The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-04-11
TWO MORTGAGES
ON LIQUOR PLANT
Government Alleges That This
Fact Was Not Revealed When
Bond Was Filed-Clafencc
B. Wood, on the Stand,
Attacks Elmore's
Evidence.

With the examination of witnesses In
the rem proceedings of the govern
ment against the Broad Rock Dis
filling Company. both sides. when
court adjourned at O'clock Yesterday
afternoon claimed victor. In this
nction the defendant company is be.
ing tried in the United states Dis
trict Court before Judge Edmund
Waddill, il, on AN indictment charg :
Ing tho company with illegally con
Quoting It's distiilins and rcctifyinE
plant, and with giving a fraudulent
pond TO the government. If the In
oictment is sustained Il means that
the entire plant Of the COMPANY will
be conlscated
United States District Attorney
l0insford l., Lewis. and Assistant Dis
trict Attorney Robert II. Tallcy con-
Quoted the prosecution for tile gov
crninent, and brought out the fact
tEat Clarence y. Wood. owner OF the
distiiiing company. Micd the bond re.
CURED BY t::c revenue department.
"hich stimulates that there shall hn
no incumbranccs OF any kind OH the
property Of the dlstilIcry at the time
OF the Ming of the paper. when there
were actually In force against the
d'stiil'ns plant two mortgages aggrc-
eating $4,000.
Wood on tho Stund.
ne existence of these two oblipa-
tons, In the opinion Of the govern
mcnt attorneys clearly rendered the
bond a fraudulent, ono. and LEI, the
n'ant liable 10 seizure Attorney
George A. Hanson. for the defense In
II snort argument before Judge Wad-
diii upon a question OF the relevancy
OF certain evidence took the stand
mat the bond vas given in good faith
s'nce Tho defendant had no knowledge
of the existence of the nrst Inortgag.
ana although he knew of the second
one lie did not know that Ii was
necessary to report il 10 the revenue
department
The prosecution rested It's case nj,
O'Clock aud the defense put on tho
stand Clarence Is. Wood. against whom
hs owner OF the distiilcry. most or
The Indictments are directed Upon
direct examination NJ told OF the pur-
cha OF the distillery on February IS
1911. from II. c. Grubbs. He under
took tho business he said, unw!llinEly
ana only because the latter owed him
money for grain which he had sold
NM ana which he could not COLLECT.
Did Not Know of Mortsnrc
Witness asserted that he had no
knowledge OF the existence of a mort.
gage on the property until he was no.
lined of that fact on December %
1911, BY the Manchester National Bank
which held the paper. on the day OF
purchase, he said, he executed "a deed
trust on the property TO secure !.
loan OF $1,000 with which 10 purchase
The distillery, which he repaid In Feb
Tuary 1912. Until April, 1911, he de-
clared, he operated the distillery under
Inc bond executed by the former own
er. On May /, as required by law, he
executed new bond without mention
ing the encun'brance, because. he said
ne did not know IL was required
Upon crosS-c%amination conducted
By Assistant District Attorney Tallcy,
Wood fatty and without uualifica ton
denied practically all of the violence
OF Ethelbert Gilmore, who he declared
was his manager at the distillcry. Ell
nores statement that Wood had au-
thorized him to pay Burroughs. the
government guagcr. 50 for every bar
rel of untax paid spirits he permitted
10 pass, he said, was absolutely false.
lie paid only three or four visits to
the distillcry. he asserted during his
entire period Of ownership. relyinl;
upon Gilmore as manager to conduct
the business.
Kept No Records.
Asked by the attorney for the gov
eminent to produce the records OF the
grain company of which he was head
4 10 SHOW how much grain was furnish
cd the distillcry. Wood replied th.t
lie kept no records i'll his Office. hut
sent memorandum with each load of
grain he sent to the distiilery, which
incmol noun ne supposed was fled in
the distilicry Office OF E,inorc 10th
enterprises belonged to him. he said
and he saw no need for Keeping, an
extra record, When taken To task by
Mr. Tailcy on this loose method Of
conducting business. witness replied to
the effect that IL did not differ much
from the methods employed in the
law business.
Throughout the cSamna ton he In.
sisted firmly that he knew nothing
whatever about the practical operation
OF a distillcry; that he was in the
business by accident and that as far
as he knew no irrcguarity had oc-
Cured ut the plant. When the dis
tillerf continued TO lose money. he
SAID, he demanded an explanation of
Fillmore, who ascribcd the deficit TO
expenses, among which he mentioned
the brides TO the guager. He then
investigated the natter, he stated.
found that Gilmore had been robbing
him, and forthwith discharged him.
He had no knowledge of the first
mortgage, he said. until notified by the
bank, and did not know that the law
prohibited encumbrances.
Government Concludes Case.
The morning Session was given up
cntirfis to the examination of Elmore,
chief Witness for the government He
repeated his testimony IN the Bur-
roughs case tc ,chns the bribc money
he. was authorized by Wood Ia pay
to the government gungnr ard to the
beermaker The private notebook,
which Inquired in tho former ease. was
again introduced to substantiate his
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