The Birmingham age-herald., 1914-03-12
Defendants Story Told Only in Part When Court
 Adjourned for Day
MUCH OF EVIDENCE Is
 HEARD IN LACY TRIAL
Misplaced Confidence, Attention to Various Business Interests and Negligence in Handling Funds
 Is Defense of Oakley
Ny l.. .. BETTY


 Montgomery. March 11.--tspecinIo Misplaced confidence, attention to var ious business interests and extreme negligence In the matter of anndlinR 2 both state and personal affairs--this is the defense of James C. Oakley. for mcr president of the stnte board of convict inspectors. who Is on trial In the Montgomery city court an ln- dictment charging the larceny and em- bezziement of s22O..O2 of statc funds
 0akIey's story has been told only tn pnrt.
 That part is very small, consisting of hardly more than dozen words. bul they express volumes. His story was begun late this afternoon in the pres ence of a crowded courtroom. over which hushed and eXpectant silence prevailed, but it was not finished. Just enough was said to acquaint those present with the fact that the man on trial had a trusted clerk in his office and that he had given that employe sometime in the summer of 1911, the sum of $27.50O in cash,
 This money belonged to oakley and the man to whom he entrusted 1t was Theodore Lacy, convicted of the cmbez- clement of s5o,0oO of convict depart ment funds and sentenced to serve 10 years in the penitentiary for his crime.
 This question has never been an- swered, but the actual disposition of this fund has the largest possible bearing upon the question of whether or not James G, oakley is thief.
 The question was not answered in the courtroom this afternoon. The de- fendant was not allowed to tell what instructions he had given to his clerk with reference to its disposition. And that was as far as the story went The story was interrupted by coun sel for the state on the ground thai l Oakleys attorneys were attempting tt draw from the defendant a self-serY I ing doclaration; that they were tryina to allow him to make evidence for hi. own cause, and in the absence of ruling from the court the story wat unfinished The court announced thal the matter would be taken under con sidoration and that tomorrow morning a ruling would be made.
 Oakley's Story Is Brief Oal<ley's story was brief. For two and one-half days he has heard the most damaging evidence against him He had heard the counsel for the state characterize him as a co-conspiratof with Theodore Lacy, the embezzler. He had heard them say that he possessed during his period in office as presi- dent of the board of convict inspect ors, a guilty knowledge of all of Lacy s transactions, and that he had aided and abetted him in his crime. When finally called to the stand late this afternoon, after it seemed that the state had made complete case against him, Oakley began hls refutation of the states charges, a story which his attorneys believe will acquit him in the eyes of the jury.
 Oakley, in answer to a question from 1 Wiley H. Hill, his leading attorney, first testified concerning his various occupations before he was appointed president of the convict board of in- l spectors.
 He had been numerously engaged Moreover, at the time he accepted q position with the state administration l he had numerous interests.
 The defendant told the court that Theodore Lacy had been appointed chief clerk of the convict experiment with the approval of the governor of Ala bama; that his chief clerk had opened the departments mail, and that he had l handled all of the deposits of the of 1 flee. In fact, Lacy usually had on hand a supply of blank checks. signed by oakley on all of the banks in whict i the department had funds deposited. ] Oakley did not look after the eepes l it's, though he did deposit some of tnt convict department funds in the i1ibt County Bank and Trust company al Centreville.
 Did you ever receive cash sums ol money?' the defendant was asked. Sometime in May or June, 1911, received s30,000 of my own money 1T cash from Dr. G. B. Crow of Birming ham," Oakley replied.
 What did you do with this money?' q gave $27, 800 to Theodore Lacy and kept s2500," was the answer.
 What Became of Money What did Lacy do with it?'' This was as far as the story went Counsel for the state objected to oak. ley's telling what he thought Lacy dit with it or what he told him to do witt it. The state maintained that the an 
 tContinued on Page NIne)