Show rOEFENSE CONFIDENT I r r Counsel For Banker Bacon Makings t t Hard Fight J I THE SANITARIUM STOCK ALLEGED PRAUDULENI ENTRIES EN-TRIES OJST THE BANK BOOKS Judge jiTaginnis Pressing the Prosecution Prose-cution Vigorously ExCashier I Holland TestifiesThe Transac v Jon With Wr McKimmins What the Defense Will Claim ¼ J In the trial of James H Bacon in the federal court yesterday the same tactics tac-tics as those followed by the United States the day previous were adhered to an attempt being made to show that certain entries made on the books regarding re-garding Sanitarium stock were fraudulent fraud-ulent The defense claims that nothing as yet has been shown which places their client in any danger and that when they get a chance they will successfully success-fully refute everything which has been sworn to by the witnesses for the prosecution prose-cution Counsel for Bacon manifest a great deal of confidence and are making mak-ing a hard fight Judge Maginnis on I the other hand is pressing the cause j for all there is In it j I THE EXCASHIER j I F L Holland excashier of the bank was placed on the stand and remained i there during the entire morning ss aba He testified as to the manner of keeping the books and said the Boston bystem had been employed The prosecution prose-cution offered the witness some credit and debit slips found among the banks effects and when objection was made by Colonel Ellis stated that he proposed pro-posed to show by the slips that the bank was credited on its books with Sanitarium stock at a time when there was no Sanitarium company in existence exist-ence In this connection Judge Maginnis produced a slip on which the bank wasp was-p credited with 56163 in stock of the S Salt Lake Bath Sanitarium Co This was found to be entered on the books under stocks and bonds when examined by the witness There were several other entries of the same kind dating into December with the exception excep-tion that the remainder were credited in the books and slips as Salt Lake Hot Springs Sanitarium Co The total to-tal amount credited in this way was I552SL51 The slips were all testified the witness wit-ness in the handwriting of James H Bacon the defendant Mr Holland admitted ad-mitted after repeated questioning that the slips for 56000 in the name of the Bath Sanitarium Co must have referred to the present company as the amount was credited in connection with the other Sanitarium entries On crossexamination the witness remembered re-membered the entry of 3028151 on Oct 10th and 25000 on Dec 10th both representing rep-resenting the valuation of stock acquired ac-quired in the Sanitarium company J F L Holland was examined again It briefly when court reconvened in the f afternoon Asked as to whether he knew that the S000 valuation on the banks books represented 30 shares of I capital stock the witness said he did not He did not know that national banks had no right to acquire stock bonds or mortgages except when held to secure debts Jeremiah Schenck was put on the stand and asked what had become of two notes with Sanitarium stock attached at-tached as collateral supposed to be in his possession and having on them the names of F Rogers and E H Hackett both stockholders in the Sanitarium company Mr Svhenck thought they were in the vault of the bank but changed his mind upon crossexamination and raid J he had turned them over to Bacon and that they were now paid and cancelled EXPERT TESTIMONY J H Knauss gave some expert testimony testi-mony regarding the books of the bank which he had examined Questioned as to what the credit and debit sills found at the bank showed he said they indicated that the bank became be-came ownr of Sanitarium stock to the extent of the amount indicated on the slips Asked concerning the regularity of the papers found by him in the bank witness replied they were In excellent 1 order There was one or two minor records missing but that was all Asked if he found all debit and credit slips on the stock and bond account witness replied that he had Answering questions by the attorney for the United States the witness described de-scribed a note for 1457558 It began prior to May 8 1S33 and was given the bank by the Palace Livery stable It was due May S of the same year and was marked as paid on March 6 1S9S The history of the note was demanded and Mr Ellis filed a large alliterative objection The court sustained the question as to manner and form and Mr Ellis breathed peacefully while his colleague Mr Booth heaved a large sigh of satisfaction sat-isfaction Judge Maginnis however put it in another form and in response the witness wit-ness gave what purported to be a history j his-tory of the note refreshing his nemory frcm printed slips as lie proceeded Booth made an objection to this method meth-od which was overruled and an exception ex-ception taken to the ruling Mr Booth declared that as the slips read from had been taken from the bank as they were the property of the defendant by leason of having been made by him and were in possession of the United States simply because the officers confiscated con-fiscated them it was making the defendant de-fendant testify against himself to have them used in this was Judge Marshall dd not view the matter in that light The witness said the note of 14000 and over began with one by H M Bacon Ba-con for about 7000 and a livery account ac-count of 3500 and interest added The total amount of the one note when finally completed was 145755S This was discharged by charging that sum to the stock and bond account THE SANITARIUM PREMISES In this connection it may be stated that the defense will base a good share of their action on this transaction claiming that the indebtedness of Mark HicKimmins to them concerning the alace Livery stable was cancelled by L the taking of the premises converting them into the sanitarium and issuing stock to cover the amount There was a great deal of talk concerning con-cerning another note of 25000 which was given the bank and stock issued but the details were so tedious that it would require a page to tell all definitely defi-nitely However it would seem that this note was cancelled by the issuing of sanitarium stock which was charged to the stock and bond account Juse before the close Maginnis asked the witness to state the condition of the balance on the books as shown to the bank examiner at the time the American National Bank was out of existence and the actual settlement It tppeared there was a discrepancy ac co ling to his examination amounting io nu difference between 5755 > 5 the sum shown to be due on overdrafts on the books and 1447782 as reported Is that statement true asked Ma ginnis It is not true was the reply Mr Ellis made another objection The answer should be stricken out The witness could state what he found but the question as to its truth or falsity WES one for the jury to determine r The answer vas stricken out and Ma Sinnis toook another tack eliciting the reply that the statements were incorrect incor-rect which was ordered stricken out on the same grounds I The balance of the session was devoted de-voted to reciting the several items in I the overdraft of 14000 I Court adjourned until this morning I |