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Show ON WITNESS STAR s Former President . of funct Merchants Bank Tells of Transactions. Counsel for Defense 0 lines Material to Be Of fered in Evidence. Kf ' John Pingree, former prpsiOontl I tho Merchants bank, tuok tho wiiiD stand yesterday as t lie first, witiics; liis owu defense in his trial bi'for jury iu Judge John 1'. Tobiu's d sion of t lie Third district court o' charge of knowingly receiving dc)o iu it n insolvent institution. The defense began with a staten from Attorney Samuel A. King, cil U sel for tho defendant, in which I Pingreo nas porLrayed as a in T wronged man, and Charles !'. Stew J federal bank examiner, was allegci J be responsible, through ltis report, (lie collapse of the bank at the ii of which the defendant stood. ; "Mr. Pingree was on t bo witness sti during the afternoon and evening, i ing vhieh time he ett. over, in aiis I to counsel's questions, practically al J tlic liabilities of the bank. He testi in detail last night with regard to " oral hundred notes, characterized . witness for t lie stato as being unir I lectable, declaring that, wilh few ex lions, he regarded them all .as gootf n the time of the closing of tlto bank iff' the majority of them as yet good, witness implied that tho efforts of ijjj receiver, Stephen H- Lynch, at coll' ing tho notes had been larking T, vigor and therefore ineffective. ' l' witness was very emphatic in hia swers, giving them swiftly :ts i " question was asked. Banking Courtesy Extended Concerning the 1S,000 overdraft the "Utah Packing k Provision cottip' charged to the bank of Pocatello y I to the visit of the stato bank exaniil ' and afterward restored to the, bi of his own bank and carried a, J cash item, Mr. Pingree testified " this was done by arrangement with -Idaho institution as a matter of bi ing courtesy. The holding of tho bank in stoctei tho Park City Mines company, .j Pingroe explained, came about thrr" ' his efforts to secure a loan of ik.'tS-' extended to the American Plug Ml'.il company before he assumed the p-j dency of the bank. He said tli,r. . brought about the organization of' new company which took over the I-1 Prt ings of the American Flag compiri and for stock in which he obta $50,000 worth of subscriptions iu,. prominent business men. Of '', amount $25,000 was paid, the subsrJ ers being yet liable for the other rsd 000, according to Mr. Pingreo. baak took over 80,000 shares ot capital stock of the new compan; protection for the old loan, getting-" stock at 40 cents a share, while o::M creditors were forced to allow lis ci the witness testified. , . ::. Personal Overdraft Explains ; Concerning the transaction whe.,:. $14,000 personal overdraft was cha...r. off his own account and against. "; account of the Prince Consolidated." -ing companv, Mr. Pingree testified he" had notified Anthony Godbe, p-' dent of the mining company, imea atelv after pool of the mining 'i;i panv's stock lapsed on May Hi, . that he would be forced to sell his B.. to cover other liabilities. He said ; Mr. Godbe protested, assuring lnm the mining company would contrn give him a loan and that it wa' ' this assurance that the transfer made when it became necessary. . "i In his opening statement, At to: Sr King declared to the jury that tlii. :i., fense would show that the Mercl-.i bank was in better condition at, if timo of its closing, July 8, lfll8i.-.r when Mr. Pingree became presi.Jtl He charged the federal hank owner's ow-ner's report with responsibility to closing of the. institution, througt v: bringing of that report before t.".e . .. ing house committee. Error in Report Cited. He declared that the error by t ;. the officers of the bank wero shov . the report to be involved mibbuf loans when they appeared m but 313 of the bank's credit extension! - ; largely responsible for the retus. -.:s consideration bv the clearing 1 committee and that the error f; been cleared up until he forced a sion of it from Mr. Stewart the fe , bank examiner, on the stand as a.... ness for the state. Mr. Mcrt . fied that the error was tyiwRrai and that it in no way atlectcc - .. .summary of his report. Counsel declared that it u'.-: shown that the Merchants bank ,.,, a wrecked institution before -Mr. gree was placed in charge ot - u That he was called to the pre for the very purpose of f n- ' said that it would be shown tl.. f hud mado cxtraord.nan 1"; toward this goal and that he a l. tinuing consistently in sue pr , when closing of the door of U , stitution prevented comple on o ,. work undertaken and null tied nil what had already been dor.c; . ; Mr. Pingree w.ll ""l . stand this morning, still under examination. . ' |
