Show JAS lAS PINGREE ON 00 STAND IN OWN DEfENSE A- A Former Banker Repeatedly Denies Intent To Im- Im Ima Im Impair a pair Institution LETTER INTRODUCED INTRODUCE I It Is Is Warning To Defendant About Tottering Condition I I ISALT SALT LAKE Feb reb FIghting IT-FIghting IT a aI alone alone alone I lone battle 1 which at times necessitate oJ oj e the flat contradiction of o the n testis s r ony Any of three or four tour other witnesses also ho ha rate hae e preceded him James Pin Pin Pin- grec former president ot of the Ping PIngree bank underwent nt a most s Se- Se tare re grilling by the governments government's rov gO at- at attorneys at attorney torney tor ey The former Ogden ban banker ker was as on the thc stand nearly all iy alli-iy riy 1 and the cross examination had rut tt been concluded at adjournment As witness in his own behalf behal Mr MI denied repeatedly that he heh h had d ever eer e er wrongfully Jy Impaired th the tending t of the national bank banle that lIe he operated the bank In de- de deI I e of o the tho th will of th the other tois directors tors or that the funds lunds had been ben di- di sorted b by hun him to further urther the Inter Inter- c cal cal- calof i of or his private enterprises At Ati tones i nes when confronted by records Ill introduced Int In to evidence 1 the S r i i fJ like wI faiia c 11 nad he r sad utI no recollection of hasing ha seen record On some occasion he be declare that IwI Ills his memory CO I not recall tills this 01 of o that the matter matt r lul basing lulIng Ing taken place blase lace three or tour ars four tars af ago h he would explain TIt That Mr SIr Pingree's presence on the bland Is hasing ha an Important busing in on the tho case caso was as Iden d tN by the fact that at one time one of f the jurors requested the th court to as- as ascertain as ascertain certain what the witness s ans answer anser er tad lId been beon to a question the lIP direct and examination cross-examination of the former banker baner the tile jury display lA 1 Interest which has bas not always s been be n In previous lous days of the trial illS HIS OICE IS Suffering from a severe ere cold hit hits voice olce husky and t tam m Mr Ur Pingree answered ered questions oue or made mado statements with Ith the At times limes hi his sorce olce birak completely making it ft Ary for the attorn attorneys s to repeat the question or ask for or the answer ova Hr Mr lr Pingree asked no len len-incy len len- Incy on account of o the affliction and I made every eHry effort to comply with pith re-r re ro- ro raI r quests ls of ot both court and attorneys II Mr Hr Ir rees Pint te testimony lImony from the tho witness stand was as a complete recital or of fortune and misfortune of ot his I banking career from the time lime as he hs said lId ald he was as a janitor In the alon 11 bank banI up through his 42 learn ers rs In the business to the time ho hoHS HS compelled complIed to resign as of the Institution he Ie had built up In Inthe the Iho early months of o 1920 He Ill le deniel 1 federal bank banle examiners examiner had forced him hint to resign OF G A 11 1 G One of ot the most Important points that has so far tar been mado by the tho go attorneys attorneys s camo camp out Our Our- rs dur the cross examination cross of or Mr lr Im I'm- ree E when the I II objection of or the defense In In evidence c a 1 letter writ written ten tn by y Charles H Stew Ste Stearl St Sta art arl ormo r og ter ot of the Salt Snit Lake Lak a branch of the thc P reserve I eser bank Lauk ban Ie th the lorme condition pi of the condition o 0 I Ills his ls institution 1 Th The s witness s had hall reins refused ed to admIt t this I his h k ot of hasing ha actually r- r rr tole Leh ed the teller letter which apparently y yon was wa written on April 20 1920 1 20 and d Judge Morris allo allowed aliened ed It if t to 10 o go so In only p fg advising ad Charles M MMorris Morris 1 called United States dl district attorn n n nty that he lie ought hl to use u e every ees e ery mean means s to produce l of tho the lec lector let lea letter leater tor ter by Introducing Mr air as af a al l 1 apneas t In to the case even eseo e eo o It tf he ho had to summon the prospective e witness from f om San Francesco or else elsewhere here The letter was written n In i 01 stationery ot of o the Hotel lJ tah ani an apparently upon Mr hir arts Stewarts to this city follow follo ing 1 t L conference s s hs t th h M Mr r or oth other r officers or of orthe the bank In Ogden on the same saine day dayAs diy s As 9 read Into the I record o of the en coo ca 0 today the fomer rOI rn federal reser reserve e ank official wrote Hote 1 air Ir Jam J James amr 1 PinE ic c I 1 t t t Pingree National think Ogden l llah tali Peat cai elu II h li from th tills evening s It Il ou un ed to 10 tollio mu mo that I had not ot brought one point lo to the thc of sour our the thc ss to la the thc mete el c entitled The TheJa law Ja places piaUs a IL liability upon the rite officers and directors alike aliko for negotiated durIng a period In li a bank r nC balance la is Impaired l ln An n Impairment hn has lias existed for forI I some omo weeks and In III L-a-C L c sc you should l be IC forced to suspend there thre would mould ensue no lor lout om directors as idl Ill I'll n ns for the Ilic oUI cr in ID r f to them I J think sou hould ti dials V w lib Ihl to lo their alien alien- Continued on Page Two i I I u JAMES STill ON STAND Continued from PAge One On tion and would request that this be read to them them Tho present cornU- cornU condi condition tion under you are Opec oper operating flung i li ls con ig intolerable The time for arguing Is post peat t and Immediate action Is imperative I balance l mut mu t bo be restored without further delay r I I now think that I will delay lell my 01 departure to tho the GMt coast await await- awaiting awaiting ing advice loo that you have hate tAken nUa to the hangs over ocr you yoa and nd tile the whole hole banking situation Yours Your Truly Freily Signed l II If IL STEWART According to the it naB about t tao 0 weeks after aCter the th alleged re- re re receipt of ot this letter by Mr that he ho resigned and the tho stockholders subsequently were wro compelled to pJ I up more than a 0 halt half million dollars to keep Jeep ke p the tho bank from going to the EVIDENCE cI CONTRADICTED CO I During Doring his 11 direct examination anJIn an anIn In response to questions from Attorneys Attorney Alter Alter- I AttorI ney H II II Henderson Hend and Wade Vade M H Johnson for tor the defense Mr Pingree declared that all of the tir with Ith regard ree to the th transfer of ot the tho PIngree Sugar Su ar company bonds for Cor notes held by the tho Pingree National I battle es were ere ore know kno known knon n to the tho directors ot of too tao bank and that the tir loans had been duly approved ed by the com corn committee committee This was as In contradiction to pre given by J W Abbott E D J P Ellison James IL II Rlland and H H I Hudman In examination cross-examination of ot the th do- do de defendant Attorney Morris delved deep deep- deeply deeply deeply ly Into the th history of ot the sugar ue-ar ue tac- tac fac factory tory venture all the tho way nay from the tha purchase of ot the tho th California plants to toI I their final removal to Utah and Idaho points Throughout this questioning Mr hold that the tho th compani compan ii I notes was always sufficient to war war- warrant warrant rant rant the loans loan as made mad by the bank 1 I At times Umes he resented hotly hoUy the tho o charge chargo that he h himself had carried oil all fill of ot the transactions referred to by the tho gO attorney insist insist- I lag Inor that the th bank referring to the Pingree National bank had approved thIs or r that Again Acain he h le would assert that the executive e committee had ed the transaction or that h he personally had hail not compiled complied a certain talu tairi tain report alleging tor for Instance that time the banks bank's assets were ere good and quat ade-quat aCe aCe- quate I ad-I LOSSES LOSSIS ESTIMATED Referring to the los losses es sustained In Inthe Inthe the tho sugar factory operation In Call Call- California fornia md end II nd previously testified to as having luning been here anywhere from I Ito Ito to Mr Pingree said lie he thought this had hod been overestimated and that the th actual loss ioe probably was not to exceed Z 5 0 0 0 O So So it was WILlI wa along about June Juno 1913 1910 that you called the California plant a failure and decided to mo move mote e It to I Utah 7 asked Attorney Morris re- re reI referring re referring I ferring erring to the th Visalia Visalla factory factor I I believe bellevo it was about that time replied I re I Mr Pingree I wouldn't say that that replied the tho Are Arc you still president of ot the th PIn PIn- Pin Pin Pin-creo greo Sugar company I fuess I am When did It go into I 1 don dont t know Imo At thIs point Judge Judee Morris Morns asked the tho witness It if it was IOas possible he ho had tAken no active part in the affairs of the president company since as dent of ot the tb bank I hate hav never been apprised by those who ho threw the th company bankruptcy replied Mr Mc PIngree They never apprised me I On the question question- ot of what the PIn Flit PIngree Pin Pin-cree gree Sugar company received for tor the plants after aCter removal from California I Mr Pingree said there had always cx- cx fo foisted isted a question as to whether the ln- ln Enion Un Union ion Trust company ot or San Francisco PI o held Its it trust mortgage rights ris after the transfer He Ho personally he h said thought the mortgage held good do- do despite spite the th removal remo but attorneys attorney had declared that the company nad Bad tor- tor f for or- or its lien At this juncture Judge Judee Morris aa aO- aO advised him to neer ne er mind what hat the at attorneys at- at attorneys said and Intimated that no such presumption could be founded on fact tact ABOUT ABOLT HOOPER HOOFER PLANT PIu Mr Pingree testified that his hi com corn company company pany had received 50 O per cent of ot the he stock of ot the Hooper sugar com corn company company pany lany in return for tor Its Visalla plant and that It had cost about I to bring brine the plant from California und and get into operation in this state stat In sup sup- support sup support port of ot his hi contention that the Pingree o I Sugar company had realized money on Its Investment he h said about shares share I of the stock so received had bad neon Deen sole lola and bonds In the amount of ot about held by bv the Guardian men men- In u-ance u ance company had been retired Oth- Oth Other Oth Other er or sales of ot the stock had also been made he said eald Attorney Morris attempted to malo mako the witness admit that he knew tile th San Francisco trust company had ha not been advised of ot th the plan to remove remote the tho Gugar factories and had Immediately Interposed a a strenuous attempt to pro pre prevent vent sent ent It when the th facts were This brought an objection from the thI I defense and the question was not en- en entirely en entirely cleared up UD BONDS UNDER UNI-IER DISCUSSION Taking up the question of ot Pingree Sugar company bonds bond held hId by the th Pin Pin- Pingree Pin free tree gree bank after atter the th execution of ot the mortgage trust deed to the San Fran ci cisco deco co company Attorn Morris Morrl ask asic ased asked edt ed Now ow as to the other bon bonds dB In the sault ault which were not held as a security for tor the sugar ar company com notes hoseS wily a ere those bonds not plaCeS placed on the bonds bonde didn't you 0 The Th excess bonds were ere to be b us a Un carrying on the th business of ot the th sug- sug sugar sugar ur-ar ur ar company replied the tho witness You Tou knew the bank bankas was as In pretty shaky condition carrying carrying- so many ot or those bond didn't you 7 I 1 didn't consider It 10 so o You sent worth ot of thOi bonds to the th National City bank In Salt Lake Lale Lak did iou ou not 1 Ye Yes res Why were they thy sent Those Thos people popl had a surplus ot of mon money ey at tho the time and wanted to get Bet the interest explained Mr PIngree lh 0 no iii bonds wore sold subject to repurchase repurchase chase HE UD DENIES rs CHARGE tARGE Now Mr Ir reo Pingree Isn't It a tact fac that I iou ou sent sont the tIme bonds bond 10 to Salt L ii to escape oscap the federal bank examiner bank bauk 1 findIng them In our sir No At this point Attorney Morris Intro Intro- Introduced introduced Introduced a n letter purported to have hav been written to the officers of ot the Salt bank In which among amons other othor things It was stated that he ha would give us fits it if somebody found th the bonds Inthe In Inthe the bank hank Mr pingree denied that thai any of ot the bank e had ever lr the worth of ot tho the sugar bonds held as assets of the tile national bank l IS U D nu On Un the tho subject or of o w nines nil recel ed cd rom groin the I More Mor e bank officials Ing the deficiency of ot the tIlO Pin Pin- Pingree Pin ro greo gree bank res reserve r re e the defendant not recall hating Ing receives receive's a certain letter front from the th 1 0 of the re- re reserve reserve serve rv bank at San Sn Francisco The letter as a offered for Introduction by bythe bythe byth the gO purported to bo be a 0 cop of the tho original and the Itne witness s Inti- Inti Intimated 1 lOt mated that possibly the tho I hid heel never been written n by the resene bank official i It was brought on questioning questioning- by Judge Morris that the original di t the Iho thol I latter could not be found In the file llos of oC the th bank Judge Judee Morris suggested u that the Governments Government's gO attorneys make mako every effort to provo proto pro 0 the validity orthe or orthe orthe the letter in th the meantime permission for Cor It to b be Introduced In evIdence The contents content ot of the letter which Is supposed to have hav to the reserve tage was as not made known to the tile Jury So far tar as the tho defendant was as con con- concerned concerned the th government s Calle tailed to ob- ob obtain ob obtain tam tain an admission that ho he h was waa asked to resign or o as to what might hove have transpired In the tho directors mo moct- moct moat inc t- t tIng Ing early In May Moy which ended Mr MI Pingree s 5 career with the tha bank Tho-e Tho The were tao t 0 federal bank examiners pres- pres present ent at the tho th time tim TO RESIGN I 1 met the examIners examiner and wo CIs- CIs dis discussed cussed the th situation explained e Mr eig J r Pingree Te It was sho shown n that there thee were people unfriendly to me and I agreed to resign I 1 wont went up to the directors meeting with the chief bank examiner and resigned There Ther were afew II a afew few teW sentences from Crom some somo of ot the boss bois bo s applauding me and then I went Away I wasn't feeling very vry good tood Ill I'll tell you that yo you that Did the bank examiner tell ten you the bank was In An unsatisfactory condl tion 0 asked Morris He did not said Mr MI Pingree Finer Well Veil what hat did he h say He He said there thre was as an nn unsatisfactory unsatisfactory tory condition and that lie he h thought It would be b best It if I e resigned At filL filLI I refused and then I decided to resign rc and let them have hav It t he h ask iou ou to resign 1 per par persIsted per persisted slated the th judge No he said aid he thought ht it would be best if It I did All he h asked me mo was as It if ItI itI I would take tak up of ot the Sli- Sli sar gar company bonds Then there ther was no comment 1 asic- asic ed ed Attorney Morris No sir air You just pushed him aside asid and out I did not replied the I treated him as a II gentleman Perhaps you just bowed out of- of offered o of offend fend |