The midland journal. (Rising Sun, Md.) 1885-1947, 1934-01-12
KEPLER CASE
BEFORE COURT
.Elkton Bank Official AcGuit-
ted Of Charges Of Mis-
appropriating Funds

late thursday IN the trial or irwin
T. Kepler, former executive vices
president of Elkton Banking q
Trust Co., on trial in the Circuit
Court for Cecil County at Elkton.
charged with violating the State
Banking Laws, the charges resulting
from the discovery of shortage in
the banks funds.
Tie chief witness for tbs State
aas oscar P. Comegys, conservator
for the Elkton Banking & Trust
Company, the institution in which
Kepler formerly held the position OF
executive vice-president.
Mr.. Comegys testified regarding
the report of Leonard Hall, an audi
tor of Baltimore, who checked the
books of the bank. He said Halls
report showed stock speculations
which Kepler is alleged to have
made.
In further testimony he said that
on one occasion the report showed
that stocks pledged for loans in the
Dank had been transferred to KEEP
ler's account as executive officer
out the proceeds had not teen app
piled to notes for which they had
oeen pledged.
In presenting its case the State
called twelve witnesses. In addi-
lion to Mr.. Comegys, they were g.
e. Spellengberger, Enoch Harlan
and Clarence w. Renninger, all em-
ployed by Baltimore bonding hous-
IS; G. w. Kennard, Carroll G.. Short,
j. Frank Blake, Jr., DR.. S. Claude
sykes, all connected with the Elkton
Banking and Trust Company; d. j.
Ayerst and D. B. Mcdowell. direc-
eors of the bank, and NJ. B. Connel-
~, bond salesman.
The defense Immediately opened
its case. Kepler testified in his own
defense, explaining he had been
given complete charge of the banks
lffairs and had been instructed "t0
use my own judgment" in handling
It's business.
He told of getting loans from the
institution and repaying part of
chem, reducing the banks obliga-
lions and offered full explanation on
all the negotiations on which he was
questioned. Three witnesses, in
Guiding Kepler, were heard after the
prosecution had completed its case.
The other two witnesses for KEEP
Ter were Harvey H.. Mackey, the
banks president, and H. w. Pippin,
a director. The former said all the
banks affairs had been placed in
Aepler's hands and the latter testi-
led Kepler had been given full
charge.
In the two hours he was on the
stand, Kepler related in detail the
various incidents connected with the
charges against him. He said that
he had notes in the bank to the
amount of more than $4,000 and
all were covered with sufficient col
lateral but that in the crash of 1929
the collateral dwindled to less than
$4,000.
One item in the charges against
him concerning the disposition OF
$4,000 he explained as being used to
purchase the stock of dissatisfied
stockholders following the merger
of the two Elkton banks This
money, he said, reverted 10 the
treasury of the bank.
He explained numerous other
transactions and declared that at
the time of the bank holiday when
Oscar p. Comegys was appointed
CONSERVATION, Mr.. Comegys made NO
request to him for statement or
explanation of the use of the funds.
He denied any wrongdoing or any
transportation of funds.
The jury, late Friday afternoon,
after celebrating two and one-half
hours, brought in verdict acquit-
ting Kepler of misappropriation Of
the banks funds. Six other indict-
ments are pending against the form
er bank executive
The wind-up of the former bank
er's trial was prnctAated by a sensa-
tional incident in which the court
upbraided .wo buslF SIS men for APP
plauding a statement made by At
torney James F.. Evans for the de-
tense.
Mr. Evans while making his plea
to the Jury remarked to the effect
that il Oscar F Comegys. ccnserva-
tor for the bank, had spent as much
effort to have the hank reopened as
he had in convicting Kcpler. the