Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-22
PROTESTED LOSSES
PLACED IN RECORD
AT HAYNES TRIAL
Defense Objections Fail to
Keep Totals Out
of Testimony.
RIGGS BANK AUDITOR
QUESTIONED ON STAND
Robert Earl Haycock Tells of
Money Lost in Notes of Haynes
and Mrs. Chambers.

Over defense objections, the Govern
ment today introduced evidence into the
trial of Harry v. Haynes, former pres
ident of the Farmers and Mechanics
National Bank. to show that his notes
aggregating $4,000 were marked off
as loss after the institution was taken
over as a branch Of the Riggs National
Bank and that only $9O,24125 was
realized by the Riggs Bank on securities
taken over in the account of Mrs.
Louise T. Chambers, who was said to
owe the Farmers and Mechanics Bank
$140,66350.
These figures were brought out during
questioning of Robert Earl Haycock,
auditor at the Riggs Bank, by United
States Attorney Leo A. Rover.
Objections OverruIed.
Defense Counsel H. winship Wheat
ley noted exceptions when his objec-
tons to this evidence were overruled
by Justice Peyton Gordon, who Is try
ing the case in Criminal Division No
l Of District Supreme Court.
Wheatley has insisted when the
question of these notes figured pre-
viously in the trial that they had the
sanction of the Board of Directors of
the Farmers e. Mechanics Bank. The
acccunt Of Mrs. Chambers, who now
has civil suit pending against Haynes,
was declared by Wheatley to be COL
lateral matter. which had no place in
the trial at this time.
Tells Of Bank Merger.
Haycock outlined arrangements by
which the Riggs Bank acquired the
Farmers e. Mechanics Bank in Sep
TENDER 1928. right after Haynes re-
signed from the presidency.
1t was brought out that negotiations
had been in progress for a month and
according to the witness. the transac-
ton was effected by giving stockholders
in the Farmers 81 Mechanics Bank
three shares of Riggs Bank for each
five shares Of the Farmers & Me-
chanicS'.
Describes Records.
In going into the question Of HAYNES
notes, Haycock described them as hav-
ing been listed as anticipated loss"
when the bank was taken over. In an
swer to question, he said the notes
had never been paid, and when Justice
Gordon interjected a question as to
whether they had been renewed, he
said no.
The prosecution today also completed
analyzing the two counts of abstraction
of securities charged against Haynes.
E. j. Armbruster, an accounting spe-
cialist of the Bureau of Investigation
Department OF Justice, teStifying as to
these items.
These counts reflected back to an
other account in the indictment alleg-
ing miSapplication of $29,050. Accord
ing to the prosecution, $29,050 of the
banks funds was taken for the pur-
chase of 200 shares of Houston oil stock
to replace stock previously taken from
the collateral account of Mrs. Chambers.
Tells Of Overdraft.
In turn, it was said, these 200 shares
OF stock were sold and part Of the pro-
ceeds together with other funds used
to cover an overdraft of $4,000, which
Haynes had at the Farmers and Me-
chanics' Bank and on which another
misapplication count is based. The
prosecution also contends that the
original $29,O50 later was marked of as
a loss also.
These misapplication items and three
others for $4,000. $4,000 and $40, 600,
were taken up by the prosecution yes
terday afternoon. The latter three
figured in stock transactions also. it
was said. but it was brought out they
had been paid off by profit out of
stock transactions 1t also was shown
by Mr.. Wheatley that interest was paid
on these sums while they were said
to have been carried in the banks
record as cash items"
Claim Loan Helped.
Among the funds that went toward
payment of the $4,000 overdraft was
$500 loan from Raymond ]. Wise.
who was a director in the Farmers 81
Mechanics Bank, according to testi-
mony.
Mr. Wise, who was a witness this
morning, said he had made this loan
unsecured on September IL, 1928, which
was the day before Haynes resigned.
Did you know that Haynes was hav-
ing trouble with the bank?" he was
asked by Mr.. Wheatley.
NO" the witness answered.
Mr.. Wise said he was repaid the fol-
lowing month. Another loan of $4,000,
which entered into the transaction,
came from w. w. Spaid of the Hlbos
company, it was brought out.
In insisting on bringing Mrs. Cham
bers' account into the testimony today,
Mr.. Rover said that he intended 1t to
show that had the 200 shares of Hous-
ton oil not been taken from other Sc
curities she had at the bank that the
value of these would have cut down the
deficit which her account ultimately
showed.
Prosecution Unfinished.
other witnesses this morning were
James c. Elgin. from Hibbs & Co., one
Of the brokerage firms with which
HAYNES dealt, who wSs recalled to the
stand to answer only a question as to
the market value Of the Houston oil
stock
Another witness was John J. Wilson,
assistant United States attorney, who IS
aiding Rover in the prosecution. and
who was called concerning the contents
of the minutes of the meetings of the
Farmers 81 Mechanics Bank in 1927
and 1928.
The Government had planned to rest
today. but adjournment time came with
some witnesses unheard making it like
ly that the Government will not con-
clude presentation of its side of the
case before noon Monday.