The Birmingham age-herald., 1914-03-11
Morning Session

MOntEOmefy, Mafcn lu.-(Speclal.) When court convened this morning for the second day of the trial. Judge Brown announced that he would allow the state to aduee all evidence showing guilty knowledge on Oakleys part with any or all of the Lacy defalcations.
 This question was argued at length yes terday afternoon and was for time dis cussed this morning. The defense took an exception to the courts ruling.
 James l.. Purifoy, chief clerk of the state treasury department. was the first witness called to the stand Mir Purifoy said the s22O7 which Lacy received in cash from Bernard Frank X Co.,, in the presence of Lacy had never reached the treasury.
 Witness was shown the checks which Lacy gave Dan G. Trawick, on the day of his flight. for $l10,000, both of which were drawn on Birmingham banks. MT. Purifoy said the checks were returned unpaid.
 Witness was next asked concerning de- posits by the state convict department for several months prior to Oakley's re tirement from office, snd also concern- ing certain funds of the convict depart ment which the governor had directed to be paid into the state treasury.
 Oakley Indorsed Checks
 Charles l.. Harold president of the Montgomery Savings bank, was called tt the stand and asked to identify a mum Der of checks deposited in his bank by the convict department. MT. Harold identified the inducements on thes: checks as being in the handwriting ol J. Oakley, president.
 Mr. Harold told the court that Oakley had requested him to get up all the casf he could for Theo Lacy. He identified tn, check, in blank, signed by J. G. Oakley president, and presented by Lacy. MT Harold repeated his previous testimony given in the Lacy trial, regarding thu sl1OOOO transa ction. Of this amount SIP, GOO was in cash and s3S,000 in New Yorl and Cincinnati exchange. He described the pine box.
 MT. Harold testified that the capita stock of his bank at the time of thu Lacy defalcation was $2o,OOO.
 On cross-examination MT. Harold testi fled that the convict department opened an account with his bank in August, 1912
 Witness again told of his conversation with Lacy a few days before the defalca ton, in which Lacy had informed hin that Examiner Brooke was making it un pleasant for him and that he wanted tt draw out all the cash he could secure.
 Birmingham Bankers On Stand
 Following a recess of five minutes, tho state called James H. Hard, Jr., auditor of the American Trust and Savings banF of Birmingham MT. Hard testified tha his bank had closed the account of the state convict department in February 1913. Witness testified that his bank liat refused to honor James G. Oakley's checi for $4s,579. presented a few days after Lacy's flight. MT. Hard had with hin leaf from the bank s ledger. showing al of the deposits of the convict department dating back to early in 1911.
 On cross-examination MT. Hill attempt ed to make witness say whether the ac count of the convict department had beer opened with his bank at the instance O the governor, but the state objected ane the court sustained the objection.
 Thomas Hopkins, cashier of the Firs National bank of Birmingham. was tht next witness. MT Hopkins testified tha check for 6S.449.1s, drawn by the con vict department. had been presented tc his bank for collection, but was not paid Witness said the convict department hat