San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-30
smSezzling s155,Ooo Of the funds o

smbezxling $685. 900 Of the funds of
the state board of agriculture.
After heated debate with attorneys
for the governor, Special Prosecutor
Jnman succeeded in introducing as evil
dence a note for $4,000 which the gov
ernor is said to have given the board
agriculture as collateral and which
the governor Is charged with forging
in an indictment separate from the
one on which he is now being tried.
Earlier in the week, Inman had rec
ords of the board of agriculture in
trcducei as evidence over the stre1u-
cus objection Of McCray's attorneys.
The boards records were introduced
in an effort to show that the $155,-
900 was given to McCray to deposit in
the Discount and Deposit Bank at
kentland, of which he was then presi-
dent, and that the money never
reached the bank.
Says He Turned Money Over.
1. Newt Brown, former secretary
treasurer of the board, was on the
stand all day today telling Of the sue
cessive transactions by which the
Cray.
McCray's attorneys are attempting
to prove the money was loaned to the
governor by Brown, and that the gov
ernor was within his legal rights to
borrow the money, which was later
returned after a group OF McCray's
business associates, headed by former
Governor Goodrich, had raised a
$35O,000 spoof" in an effort TO pre-
vent his financial crash.
Brown testified he was asked BY
McCray last spring to make the
Kentland Bank a depository for
portion Of the proceeds of a $1,000
GOO bond issue Of the state board OF
Agriculture.
Checks payable to the Kentland
Bank were turned over to McCray at
yHrious times, the witness testified.
! Wanted $4,000 Right Away.
\ The last transaction was on July
u, when Brown said McCray asked
him for q check for $4,000 for the
Kentland Bank to bring the total up
10 S155.000.
Brown said McCray told him he
wanted the money right away, and
that II would be only a matter Of a
few days until it would be re-
turned.
After a conference with other mem
bers Of the board, Brown said the
money was given to McCray and that
the latter promised to furnish certi-
fcates Of deposit on the Kentland
Bank.
Repeated efforts were made to get
HcCray to deliver the certificates of
deposit without success, Brown testi-
fled.
Each time there was some excuse
FOR not delivering them. the witness
declared, until finally the governor
turned over a number Of cattle notes
as collateral for the money.
Ono of these notes for $4,000 bore
the names of "A. z. Herman and
Company Brown identified the en-
dorsement on the note as being that
of McCray.
Brown will resume the stand again
Monday to continue his story and
will then be submitted to a gruelling
cross-examination by McCray's attor-
neys, in their effort TO prove their
contention that Brown let McCray
have the money as a loan.
Indicted on 200 Counts.
Upon completion of the trial in
the Marion county criminal court. Nc
Cray will face trial in federal court
on April 2, on charges of using the
mails in a scheme to defraud.
McCray, reputed to be the richest
man who ever entered the office If
governor of Indiana. called his cred
itors together last August and an
nounced that he was broke. He at
tributed his Universities TO heavy loss
es on large holdings Of land through.
out the Middle West which had de-
preciated during the agricultural de-
preston.
Some OF his creditors. however.
maintained his losses were caused by
'.nd speculation and plunges on the
Chicago Board Of Trade and asked
fer grand jury investigation Of a.
bged Irregularities in connection with
RoteS issued by McCray.
The investigation led 10 McCray'S
indictments on more than 200 counts
in the Marion county criminal court
and later TO his indictment by the
federal grand jury.