The San Francisco call., 1909-08-27
LYNCH REVEALS
RANKIN'S PART
IN BOND DEAL
Stock Broker Charged With
EmbezzIing Ocean Shore Sc
curities Remanded
Witness duplicates Others in
Scheme to Make $4,000
Without Any Trouble

dramatic surprise was sprung yes
,arda, on Charles f. Rankin, the stock
broker on trial before Judge Conley
ard a iurv on charge of embezzling 40
81 ooo ocean shore railroad bonds from
the corporation. A detailed confession
was made from the witness stand by
tobp 7 Ivnch. Rankin's codefendant
,,-bo has been tried. convicted and sen
fenced 10 nine years Imprisonment on
The same charge.
I.ynch's statement implicated W W.
Ssv-eer and-A. c. Bacon, two other spoc X
brokers' The scheme was FIRST brousht
10 his notice by Sweet said Lynch, and
,he four Of them afterward discussed
the details Lynch said that he was IN
duced TO lend his name in the manner
suggested by the others and was told
hv thcm that he stood in no danger OF
being arrested.
Rankin had no inkling that his for
g. rler partner was going 10 tesuiy
against him In his former trial, whlch
ended in a disagreement by the jury
; Lynch did not testify.
LYNCH EXPECTS FAVOR
During the examination of Lynch by
=. special Prosecutor Hiram ". Johnson,
who is associated with Assistant Dis
-~.frict Attorney Hanley i'm the case. Ran
:.kfn's face displayed the utmost concern
and chagrin Judge Conley ordered
: sankin into custody upon the adjourn
saent Of court. stating, however that he
;ffd this from an abundance of caution.
sand not from any desire 10 prejudice
p. the case
=. I.vuch came in from the county jail
testify against his former partner.
. l3e hopes that i'm consideration Of his
resistance 10 the prosecution the gov
. % rnor VIII be induced to commute 10
. soiae extent his nine year sentence
lie has been informed that il he makes
- ;n application the prosecution VIII not
oppose IL. Lynch viii be cross exam
ired bv Attorney Frank Drew, repre-
senting the defendant, today.
.fssCa CALLED 4 DUPE
The district attorneys Office knows
.-aere Sweet and Bacon are TO be
fo3nd. Prosecutor Haniey said last
81 zht that il had not been decided
whether any action would be taken
against Sweet and Bacon. Hanley be-
IeVes Rankin was the master mind OF
tho scheme and that Lynch was made
2 dupe by the other three.
Lynch testified as follows: In July,
- 1908. Sweet told him he knew how he
fLvnch) could get $4,000 without any
trouble provided he would allow his
- psnkin I'm Rankin's office in the Mo-
Esdnock building and there the scheme
for obtaining the 40 bonds was un-
.folded. Lynch went to a broker named
Haskell who was negotiating loans for
. tho ocean Shore. and represented that
client Of his. an old Irishman. had
$4,000 to loan on bonds The, Irish
man was a myth. After several con-
"f@rences with Burke Corbet, attorney
FOR the railroad, form Of promissory
note was agreed upon. To raise the
10000 70 be lent TO the railroad Ran
Kin put up s1460 and $3.50 was OBJ
. tanned from Frank Lippet, TO whom
= Of the pledged bonds were sold The
= rromissory note of the railroad was
made out 10 Lynch. Rankin told Lynch
that he had consulted an attorney and
that there was nothing criminal in
what he was doing.
DIVISION OF PROCEEDS
1t was agreed Lynch testified. that
The profit from the sale of the bonds
should be divided in the following pro-
portions: To Lynch. one-fourth; to
Racon, one-ffth. Rankin and Sweet TO
divide the balance. Further Rankin
and Sweet We're to get all the money
above $500 q bond realized from the
sale Of the bonds Besides the IA
bonds sold TO dippet 10 were disposed
OF IN open market, said Lynch. The
remaining II are now in the hands Of
Sweet or Bacon, according TO Lynch.
The following sums were received bv-
him, Lynch stated: $3.50. s145, 1920 and
s4S5. August p, 1908, Sweet told
Lynch he had better make himself
scarce. Bacon and Sweet went 10
Fresno and Lynch TO Nevada. where
he was arrested the day after his ar
rival