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Show it I & I ! ' - PROSECUTION BESTS llj IN FtAGGFRAUD CASl I pi J i Court Denies Motion by Defendant'. HI j ? Counsel to Dismiss H ! I Proceedings H ' New York, Oct. 28. Tho prosccu- H tlon rested today In tho caso of tho H government agalnBt Jared Flagg, un Hi ler Indictment with former United Hi States Treasurer Daniel N. Morgan mH I , and others on n chargo ot using tho HJI 1 malls to defraud. The jury wob ex- Hl j cused until tomorrow. Hill I Judge Uudkludonlod a motion by Hill) I JoliftjM . Coloman, Flagg's counsel, Hlllj 1 thatVtjio caso bo dismissed on tho iH III I I ground that the go enuuent had fall- vHili I Ctl l'rovo "s allegations, but said iH 131 I thn' FlnBS's contract with his custom- Hilll V crs ("J not 1,rova flu(1 nnd that the IS if books vcro not fraudulent. lift J , "It Is apparent," continued tho HI ' Judgo, "that tho Klagg schema ot H , C operation wus not In itself fraudulent Hal M A Tliero Is but ono Important point to ! $ settle, nnd that Is, f did the flminciul j 8 condition of tho llrm Justify tho rop- jj rcscntatlons mudo' as to tlio probablo 1 I ' profits which had been mado?" ' I S T J I f, Mr. Coleman, In seoklng dismissal , of the case, contended that all tho j points which tho dcfolise sought to J 1 prove had been proven already by U ' thfi.go eminent and that to interpose 1 i, n defeuso would mean to call virtu- HJ I ' ally all tho witnesses who had ap Hi j 1 t peaed tor tho government. Two otU-, HJ! I ,, fir .motions by Kiagg's counsel that "Hjl I t nlpppers and evidence produced In "Hi I J an attempt to provo a conspiracy be ' ifljj IH eliminated and that all the testimony HJ iH based on tho books that wero return- HJ jjll cd 'bo stricken out also wero denied Hj llj y ,llu court. I Hill Grover O. Tiirnbull testified today HJI1 that Kings's stock dealings aggiegat- I II II i ' ed f25,380,000, Ho also swore that riiifcg credited customers wltMsrdlvI. dends of 141,000 and charged them $55,700 as Interest Flagg's books, Turnbult testified, showed profits ot $697,000 whllo he was in business, The not loss, however, was 834,864. Flagg paid to customers as profits (4941455; to stock brokers ho paid 1175,472 as margin on accounts. |