The Birmingham age-herald., 1915-02-21
SENTENCE WILL BE
 PASSED WEDNESDAY:
 WILL APPEAL CASE
L. A. Whitehead Makes Brief Con- ment on Verdict-COnfident of Final Vindication-Prosecution
 Cost Government $25,OOO.
 Two Cases Still Pending

found guilty in the federal court yes- terday morning on 27 counts of an indict- ment charging use of the mails for fraud ulent purposes. The officials are F. E. Whitehead, president; l.. A Whitehead. vice president. and L. F. Harris, secre- tary-treasurer.
 The case will be appealed to the court or appeals and if not there, the defend- ants announce that it will be carried to the supreme court of the United States A contract was given yesterday before noon for printing the record of the case which is necessary before the case can go to the court of appeals The defend- ants are confident of ultimate victory and vindication
 The case has been on trial before A. special venire of the federal court for two weeks. Judge W. I. Grubb presided The jury was given the case Friday morning at 10 o'clock and from that time until yesterday morning at 10 o'clock they went over the evidence. Judge Grubb was notified yesterday morning that the jury was about ready to announce it's findings and the counsel for the govern ment and defense were summoned to the courtroom.
 The foreman, W. s. Persinger of North port, near Tuscaloosa, handed the verdict to Maj. c. J. Allison, clerk of the fed- eral court.
 Only One Ballot by Jury
 The verdict of guilty was read aloud by Major Allison and then each jury man was asked to verify that as his own judgment. The statement was made that only one vote was taken on the case In the federal courts this is said to be unprecedented.
 The counsel for the defense requested Judge Grubb to postpone sentence until bonds and other formalities could be ar ! ranged to which Judge Grubb assented He fixed next Wednesday at 2:So o'clock as the day and hour upon which his judg- ment will be announced. The case will be appealed immediately after Judge Grubb announces his sentence. The law gives the court power to fine the officials or to send them to prison or both in his discretion. As for the company only a fine will be fixed.
 All three of the men involved in the case were in the courtroom yesterday morning when the verdict was announced l.. A. Whitehead seemed to be the one most affected He was so supremely confident of acquittal that he found it difficult to realize that his hopes had been shattered.
 "We were convicted upon what agents are alleged to have said to patrons" said Mr. Whitehead. ''Our contract was not involved and cannot be involved in our opinion. The government failed to connect our office with the representa- tions of the agents and on this I staked my hopes for successful termination of the case. I believe we will finally be vindicated in the eyes of the people of this community
 I've have conducted an honest, straight forward business, and this mas been shown. The proceedings were principally upon what witnesses understood our agents to say. Our counsel will appeal the case, and l have no doubt we will eventually come out all right. We have tried to perform our duty as we viewed it and believe time will show that we have not erred to the extent of being guilty of any criminal offense.
 The government had tried fruitlessly for some years to obtain evidence suf- ficent to convict the Standard Home com pany until the case which ended yester- day was started February s. The govern ment has spent several years and thou sands of dollars trying to put the com pany out of business. In the meantime the company has grown to such propor- tions as to be-accounted one of the most successful building and loan companies in the country.
 Cost Government $25, ,OO0
 The federal government went to an ex- pense of over $25,000 trying the case This statement was made by Oliver D. Street, special district attorney assigned to prosecute the case. MT. Street said that in many instances the railroad fare of witnesses amounted to $500 and more. Witnesses came here from Washington, Idaho, Utah. California and other far western states. MT. Street said that there had been paid over $l2000 in cash to witnesses. while the other expenses ould make the total no less than $500 The cost of prosecuting this case was as great as in that against -the Southern Wholesale Grocers.
 Guptersville, where he resides. Before leaving he said that he would return Wednesday to be present when Judge Grubb passes sentence upon the officials of the company.
 The case against the Standard Home company and it's officials was consid- cred fully year after being placed in my hands by the department of justice, said Mir. Street, and l proceeded with all possible caution. I did not want to hurt the company or the officials if they were not violating the law. When the bill was returned I felt sure that the department of justice, through its repre- sentatives, was proceeding fairly. am always sorry to see any man get into trouble. and consequently l feel sorry for the officials of this company" MT. Street was asked If he would recom- mend any sentence to Judge Grubb, and he answered in the negative saying that the matter of sentencing was the judge's $ duty and not his. MT. Street said he was glad the case was over as it had been very trying. He also said that two other cases against the company and the prin- cipals will be taken up probably in April. PERSONAL.