Arizona republican., 1919-10-02
FIRST HEARING FUR HAY DEALER
 LACKS M TERES1

After an afternoon spent in exami- nation and cross examination of wit nesses, interspersed with frequent arguments by counsel. the preliminary hearing of Alfred J. Peters Tempe hay dealer, and J. N. Jaggers, hay inspee- tor for the Salt River Valley Hay Dealers association, on a charge of fraud in hay sales to the government, was continued late yesterday until 10 o'clock this morning. Considering the rate of progress made yesterday the hearing will take some time to com plete.
 Peters is alleged to have sold the government an inferior grade of hay representing it as standard and higher grade Jaggers is alleged to have passed the hay as higher grade and to have shared in the profits of the all leged fraud. Both were arrested, ar raigned and released on bond several months ago, and whether or not they are held for the federal grand jury de- bends on the result of the preliminary hearing now being held before United States Commissioner John Henke.
 Only four witnesse, all called by the government, were examined yesterday, though the hearing lasted three hours before it was adjourned. Several documents were introduced into the evidence by the government counsel, United States Attorney X A. Flynn | and Assistant U. s. Attorney J. H. | Langston. Peters and Jaggers were represented by c. P. Bullard, C. B. l Ward and w. H. Barnum. All four witnesses were present or former em- l ployes of the Peters company. c. B. Lewis was the first witness called. He testified that he was em- 1 ployed by the Peters concern last March, the time of the alleged fraud and explained his work of filling out loading bills" for the cars of hay that were shipped, and making out grade certificates showing the grade oi the hay shipped.
 One of the so-called loading bills which Lewis testified to having filled out, was introduced by the govern ment early in the hearing as it's first exhibit. The bill showed a car ot grade two hay had been shipped. Other documents were later introduced by the government by one of which, exhibit five which had not been formally ad- mitted to evidence when the hearine ended for the day the government vii endeavor to show that the grade twt hay mentioned in the first exhibit wa, sold to the government as standard hay.
 Ellis Pew was the second witness
 He testified that he was employed a! a hay buyer by the Peters compan! last march. He stated that standard l hay was priced S2 a ton higher thar grade two hay. and that grade one wa. S2 higher than standard. Mrs. Ros,
 Newby, the third witness, said shi
 was employed at a stenographer ant
 clerk in the Peters office last Marcn
 and entries in one of the Peters com
 pany's books were identified by he
 as her work.
 Clerk Testifies.
 The principal and last witness of thu
 day was Paul Aepli. clerk in the of
 flee of the Peters company at the tim ], of the alleged fraud. Among othe
 duties, he said, he checked up ol
 the filling of contracts for hay, see
 ing that the grade certificates for tn
 shipments tallied with the grade calle, . for the contract etc.
 i Aeplie's most important testimon
 was his statement that. on numerou occasions, when the grade certificate
 showed an inferior grade to that calle' for in the contract had been shipped
 he substituted for the correct eertifi
 cate one for the grade of hay calle
 for in the contract.
 | Aepli further stated, under exami l nation, that MT. Jaggers, the chief ha
 inspector, who signed the substitut certificates, had authorized" him { make the substitutions of certificate, 5 The witness added that when MT. Jag gers left for California he left som
 blank certificates bearing his sigma
 ture for him to use in the substitutioni f The witness denied, however. the he had ever discussed the matter wit MT Peters before the latter's arres [ and said in response to questions froI
 Judge Langston that he did not re I member ever telling MT. Langston 1 a conversation with him in the distri, attorneys office, of any conversatio