The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1923-01-29
WOULD PUNISH
CORPORATIONS
Douglas Scores Dismissal OF
Bank Case
ny JOHN w. NELSON


Corporations guilty OF grand lar
oeny ~ well as individuals. viii be
punished " hlii being prepared by
Prosecuting Attorney Malcolm Doug
laA Is enacted into law by tho state
Legislature Douglas was In confer
encc Monday drawing up thu pro-
posed measure,
Finding no law In this state which
makes II possible 70 impose penalty
upoh corporation found guilty OF
grand larceny. Judge ]. r. Ronald.
late Saturday, dismissed the grand
jury indictment against tho Seattle
National hank. Perry u. Truax.
Jointly indicted with the bank. and
second president OF the institu-
ton. was not cleared Of the charge.
Judge Ronald holding that the indic;-
msnt against the banker was sound
and That his guilt or innocence must
10 determins by Jury,
The seattle National bank and
Truax were indicted by tit. recent
grand jury FOR Transaction whereby
the hank failed Go return collateral
securities 10 Frank watsrhousa Il
Co. when note Tor Iis.S7s was paid
Decision 10 appeal tho indictment
was reached Monday after Douglas
had conferred ~ith Attorney General
l. l.. Thompson Thompson Stii aid
In arguing the appeal and enter q
brief srtting forth reasons why Rom
AIDS decision should be reversed.
Judge Ronald held. In disyniSsing
The i7seiictmout against tho bank. that
there are no laws in this state which
make Il possible for corporation to
be prosecuted unless the Hentsncn
can BE- carried out. The laws provide
prison sentence for conviction OF
grand larceny and a prison sentence
could not he imposed upon a corpora
ton. Under this law the corporation
cannot be prosecuted. Judge Ronald
found.
''tf Judge Ronald In right the laws
In this state should be amended No
that corporations which benefit from
crimes may be punished for ,i,vm. {"
Douglas commented. Il am prepar.
Ing a bin 10 be introduced al tho
present legislature that viii remedy
this defect"
Both Douglas end Attorney Rob.
ert =. Oldham for Truax said tina,
pending the outcome Of the case
againE. the bank. the trial of I'uiax
Will pFocecd. No further hKal tech.
nieaiItses win be lnterposed by
Truax.
j. W. spangier. president Of the
Seattle National bank. made the
following statement:
The decision OF the court fully
generating the Seattle National
bank from the charge OF having
committed any criminal offensa con.
cludes. IN 10 far as the bank is con.
cerned, an unpleasant controversy
precisely as I anticipated IL would
be concluded. and happily establishes
the right Of bank TO regard ms OF
primary and fundamental importance
the interests OF It's customers and
stockholders instead OF placing n
penalty upon n bank for adhering
70 sound policies.
For technical reasons only, Per.
~ y Trunks demurrer TO the in.
dictment had TO be overruled at this
time. The reason for this is that
Il did not appear from the Indlct.
ment that he was nn officer OF the
bank. aid therefore Il was possible
that as an Individual he may have
received some Of the payment made
to the bank
But when later testimony Is
taken. as Il VIII be IN the regular
trial which will come on In due
time. II Will Of course then be
shown without any contention that
Mr.. Truax was vice president OF
the bank and that the whole pay.
ment was made 10 the bank and ap.
piled on the Indebtedness to tho
bank. When that is shown he, of
course, will then be fully exoneratcd
BY the court. just as tho bank Ia
exonerated now.
The bank regrets exceedingly the
Injustice which has been done Mr..
Trunk by Joining him individually
with the hank in this matter. since
nj no time was he connected with
this matter other than officially as
Vice president OF the bank. which
he SO ably serves and whose entire
confidence hn enf oys"