Arizona republican., 1919-10-03
FEDERAL COURT
 T0 TRY PETERS

The preliminary hearing of Alfred J. Peters, Tempe hay dealer, and J. N. Jaggers, hay inspector for the Salt River Valley Hay Dealers association, ended yesterday afternoon when United States Commissioner John Henke held both to answer to the fed eral grand jury. Jaggers' bond was fixed at S10,000 and Peters at 5000.
 Most of the time consumed by the hearing which lasted all Wednesday afternoon. yesterday morning and a part of yesterday afternoon, was spent in the examination of government wit nesses, the government resting it's case at noon yesterday The decision of the Commissioner to hold the defend ants to the grand jury came shortly before 3 o'clock.
 Yesterdays hearing attracted more attention than any case of the sort in recent weeks. Wednesday afternoon the commissioner office proved too small to accommodate the various at torneys, witnesses and spectators. Yes terday it was moved to the court room of the federal building, where ample room was provided. number of spectators were present
 Testimony of the government yes terday was a continuation of that of the day before and along the same lines. Paul Aepli, the governments most important witness, Wednesday was twice recalled to the stand. Aepli stated that his work of seeing that grade certificates for hay shipments tailed with the grade O. hay called for in the contract, he frequently substi- tuted a certificate for d higher grade of hay in the place of a certificate showing a lower grade than that speci- fled in the contract
 Aepli testified that he made the sub stitutions under direction of Jaggers, and that Jaggers had attended to them himself prior to leaving for Cali fornia. He said that Jaggers, before leaving. had left a number of blank certificates for he, Aepli. to use, signed by Jaggers.
 While Aepli denied that he had ever had any discussion with Peters on the subject before the latters arrest, but said that after the arrest he went to Peters and asked him if he should keep up the practice. Peters, Aepi testified, then told him not to attach any certificates at all to the invoice that accompanied each shipment of hay.
 Peters is charged with selling low grade of hay to the government as standard and number one grade. Jag gers is alleged 10 have passed the hay as the grade represented and to have shared in the profits of the alleged fraud.
 Assistant United States Attorney J. H. Langston testified yesterday morn- ing as to a conversation he held with Aepli in regard 10 the matter A. D. Chaytor, agent of the department of justice, testified as to the government of the case, conducted by himself
 Several documents were entered into the evidence by the government as among them loading slip, grade certificate. invoice and a pur- chase order c. P Bullard and W. H. Barnum. counsel for the defendants. refused to recognize the purchase order as evidence to show that there was contract between the war department and the Peters concern to furnish a certain consignment of hay to the gov ernment. Defense counsel added that the original contract was in the pos session of the government attorneys and demanded that it be produced. This United States Attorney Flynn and Assistant Attorney Langston promised to do if they could find it among papers taken from Peters office under a search warrant.
 The defense's demand for the intro duction of the original contract into evidence was made in order to de- termine whether or not it bore a spec ial clause relating to the inspection of the hay by the government, and it's acceptance as the grade marked by the government inspector
 MT. Chaytor, in reply to a question from counsel for the defense as to whether or not the government in- spected hay and paid for it at the grade marked by it's own inspector, had pre- viously stated that such was some times the case but that in such eases the contract for the hay bore special clause on the matter. The demand for the contract in question was then made.
 Among the. witnesses yesterday was