Evening capital news. (Boise, Idaho) 1901-1927, 1912-11-20

tOrS. Inc letter Was OlleTeO ~ SHoW
that O'Neil deceived his directors, as
the letter was found by the receiver
in the back part of a drawer, and l.
was declared that the letter was not
read to the directors by O'Neirs or
ders The letter was not admitted on
objection Of Attorney Mcfarland.
Wyman testified that O'Neil told
him at times that O'Neil owned all the
Lane Lumber company and that dt
other times he said he only owned one
third OF 1t. Wyman said that O'Neil
had told him that the M. K Wall notes,
the P. H. Wall notes and the st. Joe
Lumber company notes were all Of the
Lane Lumber company, but that they
were separated 80 that the examiner
would not see that the Lane Lumber
company owed the bank such large
sum.
On the report made by O'Neil on
April 81, 1910, besides increasing the
account Of the banks which had ac
counts in the Wallace bank an even
100000 the report also showed loans
and discounts increased 100000; over
drafts decreased 100000; securities In
creased $110,434, and cash deposits In
creased s125,o00.
"Nons Of Their Business"
According to the testimony Of wy
man O'Neil went under the assuml-
ton that anything that he didn't want
to show in the reports made to the
state bank commissioner in Boise. ac-
cording to the banking law, was none
of their business, anyway"
Wyman said that he and ONei
dc, f;rc< vnriI e
after the law had gone into effect and
that they used up a. lot of scratch
paper in trying to make the report
show what they wanted 1t to show
He said that the first report was sign
ed by O'Neil, but that Wyman signed
the second because O'Neil said that
1.-The cashiers of the other wallace
banks were signing the reports and II
would not look right for the president
of the State Bank of Commerce to sign
it's report"
Personal notes amounting to $14,394
were not shown. The report was dated
Nov. ~, 1906.
Wyman explained how ~. w
Krider" was gratuitously given an &C.
count in the State Bank of Commerce
and although neither O'Neil nor Wy
man ever heard Of such a man, he was
given credit for q deposit OF $4,000
This. Wyman said. was to cover up q
loan of $4,000 obtained by O'Neil from
| the Bank Of California at Portland &c
build up the reserve.
Bank Of California Helps.
The loan was made on July s, 1910
and the cash on the day before as
shown by the bank books, was only
$3.50.
II told Mr.. O'Neil we had to have
some more cash, as the reserve was
| low" said the witness. HE asked me
how much 1t would take to tide vi
over. I said we needed all we could gel
and that 100000 would look good. He
began to figure about where to get Il
and decided to 60 to the Bank of Cali
tificates Of deposit from the back ci
the certificate book and II need then
will use Them II not, he said he
| would cancel them.
II asked him what account to credit
! and he said I might credit the Idaho
| Northern or his own. But he said 4
l credited the Idaho Northern accoun'
| there might be difference that we
would have to explain. and II 1t was
put on Mr.. O'Nei's account would lool
pretty big. He said to put 1t In an.
account ! desired. i asked why no
open bills payable account, and ~
said that would never do. Consequent.
ly opened the account in the name o.
j. w. Krider.'
| Another loan Of $4,000 obtained from
the Old Natioral bank of Spokane o.
| O'Neil, Jan. 10, 1910, was testified I,
by the witness and the certificate u
deposit was introduced in evidence
Notes of the Washington. Mill compan,
and the Lane Lumber company wer,
given as security. The witness sait
| these notes were not given In tbs repor
to the state bank commissioner undsl
the proper schedule because O'Nei
said he did not want anything to ap
pear In the report against the hank.
| O'Neil shows no sigma of wearing
and his smile remains. The humor o
every situation appeals to him and {,
and from the court room he Is sur
rounded by friends, with the deput,
sheriff usually bringing up the rear
Mrs. O'Neil returned to the city yester
day and was present In the court room
although sitting well back.
II