Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1912-01-26
BANK CASES TAKEN UP
Case Of State vs.. H. j.
Schwartz Now Be-
Ing Heard .z.,>/:8


being heard IN the district court whieh
convened here in adjourned session
Monday afternoon, can readily be- seen
by the large attendance in the conrE
room ua,ly. The progress of the casa
that of State Ut Minnesota 70. II J.
Schwartz. cashier nf the State Bank of
Royaltun, who is chargec with hav-
ing accepted on August 2. 1911 q d.
poait of $50 frDlu Jos. Schreiber when
the bank il supposet to have heon in-
solvent. is necessarily very slow as
the report c'mes from quite reliabae
sources that the atate has subpoellaod
something like fifty witnesses. Tn to
this time the testimony IS directed
CHIEFLY rs to ascertaining the Correct
rating of men whose Taper was halu
by the state Bank of koyalton at tho
time it closed, thereby to bring out the
value of the paper held hy the fiank
from which to determine " hether tho
bank really was insolvent or not ct
that time. It is unde, stood counsel for
the defense also has large numner Of
witnesses which it will call. A. J.
Edgerly, q special attorney from the
attorney generals o:fice, is assisting
County Attorney Don NJ. Cameron N
examination of witnesses. Attorney
VIM. F Donahue of Melrose assisted
by NJ. j. DAILY of Perham ana L. W.
Vasaly of this city are c,unsel for
the defense. Judge M. y. Taylor Of
~. Cloud is presiding, with +. NJ.
Woodward as co1rt stenographer.
Not little sarp1lse was expressed at
the brief time 1t took, considering the
publicity tne bank closing received to
impannel a jury. Monday afternoon and
part Of Tuesday morning only be,ng r.
quired fo1 this purpose. The Jurors are:
IF. X Bnrssler, Aug. Schwanke,
Richard Watson, Leon Bolsjolie, Gao.
Polasik, VIM. Koenen. Al./ Cor.nier.
Jos. picotte, j. F. Lit, le. John Adams.
James Tanner ana j. F. Bentler. An
but the last two were secured Monday.
!. Ip his opening addreas County At.
t0rney Cameron stated that the pr0-
secution would attempt to prove tnat
the State Bank of ROvalton was in
solvent en- Aug. 2. 1911. the date on
which the defendant. Il. j. Schwartz,
lis charged with having accepted .
deposit of JOS. Schreiber; also that
while the :caeital stock of the tack
vas 40, 600 its assets were 500, ,Ooa :
and liabilities $l44. 900. -.
Witnesses examined a1e:. w. !.
Rsgan; asssstant hank xssexamiueE,-G~
Rosen mrier, receiving OF the detuuo3
institution, John P. Rau, e. T.
DraRoo; F.. L. Cliff, Jos. Schreibor.
Emet K. Grove, r. Rhoda, j. X.
Martin, Chas. w. Bouck, Loren Nc.
Gouagle, John :: Klrfer, Mrs. Johr
Kiefer, s. N. Blaisdell, Warren Mil
berry.
The hooks of the defunct state bank
wele offered in evidence and. a com.
parison of the bank examiners: report
with tho banks assets as shown by the
books would show deficiency of $s7,
97y. 81.
: An Interesting side light to this case
came out in the testimony Of Emet E.
Crowe,' who testified that 81. ].
Schwartz had paid him S.. 800,
collected for Grove on a ut'te after
the State Bank Ut R0yalton had closed
its doors. A charge of embszzlement
had been preferred against Schwartz
last fall. for failure to turn over sne
money collected On the note.
Messrs. Rnoda and Martin furnished
evidence as to- the value Of the bank
fixtures and furnlture. placing it at
81, 100 and. less instead of 81, S06 q.
appears on the banks books.