Amador ledger., 1909-02-05
THE EMBEZZLEMENT CASES
AGAINST JACKSON DENNIS.
Preliminary Examinations Held.

process OF liquidation, had a pre-
liminary examination before justice
of the peace, Alfred Goldner, in the
supervisors room In the hall of re-
cords on Tuesday last. 1t will be
remem hered that in these cases, an
indictment was found by the grand
jury last year in each case. but that
on demurrer the indictments we're
found to be fatally defective by the
superior court. The defendant was at
once Iearrested on the two charges,
and in default of securing the neces-
sary bail, has been confined in the
county Jail pending a hearing. The
district attorney decided to proceed
anew by preliminary examinations,
and these we're held Tuesday. The
defendant was represented by Ii. W.
Wood, and the district attorney ap-
peared for the prosecution. r. f..
Duden, brother of postmaster
Duden of this city, came up from
Sacramento as official reporter.
The first case inquired into was
on an alleged embezzlement of
S11 ,25U. the funds of the bank, on ac-
count Of the deposit of $4,000 shares of
the capital stock of the A. L. Ames
Manufacturing Company of Niles, the
stock being valued on the bank books
as worth 70 cents per share.
The first witness examined was
Peter Dabovich. cashier and secretary
of the broken bank: He testified that.
the organization of the Sutter Creek
thought the sum of $4,000 charg-
ed to the expense account seemed too
large for bank of that character, ,and
suggested that it be reduced. On this
suggestion Dennis placed the fifteen
thousand shares of the capital stock
of the Ames Manufacturing Company,
valued at 75c per share in the bank
as an additional asset, thereby reduo-
ing the expense account to the extent
of Sill, 250. He did not know by whom:
this investment was made. Witness
did not invest 1t. Defendant and
board of directors were, empowered
to make investments. The cash on
hand March 49,. 1907. was S2D3S.S7;
and amount on deposit $40, 120. 70. On
January %, 1908, the cash on hand
was 1888. Us. In cross examination he
stated that no money went out of Ithe
bank in payment for the Ames stock.
but put in TO replace other securities.
A. j. Ames head of the Ames Manu-
featuring Co., said he did not place
any value on the stock. The COM
pany was bonded to the amount OF
S150,0O0. The property of the COM
pany did not exceed 100000. There
was no working capital.
Fred Eudey. receiver of the Sutter
Creek bank, said he took possession
of the assets of the bank on June 4,
1908. He found among the assets,
two certificates Of stock of the .Ames
Manufacturing Co. for 5000 shares,
valued at rs cents per share in the
bank report. He had made trips to
Niles and San Francisco, but could
not dispose of stock at any price, and
he considered the stock valueless.
The defense put in no testimony, and
the court took the matter under ad-
visement.
The other charge of EN- bezzlelnent
was based on a note for $500 executed
by Fred Rabb, for which Rabb re-
ceiyed 5 shares of the capital stock of
the Sutter Creek State Bank. Rabb
testified that he had a conversation
some time in 1906, with defendant
about stock. He gave his note. and
took shares. with the understanding
that he be credited with three months
interest on note, and at the end of
that time he could return the stock
and take up his note. No money
passed between them. Just prior to
closing of the hank in Jan. 1908, he
returned the stock. and received back
the note. Never borrowed money on
the note. Had borrowed money from
bank twice, but never as much as
$500. When the three months we're
up he told defendant he would like
him to take the stock back.
Fred Eudey testified that the cash
book showed that $500 had been loan
ed Fred Rabh on note. The amount
had never been returned to the bank.
The certificate of stock book showed
that 5 shares had been transferred
from Dennis to Rabb, and retransfer-
ed back to Dennis. ...
No testimony was introduced by