The Birmingham age-herald., 1911-12-15
Taking of Testimony Begun and Arguments
 Opened
BYWATER CREATES
 SLIGHT SENSATION
Admits He Has Copy of Knights Testimony-Defens Claims That Government Has Failed to
 Established a Case

| Huntsville, December 14.-tSpecial.l The case of John ". Knight charged with using the mails in furtherance ol I a scheme of fraud. will go to the jury in the federal court tomorrow aft ernoon.
 l Argument of the attorneys begun al | the afternoon session of court today Judge Grubb allowed four hours to each side and half of that time was consumed this afternoon Four hours, from a. m. until l o'clock, remain and Judge Grubb will probably charge the jury immediately upon reconvening court after the dinner hour. The end of the testimony today came little earlier than had been expected. J. A. Bywater, foreign freight agent of the Louisville and Nashville railway. who had been introduced by the prose cution as witness in rebuttal Wednes- day afternoon, was subjected to a rigid cross examination at the hands of the attorneys for the defense.
 He held to his statement that he did not know that Knight had issued bills of lading on his road until about a
 
 in the employ of the Louisville and Nashville railway 32 years. He said he had no part in shaping the policies of the railway and certainly did not have authority to give any person per mission to write bills of lading on his road as Knight had claimed to have.
 Cotton Shortage
 In reference to a shortage of cotton of which he had received complaint from Bremen, Germany, about which much of the cross examination re- volved, Bywater said that he went to Knight and asked him why the cotton had not been sent to Pensacola in time to avoid delaying the steamer and Knight had told him that the cotton was being sent down from Arkansas and other points in the west.
 Other discrepancies in shipments and bills of lading were mentioned to re- fresh memory of the witness, but he said he had never known that Knight had been issuing spurious ladings. Wit ness said he had no contract with the Louisville and Nashville limiting hls authority but he knows there is no one connected with the corporation who could permit false bills of lading to be Issued.
 Quite d stir was created in the court room when Bywater was asked if he had been furnished with a copy of the testimony of John Knight Witness ad- mitted that he had. The copy he said, was given to him by Judge Eyster, an attorney for the Louisville and Nash vile railroad. District Attorney Street directed d few questions Of minor detail in redirect examination of the witness and this brought the testimony to close MT. Bywater tonight requests your cor respondent to correct an error in the re- port of his testimony of yesterday in which reference Is made to letter from Bywater to Knight withdrawing the privilege of issuing these bills of lading.' This letter referred to permission to anvs- date a bill of lading for d few bales of cotton and had no relation to the issuance of ladings outside of the freight office.
 Arguments Begun
 District Attorney Street began argu- ment or the prosecution at o'clock this afternoon and spoke until 4.20 He de- livered scathng arraignment of the de- fendant and his alleged system of doing business and spoke of the scheme as an enormous and far reaching fraud.
 He said Knight is one of the smartest men in the country and had by his wits svindled foreign cotton dealers out of millions of dollars and brought discredit upon the whole south.
 Tt is inconcevable," he said. that 
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