The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1912-11-14
TRIAL OF B. F. 0'NE|L
N KOOTENA| COURTS,
IS WELL UNDER WAY
JURY SECURED AND FIRST WIT
NEssEs FOR STATE HEARD
ON WEDNESDAY.
First Case Is on Indictment Alleging
That o'NeiI Made False Report Of
Banks Condition--Others Will Fol-
low Immediately.

COEUR D'ALENE, Nov. 14.-The
twelfth juror was secured, the jury
accepted and sworn in and the trial Of
B, F. ONeil on the charge of making
false reports of the condition OF the
State Bank of Commerce commenced
in district court Wednesday morning,
It is the intention of both sides to
finish the trials at the earliest date
possible, but they will probably con-
tinue for two or three weeks.
One Of the first witnesses for the
state was Gary G. Burke, former as
sistant cashier of the bank. who testi-
fled or ,.ivect examination thai lo ma
made ct the false report which
the defendant was indicted, and sale
that he made the false entries under
the orders of the president. He said
that President O'Neil said to him
either "You might sign that or, you
could sign that" The witness was
not certain. He said he told him It
was only for the president, cashier
and directors to sign.
Burke said the report showed that
the loans and discounts were $4o2,-
854.20, when the trial balance OF the
bank showed but $426,916, differ
ence of $685. he said that the re-
port showed overdrafts amounting tc
s1s549O5 when the overdrafts were
in fact $116,549.05, or difference OF
100000; he said the report showed
United States bonds, state and NUM-
cipal bonds and others amounting To
$139,3737O when there were but $64,-
4061O an increase of $74,967.60; he
said the surplus was increased from
$4,000 to 100000.
T.. C, Wilson, receiver for the BANK
who is the special bank examiner
identified the minute book of the bank
as did W>O. Pierce Of Boise In the
bank examiners Office. Pierce was
the receiver from the time the bank
closed until July 21, when Wilson took
charge.
Edgar s. Wyman, who was cashier
Of the bank, now living in Portland
identified the minutes and the by
laws of the institution. Parts OF the
minutes were read to the jury to show
that ONeil had been reelected presi'
dent of the bank and that his salary
had been raised from $4,000 to $4,000
and then to s50o0
Herman ]. Rossi insurance man anf
notary public of Wallace, said he ack
nowledged the signature of b.
O'Neil to the report on May 8, 1903
but had no Independent recollection o.
the action.
The opening statement of Attorney
John P. Gray for the prosecution re-
uuired almost two hours and was CIV
en- close attention by every one in the
court room. Once he was interrupted
by objections of the defense as to his
right to go into certain matters Wh1cf
he insisted were a part Of the motive
and scheme Of the bank president,
After the jury had been excused the
matter was argued az some length and
Z. Judge Flynn held for the state.
.s-e Among the facts that were announc-
80 as subjects for proof by the state
re-
That the defendant was in actual
charge at the time of the making OF
the report charged against him.
That he took money from the bank
and made notes signed by various
persons who knew nothing of It,
That the Lane Lumber company was
great borrower from the bank anc
ONeil is interested in this company.
That the loans aggregated 100000
at times.
That loans were not made in the
name Of the company, but to many @
the smaller concerns to avoid show,
ing the total owed by the company.
That the company had heavy over
drafts O'Nei was himself the credi
man: he had large overdraft, bu
this never showed on the statements
--1ss~That O'Neil never paid for his owr
;h1nck; his motive was always to hid
XAIs. own misuse of funds for himself
Nand his enterprises.
NJ That the reserve was usually low.
That large loans were made withou
security for the construction Of th
railroad from Enaville to Murray.
That when the deposits showed owe
500 900 the money on hand was offer
as low as $1,000
That once O'Neil made a trip t
Prtland and obtained loan of $50,
600 to bolster the deposits; anothe
time he went to the Old National BAN
in Spokane aud obtained $4,000 TO
the same purpose to hide these loan
certificates were made out and ne,
account opened in the name of ficti
tious person.