Evening journal., 1914-04-04

Startling testimony by w G. Lock
wood one of the chief witnesses for
the government. was produced yes
terday at the trial of George d. Kel-
ley. former cashier of the Peoples
National Bank Of Middletown, on
trial in the United States Court on
the charge of swearing to false
statements concerning the bank
finances to the Comptroller as we'll
as making alleged false entries in
the books OF the bank.
The statements we're drawn from
the witness by William p. White. a
member of the jury. The witness had
been testifying that he had seen Mr..
Kelley make the false entries. by
erasing his Cthe witness) own fig
urcs. and putting others in their
place and also manipulating them in
other ways Witness said he saw this
done from time to time and that II
was in 1902 and later. Mr.. White
leaned over to the witness.
why, he asked III you knew
these accounts we're false and had
seen Mr. Kelley make them, why did
you not report il to the National Bank
examiner"
IL did report t. answered the wit
ness. THE reason / did not do It at
the time was because Mr. Kelley as
sured me that the difference I'm the
books would be found In a short time
and then they could be corrected
Witness admitted that he did not
tell the bank examiner until after the
Investigation had been started I'm
fas oil
entries we're made.
Testimony yesterday made the case
all the moro complicated and both
judge and jury felt the results Of a
hard day grind when court adjourned
in the afternoon. Judge Bradford
expressed the opinion that the cases
would not be finished until week af-
ter next and to hurry II along, he
would hold court all day today or
part Of the day, according TO the
wishes Of the jury. Judge Bradford
said that there would be only four
days OF court next week Friday will
be Good Friday" and Judge Brad
ford never sits in case on that day.
There was considerable diversity Of
opinion among the jury as TO whether
they should sit today or not Some
were willing 60 remain In court all
day; others were willing to sit half
a day and some wanted 10 20 home
and remain over Sunday, one Juror
had a public sale which he had ad-
yertlsed TO take place on his farm to-
, day. and for this reason Judge Brad
ford adjourned court until Monday
morning
Court opened yesterday afternoon
with Mr. Stockton on the stand for
cross-examination by Mr.. Ball
Look al n r. Davis account in the
individual ledger and state whether
there has been am erasurc in that ac-
count said Mr. Ball
Tho witness said there had been cra-
isures IN this account and also in the ac-
count Of September
"Look at the Davis account of Oc-
tobcr, 1901 has an crasurc been madc2''
There bas .been an rrasTc.'
"las not a figure been addcd2' asked
lAlr. Ball
"rherc has bccn, said tine witnes.
and hc identified the figure aud the
figure 3 as being those OF Mr.. Lockwood.
I AZ The request OF Mr. BAH the witness
turned TO the account IN the bank state.
mcnt book of June. 1918.
"Do YOU know of Your own knowledge
loi a statement given TO The board Of di
.rcctors not by Aff kelley which ha,
IAN error oi s50,0OO in Us footingT
~ do not was the answer
did YOU not say TO Mr. Townsend. ol
the bank. that Lockwood WIS not i
competent hookkeeper asked Mr.. Ball
~ don't remember any such thing
lsir.' answered the witness.
'Will You say you didn'ts' asked Mr.
/ BAH.
NO won't say ] didn't was tn,
answcr.
Mr. Nields asked witness when he be-
came assistant cashier ot the bank Tho
WITNESS replied. "On October 1912"
What did you start out TO loeate27
asked Mr. Niclds
"lho shortage Of sls,T3s.7o. was The
lanswr.
The witness said he found over Sls,
1000 OF it and he found the figures TO b,
accurate.
NJ Ball recalled the witness. wh'
stated that he had nothing 10 do Will
the Fourth Street National Bank state
ment and did not know whether it wa.
correct or not.
Mr. Nields recalled National Bank Ex
amner Albn Fowler. who told OF what
took place when Mr. Kelley was beforl
the board OF directors
81 said TO Mr.. Kelley that il does moi
seem possible that YOU could render
statement to the board OF directors
every week OF $4,000 less than the facl
of the ledger called ior, told him thcrl
must be some motive.
He replied that he did not know any
} thing about Il.
After the meeting. Mr. Fowler. wa
, there listing OF the notes." asked Nh
b lNields.
"rhere was.r he replied "iu the pres
ence of the defendant and Mr. Ford"
The witness said he made a ma
chine list Of many notes. Mr.. Fore
/ found one not the property OF tn
: bank and handed It to Mr. Kelley
telling him that It did not belong 4
the bank Mr.. Kelley said: That