Evening journal., 1914-03-31
FORMER CASHIER
Of BANK ON TRIAL
George D. Kelley Faces
Charges Of Making False
Entries and Statements
DROP SOME COUNTS
IN INDICTMENTS


George D. Kelley, former cashier of
the Peoples National Bank of Middle
town, was put ON trial in the United
States District Court here today on
charge of making false returns to the
government concerning the condition OF
the Middletown bank aud making false
entries in the books of the institution.
The indictments contained IL counts.
Kelley was indicted twice by the fed,
eral grand jury He has entered a plea
of not guilty and will set up the defense
that the false statements and entries
are simply the result of errors in book
keeping
Mr. Kelley is represented by J. Frank.
Ball. District Attorney John p. Nields
is conducting the prosecution.
The court room was crowded some lit
tie time before Judge Bradford took his
seat on the bench. A large number of
Wilmington bankers and other proni-
nent men were present.
Miss Emma Kelley, daughter OF the
defenadnt and Mrs. Clark of Whining
ton arrived a few minutes before court
convened. Miss Kelley kept her com
posure but several times tears were
seen TO start from her eyes.
Although both sides announced that
they were ready TO proceed Mr.. Ball
stated that the books of the bank were
in court and to prevent any delay he
had not examined them. he asked the
courts indulgence in case he should be a
little long in cross examination on this
account. Judge Bradford stated that
Mr.. Ball would be given the extra time.
The jury follows; John L. VAIN, viii
liam p. White. Matthew ID. Murphy,
Lewis H. Lyman, A. r. Ottwell, Charles
L. Walton, Norris Short, Earl B. No,
man. Granville Cannon. Charles {. Ia
man. H. B. Truitt and John E. Brd-
man.
Mr.. Nields. in opening the case said
he would ask for a nolle prose1ii ON
counts Nos. 6, l3, l6, which was orderd
dQne. He stated that counts ! to lj al
lege false statements, and counts IA, ID
Z and l6 allege false entries in the books
to deceive the officers of the bank.
In addressing the jury Mr.. Nields said
that section No. 52l9, Revised Statues
Of the United States, under which the
action is brought. covers the case Of
making false entries in the books D. a
national bank and for making a false
statement to the United States comp
troller He explained that should the
statement be made or the entry by mis-
take that the act would not be violated,
but the entry or statement must be made
wilfully.
He said he would show that the chief
assets of the Peoples Bank of Middle
town were its notes, and the amount
owed to it by the Fourth Street Ma
tional Bank Of Philadelphia and its chief
liabilities the amount owed TO its de-
positors
He said the defendant had Nhe custody
OF the assets Of the bank. and control
Of the books. many Of which were IN his
own handwriting.
I'VE will show you father" said
Mr. Nields, that after the defendant
left the bank in 1912 the bank was
$4,000 out w evil show. that the
bank owed $4,000 more to depositors
than the defendant said il owed and
that the bank had $4,000 more in notes
owed TO 1t than the notes in his hand
called for
Mr.. Nields said the manipulation
was effected by making five false en-
tries in the books, 50 that the en-
tries in the ledger we're $4,000 snort
while the entries in the deposit led
ger was true because the $4,000
SHORTAGE "Mdc" AuAAAtu AhNo ~
fTo show that the defendant knew
and intended 70 deceive, the govern
nent will show that he made false
statements, in his own handwriting
10 his directors each week, which
usually amounted TO $1,000 and also
made other numerous false state
ments. some of them concerning the
balance in the Fourth street bank.
Mr.. Nields said he would also show by
statements an daccounts by the defen.
dant. that he knew of the shortage and
raised some Of the larger deposits OF the
bank to make up the difference.
Mr.. Nields said that when Mr.. Kelley
was called before the board of directors
OF the bank in October and asked for an
exclamation as to his handwriting he re.
Piled: Il have none"
Mr.. Nields told the jury that the case
was not one of mis-application OF funds
abstraction OF embezzlement, but one ol
making false entries by the defendant.
Mr.. NieIds offered in evidence the GER
tstcate of incorporation and extension
Of corporation of the Peoples Bank o.
Ahddletown.
United States Marshal George L
Townsend was the first witness called
He testified that he was president o
the Peoples Bank of Middletown at th'
present time and had been connecte'
with the bank since 1883. In 1912 h'
was elected president OF the bank.
He said that Mr.. Kelley served al
cashier of the bank from its organi
zation until the time Of his retire
ment in 1912.
Mr. Nields started a question will
the words Peoples National Bank Q
Middletown, Dell" incorporated in Il
but Mr. Ball objected.
Mr. Ball asked the court what ban
Mr. Nields was speaking OF and MI
Nields replied the The Peoples Ma
honal Bank of Middletown. Del"
Mr. Ball then created a stir in tn
court room. IF that is the bank th