The daily morning oasis. [volume] (Nogales, Ariz.) 1917-1920, 1920-10-02

o'clock and 6, the case of City of No
gales VS.. w. H. Smith and the Fidel-
ity Guaranty and Trust Company of
Mary Wand, was given to the jury
which returned to the court room
within half an hour with a verdict
signed bv nine of the jurors, finding
for defendant. AIN civil cases, under
the law, three-fouTths of jury may
return verdict, and it is as good as
though the jurors were unanimous N
arriving at the verdict.
Trial of the case was resumed in
the Superior Court yesterday morn
.ng with Mr. E. W. Piper, an expert
accountant on the stand IN behalf OF
Mr.. Smith.
Witness testified that he had made
examination of the books, demands,
warrants, checks, stubs, vouchers, etc.,
that had been brought into the case,
md he testified that he had checked
up the Slawson report Of audit and
the Masquellette report. He con-
sirmed the Slawson report and de-
Jared the Masquellette audit incor-
iect.
Witness testified that he made the
receipts of Town Treasurer Smith
amount tc $217OOC in round numbers,
with disbursements $194,000, and
ssllat upon leaving the office he de-
ivered his successor H. j. Wood
oank deposits, cash on hand and
certificate of deposit covering the
difference between receipts and dis
oursementS.
Witness was shown demand that
aad been sold the First National
Bank, stamped paid June 9Th, 1918;
md check in like amount drawn IN
August to redeem the demand, and
was asked if he could account for the
liscrenancy. He. said he could not.
Nj+ness testified that had the Town
Treasurer redeemed u warrant mark
ID paid by the bank, and then took 1t
rack to the back to realize cash on
the sae warrant the bank would re-
fuse to accept it.
Witness testified that he MADE h,
audit by checking the bank deposits
and d sbursement- which he opined
was the same methods adopted by the
Slawson audit. He could not account
for the difference between the Slaw-
son and Masquellette audits except
that the latter followed an incorrect
system.
Cross-examined witness stated he
had engaged in auditing two years
last past, before which time he had
been broker and stock salesman sew
eral years, preceding which avocation
re had kent books in bonk some ten
Years or more. He was familiar with
bank methods and practices. He had
cad works On auditing, had several
n his office. Could recall none of the
authors. He understands the theory
and practice of auditing.
Bracey Curtis, was sworn and tes-
titled that he is president OF the
First National Bank; the bank has
handled a great number of city war
rants, buying them at a discount
when the city had no funds to pay,
and receiving cash for them when
here was money for redemption.
When a bond was redeemed by the
Town Treasurer it was stamped paid
by the bank, and stamped paid by
the Treasurer also. When wal
rant was redeemed and stamped paid
It could not be returned to the bank
and sold again. Witness could not
account for the discrepancy betweeA
warrants stamped paid June 9Th,
1918, and the dates of checks drawn
in August to meet them.
Defendants rested their case.
Plaintiff called in rebuttal F. D.
Mandell, it's expert, representing the
Masquellette audit, who testified that
he was trained auditor, having TAX