The Colfax gazette. [volume] (Colfax, Wash.) 1893-1932, 1910-06-03


terest in the bank Of 25l shares to NJ. j.
Hawkinson be received therefor 21S
acres Of irrigable land on the Columbia
river, and that Boone stood ready to
any time the bank would deliver to him
the mining stock deemed to be worthless
by the prosecution. That the defense
would show that Boone and wife bad
executed deeds to the bank for the 21S
acres OF land, also deed to their home
in Palouse, that the deeds we're placed
in escrow with the Metropolitan Invest
ment Co., that be had acted openly and
concealed nothing from the public and
stockholders OF ihe bank.
The defense recalled H. G. Johnson, c.
W. Waters and Josiah Richards, wit
nesses for the state on direct examine
ton, in regard to bank entries, etc.
Boone on the Witness Stand.
Defendant II. NJ Boone was called to
testify. He gave brief history of his
life since coming to Whitman county,
stating that he had lived in the county
81 years; was married in Colfax; took
up homestead in the EndcOtt country
and taught school in the country dis
tricts until going to Palouse, where he
engaged in the mercantile business. Be-
came connected with the PalOuse State
Bank in 1905, which had capital stock
at that time of $25. 1000, with so per
cent paid up. Shortly after the capital
stock of the bank was raised to $50, 900,
with so per cent paid up, as require d by
law In 1907 law was passed requir-
ing bank stock TO be fully paid. The
state bank examiner in June, 1908,
notified Boone to pay up the balance of
the capital stock, 40 per cent, or 500
900. Boone at once called meeting OF
the stockholders for that purpose. 1t
was conceded by all present that tenn
pOrary arrangements could be made un-
til fall, when money would be more plen-
tiful Accordingly Boone made arrange
L.
National Bank of Spokane, for the re-
quired $4,000 loan. Boone gave as
security therefor two personal notes Of
$4,000 each, one payable in 90 days
and the other on demand These
two personal notes were secured by four
$4,000 notes signed by r Il. Hill and c.
in in
turn secured by 400 shares of BOone's
personal stock in the bank, supposed to
be worth $4,000, thus giving them
double security for their notes.
When the first $4,000 80 day note
became due to the Exchange National
Bank, Boone paid it out Of the PalOuse
State Banks funds, and placed in its
stead an accommodation note Of $10,-
900 OF Fl. c. Woodward & Co, secured
by the two Hill and Oderlin notes re-
turned, amounting to $4,000.
The Woodward note was later replaced
by $45OO note of H C. Woodward and
a $500 note of NJ. H. Ca'ef, these heiDg
secured by the two Hill and Oderlin
notes.
The second $4,000 note remained
with the Exchange National Bank until
about January l, 1909 This note was
also paid out of the funds OF the bank.
with 5000 interest. This shortage was
filled in with an accommodation note Of
A r. McClaekey for $35OO, together
with stock in the Inland Clay L Pottery
Co, borrowed by Boone from his SON
in law, A. R Patten. And this was ell
secured by the other two Hill and Oder
lin notes, returned from the Exchange
National Bank. This pottery stock was
later replaced by stock in the Copper
Age Mining Co. 10000 shares), owned
by G. M. Swartwood and held in escrow
by W. Z. Schirmer. Upon the placing
of this stock the bank credited its assets
with $4,000.
When the Hill and Odetlin notes were
taken I'D by the owners Boone recovered
his 400 shares Of bank stock.
The accommodation notes aforesaid
we're secured by Boone's personal notes,
and the state has shown that the makers
were not to be liable.
Boone testified that on January 20,
1909, he sold 251 shares OF bank stock
to Nj. J. Hawkinson and testified in sup
port of Mr.. Pattison's opening state
ment.
1t appears from the testimony that
B0one's personal stock stood as con-
siderable security in the bank, and q
great deal of time during the day was
spent arguing the admissibiIity OF evi
dence touching upon this point, an at
tempt having been made by the defense
to substantiate this by showing the
good faith and intention OF the defend