The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1922-05-25

might be all rlghr as MI Ndecf A"N
said ''It might be a real Transient
Bank Account but what would they
do with themg Would they keep them
there indefinitely and never send
them outs No. The usual and ordi-
nary thing for them to do, as You will
know. would be to send those drafts
out TO some bank for collection. But
as / said these drafts were never sent
out.
Now then going back to this excess
loan again, I want TO give you few
figures making up the real total excess
loan of F. W. Waterman on the 4th
day of May, 1920 F. W. Waterman 3
personal indebtedness to that bank on
his own individual promissory notes
was $6,965.2s. F. w. Waterman's in
debtedness carried in the name of the
| Rawson- Works Lumber Company
$l43, 69l.3S. Those two, together with
! the Transient Bank item of SIS, 768.9i,
make up the total of Frank Water
man 3 indebtedness to that bank on
the 4th day of May, 1920, which is
$l69, 425.63. Now then the defense
has eontended that these were drafts
or bills of exchange drawn in good
faith against actual existing values
That was his testimony. All right, OF
what did it consist Logs in the pond.
timber and lumber in the pile. Now
then, gentlemen, how big a pond would
it take to hold logs to the value of
$l69, 00000s How much yardagef How.
large a pile of humber would it take
to equal in value $3.50, 0OO00i Basinq
that on the values which he eontended
under this arrangement with the Brad
ford Kennedy Company they had, to
figure that the most--now he didn t
say this was on board car, but take
his own testimony there, the biggest
advance they could get on that when
it was placed aboard cars as / recall
was around $1,000 thousand Giving
him the benefit of few dollars on
would take over eight million feet of
lumber to represent any such value a.
that at that time, and don't believe
it was there, nor do I believe any part
of it was there, nor do / believe that
you do. Whyf Why do I make that
statements For this reason; there was
that $169,000.00 due at that time. Now
if those drafts were drawn against ac-
tual existing values in good faith and
so on and they had $169,0OO00 worth
of logs in the pond and lumber in the
pile what became of its What became
of its Does the evidence show that
any part of the sale of that lumber
was applied on this indebtedness Does
ita 1t does not. 1t shows absolutely
and conclusively to the contrary
that not one cent of the proceeds #
the sale of any lumber, logs, poles or
ties was applied to any item contain
ed in this exhibit or TO the $18,000.00I
Transient Bank Account or to Frank
Waterman g $6,965.2s. Now do you
believe for one moment that there ac.I
tually existed in value $169,000.00
worth of logs in the pond and lumber
in the pile up there on that hills |
don u. Because if it had existed there
would have been some evidence Vt
where at least small portion of that
lumber was sold and the proceeds APP
piled on their Bills Receivable and 70
reduce that line Of indebtedness. If
they had $l69,OOO.00 worth of logs III
the pond and lumber in the pile up
there it wouldn't be necessary for
them to go in there and dig the heart
out of that bank and take those little
time certificates of deposit which hid
been there for years, and bring in
notes of every man that they could
get and apply on the payment of those
drafts.
Now then, on that Statute, Gentle
men of the Jury, Of excess loans / as
sumo that the Court will instruct you.
You have already heard it read sew
eral times during the progress of This
trial, and it reads about like this, that
the total liability to any bank, banker
or trust company, for money borrowed
by any person, individual, corporation
or firm shall at no time exceed 209s
of the paid in Capital and Surplus of
! the bank. In this case the paid in
Capital and Surplus was $30,000Oo.
20e6 of that would be 100000. That
brings US back again to that same I'D
100000 item. Now then there are
certain exceptions to that. The first
is Bill of Exchange. 1t says the dis.
count of bill of exchange drawn in
| good faith against actual existing val
ues. Now then, let's see whether this
comes within that class or any part
of it. What is discount, Gentlemen
If one of you Gentlemen, suppose IN
the Rochdale company and buy bin
der and give your note to the the Roen.
dale Company for that binder for
$4,000. All right. They bring thai
note up to the bank and sell it to the
bank. That is discount under its com.
mon and ordinary sense as it is used
today. 1t really means purchase. I