Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-05
HAYNES CONVICTED.
ON ALL a CHARGES.
OF FRAUDS IN BANK.
Jury, Out Two Hours, Returns
Verdict Carrying Maximum
Penalty of Five Years.
BANKER DENIED BAIL
AND ORDERED TO JAIL
Wife Told of Outcome Beforehand.
Mrs. Chambers Sits in Court.
$4,000 Fine Possible.

Harry ". Haynes today was convicted
on IA charges of violation of the ma
tional banking act while president Of
the Farmers 81 Mechanics National
Bank.
The jury, which for four weeks had
sat in the case in Criminal Division, No.
/. of District Supreme Court, deliberated
two hours before returning the verdict
against the banker. who blamed his
plight to operations in the stock
market.
Haynes is liable to five years i'm
prisonment and fine of $1,000 on
each of the counts.
Committed to Jail.
After formal motion for bail by his
counsel H. Winship Wheatley, had been
denied by Justice Peyton Gordon, pre-
siding, Haynes was committed to the
District Jail to await sentence. He
probably will be brought in to hear the
verdict of the court week from today.
At that time, counsel will file formal
notice of appeal and ask for bond.
Haynes has been at liberty under bond
OF $4,000 since his indictment about
18 months ago.
The jury, celebrating just about two
hours, found Haynes guilty on each Of
the IA counts of the indictment.
Receives Verdict Calmly.
Haynes received the verdict stoically,
as did his wife and daughter. Mrs. C. H.
Young, who were with him In the court
room.
AS soon as the verdict was returned
Haynes was taken in charge by John j.
Clarkson, chief deputy marshal. to be
taken to the District Jail to await SEN
tence
Clarkson went to Mrs. Haynes to tell
her that she might see her husband
downstairs.
Fourteen Ballots Taken.
John c. Hall, head of the Capital
Guides Association here, was foreman
OF the jury.
He said that IA ballots we're taken,
one on each count.
The charges against the banker grew
out of his operations in the years 1927
sought, by manipulation of the banks
funds, with which he was charged in
seven counts of the indictment, to re-
store the finances of Mrs. Louise T.
Chambers, customer OF the bank,
whose stock market speculations, car
Iied out with his advice. had terminated
poorly. and that he also sought to pro-
tect the bank, where she was a Gus
toner.
Mrs. Chambers Present.
Mrs Chambers, who now has sued
Haynes, charging that he dissipated her
fortune, was in court when the verolct
was returned.
The case went to the jury on its
twentieth day. The II men and wom-
an comprising the jury received their
charge from Justice Gordon at 10:47
O'Clock this morning and just a few
minutes before / o'clock informed a
deputy marshal that they were ready
with their verdict.
AS the Jurors filed into the court room
in silence and lined up in front OF
their places in the jury box Haynes
took his place before the bench with
counsel. Then William S. Adkins, the
clerk, asked the jurors if they had
reached their verdict.
we have" replied John c. Hall, the
foreman.
Adkins then asked for the findings
and as he called of each count Hall
replied, Guilty as indicted"
Haynes resigned from the Farmers
& Mechanics on September y, 1928.
at a special meeting of the board OF
directors, called after his involve
ments were barred. 1t was not until
October, however, that the resignation
was made known. simultaneously with
the announcement that the bank it
self had been taken over as a brancn
OF Riggs National
In September of the following year
he was indicted, but this bill was in
validated when it was discovered that
a member of the grand jury was 1nen-
gible. Then another indictment was
returned, bringing additional charges
though covering, in general, the same
ground as the first.
Three Lines Of Defense.
When Haynes was brought to trial
he set up three general lines of defense.
Where false entries we're alleged, he
laid them to improper bookkeeping by
Subordinates, for which he dsclaimed
responsibility.
On the charge Of misapplication Of
funds, he said that the money had
been used to restore the fortunes OF
Mrs. Chambers.
Defending the counts of abstracting
securities, described as having been
held as collateral against Mrs. Cham
hers loans. he said he had released
these securities to protect other stock
transactions by Mrs. Chambers.
AS Haynes explained his case, he had
become involved in Mrs. Chambers
finances at her request, and as he said.
succeeding efforts to straighten out her
affairs and keep the bank from having
trouble with her, only brought added
complications
Attacking this line Of argument, the
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