Evening star., 1932-05-26
LAWYERS WRANGtE
IN COBLENTz CASE
Assistant Bank Commits
sioner of Maryland Re.
sumes Testimony.

CUMBERLAND. Md, May 26-Ex-
animation Of witnesses In the trial Of
State Senator Emory L. Coblentz, pres
ident Of the Central Trust Co. of Fred
erick. charged with receiving a deposit
when he knew the bank was insolvent,
was resumed today in the Circuit Court
here, the case having been removed
from Howard County. where the indict-
ment was found in connection with the
closing Of the Washington Trust Co.
Bank. branch of the Frederick in
stitution.
Constant objection OF counsel marked
the proceedings.
John D. Hospelhorn, assistant State
bank commissioner resumed his testi-
mony. He said the Blue Ridge Securi-
ties Co. owed the Central Trust Co.
s3l 1872 1922 and the Central Securi-
ties Co. owed s2375.56936
These were subsidiaries and the bank
held collateral to secure notes 1T was
not the kind Of collateral you could
go out and get figures on" Hospelhorn
declared
The witness attended a conference
in Baltimore September l in connec-
tion with the Centrals affairs which
was attended by Senator Coblentz,
Gov. Richie, Attorney General Will
liam p. Lane, State Controller Will
liam S. Gordy and Howard Bruce, Al
bert G. Towers, Hayward Boyce, w.
Graham Boyce and Donald Symington,
Baltimore bankers. The court sustained
objections to questions by the defense
as to whether anything was said at
this meeting to Coblentz or in his
presence to the effect that the Central
Trust Co. was then insolvent.
Bankers Asked for Help.
Referring to a meeting between State
Banking Commissioner George w Page
and Senator Coblentz August 2l. 1881
Hoepelhorn said no suggestion was made
that the bank was insolvent. but reports
showed shrinkage What did you and
Mr.. Page do?" he was asked. Hospel-
horn replied: I'VE made ARRANGEMENTS
to see the Governor and the conference
followed" Hospelhorn admitted upon
questioning that at this conference
Baltimore bankers were asked to put up
money to aid the Central Trust and
they refused.
Hospelhorn read from his record that
ne advised that the dividend of 7lz
per cent paid the last six months BY
the Central Trust Co. would have to
be reduced. No dividend was paid by
the subsidiary securities companies
When asked by States Attorney James
Clark. heading the prosecution. if he
did not testify before the Howard
County grand jury that he had engaged
extra help several days before the Gen.
trail Trust closed Hospelhorn said he
did not remember clearly. Clerk the,
read from his notes that Hospe,hora
he'd testified that some help had been
engaged from the Union Trust Co. ara
some from the Baltimore Tru
The defense objected to the State re-
freshing witness memory and wanted
TO know where the notes of the States
attorney came from. 1t was then
brought out that they were made bv
Assistant Prosecutor Jerome Laughlin
in the grand jury room Early in the
case plea in abatement was denied
the defense which sought TO have the
case dismissed because it was he'd
Laughlin was not legally in the grand
jury room.
Allen McCullen Testifiee.
Allen McCullen OF Washing on. vice
president of the Southern MARYLAND
Trust Co., with branches at Seat Pl-as-
ant and Marlboro. told Of depositins
notes in the amount Of $4,000 Of the
Central Trust Co. among its assets at
the time the Southern was in dim
Guilty. OF this amount $4,000 was later
obtained and the account was closed
out by accepting mortgages For this
I service $500 was paid the Central Trust
/ Co. He said that Coblentz at that
time. 1880, complained Of financial
conditions
Late yesterday afternoon the court
denied the motion IN strike oIt tho
testimony of Isaac Taylor and his
bookkeeper, Hilda Shipley of Ellicott
City, who made the deposit of s3l65o
with the Washington Trust Co., sub
sidiary, the day before the Central
Bank closed and on which the indict-
ment was formed, The defense held
Coblentz did not receive the deposit.
was not in the bank and had no
knowledge of the deposit.