The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-10-23
BANK EXAMINER q. {. HIATT
TELLS OF EXPOSE AND
CONVERSATIONS.
With Cashier Summers and Mr. c. o.
martin-oefense's Attorneys
Unable to Confuse Him.


Several strong points In the prose
cution OF NJ. b. Summers and c. ID.
Martin. OF West Union. W. Va. chare-
ed with embezzling large sums OF
money from the First National Bank
OF West Union. were scored by the
government. yesterday. in The second
days trial of the case. before Federal
Judge Aston q. Dayton. in the Unit
ed States district court.
What is regarded as especially dam
aging evidence against the defense.
was brought out in the testimony of
Hon blanchard f. Hiatt. former Ma
tional bank examiner. who made the
expose OF the alleged defalcations.
HIS testimony was not shaken by the
sharpest cross-examination. conducted
by Capt. NJ. G. Sperry. senior counsel
FOR the defense IL was corroborated
In every important detail by the tes-
tlmony of Attorney J. Ramsey. of
West Union. who was often engaged
as counsel for the bank.
According to the testimony of Mr..
Hiatt. Summers. the cashier OF the
bank. admitted many discrepancies
and never denied any OF the figures
" nc oahh tAdinlntT. ne teSune0.
further. that when Martin was CON
fronted with the statement of the
banks condition and II was intimated
that the alleged misappropriated
funds had been used for the benefit of
the c. ID. Martin & Company. OF which
Martin was the active partner and
summers the silent partner. Martin
at nrst denied IL. then said that he
did not believe IL was as bad as the
statement showed. and later offered to
go out and try to dig up enough 10
cover the amounts"
The witnesses said that Martin
sobbed and shed tears. and said that
he was as much to blame as was Sum.
mers and that II Summers had to go
he would be willing to go" too.
Tells OF Examination.
Mr.. Hiatt. was placed on the stand
at the afternoon session. He related
details of his Investigation OF the az.
fairs of the bank. and Of finding dis
crepancies in the records and certain
defalfations. He said he began his
examination April 3, 1918. and com
pleted the work the nth of the same
month.
Among the discrepancies. accord
ing To Mr.. Hiatt. was one in the pal
ance OF the certificates of deposit OF
sA.O54.S0; fooungs had been manipu
lated TO the extent OF S7.29s; there
was a discrepancy OF $4,000 in the
ranks account with the Mellon Nation
al bank of Pittsburgh: another in It's
account with the First National Rank
OF Pittsburgh. amounting TO 81 900:
shortage of $4,000 in the account
with the Merchants and Producers
Bank of Salem. w Va: another OF
$500 with the Farmers and Mer
( chants Bank of Pennsboro: the bills
receivable account was short sS.S2IsI:
the cash was short by s4.1OO. and in
the final trial balance of the general
ledger there was another discrepancy
OF SSI7.S9
The total at that time said Mr.
Hiatt. was s37.19ll0. though I be
lieve that some credits were later
made and since that time other losses
have been found" He said that none
OF his findings were ever denounced
by Cashier Summers.
Sent For Mr.. Martin.
Mr.. Hiatt told OF informing Mr..
Martin of the discrepancies. He said
he had sent word 20 Martin to call on
him at the bank. and that II he did
not do so he would be facing arrest
Il claimed that the shortage in the
banks funds was occasioned by the
matters OF the c. ID. Martin a. Com
pany. or that the firms business was
responsible for the shortage"
At FIRST, he said. Martin denied g.
He apparently intended to put me
on" Mr.. Hiatt said. Later. according
10 Mr.. HATS testimony. Martin de
clared that he did not believe the dis.
crepancies we're as bad as indicated
by the examiners statements He
said Martin agreed 90 put up certain
stock to Offset the defalcations. In
cluded In this stock. said Mr.. Hiatt
were ten shares OF stock Of the Mer.
chants and Producers bank at Salem
the par value OF which was 800 per
share. and 20 Is shares OF stock in
the Virgil l. Allen Store Company,