The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1920-01-21
.EX-GOV. GRAHAM
IS ON TRIAL FOR
EMBEzzLEMENT
Famous Case Started a.
pelier Yesterday
INDICTED ON ls2 COUNTS
State Charges That Mr.. Graham
Whllo Auditor Used State Funds
for Private Purpose

Montpelier, Jan. 2o.-Former Gov
Horace Graham was placed on trial
here today, charged with ombezzle-
1hent and larceny of state money dur.
ing the tine he served as state audi
tor from 1902 to 1907. venires for
102 jurors were issued but we're not
all required.
The Indictment, which contains $50
separate counts alleged that Mr.. Ora
ham as auditor drew his personal
checks against state funds and that
the payments were carried along as
state expend lures. The total amount
involved was set at $24,755 OF which
more than $4,000 has been repaid.
The Indictment was returned a
short time before his term as COVER.
nor expired last year.
Before the Jury impanelling was
begun. Attorney General F. c. Archii
bald moved that plea in bar, VIII .ch
was flled last November by the de-
tense. be St icken from the proceed
ings. The mot on was granted after
some delay, and the consent Of the
respondent was attached to the decis-
II Counsel for Graham said that the
purpose Of the special pea was not
to-, ,befog the issue as had been surg
gssted but to draw out the offensive
procedure ,of the state, and the de.
fense. reserved the right to present as
evidence 1.-the statement embodied in it.
1.-THE statement conceded that
money was advanced by the aud tor
70 some state sofflcials including Mr..
c. sham himself. but sa that he act
eds In this respect with the authority
OF long precedent established by his
predecessors In office, that the books
we're open at all times and that he
comm tied no wrongful act and d d
notttry to cover up anything. He was
feady, the statement pa d, to account
for sil money advanced. and he had
paid to the state treasurer all obliga-
tons. He would not admit, continued
the statement, that this was an act OF
restitution or payment, but held that.
he simply paid an outstanding obliga-
tion.
4 The jury was completed late to-
day afte.. 40 talesmen had been ex-
amined, and the reading of the ind:ct-
rn6nts was begun. Seven of the jurors
are farmers, and the others include
blacksm tn, an undertaken, a lumber
man. a carpenter and clerk. Six are
more than go years OF age and only
49,. 14aa tI,a,
state law tho foreman will not be So
lacted until after the judge delivers
Ills charge.
Horace F. Graham was indicted by
the grand jury OF Washington county
Ia November, 1918, on 152 counts for
alleged grand larceny. and 10 counts
for alleged embezzlement of state
funds VIII le state audito which pos.-
tion he filled from 1902 to 1917. The
report of Young & Co.. auditors, made
TO the, Board of Control, showed there
existed In the aud tors Office while
Mr.. Graham was in that posit on un-
vpuchered accounts or advances of
nearly $25 900. The exact amount has
been In dispute. ranging from $4,000
up to $4,000. Mr.. Graham .efunded
to the state treasurer between May 4
and November 4, 1918, the day before
state elect on. S19,SS0.4S, the last pay
ment OF $11 900 being made on Novem.
her of that year.
~ The indictment does not cover un-
vouchered accounts beyond April 80,
1913, which the, statute OF lin ntation
for larceny is said to be a bar. The
indictment appears to cover every or.
der drawn by Mr.. Graham between
April 80, 1913, and January S, 1917,
Just before he took Office as governor
and makes no credit of vouchered ac-
counts, hence the sum of orders
drawn for this period in his depa t.
ment, $39,845, probably does not repre-
sent a sum the prosecut on will be
able TO show was drawn or advanced
without authority. 1t is said that com
pleted vouchers for some $4,000 of
the amount appear.
The 10 counts for embezzlement
cover q period from Ap.il 16. 1915, to
June 5. 1917, totalling $3.50. Most
of these items appear also in the
counts enumerated under the larceny
CnhI66- rsf ltf
Mr.. Graham appeared in court on
November 90. 1918, and gave bail for
$4,000. His bondsmen are Frank M 4,
Cory, pres dent OF the First National
Bank OF Montpelier and Senator H.
w. VaInum of Jeffersonyille, a mem
Der of the gran te firm of Boutwell,,
Milne. varnum Co.. of Montpelier
The state is represented by Atty
Gen Frank G. Archibald. OF Manches-
ter, and former Atty.-Gen. He bert G..
BARBER of Brattleboro. who presented
the evidence before the grand jury
and who tried the Williams case. The
defense is represented by w. h. c.
Stickney of Rutland, prominent as n
corporation counsel. Rufus Z. B.own
OF Burlington predecessor OF 3r. Bar
Der In the office Of attorney general,
and former Lieut---Gov. Hale X Dari-
tng. of Chelsea,