Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1910-01-11
ANDY JONESCASE
ON AT FARGO.
NOTES AGGREGATING sa4,7so FIG.
URE IN NORTH DAKOTA
MANS TRIAL
FOR WRECKING RUGBY NATIONAL
Endorsed In Banks Name, Placed to
His Own Credit, is Testimony
Minnesota Institutions Were
Also Victimized.


Jones, ex-cashier of defunct First Ma
tional bank of Rugby, N. D., used the
credit of the institution which he rep
resented in raising over $34,7S0 which,
when received. was applied to his per-
sonal account, was the main feature
of testimony offered in the federal
court Friday afternoon in the case of
the government against A. HI. Jones.
Bankers from all over the Northwest,
financiers who head the strongest in
stitutions in this section of the coun-
try who dealt with the Rugby banker
during his meteoric career, are in
Fargo, half dozen having testified.
EIstad Identifies Notes.
The star witness for the prosecution
was e. ]. Alstad, bookkeeper and as
sistant cashier of the defunct bank,
who has also served with the receiver
since the failure in January. In his
quiet, modest manner he was able per-
sonally to identify every one of the
notes in question and, from his own
knowledge, he was able to state to the
jury that the proceeds of these notes
which had the endorsement of the de-
funct bank, were invariably placed to
the credit of A. II. Jones' personal &C.
count Elstad was on the stand seven
different times during the day. Each
| time he would identify some note or
draft and then retire that those who
further handled the paper might tell
of negotiations.
A certain $500 credited to Jones
personal account, Jan. 2, 1907, was
shown to be part of the proceeds of
| five notes sold to the German Ameri.
can National bank of Little Falls,
Mimi
E. j. Richie, assistant cashier of
that institution. told of their transac.
ton with Jones. Notes for the follow.
ing amounts and signature were pur.
chased by them: $1,000, Edward
Erickson; $1,000, w. H. Lamb; $1,000
Northwestern Land Company; $1.464
O. A. Zietz; $4,000, A. H. Jones. The
remaining $1,464 received from these
notes was credited to the Barton
State bank, of which Jones was the
president. On July %, 1907, ElstaG
testified that Jones was credited with
$1,000 on note made payable to the
bank.
On March 1S, 1908, Jones raised
$4,000 on like note. signed by FREQ
Ely. His account was fattened s1,50l
on the same date by like note signes
by Fred Ely and H. H. Hall. OF
March 81, 1908, two notes payable t
the bank for $1,000 and $4,000 signe'
by John Buoye and P. ]. McClory wer
} discounted and credited to Jones' pei
; sonal account.
Operations Extended.
On April %, 1908. Jones EXTENDS
: his operation to Osakis, Mimi, wher
, $4,000 worth Of paper was marketed
!. F. Cotton, former assistant cashie
: of the National Bank of Commerce Q
Minneapolis, testified that the pre-
ceeds of this sale passed through tn
Bank of Commerce, that $4,000 wa
sent to Jones, the remainder bein
, credited. Elstad told of receiving tn
$4,000 which was placed to jones' pei
sonal credit. All of the notes sold ha
the endorsement of the First Nations
bank of Rugby. Part of the money t
take up these notes was Forthcoming
A check signed by Ed Erickson fo
5000 was issued, but there was no a,
J count. 1t was checked from Jone!
personal account, another check fror
the famous Northwestern Shee
company was applied.
In June, 1908, another block of Rui
by paper was sent to Osakis in allo
. ments of s1,40o and $4,000. l. F. Co
, ton, now of the Northwestern Natiol
J al bank, formerly with the Nations
Bank of Commerce, of Minneapolis
, identified drafts which passed throug
his bank as proceeds of these sale
J Elstad told of receiving these amount
at Rugby and at the order of Jone
his personal account was credited wit
the amounts
A note signed by Dave Donely, da
ed May II, 1908, for $1,000, made pa.
able to the First National Bank {
Rugby was, according to Elstad, di
counted at Jones order and placed I
: his personal account. A note signe
by Frank A. Athearn for $1,000 |
like form was placed to Jones' a.
J count. A note similarly drawn nette
Jones $4,000 on Sept. "a, 1908.
bore the signature of e. e. Simontol
: 1t was for Identification of this pape