Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-02
TRIAL OF HAYNES
NEARING FINISH
AS ROVER RESTS
Jury to Decide Fate of
Banker After Closing Argu.
mentS Tomorrow.
INCOME TAX RETURN
DISCREPANCY ADMITTED
Chambers Losses Are Deducted in
1927 and 1928, Says De-
PENDANT.

The trial Of Harry v. Haynes, for
mer president of the Farmers &
Mechanics National Bank, had reached
its closing stage today.
No session was held, as juries are
being selected in Criminal Division
of District Supreme Court, where for
more than three weeks the case has
been In progress before Justice Gordon
Closing arguments are due to be
made tomorrow, and late tomorrow aft
erncon or early Thursday the fate OF
the banker should be put up to the
Jury of IL men and l woman.
The prosecution rested late yester-
day after three days had been spent
by United States Attorney Leo A. Rover
in cross-examining Haynes.
Tax Return Brought Out.
had been marked by sharp tilts, was
climaxed when Rover produced Haynes
income tax returns for 1927 and 1928
and showed that in these he had
charged off half the losses in stock
transactions which he had previously
testified were for the benefit Of Mrs.
Louise T. Chambers
Haynes defense has been that the
manipulation of the fumes OF the
Farmers & Mechanics, with which he
is charged, were to restore Mrs. Cham
bers' finances and protect the bank,
where she was customer.
Rover brought in the income tax rec
ords without warning.
u Half Of Losses Charged on.
He first drew the admission from the
witness that Mrs. Chambers losses
should not be reflected on his own re-
turns. but Haynes qualified that by the
statement that in making up the re-
turn for 1928 1 think 1 did take half
of something" adding that he believed
there was the thought in his mind at
that time that so long as he was carry
ing those accounts for Mrs. Chambers
he could adapt half Of the losses to
charge-offs.
You believe you did? You know you
did" Rover shouted.
Showing Haynes his tax return for
1927. Rover asked whether you f1no
Yourself charging yourself with 1888
profit taken from that trading account
at Hibbs Co." local brokers.
Then. pointing to entries which he
said covered losses at Hibos OF s2,4l923
and at Josephthal's, New York
brokerage house, of S3,726. As, the prose-
cutor said: You said on the stand to-
day that you closed that account at
Josephthal's in 1925"
"Or 1926" the witness amplified.
Exempt From Tax.
Rover said that the result Of the
credits was that Haynes did not have to
pay tax in 1927.
Can you explain that?" Rover
asked.
banker replied, adding that he hadn't
| had q chance to study the returns.
In the 1928 return Rover said that
Haynes took credit fer half of the
losses in transactions totaling $4,000
at Hibbs and $2l 900 at Dyer Hudson,
| another New York brokerage concern.
AS Rover continued his questioning,
Haynes admitted that he had been
wrong"
Rover insisted that Haynes had
taken the losses SO you wouldn't have
to pay income tax"
The witness said that's what that
is generally done for"
What was in your mind?" Rover
pressed.
Well" Haynes said, "I can only
| reiterate what said before. that was
suppose thought that it was no great
stretch Of the Imagination to assume
that I had the responsibility there TO
| take half Of the losses"
Improper; Not Serious"
! He added that ut was probably very
! improper, but there was nothing IN my
mind that made it appear very serious"
After bringing in these records, Rover
rested. not taking up the two counts OF
| the indictment which charge abstrac-
| ton of securities. Haynes has SAID
| that these securities were used to cover
some other of Mrs. Chambers opera
| tions.
H. Winship wheatley, counsel for the
| defense, asked to be allowed 10 nave
| the tax returns to study them while
| the trial is held up, and this privilege
was granted without argument.
Discrepancies between the accounts o.
Mrs. Chambers and Haynes, brougnt ut
! earlier in the afternoon, were ascrlnec
to bookkeeping errors by the defendant
In one instance, where an undated
draft for SS3 900 on HibbS was described
by Rover as a worthless subterfuge" II
| the banks records to cover $3.50, OOl
overdraft. the witness said he had signeC
the draft without realizing the purport
of it.
II signed that just like you sign lots
of other papers brought to you By
! subordinates," he said.
The overdraft was eventually paid.
Character Witnesses Testify.
The defense brought in group o.
character witnesses yesterday afternoon
and read q list of others who, it wa;
said, would come in to testify II theil
presence was required. Their testimon.
! was dispensed with, 1t being conceded
/ that they would attest to the character
of Haynes prior to the time he resigned
from the bank" which was. in general
the phraseology of the question put t.
each of the character witnesses.
The witnesses who took the Stanc
were Joshua Evans, jr,; Frank Stetsor
and John B. Cochran, bankers; JOSEPH
H. Crawford and j. K. Berry, bushes:
men. The last two served on the boarC
of the Farmers g. Mechanics Bank with
Haynes.
Liner Reported Grounded.
SAN FRANCISCO, June R.-The