The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-03-26


Ter of the Little, Sank State Bank will
serve not to exceed ten years in the
Reformatory at st. Cloud, Mimi, to.
pay the penalty for grand larceny in
the first degree.
The jury, composed of six men and
six women Friday Evening at 1890
brought in a verdict of guilty of en-
bezzlement of $12,877.25 of the
banks fund between Oct. FL, 1924
and the date of the closing of the
bank by the State Banking Depart
ment, Feb. A, 1925.
The case was brought to trial Mon
day of last week before Judge Carol
A. Nye, at Long Prairie, with Coun-
ty Attorney William Wood, assisted
by w. F. Donahue of St. Cloud as
assistant attorney general, handling
the case for the State, and ATTORNEYS
Mansfield, of Minneapolis, Barron of
Wadena, and Printz of Long Prairie.
representing the defendant. I
Both the State and defense rested
their case Thursday evening. Attorney
Donahue closed for the State and M,
Mansfield for the defense. 4 frer
Judge Nye had charged the jury as
to their duties, they retired at 4 700
O'Clock p. m.
Mr.. Nelson did not take the stand
IN ms own defense; the principal wit
nesseS for the defense being Vice
PRESIDENT Andrew Hendrickson of the
Little Sank State Bank and w, K
Neusbaum, of ST. Cloud, who claimed
10 DE chemist and and officer of the
mineral Manufacturing Co., of ST
cloud, a mari producing Organization
In which Nelson was interested.
Mr. Hendrlckson on cross examina-
tlon testified that while he was vice
president of the bank he left everv-
thing to Nelson. He said that the
funds II for loans secured by the
Todd County Credit Co. We're
turned over to Nelson and that he did
not know what became of the money
The evidence disclosed that no hooks
we're kept of the Credit Co. after
June OF last year. Mr.. Hendrickson
was the active head of this organiza-
tlon. During the early summer he
was candidate on the Farmer-L Dor
elcket for Congress from this, the
olxth district, and after the primar.
les ne spent considerable time cam
palgning for the ticket. a
Mr.. Neusbaum testified that the
mineral Manufacturing Company had
sold first Mortgage Gold Bonds to
promote this company and that they
were high grade, securities. He tes-
tined that the company controlled
233 acres of mari beds near Clea,
Lake containing at least 1,OOO. 900
tons OF mari. He said that during
oO-day period 62 car loads of mari
OF ~ tons each had been shipped for
winch the company received from
$500 to $3.50 per ton. When cues
toned as to his experience as q
chemist he testified that seven of the
last lO years he had been employed
IN the Garter Drug Store at st. Cloud
.... n
Nelson was brought to trial on
information filed by County Attorney
Woods, instead of being indicted by
grand jury. The specific items of
embezelment alleged in the informa-
ton was in connection with the bank
account of Arthur jacobson in which
S65O was involved and another of
S45O in connection with the account
Of c. T. johnson, president of the
bank.
The State also alleged that Nelson
had accepted checks drawn by a man
named Woolsey, who is said to be a
stock salesman in Montana, and a
man by the name of Flora of ST..
Cloud, one of the officers of the Min
erals Manufacturing Co. 1t was
claimed that neither of these men had
accounts in the Little Sank Bank.
Some of these checks were charged
to Nelson's personal account and