New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-09
BANK PRESIDENT FREED
covernment's Case Against D.
: Mills on One indictment Fails.
MT YET OUT OF WOODS
Owner Head of Audubon Bank
nh BE Tried on Other Counts,
federal Attorney Says.

,1 ~ David s Mills, former
Ths n the Audubon Bank, came to
TFe'. 80. ep1 yesterday in the United
s.s' district Court when Judge H ,'
state .a5 the Indictment at the conclusion
dlSn .s governments case.
OF NV aus was charged with misapphca-
MI .ho hanks funds I'm conspiracy
uon I.sonb p. Blackburn, a promoter
WIN , 80 n. Ridgway, a lawyer, who
ana his his co-defendants in this trial, The
Nsis ,n, involved was $4,000, which the
ainV'", syanced on notes made by two
pam u,,loves The money realized was
OF 10 ,rocyre control over the assets
useu Vevstone Guard Insurance Com
Of INC Athens. Penn, and was later re-
,,.n.a 10 the bank
,,sse Hough's ruling was interpreted as
,sr,ylne that the discountins OF the TWO
mp. ,Is not constitute interpretation
ho''' oh &C the money thus advanced
inAs a,rsd in the physical possession OF
II. wnls. as president of the bank until
~, ..,rrities obtained from the Keystone
80 ~, Company were put up as collateral
u'". loan. For the purpose OF defence
!" ,rsal Il could be shown that Mr.
y n,.,Iburn had legal possession OF these
p' s-,.,.s Judge Hough held, and the
49, nader this Indictment, could not go
49, the transactions that involved the
49,, ,,.s...ora Guard Insurance Company
~. ,,orssction at Athens, Penn, on
-. fAs, governments case was based
"Dl'a 49, result OF an alleged scheme by
80 Nils, Blackburn and RiogWay
"n'. % Get control of the S5OO,0oo worth
:, erst class securities owned by the
,'.,nrrs, organization The s5O,C"e oo-
..,rea from the Audubon National BANK
:. sa-ve as compensation to some OF
~. d,,actors OF the keystone company
'S .hoir withdrawal from the directorate
.0a the placing upon it Of men pleasing
10 the trio. .,.a
p.tora the transaction was fully carried
ant and the money handed over by MI
Nils II appeared, Mr. Blackburn had the
,,us,ees execute a paper which TOT 'he
nsynent Of 81, transferred TO him all Oh
=. securities owned by the keystone
company. ,
Az the attorneys in the case explained
N. ruling, II meant that the trustees OF
n. keystone company had the right I'M
S.r the company's constitution to sell the
,.eIrities, and the paper executed oy
blackburn made the action legal as tar
AZ the federal Jury was concerned. AS
N, Mills did not part from the Audubon
hanks money until the securities were
nut up as collateral this particular trans
action did not appear to be misappllca-
ton. as charged in the indictment
Henry A. Wise. United States Attorney
said that Mr.. Mills and Mr.. Blackburn
would be brought TO trial next month on
the other indictments pending against
them.
One Of these indictments concerns the
two men Jointly 1t charges misapphca-
ton of the banks funds through the dis
counting Of various notes, approaching
total OF $4,000, from November H. 1870
10 March Is, 1911. These notes were DIS
eornted 10 obtain funds with which Mr.
Blackburn, then a director Of the bank
vas trying 10 buy enough shares OF the
Institution to obtain. Jointly with MI
Nils full control over the bank.
In a separate indictment against MT
Mis- the former bank president is
charged with misapplicauon of $4,000
Two worthless notes. this indictment
charges, were discounted at the cashiers
window and money was carried 10
the presidents room to buy number OF
shares OF the banks own stock.
,saao II. Levy, Assistant United States
Attorney in charge of the cases, said
yesterday that the money obtained IN
these later transactions was not all re-
turned to the bank and that some or
these notes could not be collected. MI
Levy said he expected to bring the two
cases 10 trial within q month.