The Birmingham age-herald., 1911-12-14
Defendant on Stand Practi-
 cally All Day
STATE IN REBUTTAL
Railroad Agents Deny Giving Knight Right to Issue Spurious Bills of Lading-Testimony to
 End Today

Huntsville, December 3-tSpecial.)- Knight rested It's case late this after. noon and the prosecution begun the ex. animation of witnesses in rebuttal.
 The defendant was on the witness stand practically all day, his cross ex- animation beginning at the opening oi court in the morning. Witness repeated
 over and over again that J. A. Bywaters foreign freight agent of the Louisville and Nashville railroad, and ]. w. Hunt district freight agent of the Southern, au- thorized him to make out bills of lad ing and deliver the cotton later. District Attorney Street submitted fol examination of the witness, letter from | Bywaters withdrawing the privilege of issuing these bills of lading, but Knight said he had never seen this before. Asked to state how many bills of lad ing he drew before the season of 1909- 1910, witness said the entire number amounted to from 225, 900 to 250,OOO bales of cotton. The exchange that he drew on this cotton amounted to $15, 750, 000 Witness said when he wanted to make remittance to the bank, he would draw on F. VanGerpin & Co. and forward to him bill of exchange with lading at- tached. He would then wire VanGerpin & Co.,, and the latter would wire when the exchange had been sold.
 Witness said when he returned from a trip to Europe he found that the firm was short 100 bales of cotton in it's de- liveries. He never drew off any bills of lading himself until 1907, and until that time these duties were performed by J. H. Miller, clerk in the office. Ninety per cent of the firms business was for egn.
 Knight said that September 1, 1909, his firm was solvent, and had a profit of $S5, 900. He admitted that in 1910 the firm was insolvent to the extent of Sl,00O,OO At the beginning of the season of 1909 the insolvency amounted to several millions Witness reiterated the manner in which he made a financial statement of the firms liabilities and assets November g. 1909 for Van Gerpin & Co.,, showing Il to be solvent to the extent of s170,00o, saying that the figures were compiled from the reports of all the firms agen- cies on that date.
 Knight was under cross examination
 
 told of the interior workings of the firm, how the busIness was carried on, how bills of lading weer issued and afterward made good with cotton and answering a thou sand and one questions that were put ta him by the district attorney. At the con clusion of he district attorneys eXamina- ton of the witness, tue defense rested. The prosecution introduced J. w. Hun ter, district freight agent of the South ern, as the first witness in rebuttal. Hun ter denied that he gave knight permission 1 to issue bills of lading for his road ant said that he never knew that Knight wa
 doing this until after the failure. Cros | examined, Hunter denied that he ha ever seen the letters and telegrams of | fered in evidence by the defense indicat ing that he had knowldg of spurious bill of ladng.
 J. A. Bywaters, foreign freight agen of the Louisville and Nashville rail
 way, testified that he had no author ity to give Knight the right to issu,
 bills of lading on his railroad ant never told Knight to make use of them He said the first time he knew tha
 Knight was making practice of issu ing spurious bills of lading was abou week before the failure of Knight
 Yancey & Go.
 After the failure he said he called on Knight to explain what he mean
 by doing this and Knight told him that his lawyers would not let him talk about the case. He volunteered the in formation, however, said the witness that the railroads are not involved by any action of the firm. Taking of tes. timony will probably be finished to. morrow.