Evening star., 1939-04-03
DirectedV
Denied Rhodes
Al Perjury Trial
Testimony Resumed
Against Former
Banking Head

Mrs. Ruth S. Horner, a Govern
ment witness, who was assistant
secretary and assistant treasurer OF
the old Fidelity Building & Loan
Association, told a District Court
jury today that the books were in
balance there in June, 1885, when
the Government charges there was
a ST 900 discrepancy to which Fred
B. Rhodes, then president, swore
falsely in a report to the Treasury
Called to the stand for cross
examination after Justice Jesse C.
Adkins had denied a motion for
a directed verdict of acquittal for
Mr.. Rhodes, who is being tried on
a perjury indictment, Mrs. Horner
described a complicated system OF
bookkeeping under which she said
a "catch-all' account maintained
in Mr.. Rhodes name, together with
the accounts receivable" kept the
books in balance, although % ledger
sheets covering accounts of de-
positors were being withheld from
routine bookkeeping channels.
Sheets Kept IN DeSk.
The witness said also that di-
rectors knew the sheets were being
held out and that she had them in
her desk. They were turned over
to officials of Fidelity by Mr.. Rhodes
in June, 1886, four months after
he had left the presidency of the
institution, which closed the follow
ing month. The Government had
sought to connect the fact that they
were in his possession with the al
legged falsity of the report year
previously. The witness, however,
said that Mr.. Borchardt and two
other directors had told her in June
that year to send them to Mr.
Rhodes in his law Office in the Press
Building. Marcus Borchardt was
secretary of Fidelity then and an
auditing firm was going over Its
affairs.
Mrs. Horner, who had previously
identified records for Assistant
United States Attorney John j. Will
son, was called to the stand by Will
liam E. Leahy. chief OF defense
counsel, after Justice Adkins had
announced that he was overruling
the motion for directed verdict
which he had had under considera-
ton since Thursday.
In making this motion the defense
had contended that there was insut-
flcient evidence; that the controller
OF the currency had no right to re-
quire the report on the condition
Of Fidelity; that the report was in
complete and that the oath Mr.
Rhodes took in swearing to 1t was
not valid because Cooper Rhodes, his
son, an attorney for Fidelity, was
not qualified to administer 1t.
Justice Adkins had expressed
doubt as to the sufhciency OF the
Government evidence and had indi-
Gated his belief that the prosecu-
tino should have sought to develop
more detail on the report and the
ledger sheets from Mrs. Horner.
Questioned by Mr.. Leahy.
Mr.. Leahy began his questioning
on the preparation of the report.
What conversation did you have
with Mr.. Rhodes about the report?''
he asked.
II don't remember having any,
she replied.
Mr.. Leahy then asked Can you
say that anything was done by
anyone in that Office in connection
with that report to cause anyone
to make a false report?"
Nothing at ALL" she answered.
Mr.. Leahy then asked about the
handwriting on the ledger sheets
and Mrs. Horner said 1t was hers
He asked If they were accurate and
she said they were.
Defense counsel then took up the
Rhodes account and Mrs. Horner
explained that it was used to debit
items of a various nature. She said
for instance, that shortages in
branches" and expenses and the
expenses in connection with the
operation of six branches which the
controller would not allow to be
shown as assets were reflected in
this account.
In response to another question
from Mr.. Leahy, the witness said
their was mo failure to keep an
accurate balance" anytime she was
mt