Show NOTES TRIAL SUBJECT Continued from Pae Page One Attorney Morris on this poh point t Mr ill nl- ley Icy illIcy said he did not oppose making loans on the notes because he had irit- irit Implicit In faith In Mr Pingree OM MAN LL BINK BUiK Injected throughout most of ot the testimony of Mr Riley was an und und- current an Inference so to speak that the National bank banic during durIn the In which thick the present chas char play a 11 part was very much a one man bank and anti that the oro ore man roan In I charge was WM the president the present n defendant In this case I At one ono point Judge Morris took an active part In the questioning of ot the I witness to bling out plainly that nOIl forte noi noid of ot the notes flOte of ot the Pingree Sugar company were ere secured by collateral Referring to the action taken by Mr Riley when Instructed by Mr Pingree tl-i- tl so BO ho testified to got get the bonds of ot the sugar company and turn them over to a toa Mr Nickerson the former cashier was asked aked to describe In detail the ac- ac a tion action of ot tho the bank president and ills his ox- ox act words lIe Ho was standing near as M I looft down th the telephone receiver and call caled ed for tor Mr Abbotts Abbott's number said Mr Riley It was at this time Mr Pin gree grce said to me roe You had better ra call all that over I Mr Riley DISCREDITS denied donled on tho the stand that a a- record of ot directors mo moet meet meeting ing Ings reported the true facts despite de p the tact fact act that he ho admitted having w nt ten up the tho record himself In those Instances It was recorded as tho the action of ot the board of ot directors that Certain dividends be declared 3 The cashier director und under r tion said ho he was as not In favor t of ot Ie- Ie do il daring the dividends but had refrain refrain- refrained ed cd from voting against tho the action Mr Riley disclosed for the tho of oC tho defense how some of the thu th at- at fairs of the bank were vere conducted In ln testifying as us to bonds of the Sugar com company pan I How many bonds of ot the Pingree Sugar company did you have In the vault of the bank in I September 1919 1819 Z F asked Attorney Henderson I dont don't know replied Mr Riley Wont the record how how asked the attorney The The record will show what we wo had hadon hadon on the books but not what that hat Vo BO ao 0 had mi In the Vault v as the hA reply of l f the tho fh wit wit- SUGAR FIRM FINANCES I Continuing further on the subject of ot the notes the former cashier told J Judge Jude Morris that bonds had been Leen b substituted tor for notes of ot the sugar corn com company pany and nd then carried as assets tI OL the bank In I reply to further Mr Riley said ho he had never aster In- In ve the property of ot the su sugar u ar company and anti tha that he had placed tull iuli f confidence In Mr cr Pingree when the president had told the directors of ot the he bank the bonds bonde were good Here Attorney Henderson lues Didn't you see a a financial l st state atai te ment of ot the Pingree Sugar COmpany compa along in 1919 or I x might have replied the Were you satisfied 7 1 r So No No air lr ir DId OU make any complaint I 1 r dId Ild not admitted Mr Riley Hiley Judge Morris Morris and attorneys on both sides rides became Involved in a rn l I k j tangle tangle of ot financial and legal term terms so soo sotar tar far as the Jury was sas as concerned over r the iho question of ot admitting records ot of the tho bank In reference to deficiencies In the federal reserve bank banI credits about the time dl dividends were cd OS In December 1919 April 1920 OGDEN X O MOM N This camel came at l the time Mrs J 0 a I Porter Portel of ot Ogden formerly Miss Jt J- tIter ther her ls Haci-ls and It a former r in the bank was tas Introduced as a nit nit- ness for the government Mrs Porter testified she had been a general book bookkeeper keeper at at the bank and among her du- du duties du ties lies were none ere those of t if keeping a dally daily rec- rec record end ord of ot the amount required to be kept k as aa a credit with the federal roe res r n o e branch and the actual balance that was ass as kept a as disclosed by the book books of ot the Pingree I bank This evidence was Introduced by the tho th government prosecutor with a u view to showing that Mr Pingree lied had wll- wll wil fully Cully Intended to defraud the bank by bringing about declaration of ot div div- s at ai a times when ho he knew th the bank to be oe e tar far in arrears as rEgards regard reset reserve bank credits required to bo maintained When hen the record was ass finally In- In Introduced aa as a part of o the record in inthe the case cas It showed that on n December 20 1919 the reserve bank required a II credit of ot while Vo the bal bal bal- balance balance ance as actually sho shown shonn n on the books book of ot the Pingree bank as such credit was only 50 a Q deficiency of ot more mor than ACTUAL L Pr O At another time April 7 1920 the ho date data on which another dh was declared according to 10 the tea tes- hadS the bank should have base had hoca S II federal reserve red credit It of ot but that there actually existed os as shown by the Pingree banks bank's onn on books booles an overdraft ot of 1840 It was at ELch times and under adverse conditions as s regards th the gree banks bank's affiliations Ith the I de- de declared Ce- Ce dared that dividends were nero declared and actually paid Such dit dh brought substantial credits to the ac- ac accounts accounts counts of oC the James Pingree company and the Pingree Sugar Suar company It has been previously brought pre brought out Inthe In the case EVIDENCE E ADMITTED Attorneys s for tor the defense sought to exclude the reserve bank figures of credit front from the record on ott the grounds that while this might ha have hao 0 constituted constituted unla unlawful tul action in the declaration ot of dividends as such a time It does n not constitute a willful Intent to funds of ot the bank as liS charged in the Indictment A long argument ensued regarding Interpretations to be bo placed upon the national banking banking- act and the tl federal reserve e act Judge Morris tl- tl finally 1 nally ruled that the evidence be ad- ad admitted admitted ai Mrs Irs Porter Portor concluded her direct dire ct testimony together with cross exam exam- examInation examination on points pertaining to book book- bookkeeping bool keeping methods In handling notes 31 ot of the Pingree Sugar Suar company receil ed from a bank at Kemmerer Wyo for f collection SURPRISE mT ATIt ATIt AT It Is the plan of ot District L Attorney Attorn Morris to next Introduce as aa a govern govern- government mont ment witness II a a bookkeeper who will ill explain In detail the paper paper moth methods i used In handling the various rlou accounts through the Pingree bank during the days prior to the removal of Mr Pingree Pin Fin greo gree as president 00 D |