The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-07-01
C. o N tt N U E %
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In District Court

ographer of the industrial commission
since 1920. corroborated Gammons'
story, that he had been authorized
to make Withdrawals Of interest for
payment Of special claims by resolu-
tons signed by Former Governor
George F. shafer, then attorney gen.
eral, and Former Commissioner of
Agriculture and Labor Joseph A. Kit
chen, then members Of the three
man Industrial commission.
GammonS testified that he had
used the interest Withdrawals to pay
the salary OF Mrs. Gammons for the
work she did between July l, 1928,
and Oct. 81, 1929, in establishing q
new bookkeeping set-up for the SOL
diers' bonus. interest and retirement
fund.
Shafer Contradicts Story
ShAter, however, as q states wit
ness, said he could not recall that he
had ever signed resolution authoriz-
ing the employment Of Mrs. Gam
mons nor that he had signed resolu-
tions authorizing interest Withdraw
ais for her payment.
Former Governor Walter J. Mad
dock. member of the industrial COM
mission for part of the time, testi-
fled about the same.
Other state witnesses included Dep
uty Secretary Of State Charles LESS
man; Theodore w. Settle, George w.
Janda. William H. Bement. P. H. But
Ter and A. c. Brainerd, all of the
Bank Of North Dakota; and L. p.
Warren and F. E. Shepard of the
First National Bank.
Included in the jury were four
farmers, two farmers wives, one mer-
chant, one retired man, one seam
stress, one salesman, one wife of q
clerk living in the city and one engi-
neer. They were w. A. Falconer,
Mrs. Celia Schooner, Frank E. An
drtst. Mrs. Grover Riggs and Samuel
Helvick, all Of Bismarck: J. A. Heinz
bach and Mrs. Gertrude Scallon of
Wing; P. G. Tempt of Driscoll; Ralph
Falkenstein of Baldwin; Victor Koski
Of Arena: Mrs. Tom Morris Of Wilton
and James A. Brown of Missouri
township.
AASVAACus MOllOy NOt C3Ye0
Kitchen and James Mulloy, present
secretary Of the industrial commits
sion, who were interested auditors
throughout most of the testimony.
were not called to the witness stand.
Judge Jansonius completed his in
structions to the jurors at 5:45 O'Clock
Friday afternoon, following three
hours Of argument by prosecution
and defense counsel.
Attorney General A. j. Gronna and
Assistant Attorney General Higgins
summed up the states case and Sui
livan and Cameron charged the state
had failed to show Gammons had de-
frauded the state Of any money. The
prosecution termed Gammons' testi-
ulony "wholecloth of lies"
In his charge to the jury, Judge
Jansonius said If the jurors found
Gammons appropriated the $500
openly and avowedly and under be-
lief In good faith that he had q right
50 to receive and retain same" he
would not be guilty Of the charge,
even though he had mo legal right
to receive and retain such MONIES"
Attention was called by Judge jan
eouius to state laws that deposit of
state funds can lawfully be made only
In the Bank Of North Dakota, and
that deposit Of state funds in any
other bank would be without au-
thority Of law"
Cites Annual Report
The court cited the law providing
Che industrial commissions annual re-
port must contain an tented account
of expenditures, and set forth q
Ns& Of all persons tn its employ, salary
and fund from which drawn.
Attorney General Gronna began H.
hal arguments for the state, declaring
che state had shown other acts of en-
bezxlement in connection with the ac-
count. including the 5000 interest item
He charged 0ammons was engaged in
. series Of embezzlements Of state
FUNDS. He stressed that cancelled
checks from al account In the First