The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1922-05-25
MIR. pENNELL SUMS UP
IN WATERMAN TRIAL
Continued from page y

their schedule of reserve 1t says
e.average reserve past 80 days in cash
was So. Average reserve past 81
days in bank was 99S." What was in
banksg $27, 1877, WASH it. That is
their total They show it there. 1t is
also shown on the back of this report
due from banks, see schedule 2
4 $27 100000. Now without that item OF
i Transient Banks how much would have
been due from banks in the last 81
DAYS and how much was due under the
next item. 1t says reserve this day
in cash 1870; reserve this day in
j banks 99e. That was the purpose
4 clearly, for which that item was placed
in there. That is one of the purposes
| 1t raised that reserve. They are re
quired to keep certain reserve at all
times. Now they had certain amount
of reserve in cash. That was currency
and so on which was in the safe and
in the till,--that is at the counter and
vault BY running this item of tran
sient banks in there what effect did
it have upon the reserve of that bankg
1t more than doubled it, don't you
sees Because taking the $lS,0O0.0O
out of the total amount of $27,000.0O
how much actual reserve did they
have in banks9 Only the items as
showed you here few moments ago
the item from the National City Bank
of Chicago, the Spokane and Eastern,
The First National Bank of Charleston,
and the State Bank of Lamberton.
Now want to ask you if you remem-
Der the Defendant s testimony on cross
examination regarding that, when he
| Transient Bank item here was his
statement, and / think you remember
it, each and all of you. He said that
| might have been a real Transient Bank
account. Do you remember thats /
will admit that you could have tran
silent bank account and it might be a
real one too, just as he said, but you
couldn have Transient Bank ac-
| count made up of the items which 60
to make up that Transient Bank ac-
count as shown in this report. Exhibit
400 shows Bills Receivable, Rawson-
Works draft for $S0087S. Exhibit Ais
a Rawson- Works draft for $10,760.19,
those two making up the total of $751;
| 76S.97, the amount which they have
shown in this item as due from banks.
You remember Mr.. Dempsey testi-
mony on that. He said those items
were not due from banks but they
| were Rawson-Works drafts. He alb
solutely corroborated Mr.. Becker on
his theory and Mr.. Becker traced those
items through these books and showed
where they had originated as being
drafts drawn the proceeds of which
were deposited to the credit of F. w.
Waterman. They carried them in the
note pouch for awhile. Later they
brought them out and put them into
the Transient Bank account. They
were carried there until after this re-
| port was made and for 80 days prior
to that time to get in under this
Schedule here average Reserve past
| 30 days in Banks was go then they
went from the Transient Bank account,
wheres Back into the note pouch.
The evidence is absolutely conclusive
| that these were not items and neither
Of them nor any part thereof due or
payable by or from any bank, banker
or trust company. But what were
theyP They were simply more of these
straw drafts drawn against this com
pany back there who had refused to
honor any of them. Now ! have ex
planned to you, Gentlemen of the Jury
the effect that that kiting had on theil
reserve by placing those items under
| Transient Banks and under that SEIZED
ule "Due from Banks how it woult
affect and build up the reserve of th'
bank. All right, what other effect dit
| it have9 1t reduced the line of F. w
| Waterman, didn't it, because that tool
] this out of the Bills Receivable-tha
/ is the same as this; that is what tina
is. That shows the obligation of ever,
borrower, Gentleman of the Jury
When those items were kited out o
4 the Bills Receivable they were take,
out of here. They reduced that line 8
far as this record was concerned Il
that extent. Now, that is clear enough
On the other hand it built up the re
{ serve. There are the two results ac
complished by the manipulation O
that Transient Bank item, and w
have shown you just exactly what tina
: item was. AS | said, Mr. Dempse,
! said those items were not due from
! banks, but were Rawson-W Works drafts
not drawn on any bank mind you; tina
they were never sent to any bank; ant
the evidence shows that they were il
there for period of many weeks; new
er sent out of that bank; had never
left that bank. Now if those were
checks or drafts actually drawn and
! brought in there and presented to that
bank in due course of business and car
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