Evening journal., 1914-04-01
KELLEY Case ENTERS
upon Second DAY
Government Offers Middle
town Bank Books Showing
Alleged False Entries
OSBORN, WORLD
EXPERT, A WITNESS


resumed in the United States Court this
morning. with Robert Douglas, assistant
teller of the Middletown bank, being re-
called TO the stand. The witness was
subjected to a gruelling cross-examina-
tion by Mr.. Ball. Inc latter sprung a
sensation when he submitted paper
with figures inscribed and asked the
witness whether the figures had been
made by Mr.. Kelley. Immediately MIR.
Nields objected, and he was sustained
by the court. Mr.. Douglas said. how
ever, that he believed he could identify
the figures made by Mr.. Kelley outside
of the books of tine banks. Again Mr.
Ball offered the paper 90 the witness,
and again Mr.. Nields objected and was
sustained BY the court, who declared
that Mr. Balls motion was entirely out
OF order.
Following cross.examination of the
witness Mr.. Nields read the statute of
the United States, which sets forth that
certified copies of government papers
given out by government department
should have as much force as the origi-
nal.
But Judge Bradford ruled that there
were provocations which made the sub
mission Of the originals necessary. Judge
Bradford said ne was not prepared to
admit that Congress had any such in
tent of blocking justice In ordering that
copies be treated as the originals.
Consequently Mr.. Nields offered the
FIVE original bank reports of the condi-
tion of the Middletown bank in evi'
dence. The reports were sworn to by
Mr. Kelley.
John Nj. Carswell. formerly a resi-.
dent Of Delaware, and former officer OF
the Middletown bank was called. lie
Lives In Cincinnati and Mr.. Neilds de-
lclared that he did not want to hold him
lanv longer. The witness was shown and
identified books of the bank and books
of other corporations kept at the bank
He averred that he made entries IN vari-
lous books prior to the latter part oi
1908. MIR. Nields had certain OF th'
hooks marked for Identification. Among
the books was one showing business
with the Landlith Improvement Com
many. The witness said that he be
liieved Mr.. Kelley was a stockholder m
this concern. Mr.. Carswell was at on'
time pavinq teller of the Farmers Bank
of this city. Mr Carswell was ON the
stand for long time because the re
spective counsel haggied over techniea
points in the interrogation OF the wit
mess. Finally Mr.. Ball asked that all th'
, witness said be stricken from the rec
: ord, but he was not sustained and
: part of the documents of the Farmers
! National Bank treating with dealing
with the Peoples National Bank OF Mid
4 ldletown were marked for identification
William G.. Lockwood, individua
lbookkeeper of the bank, George W
, Storx. n bank cmploye of the Depart
lment of Justice were the last witnesse
lof the morning. Mr. Stork said that ol
/, June IA. 1912, Sl73,643.64 was due th
, ldepositors of the Peoples National Banl
/. lof Middletown.
The expert said the amount stated II
the reports of the bank TO the gov
, eminent were false. He said, in repl,
, 10 ouerv from Mr.. Nields, that tn
, etatement was false by S22,S64. II
! said the net liabilities OF the bank wer
, Sl67 ,93l.69.
Mr.. Nields asked Mr.. Stork whethe
!. the statement was true or false. MI
: Ball objected, and the objection wa
sustained. Mr.. Nields then asked MI
. Stork, as a result of his investigation
what he found relative to the state
I. ment
8 1T was incorrect" Stork answered
!. The gross falsity in item IL was S22
y 364.22, Mr.. Stork said. Yesterda
Mr. Osborn, an expert in questione
: accounts, said that item II was
Mr.. Kelley's writing. Mr.. Osborn wa
asked to look at this item particular,
MIR. Stork said his trial balance an
4 the balance In the ledger of the Mis
q dletown bank we're not the same. Il
+ said the difference was S18,72S.7
r "This," he said, showed the amour
l. of the incorrect statement made
n the banks ledger"
p Mr.. Lockwood was recalled an
stated that Mr.. Kelley made the entl
alleged to be incorrect In the ledg'
of the bank. Mr.. Douglas was r
r called and corroborated Mr.. Locl
m wood.
- Mr Nields offered the trial balanc
u submitted by Mr.. Stork in eviden'
as lAir. Ball asked for time to examine {
81 trial balances and was given until II
40 afternoon TO make any statement
y, might have 60 make concerning them.
. In identifying one of the statemer
Mr.. Lockwood said that all of the fl
ures were made by Mr.. Kelley, VIII
lMr. Douglas said that only portion
a the statement was compiled by Mr.. X
at ley. Later Mr.. Lockwood declared I'll
70 he made n mistake and that Mr. Kell
did not make all the entries compile
- Mr.. Ball scored Mr.. Lockwood for ma
ling an error and declared that he shol
tbo nosifiva in a matter so material
~ MIR. Stork was still on the stand WI
4 Judge Bradford adjourned court M
(. 2.30 o'clock this afternoon.
Noted Expert on Stand.
The trial was featured yestert
afternoon by the introduction of
- pert testimony by the governme
The government sprung its first s
- prise when II introduced Albert
Osborn, one of the greatest expe
IA on questioned documents and ha
ese' writing in the United States. He
"a testified as an expert in such ca
her as the Rice-Patrick case, in \
lay York, ROLAND Molineaux, Tren
tent bribery cases. and the McNam
,tA cases, in California. 1t beca
lam known yesterday that Mr.. Osorn
been in Wilmington for some I
enc ~ working on the Kelley case. Mr..
ixth orn's testimony had no direct bear
'ck. on the allegations Of the governm
at He simply identified 81 photogra
which he had taken of parts OF
books OF the banks and decla
them identical.
During the afternoon session.
AMI Kelley sat next Mr. Ball. and see