Evening journal., 1914-04-02

, 80. This he said was incorrect and
the true amount was s9,454.e4. He re-
peatedly stated that he could not ac-
count for the apparent shortage be-
cause he made no audit OF the bank
books. He said the deposits, accord
ing to Mr.. Kelley's reports, decreased
$4,000 within two months. He could
not account for the difference between
the sl93,413.S4 in the individual led
ger and sie4.774 in the general led
ger.
Mr.. Ball asked the witness about
the account in the individual deposit
book on June z, 1911. He replied he
could not answer without referring to
a memoranda which was in his grip.
Mr.. Ball insisted on an answer and the
witness was excused while he got his
grip.
Robert Douglas and w. G.. Lockwood
were recalled and identified the defen-
dant's handwriting on the reports.
Another Examiner Called.
Albin L. Fowler, a national bank ex-
nminer. was the next witness. He said
he examined the bank books in Novem-
! ber, 1911, and discovered that the book
keeper was transferring accounts from
the individual ledger to a new one. At
that time, the witness said, IL was inn
practicable TO take Of trial balance.
/ He told the cashier about it and or
dered certain things done. When wit
ness returned TO the bank in June he
said none of these things had been done.
On account OF the condition Of the
books he said he could not take a trial
balance. He ordered certain accounts
Strengthened out and told Mr.. Kelley he
would return TO take q trial balance.
Tho trial balance Of the individual ledg.
or showed q balance of 507625S, while
the entry made by Mr. Kelley in the
/ general ledger showed balance OF
sl3s,Oi0.77. This amount was inaccurate
by SlS,S5l.Sl, witness said. lie question
ed both bookkeeper and Mr.. Kelley but
they could not account for the differ
ence.
When he reported IL TO Mr.. Kelley and
Iasked for an explanation witness said
Mr.. Kelley repied "Is that soiP and
walked over TO the ledger aud looked at
IT, He said he could not explain the
difference.
The witness said he reported the dis
lcrepancy 10 the United States Comp
troller and obtained permission to 60
lbacS 10 Middlctown to again 90 over the
hooks. He went back and took of sew.
eral trial balances TO reach starting
lpoint. The bookkeeper and the cashier
took off two balances, one In 1908 and
the other in 1909. These were given 10
him. They were from the individual
LEDGER. Then an entry in the Offering
book was pointed out TO him. The en-
TRY was made ON February IL, lS9S The
footing of the last column was pointed
ont as being incorrect, an error of $1,000
having been made in IT,
''Then what did you doi' asked Mr.
lNields. The witness turned TO the book
land Mr.. Douglas wns recalled and iden'
titled Mr. Kclleys figures.
81 checked this incorrect footing TO
the general ledger" he replied, "and
found il had been entered incorrectly in
the general leuger."
The witness. said he asked Mr.
! Kelley about il and was told that IL had
never been called to his attention.
He said he made a machine count OF
, the notes and was assisted by Mr.
"A Kelley in checking them back. MIR
. Kelley held the notes in his hand an,
the result showed that the notes were
! out oply $05 The list amounted ts
s247 ,0l272 which he compared will
the general ledger.
MIR. Stork returned with the papers
concerning the necessary data for hin
10 answer Mr.. Balls questions, and took
the stand.
The witness stated that he was tes.
tifying from memorandum which he
took from the report which he made
10 the attorney general. None of the
items. according 20 Mr.. Ball. In the
memorandum, included the items IN
the report with the exception of one nc.
count of September ]. Mr.. Ball asked
that the evidence of the witness b,
stricken out with the exception of the
account which appeared in both papers
Wrangle Opens
A long wranole followed. Mr.. Nieldl
insisting that the evidence was proper
The witness said he made mp the state
ment from the report and that all of rs
items could be found in the trial bal
ances which were offered in the evi
dence. Mr.. Nields said that he pro
posed TO 90 back to the errors EN-
; braced i'm the counts of the Indictment
and show the circumstances connected
with them, and build up chain ot eNi
denee through the books. lie declared
that the government would show tha
the errors could not have been result
of a single mistake, but was a result o.
shortage from time TO time. Th'
stenoernpher was directed 10 look ul
I the evidence. Il took some time to g
through the notes.
{ "Are we proceeding upon the theory
asked Judge Bradford. that hours arr