Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-28
DEFENSE OF HAYNES
FOR MARKET TRADING
UNDER FIRE IN TRIAL

Continued From First Page
handling half the. money Rover con-
tinued.
Il can only say I wouldn't let a
subordinate handle such a matter,
Haynes said, adding, Those were ex-
ceptional things-they were done for
o reason
overdrafts were not condemned In bank
ing circles.
Il wouldn't say CONDEMNED Haynes
said. ''They are almost inevitable from
time to time"
Rover asked if Haynes had ever
heard of such transactions" In other
banks. The answer was, Not specif1-
caIly." but that he had heard of other
things In banks"
Are you in q position to tell the
court and jury If those overdrafts were
regular or Irregular" Rover asked.
The witness said that in the first in
stance he regarded them Is regular, but
they developed to the point TO where
they were irregular.
az realize I had to do sonnDthing with
them" Haynes said, land In doing that
sunk everything. sunk my reputa-
woman out Of that" referring to Mrs.
Chambers financial difficulties.
you also sunk Mrs. Chambers, too?"
Rover asked, adding the question that
Mrs. Chambers had not lost everything
she had.
az am not 20 sure Of that" the wit
ness replied.
Questions Understanding.
Referring to Hrs. Chambers trading
account. which Haynes had said he
Conducted, Rover asked:
ibid she thoroughly understand
everything that was going on"
II assume that she did"
ERover also asked Haynes IL he re-
garded as ethical" his opening an ac-
count under the designation of H. v.
Haynes, special, for Mrs. Chambers with
w B. HibbS, local brokers, when by
reason of Mrs. Chambers own involve
n1ents there she could not trade under
her own name. Haynes defended this.
saying that Mrs. Chambers wanted TO
operate entirely free from any previous
transaction.
This mornings session, which saw the
end OF Haynes Summation Of the counts
against him, alleging misapplication Of
funds and abstraction of securities, was
also marked by the introduction of sew
ecal character witnesses for the de-
PENDANT
Character Witnesses Testify.
In each instance they were only
asked TO testify as 10 Haynes character
and reputation up to the time he left
the bank in 1928. They all agreed
that II was of the best. These wit
nesSes were Col Wade H. Cooper,
banker; Isaac Cans, merchant; L. A.
Slaughter, banker, and w. c. Sullivan,
lawyer.
The three misapplication items con-
corning which Haynes testified this
morning were for $4,000 and two for
$4,000. In each instance, he said
the money went TO buy stocks for Mrs
Chambers and that 1t was paid back
with interest
The $4,000 and one $4,000 item. he
said, brought a profit, but the third
item resulted in loss which exceeded
this profit
Haynes also repeated that 200 shares
Of Houston Oil, which the Government
says was distracted from collateral held
BY the bank. actually was released by
him TO cover other stock dealings in
which Mrs. Chambers was involved.
Haynes also detailed circumstances
surrounding his resignation from the
Farmers & Mechanics on Septem-
her IL, 1923, after his operations
had become known to the directors
He testified that he had called meet
ing of the Board of Directors on that
day and when M Nicholson &c. l..
Nicholson, vice president) preferred a
lot of charges against me and l re-
signed"
Power Of Attorney Signed.
Haynes also said that the power of
attorney under which he conducted the
various transactions for Mrs Chambers
was not signed by her until the day
after he resigned.
SET had been doing lot OF these
things without anything in writing" ne
said, Il told her was having difficulties
With my board OF directors and there
had 10 be ratification of these things"
THE two counts alleging abstraction
Of securities which Haynes answered
this morning were brought up by the
witness yesterday afternoon when a
count charging interpolation OF $29, $50
was under discussion. Haynes explained
az that time he had bought this stock
for the account Of Mrs. Chambers in
the hope Of making a coup that would
t4exe her out Of her difficulties"