Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-09-19

sold out his stock, that his account
was practically balanced and that
he would get his Remington stock as
soon as their affairs were settled.
On cross examination by Attorney
Maher for the defense. the witness
testified that his son was employed
in the Waterville office of Kenney
&c Greenwood. Cahillane wired him
at st. Petersburg quoting the mar
ket on White Motors and the wit
ness wired back to buy 100 shares
and that is the only stock he au-
thorized Kenney &c Greenwood to
buy after he left Maine on his trip
to the south.
On his way home from the south,
the witness said, he had learned
something of the financial condition
of Kenney & Greenwood. He figured
that his account was a total loss so
he didn't bother to look up his state
ment.
Some time was taken up by Attor-
ney Maher in closely questioning
the witness with regard to individual
stock transactions which he had had
with this company. 1t developed
that Rush believed that Cahillane
had bought some of the stock for him
on his own responsibility as he had
never authorized the purchase of
some Of the stock which was cred
tied to him.
Wished to Transfer
He declared that when he closed
out his account he had intended to
transfer it but the firm had refused
to do this and Kenney had called
him and asked him why he, wanted
to do this, and where he had got
the idea that they were insolvent,
to which he had answered that it
was common talk. He declared that
he was unable to state how many
shares he had been carrying at the
time he went south but that he did
not believe that it was over 500
shares. Questioned with regard to
the amount of actual money he had
with them to meet his margin re-
quirements he said that he thought
it was between $500 and $4,000. He
was questioned closely with regard
to his acquaintance with Cahillane
and said that Cahillane had been to
his home several times for short Wis
| it's but had never passed the night
there. The witness volunteered the
| information that he had also visit
ed at other homes in Millinocket
and that he understood that Cahil-
NdHO was IOW III CldDu, oS hO iio0
declared his intention of going there
before he accepted a position with
Kenney & Greenwood. He declared
that he had always covered when
asked to do so by the company.
Stenographer Testifies
Miss Nancy Hanks, Of Augusta
was then called. She had acted as
stenogra pher for the firm of Ken
ney & Greenwood, being employed
there last January. She identified
two letters which were produced by
the state as having ben written by
her, one at the order of Mr.. Green
wood and the other by one of the
members of the firm, thought she
could not say which one. The one
written by order of Mr.. Greenwood
was presented as an exhibit, accep-
ted and read. 1t provided for the
transfer by a Waterville bank of the
sum of $500 and 100 shares of Rem
ington stock to Portland bank.
Frank Fish, a public auditor and
accountant, who had been called to
audit the books of the Kenney and
Greenwood Company, was then call
ed to the stand. He testified that
the papers in the Rush account show
that the 100 shares of Remington
stock had been received January T..
credited to his account and deposit
ed in the Peoples National Bank of
Waterville as of that date, as partial
security on loan of $500. On
April IL a substitution of collateral
had been made and this stock with
other security was sent to j. Frank
Fowler of New York, their brokers,
with draft attached. 1t was later
| sold and the Kenney and Greenwood
books would show credit for it.
Rush Owed $8179.5O
An exhaustive investigation into
| tho Rush account conducted by At
| torney Maher for the defense devel-
oped that Rush owed the company
| $S179.5O on January /, against which
he had 200 shares of steel stock
| and 100 shares of Standard Oil of
California. On January 81, his stock
| dealings had reduced his debt to
| them to $5233.97 outside of the REM
ington stock. During the month of
February his Indebtedness to the
company reached it's highest figure,
being $21 $500 outside of the Type
| writer stock. On the 30th of April,
| after he had sold out. the books
show that the firm owed him slight
ly over $50, plus the Remington
Typewriter stock.
The State here again tried to in
troduce the testimony of Charles P.
Lyford, the stenographer who had
taken the proceedings at the hear
ing before the bankruptcy court, but
the defense counsel again objected
and the testimony was ruled out by
the judge.
Directed Verdict
The State then rested and Attor-
ney B. F. Maher. appearing for his
client. Evan Kenney, asked for a d.
rected verdict. No objection was
raised by County Attorney Frank E.
Southland and the court accordingly
instructed the foreman to return a
verdict of mot guilty" in the case
of Evan Kenney. This was done and
he was discharged.
Continue Greenwood Case
Attorney Shaw in his opening for
the defense stated the respondent is
under Indictment for larceny and
the burden Is on the State to prove
1t. He said that the respondent
would take the stand and explain
the whole transaction with Rush,
who was q regular customer of the
brokerage firm. Greenwood did not
know that Rush was given a special
receipt.
There was nothing wrong in the
transaction and Greenwood did not
know that he had done anything
wrong in his business dealings with
Mr. Rush." said Attorney Shaw.
The respondent, L. C. Greenwood,
took the stand. He said that he was
the president of Kenney & Green
wood. Incorporated, and the firm
had its office at Waterville.
Continuing his testimony, he stat
ed that Rush was a customer prior
to January Z, 1925. doing business