Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-02-04

IETHODS USED BY DEPARTMENT.
part OF Wednesday were occupied by
the defense in presenting it's testi-
mony, the feature of which, besides
the attempts to "show up" the
alleged lax methods employed in the
Office, was the testimony of Gillies
himself, in which he emphatically
denied every feature of the evidence
Of his alleged accomplice and partner
in the fishing business, Frank Stone,
who confessed last week. Gillies
denied any guilty knowledge of the
fraudulent claims, asserted he had 80
much work to do as claim agent that
he had no time to investigate as to
the legality of claims and took them
at their face value, and attempted to
explain large bank deposits at about
the same time fraudulent warrants
were cashed by stating he had made,
$3.50 in oil stock speculation and
had been entrusted with $1,000 as q
trust fund by A. B. Ernst, one of the
industrial insurance commissioners.
which Ernst later emphatically de-
MED. Gillies' bank deposits during
several months last spring totaled
$1,000 and he testified he also kept
some money in a safe deposit vault.
His salary as claim agent was $3.50
a month.
Gillies Contradicts Stone.
Friday afternoon, Saturday and
Monday the defense occupied by the
introduction of some 1000 claims in
which various irregularities were at
tempted to be shown, and Gillies
took the stand Tuesday, his direct
examination occupied the entire day.
He told a radically different story
from that told by Frank Stone, con-
fessed forger of the spurious claims.
In every particular Gillies contradict
ed Stones testimony, stating that he
had no knowledge Of the claims be-
ing spurious when he allowed them
to pass through the ofIice with his
20. K."; that the claims in question
were not forged by Stone at his die
tation nor under his direction; that
he did not hand the vouchers to Stone
for the latter's signature, and that
he did not deliver the warrants issued
on the claims to Stone. He also de-
MED getting any money from Stone
as the result of cashing bogus war
rants, and said he never hired Stone
to do any writing for him. Gillies'
story is not corroborated by other
witnesses, however.
Gillies admitted being engaged In
the fishing business with Stone, and
having loaned him money at odd
times, $1,730 all told.
How Gillies was able to deposit
nearly $1,000 between February and
September of 1915, was then brought
out. Gillies said he received $1,42O
from Stone in repayment Of loans
and his share of the profits of the
fishing business; $3.50 as result
Of Investments. in oil stock with a
man named Will White; $12O as a
result of collecting former small
loans from various persons, and that
he received $1,000 from Commis-
sioner Ernst to be deposited as sort
Of trust fund.
He also said he had $3.50 in safe
deposit vault, which he transferred
to his account at the bank.
II received $1,000 from another
person; 1t was not my money" Gil
lies testified.
WAS this money paid to you ON
account of any dealings with indus
trial insurance claims?" Attorney
Vance asked.
''No, it was not"
"Who was this other person?"
"A. B. Ernst"
WAS this money paid as a result
OF a private business AFFAIR.""
Eyes. It was given to me as q sort
Of trust fund. I deposited it, and
paid out the money in various sums
as orders or demands came to me-"
Ernst Makes Flat Denial.
After Gillies' cross-examination
Wednesday, the state submitted as
rebuttal evidence to this particular
transaction the testimony of Com
missioner Ernst, who emphatically
denied ever having given Gillies
money to be held in trust.
"Did you give Gillies any money
whatsoever to be handled in trust for
you between February and Septem-
Der of 1882" Mr.. Ernst was asked