The San Francisco call., 1909-02-14
MARKET CAUSES
DOWNFALL OF
BROKER LYNCH
Speculation Sells Ocean Shore
Bonds in Hope of Buying
Rack at Profit
Court Receives Explanation
After a Nine Year Sem
tenoe Is Imposed
During COIIOquy Accused Man
Tells of Transaction and
His Hopes of Gain

John Lynch. stock broker. who sold
=. bonds OF the Ocean Shore railroad
I. rledged as security for a loan OF $4,000
made TO the railroad and was convicted
= OF grand larceny by jury. was sen
: senced 10 nine years imprisonment BY
Judge Conley yesterday. Before sen
: fencing Lynch the judge made an in
cnectual attempt 10 learn from the de-
.1endant what he had done with the
proceeds his crime. Lynch expressed
. himself as willing TO now make resti-
tuition OF the entire 30 bonds, but Judge
Conley wanted to know why he had not
done this heretofore.
The whole transaction was tainted
with fraud from its inception" said
the Judge. There does not seeem TO be
a redeeming feature. I had hoped that
the defendant. a decent appearing man,
would have been able to clear himself
af this charge, but the evidence was
: overwhelming the verdict of the jury
- was Just. and there is no doubt but
: that he was absolutely guilty"
+" FOOLED THE COMPANY
-: There was long colloauy between
/. the judge and Lynch, after a motion
:sfor new trial presented by Attorney
". T. Hume had been denied. The
.5udge commented on the fact that in
The trial Of q. E Rankin. who nego-
1iated the loan TO the Ocean Shore rail-
EOad and who was jointly indicted with
Lynch. the latter refused to testify.
'The truth is, said the court, "the de-
fendant entered into a scheme whereby
Ire absolutely fooled the company into
giving him 90 bonds, and he immedi-
-ately disposed OF them"
Told 10 stand up. and asked IL he
had anything TO say why sentence
should NOT be passed. Lynch. trembling
nervously. said he had nothing TO say.
Il have no sympathy with a thief"
. said Judge conley to him. What did
=. .you DO with that money!
Lynch hesitated. Then he said in a
low voice: The bonds were not dis
posed OF as appeared in the evidence"
But YOU got $3.50 for each Of them,
IS testified by Rankin in his trial?"
i sold % OF them for $3.50 each"
What did you DO with that $4,000
or sl6.0o02"
Lynch hung his head and remained
silent
!. Have you got the money now?" pur-
sued the judge.
No"
SOLD FOR SPECULATION
Further pressed. Lynch explained
-tlEat $4,000 OF the proceeds was paid
40 the Ocean Shore railroad. He said
he still had the II bonds that remained
: mnsold. lie could now replace the en-
: lire 40 bonds, Lynch stated; and, hav-
- ing found his tongue, he went on to
;eNplain that he sold the % simply as
.. a speculation. expecting TO buy them
IN at a lower price and thus make a
few thousands profit He insisted that
F. he had no intention OF committing q
crime or 0f dcfrauding the railroad.
When Prosecutor Hanley asked why
1.-The III bonds unsold had not been re-
=: turned Attorney Hume explained that
there was a civil action pending. and
Lynch considered he had a counter
claim against the railroad by reason OF
Else Imprisonment.
After sentence had been imposed
~Lynchs counsel filed notice of appeal.
The Judge fixed bail at 5000 pend
ing the appeal but reduced the surety
10 $4,000 upon Lynch's attorney say
> ing the defendant could raise that sum.
@ T. Rankin has been tried once on
the same charge. but the jury dis
agreed. He is now awaiting retriaL