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Show j . : . ' -. - 1 ...... . .,...-..... . t Roiff, Harding end Others Tell i of All I leged Deficits in Accounts, Vith Entries En-tries riede After Report to State; Letter From Tyree to Raiff Introduced; Evidence that Hiram Tyree,' president presi-dent of the Continental Life Insurance and-Investment company, had stated that there was a deficit In the accounts o$ the company ' amounting to 128,000 for the year 1904, and that It was necessary ne-cessary to keep the' books open' after December 31 of that year in order to make "a showing that would pass muster," mus-ter," was given before Judge Dlehl this morning by Frank Major Hogan Ralff of San Francisco, in the trial of Hiram Tyree and Cameron C. Wylie, who are charged with making a false statement tdj Secretary of State Tlngey. ( Letter Introduced. ' ; " tA letter was " introduced in which Tyree stated that the head men of the '..- v , .. .. TV P. P. ChrUtensen, Assistant County At-torney At-torney J. P. Lyon and F. M. Ralff. , V Tyres "Not on ths Square." ; : :. On cross-examination,, Ralff declared , that he did not believe Tyree was ''on the square." Judge Powers asked Ralff if he was not in the business of wrecking wreck-ing corporations and used to juggling books. This brought out considerable bitterness between the witness and the attorney. ' ' .- , Harding First Called." Philip J. Harding was the' first witness wit-ness called by Assistant County Attor-ney Attor-ney Lyon this morning In behalf of the State. .: He declared that during the time he was employed by the Insurance, corn- mnv tho BArrptttrv nf th nnmnanv corrSpany and many' influential cltlxens had made an effort to have the County Attorney dismiss the suit. During the hearing Assistant County Attorney Lyon declared that -a telegram tele-gram will be Introduced, to show that an attempt was-made to deceive Ralff. jvho was formerly connected with' the company and was manager of the Western Agency. , company, and keep him away from the hearing. ,; . Harding Tells of Deficit , iFormer .Bookkeeper Phlp J- Harding Hard-ing declared -that the books of the company com-pany were kept 'open ' after" Iecembe, 81, 1904. contrary to the statement made to (Secretary of State Tlngey and that items amounting to S&120.M and $3378.33 were added to the books after December Decem-ber 31, and made to show that they were received on that date. In direct examination, Mr. Ralff testified tes-tified that Tyree had declared that, he would come to Salt Lake City after his atrest and "spread a little salve, spend ajlittle money. and fix things all right." Telegrams Ars Shown. iA large number of telegrams were troduced. In which Dr. Mayo was denounced, de-nounced, telegrams in which Ralff demanded de-manded that Tyree resign and also asking ask-ing that he (Ralff) be paid what was coming to him and sever his connection connec-tion with the company. The replies to reported to him each day the cash that was received. . He said that on an examination- of the company's , books he ' found various entries, amounting to ' $5120.25, that came in after. December u 31, 1904, 'which were .counted In- the report re-port for the year 1904. -He further de-. ) -clared . that there were also a number of other Items, amounting to $3378.84, which had been dealt with In the same manner,. . ., ,,.., .. .."----- ,.'. Entered After December 31. i " i "Were1, there, accounts' entered' after . December , 31 1904, which . affected . the annual report?" asked Attorney Lyon. ; ' ?'Th items I have mentioned and perhaps per-haps one or two in the Journal," replied the witness. . . .. He .stated further that Tyree was ! vice-president and general manager of the company during the time he was employed by the company. He said that he had submitted the trail balance for the annual report to Mr. Tyree. - Crosa-Examlnatlon. On cross-examination Mr. . Harding declared - that it was customary to count cash In transit as cush actually on hand, but that he believed there -was a question In the report made to the Secretary of State that covered it. -. Through W. H. Cunningham, who was the next witness called, the cash deposits for the first two weeks after ' tnese telegrams are to De introduced at the afternoon session of the court. Dr. Mayo on Stand. Dr. H. N. Mayo was examined regarding re-garding the payment of a check to the company after December 31, which was counted as being received on that day. and W. E. Block, private bookkeeper for Samuel Newhouse, also testified to paying a check for his employer after December 31, which was counted In the receipts for that day Several bitter clashes were Indulged in by Judge Powers. County Attorney Decemoer 81, 1904, were introduced. ; . Mayo and Block. F. M. . Ralff was then called -for examination, ex-amination, but hhj examination was temporarily for the examination of Dr. H. N.-Mayo and W. E. Block. who showed that they had placed cash with the company later than December 81. but which was placed on the books as being received on December 81. Ralff Tells Experience. . The most startling evidence was that -given by HalfC. He said that his home Is in San Francisco and that he had been in the Insurance company for the past eleven years. He said he first met -Tyree - about eleven - months ago at Butte. At that time he said Tyree asked him to go Into his employ! He said that at that time the forming of two other companies to work In conjunction con-junction with the life insurance company com-pany were talked of. These were the two companies that later -materialised as the Western Securities company and -the Western Agencies company. It is said. ' Sought His Advice. The witness declared that Tyres wanted advice on the working out of the two companies and he said that he advised him verbally and by corre- spondence. "Did you have any conversation is- , garding the condition of the Contlnen- t tal Life" asked Attorney Lyon. "Not until August. 1905." replied the witness. This was objected to by Judge Pow- -ers. counsel for the defendants, on the ground that It mlgljt be immaterial an might affect the condition of the com- v pany. The court overruled the objec- " tion. . Held Books Open. Raiff declare! that Tyree had "In- ," j formed him that there was a deficit of "'' $28,000 on the books of the company In- ? stead of a surplus arid that it was ne- " . (Continued on page -6.) - . i - i ; I!ecri3 in Tyrec Cose. ' ' - (Continued from page 1.) cessary to keep the books of the company com-pany open after December SI, "In order to make a showing: that would pass muster." Mr. Raiff said r - "Tyres told me that he had to hold the books open in order to make a showing." - |