with the defendant at the bank a
check of $500 for principal and inter
est to the credit of Mas.
On cross-examination Attorney j.
M. Clancy made an effort to convey
the impression to the court that the
note on the mortgage was for five
years and that it contained no proVl-
sion which authorized Mr.. Erb to
make any payments until the eXplra-
ton of the five years.
Attorney General Gilbert, however,
read into the record a provision which
was written across the back OF the
note and which was to the effect that
payments of $1O0 were allowed at any
time.
Told to Get Good Security.
W. H. Ferguson, a director of the
Citizens State bank, was asked II
story had ever been authorized by the
board OF directors W lo'h Ai0iio' "
Elmer.
Mr.. Clancy interposed an objec-
ton. He said that the records OF the
board are the best evidence. M" Gil
bert put the question in a different
form and the witness replied;
"He was directed not to loan money
to Henry Elmer except on good Sc
curity."
Did Not Overdraw Account.
A question by Mr.. Gilbert If Elmer
had ever overdrawn his account by
approximately $4,000 or any other
amount was answered in the negative
by Mr.. Ferguson.
John Hoskins, also director,
stated that at one Of the meetings of
the board of directors President Mil
Ter said to Story that he better let
Elmer CO. Mr.. Hoskins SAID that the
directors did not always meet once a
month as is required by the bylaws.
John T. Lyle testified that before he
became a director of the bank be was
told that Story had been instructed
by the directors not to let Elmer have
any money unless he had some in the
bank as he had not Strengthened up
with the bank across the street"
Mr.. Clancy asked Mr.. Lyle if FL
mer had not the reputation Of being
a big cheese buyer. He replied that
Elmer had not been reputed as a
large buyer for two years.
Bank Director E. S. Ace said that
at a meeting Of the board President
Miller told Story not to let Elmer
overdraw his account. At the conclu-
sion of Mr.. Aces cross-examination
Mr.. Clancy remarked:
"I suppose there would have been
no kick had Elmer paid back the
s21 900 with a good rate Of interest"
Mr.. Clancy completed the cross
examination of Deputy Bank Exam
iner Milo c. Hagan and Mr.. Gilbert
began with the redirect examination.
The latter examination consisted
chiefly of the false entries which
story is alleged to have made reIa-
tive to the transactions between Ell
mer and the bank.
Books Show Deficit.
". F. story of Chicago, a brother Of
The defendant, testified to selling his
interest in a warehouse to the cashier
for 1880 The prosecution claims
that the accounts of the bank were
nadded BY this transaction. A. f.
Pitber. n auditor with the Mechants'