Rocky Ford enterprise., 1912-12-20
CUNNINGHAM
JURY DISAGREES
After Being Out for Forty
Eight Hours
VERDICT OF NOT GUILTY
ON ONE COUNT
Could Not Agree on Other Four
Counts and Is Dismlssed-Re-
trial Next Month


After being out for forty-eight
hours, the jury in the federal court
in the case of j. R. Cunningham
at l o'clock on Wednesday re-
turned verdict of not guilty on
the one count relating to the mis-
application of funds of the First
National bank of this city.
On the other four counts relat-
ing to false entries and false re-
ports to the comptroller of the
currency, the foremap announced
that they had been unable to agree
The jury was then discharged by
Judge Lewis.
United States District Attorney
Harry E. Kelly announced that
the. case would be tried ON the re-
manning counts after the holidays.
Testimony in the case against J. R..
Cunningham, charged with misappro-
priation of funds, embezZlcment. max
ing false entries aud making false re-
ports to the currency department OF
the condition of the First National
Bank of Rocky Ford. Colo. was con-
cluded at noon on SATURDAY. and an
adjournment was taken to o:3o O'Clock
Monday morning for the purpose of
allowing time for the judge to prepare
his instructions to the jury and for
the attorneys TO prepare their argu-
ments.
Amongst the witnesses for the
prosecution were George w. Goodale,
state bank examiner, who testified
that he had found irregularities in
the books of the bank under dates
prior to February '27. and it is on
these alleged discrepancies. amount
ing to something like $4,000. accord
ing to government testimony, THAI
the government was trying Cunning
ham.
Former Bank Examiner Carlisle
testified that as far back as January
&, 1904, he had discovered overdrafts
in the amount of $4,000. but said
they had later been liquidated. In
these drafts. the names OF Cunning
ham and Harris both appeared. In
one account money was drawn by
these men, who are alleged to have
used it in promoting the Mustang Ca
nal and Land company.
when ] entered the bank. testi-
fed Carlisle. lit was ! O'Clock in the
afternoon. and found Harris and
Cunningham at a desk. The note filt
was on the desk. discovered one
sheet gone. | found it in the draw
cr, and it was this sheet that showed
the overdraft in favor of the Mus
tang company.
Mrs. Harris. widow of former
Cashier George II. Harris. faced tn,
throng of expert accountants and
other witnesses in the federal distric,
court and recounted the finacial wor-
ries which caused her husband to
shoot and kill himself, i'll the belief
that he was instrumental IN wrcckinG
the Rocky Ford concern.
She told how Mr.. Harris had taken
her to the bank and had pointed out
to her a note made ont by President
Cunningham to himself and kept con-
cealed. The note was on the Rocky
Ford institution. testified Mrs. Harris,
for $4,000. This incident was but
one week prior to the time that Har-
ris committed suicide, she said.
Sidney (. Balcom. now clerk at
the Brown Palace hotel, and former
bank. related the incidents occurring
when Examiner Goodell of Denver
inquired into the condition of the
bank. He told how he had been
forced to stand between Cunningham
and Harris and swear falsely to ac-
counts.
Eleven witnesses for the defense
were examined and testified as to the
good character of Cunningham. At
torney Ward brought out the fact that
Cunningham owned SI2, 500 worth OF
stock in the bank. and that his wife
had $1,000 on deposit there. more than
the overdrafts charged against him
Attorney Mcintyre made motion
to have the judge instruct the jury to
case of Cunningham.
Judge Lewis overruled a motion for
a dismissal of the indictments. which
were argued on the ground that no
one had been injured by the reputcd
shortages and alleged false reports
and that it had not been shown that
the defendant had acted with wrong
intent. Cunningham counsel claim
ed that the bank had been saved from
insolvency and protected by the en-
tries.
Arguments were opened at o:3c
o'clock Monday morning by Harry
T. Kelly. United States district at
torney. Mr.. Kelly spoke for one
hour. reciting the testimony. presented
by the government and asking Tor
verdict of guilty. He declared that
the proof on the part of the proseeu'
ton was absolute and that there only