Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1917-12-20
Bankers Trust Case Dismissed 9y Govern
ment.

-
tSt. Louis Post Dispatch, Decen er lo,h.l
The case of the United States Gov
eminent against John f. Franklin
and Charles S. Marsh, presi snt and
secretary of the defunct Lankers'
Trust Co., who were indicted on
charges of using the mails to further
a scheme to defraud, in the promo.
ton of the trust company, was dis
missed by the Government this morn.
ing in tie United States District
Court. i
The case was called October 81 last,
but was continued until to-day be.
cause of the illness of an essential
witness for the State. This witness,
it was stated, was the builder OF the
San Antonio, Uvalde & Gulf Rail
road, in which the assets of the
Bankers Trust Company we're largely
invested.
AT the time this continuance was
granted, District Attorney Oliver
stated that he would oppose any fur
Their continuance, and would demand
that the case 60 to trial to-day.
When the caso was called this
morning, District Attorney Oliver
announced to the Court that the dis.
missal of the proceeding had been
ordered by the Department of Justice
in Washington. The order Of dismiss.
al was then entered.
When Oliver was asked by a Post.
Dispatch reporter as to the reason
for the dismissal of the case, he said
that he was requested, three or four
months ago, for a full report on the
case, with his recommendations. He
would not say, in detail, what the
report and recommendations were,
but when the reporter asked him
whether he reported that there was
sufficient evidence to prosecute the
case successfully, he replied that he
did.
"If l had not thought the evidence
sufficient" he commented, "the in
dictment would never have been vot-
ed"
81 knew" he continued "that sev
eral persons had interested them
selves in the Ease In Washington.
The first I knew, as to the conclu :
sions reached in Washington, came
! in the order for the dismissal of the
case"
Oliver was Franklin's attorney be.
fore the collapse Of the company,
and represented Franklin for a time
after his appointment to the office Of
District Attorney.
The Post Dispatch, October 10 last,
printed a news story stating thai
powerful political influences, work
ing through Congressman from Mis-.
souri,, Texas and Colorado, had beer
endeavoripg to obtain an order from
the Department of Justice for the
> dismissal of the Franklin. Marsh
prosecutions. Franklin had many
friends in political life, particularly ii
Texas.
:, The prosecution was based OH evi
dence obtained by Monte Price,
:, United States P~ostofice Inspector IL
y the St. Louis district. 1t was learned
at the time OF the continuance of tn,
" case in October, that Price had beel
y requested, by his superiors in tn
P~ostotfice Department, for his opinion
as to the strength of the case agains
franklin and Marsh.
Price replied, he said to a Post
Dispatch reporter at the time. wit
:" a letter to the Postmaster Genera
:, in which he said that, If borrowin
money to pay dividends was not
"scheme to defrsud," then he ha
been mistaken In his conception G
the case.
The principal charges agains
q Franklin and Marsh were that the
:. paid dividends which were not just
y, fed by the earnings Of the company
and that the Texas railroad propert
was carried on the company's book
at fictitious valuation.
Thomas Is. Harvey, attorney fo
Franklin and Marsh, said, after til
y. dismissal Of the case, that he ha
y" submitted a full statements Of til
y case, including an audit Of the CON
y pany's books, to the department
=, Justice, at Washington, and that h
believed this statement had cor
vinced the department that III
d charges could not be sustained. II
" said he did not believe political II
Auence had figured In the decision.
The audit Of the books, made b
." the accounting firm Of Westerman
& Trader, wal made at the instanC
OF Harry G. Morrow, a stockholde
g who had been active In furtheripg ii
prosecution OF the case. The audi
according to Harvey, showed th'
y. the company declared ito divident
p within its earnings, and that II hs
=, an excess Of earnings over divlden,
!. every year up to the failure.
Az to the railroad valuation, Ha
- vey said II WAS shown that tho con