Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-01
0verdraft by Banker Settled
With Rest of Stock Gains,
Defendant Admits.
ROVER CHARGES USING
OF FUNDS IN GAMBLING
Note Of Mrs, Haynes for $1,558
Was Taken Up, Trial Reveals.
Witness Defends Acts.

Haynes, former president of the Farm
erS & Mechanics National Bank, used
for his own purposes profits from stock
transactions which he said were de-
signed to recoup the fortunes OF Mrs.
Louise T. Chambers was made by the
prosecution today as his trial entered
it's fourth week in Criminal Division
II of the District Supreme Court
Concluding the cross examination OF
HAYNES, who Is on the stand. for his
third day, United States Attorney Leo
A. Rover took up the last five counts
Of the indictment. One of these al
: leges misapplication OF $4,000 and two
Of $33.0 900 each. The other two allege
abstraction of securities from the bank.
The three misapplication items have
been dove tailed together by the de-
tense.
$4,000 Check Query Protested.
The discussion of the stock transac-
tons In which these three alleged mis-
applications figured was productive Of
a sharp tilt between Rover and the wit
ness when Rover asked about a check
for $4,000 which was sent TO the Jo-
sephthal Co, q New York brokerage
firm, by Haynes, and which Rover said
was no good.
ElC1dIulb lllS QuCSOlOIl ny Saying b4ldl
he knew it was not matter covered in
the indictment. Rover asked If his check
had not been sent and never paid.
Il can stand your unfairness up to a
certain point, but when you ask me
something I am not indicted for. won
answer it," Haynes declared. He then
turned to Justice Gordon TO ask If an
answer was necessary.
That is a fair question. You can
answer it, can't you2" the court. asked.
Admits Funds Lacking.
I'll answer this way then" Haynes
said. The $4,000 was not involved
there, because it was a check that
,Josephthal sent for collection. 1t came
into the Farmers e. Mechanics Bank
ard was returned to them recalled
The witness finally admitted there
was no money to pay the check. but he
denied Rover's question that it would
have been another cash item," such as
the Government contends he used in
n1isapplying the funds OF the bank.
This transaction, it was said. did not
so through because Of the crash.
Auto Purchase Barred.
Rover brought out that in the stock
transactions involved in these alleged
misapplications a profit of more than
$4,000 was split three ways by Haynes.
OF this ST $50 went to take up a note
OF Mrs. Haynes, behind which there was
collateral. There was a payment of
$1,887.95 for an overdraft of Haynes
and of 81 ,595 for an automobile Haynes
purchased.
disbursements, but Haynes defended
them as proper under the circum-
stances"
When you took those profits" Rover
said, land paid up Mrs. Haynes loan
10 the bank, for which there was COL
lateral, and your own overdraft, and
bought that automobile, did you do it
to protect the Farmers & Mechanics
National Bank"
Yes, under the circumstances"
Haynes answered after an argument in
which he and his counsel. H. Winship
Wheauey, disputed the right of the
prosecutor to ask for a yes or no
answer
Haynes Defends Transactions.
Haynes had explained that these
moneys later were taken care of in
final settlement of the stock tranSac-
tons. which the defense has said were
to protect the bank as well as Mrs.
Chambers.
When he finally defended these ex-
penditures. he added, They were con-
ceived in the interest of the bank and
transactions are neither here nor there"
At another point in his testimony
Haynes had repeated that these oper-
atoms we're designed to keep Mrs. Cham
bers' account af1oat.
What part did that car play in keep
ing Mrs. Chambers af1oat?" Rover
asked.
Rover Charges Gambling.
He then asked Haynes in reference to
those items where there was a profit,
What would you have done had there
been q losS?"
Il am not prepared to say" Haynes
answered
Rover insisted then that Haynes was
simply using the banks money to gam
BILE and was taking a chance on making
profits.
II didn't take a chance on the mar
ket," Haynes answered. Il just used
my own brains"
Rover suggested that perhaps Haynes
had inside information.
II didn't play the market on tips"
the witness said.
Case to Jury Wednesday.
The second OF the $4,000 items. it
has previously been brought out, was
paid back by Haynes with some funds
which included a loan of $4,000 from
W. w. Spaid. In his cross-eXamina-
ton today, Rover insisted that Haynes
had said that this money went to pay
back the funds used out Of Mrs. Cham
bers' stock transactions. The witness
said, however, that the questions had
confused him.
The defense summoned a list of
character witnesses for this afternoons
session, and it was thought today that
the case probably would reach the jury
some time Wednesday. There will be
no session tomorrow, when the court
will be occupied in selecting juries.