13067. First National Bank (Albany, NY)

View Charter #267 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
267
Charter Number
267
Start Date
January 1, 1888*
Location
Albany, New York (42.653, -73.756)

Metadata

Model
gpt-5-mini
Short Digest
fd67cd08e0956401

Response Measures

None

Description

Newspapers report the First National Bank of Albany suspended (doors closed) in late January 1888 after large shortages by cashier Charles O'Brien and bookkeeper Elmer E. Morse. The comptroller appointed a receiver (Judge S. Edwin Day) on 1888-02-21. No article describes a depositor run prior to suspension; the trigger appears to be bank-specific embezzlement/defaults, and the bank was placed in receivership.

Events (5)
1. February 19, 1864 Chartered
Source
historical_nic
2. January 1, 1888* Other
Newspaper Excerpt
Charles O'Brien, cashier, and Elmer E. Morse, bookkeeper, Albany First National bank, defaulted in $200,000.
Source
newspapers
3. January 24, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large shortages/defalcation by cashier Charles O'Brien and bookkeeper Elmer E. Morse (defaults alleged ~$200,000).
Newspaper Excerpt
The National doors of the suspended First Bank Bank remained closed to-day. The Examiner was proceeding with his work... It is considered certain that cashier O Brien and bookkeeper Morse ...
Source
newspapers
4. February 21, 1888 Receivership
Newspaper Excerpt
The comptroller of the currency has appointed Judge S. Edwin Day, of Moravia, N. Y., as receiver of the First National bank of Albany.
Source
newspapers
5. November 29, 1926 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (7)
1. January 25, 1888 Sacramento Daily Record-Union Sacramento, CA
Article from Sacramento Daily Record-Union, January 25, 1888

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WHOLE NO. 11,473. Brewers' Union in their employ will be discharged unless they consent to leave that Order. The circular states that the employers are prompted to take that stand by the action of the Union in openly supporting and promoting the boycott that is being beer. waged here and elsewhere against their They call attention to the large wages paid their workmen, and the fact that they granted all the demands made upon them until the Union tried to interfere in the maltsters' strike by making unreasonable demands upon them, The Union will meet to-morrow night, and it is anticipated that a strike will be ordered. Holden's Earthquake Record. [Copyright, 1888, by the California Associated Press.] PHILADELPHIA, January 24th -Referring to Professor Holden's list of recorded earthquakes on the Pacific Coast, the Press says: This modest list presents more ex tensive material for the study of earthquakes on this Continent than is accessible in any other publication- one might say in all the others combined.' The list is mentioned as an illustration of the wide range of inquiry possible in a well-organized observatory. Sale of a Telegraph Line, [Copyright, 1888, bythe California Associated/Press.j BALTIMORE. January 24th.-The wires and other property of the Postal Telegraph Company in Maryland were sold to-day by auction to Joe Nelson Jamison, representing the American Telephone and Telegraph Company of New York. The wires and all I were sold at the low figure of $30,000. The cost of putting up the wires alone was $90,000. The wires will be used for long distance telephone service. The Prize Fighting Epidemic. ST. PAUL, January 24th One of the most desperately ested prize fights oewhich ever took place in Minnesota curred at Norwood this afternoon between Danny Needham, light-weight champion of of the Northwest, and Jimmy Griffin, Grand Rapids, Mich. The fight was for a purse of $200, with skin gloves, and to a finish. The fight was quite a desperate and in the eleventh round Needham one, knocked Griffin out. Both men were severely punished. California's Progress. [Copyright, 1888, the California Associated Press.] PHILADELPHIA, January 24th.-The Press devotes two editorials to California affairs to-day In an editorial entitled, "Should Keep Pace with the Population, it expresses a friendly wish that some way will be found "to give the rapidly growing pop- faulation of Southern California postoflice cilities commensurate with its growth and necessities." It was Only a Fake BROOKLYN January 24th.- The Coroner's of inquest into the cause of the death William Dempsey, which occurred on Saturday while he was engaged in a prize fight with Simon Besser resulted to night latter in verdict exonorating Besser. The They testified that the fight was "fake. had agreed that no hard blows were found to be to struck. The cause of death was be shock and exhaustion. Pacific Coast Salmon. i Copyright, 1888, by the California Associated Press.] NEW YORK, January 24th.-Letters from that Columbia river to-day state positively has the price for the next season's salmon been fixed by the union at $ 25 per fish, and outside boats at $1. These figures rather stagger packers. A Cunarder Aground. NEW YORK, January 24th.-The high northwest winds of the last two days has of aided the ebb-tides in sending the waters Lower Bay out to sea, and this afternoon when the Cunard steamship Servia tried Swash reach the city she went aground in Channel. She rests lightly, and will be it hauled off by tugs at 4:30 A. M., when will be high water. Suffering Seamen Rescued. NEW York, January 24th.-The steamer Marcos, which arrived o-day from Havana, brought the crew of the bark D. Chapin, of Boston, which sunk at sea December with- 25th. The men were in their boat ten days out food or water, and lost by starvation and exposure Captain W. C. Hall, the cook and one seaman. The rest of the crew were rescued January 4th. The Bursted Bank. ALBANY (N. Y.), January 24th.--The National doors of the suspended First Bank Bank remained closed to-day. The Examiner was proceeding with his work, and all information as to the condition of affairs was refused. It is considered certain that cashier O Brien and bookkeeper Morse in Canada. No one can give any prob- the able are guess as to what O Brien did with money Entries for the Latenia Races. CINCINNATI, January entries for the Latonia Jockey Club's meeting have of been received, showing a total number of 1,054 to the fourteen stakes-an average This does seventy five to each stake. over not include the entries to the Derby, Oakes and Himyar, which closed a year ago, nor the Matron stakes for 1889. New Article of Fuel. CHESTER (Pa.), January 24th At the Chester Irouworks for the last few days has been successfully tested the apthere plication of powdered coal for fuel. and The combustion is perfect. Both ashes smoke were entirely consumed, effecting a fuel. saving of from forty to fifty per cent.in Sale of Railroad Bonds. NEW YORK, January 24th.-The has sold St.Louis San Francisco Railroad and 5 per cent. general mortgage bonds $7,144,000 to syndicate of German bankers country and Europe. The proceeds this will be used to retireSouthern Pacific firsts, which mature next July. A Childish Fancy. PHILADELPHIA, January 24:h.-Janres_M ReManz, a recognized leader among the to publicans of this city, says he proposes W. work for the nomination of George Childs for President. A Silurian Governor. JACKSON (Miss.), January 24th. The for Governor has vetoed the bill providing holding a Constitutional Convention. A $150,000 Fire. CLEVELAND; January 24th-A fire Newark, broke in O.G. King shoe store at gutted. out O., to-night, and it was completed The loss is $150,000. Death from Apeplexy. NEW YORK, January 24th.- Professor Nathan Sheppard, of Saratoga, fell dead from apoplexy this afternoon. Who is Your Best Friend

2. February 21, 1888 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, February 21, 1888

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e A Receiver Appointed. WASHINGTON, Feb. 21.-The comptroller of the currency has appointed Judge S. Edwin Day, of Moravia, N. Y., as receiver of the First National bank of Albany.

3. August 30, 1888 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, August 30, 1888

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JUDGE WALLACE, of the United States Circuit Court for the District of New York, has just handed down a decision that is of interest to brokers who are accessories to speculation with the funds of bank depositors. The case in question was that of the receiver of the First National Bank, of Albany, N. Y., against a firm of Wall street brokers, who helped the cashier of the bank to get rid of nearly $150,000 of the depositors' money. A jury rendered verdict against the firm for the full amount of the money paid to them and Judge Wallace sustained the verdict by denying the motion for a new trial. The decision is based upon the generally accepted legal principle that no one has a right to accept money for an agent's debt which he knows belong to the agent's principal and not to the agent himself+ This decision simply serves notice upon brokers not to monkey with the money of bank depositors, no matter how willing rascally cashiers may be to risk it in speculation.

4. September 1, 1888 The Sully County Watchman Onida, Clifton, SD
Article from The Sully County Watchman, September 1, 1888

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JUDGE WALLACE, of the United States Circuit Court for the District of New York, has just handed down a decision that is of interest to brokers who are ac- cessories to speculation with the funds of bank depositors. The case in question was that of the receiver of the First Na- tional Bank, of Albany, N. Y., against a firm of Wall street brokers, who helped the cashier of the bank to get rid of near- ly $150,000 of the depositors' money. A jury rendered verdict against the firm for the full amount of the money paid to them and Judge Wallace sustained the verdict by denying the motion for a new trial. The decision is based upon the generally accepted legal principle that no one has a right to accept money for an agent's debt which he knows belong to the agent's principal and not to the agent himself. This decision simply serves notice upon brokers not to monkey with the money of bank depositors, no matter how willing rascally cashiers may be to risk it in speculation.

5. December 31, 1888 Evening Capital Annapolis, MD
Article from Evening Capital, December 31, 1888

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PRICE ONE CENT sea: lost ia Thirteen killed at Flaverhill bridge over the Merrimac on Boston and Maine railroad. 12 Blizzard in the northwest Immense damage done: many frozen to death 17. E C. Walthall re-elected senator from Mississippi. 18. Norwegian bark Freidas sunk in collision with British steamer Toronto off Ireland; 13 drowned. Court Clerk Irion, of Birmingham, Ala., defaulted in $20,000. 19. Hatfield-McCoy row. 22. Fourteen burned to death at Tower, Mipn. 23. Charles O'Brien, cashier, and Elmer E. Morse, bookkeeper, Albany First National bank, defaulted in $200,000. 21. Colliery explosion at Wellington, B. C.:25 killed. 25. United States Senator Wilson, of Iowa, reelected. 25, 25 Great storm on the Atlantic coast. 27. Deficit of $350,000 alleged in the accounts of the late government of Manitoba. FEBRUARY. 1. Twenty two drowned in wreck of the British bark Absacom near mouth of the Columbia river. 5. White Cap outbreak in Indiana 7. Failure of the Metropolitan National bank, Cincinnati, President Means, Cashier Harper and others artested. 8. Murder of Amos J Snell, Chicago. (Tascott case). Henry Reece, cashier Continental hotel, Philadelphia, defaulter in $60,000. 11. James Albert won six-day go-as-you-please walking match New York, breaking world's record. 17 Two Americ . ships ordered to Tangiers, Morrocco, to Lettle row between the sultan and the United States consul. 19 Tornado a Mt. Vernon, Ills. 21 killed. of 2b Twenty-five killed by explosion of boiler steamer in the United States of Colombia. 29. Mackay and Flood quarrel over losses in wheat and dissolve partnership 27. Forty lost by explosion of a ferryboat at Val. lejo, Cal MARCH. 1. International railway connecting Mexican Central with Southern Pacific opened for business. 8. Discovery of graveyard insurance scheme, Charleston, S. C. 4. Erastus J. Jones, ex treasurer of Dauphin county, Pa., defaulter in $61,000. 11. 12,13. Famous blizzard along the Atlantic coast. Great damage done, railroads blocked, many frozen to death, many shipwrecks. 16. Gen. Adam Badeau brought suit against Mrs. Grant for compensation for assistance in preparing Gen. Grant's Memoirs. Settled late in the year. 17. 19 killed on Savannah, Florida and Western railroad, near Blakshear, Ga. 18. Confession by a member of the Missouri Bald Knobbers. 20. State Treasurer Tate, Ky defaulter in $250,000. 22. Blizzard in the northwest. 25. Tornado destroys town of Ninnescab, Kan. 27 Terrible floods in Germany and Hungary: floods in many parts of the United States: many lives lost and much damage done. President Close and Cashier White of the State National bank of Raleigh, N. C., defaulted in $73,000. 29. 30 miners killed by explosion at Rich Hill, Mo. Capt. Pau! Boyton adrift all day in the ice of Lake Michigan. APRIL. 1. Diss Debar Marsh spiritualistic sensation, New York, in full blast. Secretary Bayard expressed dissatisfaction with the conduct of Germany in Samoa. 5. Twelve killed in railroad accident at Newhamp ton, Ohio. 6. Gen George Crook nominated for major general in place of Gen. Terry. Col. John R. Brooks made brigadier general in Crook's place. 13. Failure of the American exchange in London; Henry F. Gillig general manager; liabilities, $4,000,000. 18. Eighteen burned to death at Celaya, Mex., by the burning of a stand for spectators of a bull fight. Senator Stanford's racing stables burned at Palo Alto, Cal. 23. Thos. Tunstall of Mobile, Ala., made United States consul to San Salvador. 24. John H. Murphy, confidential clerk of Dr. Daniel Gray of Holmesburg, Pa., defaulted in $27,000. 27. Gen. Joseph E. Johnston admitted to contributory membership by Gen. E. D. Baker Post, G. A.R. 29 Ship Smyrna sunk in collision with steamer Moto off Isle of Wight. Thirteen drowned. MAY. 1. Assistant Cashier De Baun, of the Park Na tional bank, New York, defaulted in $95,000. 2. Ten thousand dollars stolen from registered letters near Harrisburg, Pa. 3. Fifteen banks failed in Buenos Ayres. 6. Cloud burst near Maize, Kan., causing flood which swept the house and entire family to a watery death. Explosion of a carload of dynamite at Locust Gap, Pa. Eight killed. 12. Train robbery at Aguazarca, A. T. 13. High water along the Missouri and Red rivers. Several lives lost. 18. Methodist general conference created an order of deaconess for charitable work. 22. Rev. John H. Vincent and Rev. James M. Fitzgerald made bishops by the general Methodist conference. 23. Rev. J.C. Joyce made bishop by the general Methodist conference. Randall L. Gibson elected senator from Louisiana. 24. Dr. John T. Newman and Rev. Dr. Goodsell made bishops by the general Methodist conference. Corner stone of the now Roman Catholic university laid at Washington. 25. Rev. J. M. Thoburn elected bishop of India by the general Methodist conference. Exciting discussion of the negro question at the general assembly of the Preshyterian church in Philadelphia. 26. The southern assembly of the Presbyterian church decided against Dr. Woodrow and his evolution theory. 23 Destructive storms throughout the United States. Enormous losses. 29. General assembly of the southern Presby terian church decided against organic union. 30. E. D. White elected senator from Louisiana. JUNE. 3. White Cap outrages in Indiana. 4. Gen. William B. Francklyn named commissioner of the United States to the Paris exposition; Somerville B. Tuck, assistant commissioner. Eighteen killed in a railroad accident near Tampico, Mexico. Eleven burned to death at Rockdale, Tex. 6. E. L. Lichtenstein, Wilmington, Del., defaulted in $33,250. 8. Steam yacht Gleam run down in the Patapace river by steamer Joppa; M. T. Harrison Garrett, of Baltimore, drowned. Rev. Dr. Layton Coleman made Protestant bishop of Delaware 16. Train robbery at Muscogee, L T. 17. Train robbery near Junction City, M.T. 18. Mme. and Gen. Diss Debar sentenced to the penitentiary for six months. 22. Disastrous floods in Mexico. Many hundreds drowned. 21. Holbrook, A. T. nearly destroyed by fire.

6. January 4, 1889 The Mankato Free Press Mankato, MN
Article from The Mankato Free Press, January 4, 1889

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4. Bark Alfred I. Snow wrecked off Irish coast; lost. 6. English steamer Maude foundered in Black sea; 12 lost 10. Thirteen killed at Haverhill bridge over the Merrimac on Boston and Maine railroad. 12. Blizzard in the northwest. Immense damage done; many frozen to death. 17. E. C. Waltball re-elected senator from Mississippi. 18. Norwegian bark Freidas sunk in collision with British steamer Toronto off Ireland; 13 drowned. Court Clerk Irion, of Birmingham, Ala., defaulted in $20,000. 19. Hatfield McCoy row. 22. Fourteen burned to death at Tower, Minn. 23. Charles O' Brien, cashier, and Elmer E. Morse, bookkeeper, Albany First National bank, defaulted in $200,000. 24. Colliery explosion at Wellington, B. C.; 25 killed. 25. United States Senator Wilson, of Iowa, reelected. 25, 26. Great storm on the Atlantic coast. 27. Deficit of $850,000 alleged in the accounts of the late government of Manitoba. FEBRUARY. 1. Twenty-two drowned in wreck of the British bark Absacom near mouth of the Columbia river. 5. White Cap outbreak in Indiana. 7. Failure of the Metropolitan National bank, Cincinnati, President Means, Cashier Harper and others artested. 8. Murder of Amos J. Snell, Chicago. (Tascott case). Henry Reece, cashier Continental hotel, Philadelphia, defaulter in $60,000. 11. James Albert won six-day go-as-you-please walking match in New York, breaking world's record. 17. Two American ships ordered to Tangiers, Morrocco, to settle row between the sultan and the United States consul. 19. Tornado at Mt. Vernon, Ills.; 21 killed. 21. Twenty-five killed by explosion of boiler of steamer in the United States of Colombia. 22. Mackay and Flood quarrel over losses in wheat and dissolve partnership. 27. Forty lost by explosion of a ferryboat at Vallejo, Cal. MARCH. 1. International railway connecting Mexican Central with Southern Pacific opened for business. 3. Discovery of graveyard insurance scheme, Charleston, S. C. 4. Erastus J. Jones, ex-treasurer of Dauphin county, Pa., defaulter in $61,000. 11, 12, 13. Famous blizzard along the Atlantic coast. Great damage done, railroads blocked, many frozen to death, many shipwrecks. 16. Gen. Adam Badeau brought suit against Mrs. Grant for compensation for assistance in preparing Gen. Grant's Memoirs Settled late in the year. 17. 19 killed on Savannah, Florida and Western railroad, near Blakshear, Ga. 18. Confession by a member of the Missouri Bald Knobbers. 20. State Treasurer Tate, Ky., defaulter in $250,000. 22. Blizzard in the northwest. 25. Tornado destroys town of Ninnescah, Kan. 27. Terrible floods in Germany and Hungary; floods in many parts of the United States: many lives lost and much damage done. President Close and Cashier White of the State National bank of Raleigh, N. C., defaulted in $75,000. 29. 30 miners killed by explosion at Rich Hill, Mo Capt. Paul Boyton adrift all day in the ice of Lake Michigan. APRIL 1. Diss Debar-Marsh spiritualistic sensation, New York, in full blast. Secretary Bayard expressed dissatisfaction with the conduct of Germany in Samoa. 5. Twelve killed in railroad accident at Newhamp ton, Ohio. 6. Gen. George Crook nominated for major general in place of Gen. Terry. Col. John R. Brooks made brigadier general in Crook's place. 13. Failure of the American exchange in London; Henry F. Gillig general manager; liabilities, $4,000,000. 18. Eighteen burned to death at Celaya, Mex., by the burning of a stand for spectators of a bull fight. Senator Stanford's racing stables burned at Palo Alto, Cal. 23. Thos. Tunstall of Mobile, Ala, made United States consul to San Salvador. 24. John H. Murphy, confidential clerk of Dr Daniel Gray of Holmesburg, Pa., defaulted in $27,000. 27. Gen. Joseph E. Johnston admitted to contribu tory membership by Gen. E. D. Baker Post, G. A. R. 29. Ship Smyrna sunk in collision with steamer Moto off Isle of Wight. Thirteen drowned. MAY. 1. Assistant Cashier De Baun, of the Park Na tional bank, New York, defaulted in $95,000 2. Ten thousand dollars stolen from registered letters near Harrisburg, Pa. 3. Fifteen banks failed in Buenos Ayres. 6. Cloud burst near Maize, Kan., causing flood which swept the house and entire family to a watery death. Explosion of a carload of dynamite at Locust Gap, Pa. Eight killed. 12. Train robbery at Aguazarca, A.T. 13. High water along the Missouri and Red rivers Several lives lost. 18. Methodist general conference created an order of deaconesses for charitable work. 22. Rev. John H. Vincent and Rev James M.Fitzgerald made bishops by the general Methodist conference. 23. Rev. J. C. Joyce made bishop by the general Methodist conference. Randall L. Gibson elected senator from Louisiana. 24. Dr. John T. Newman and Rev. Dr. Goodsell made bishops by the general Methodist con ference. Corner stene of the new Roman Catholic university laid at Washington. 25. Rev. J. M. Thoburn elected bishop of India by the general Methodist conference. Exciting discussion of the negro question at the general assembly of the Presbyterian church in Philadelphia. 26. The southern assembly of the Presbyterian church decided against Dr. Woodrow and his evolution theory. 28. Destructive storms throughout the United States. Enormous losses. 29. General assembly of the southern Presby terian church decided against organic union. 30. E. D. White elected senator from Louisiana. JUNE. 3. White Cap outrages in Indiana. 4. Gen. William B. Francklyn named commissioner of the United States to the Paris exposition; Somerville B. Tuck, assistant commis sioner. Eighteen killed in a railroad accident near Tam pico, Mexico. Eleven burned to death at Rockdale, Tex. 6. E. L. Lichtenstein, Wilmington, Del., de-

7. May 16, 1894 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, May 16, 1894

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is completed. After the amicable adjustment of this controversy the checks were admitted in bulk over the objection of the defense to the competency of the evidence. The objection was on the same grounds as previous objections to similar evidence, that it was under the general counts, and under these, according to the construction of the defense, the government was only entitled to show one substantive offense. Mr. Robinson was handed two letters written by Haughey to F. A. Coffin while the latter was in London. and identified the writing of Haughey In the letters Haughey spoke of a proposition to make a stock company of the glue works, and said he liked the idea, but feared the expense. The other letter spoke of the indebtedness of the cabinet company, and said it was a great burden to the bank, and something must be done to relieve the bank. He said the bonds would be due in one month, and that the cabinet company must do something to help the bank meet them, as they must be paid. These letters were admitted over the objections of the defense, Mr. Miller urging the objection. The objection was that the letters were the property of the defendants, and the government had no right to seize their papers and introduce them in evidence against them without their consent. EXPERT HAYS CALLED. Expert Hays was called to the stand by the government. He said his home was in Erie, Pa., and he was at present receiver of the First National Bank of Albany, N. Y. He went into a bank in 1873 as messenger and occupied the positions between that and assistant cashier. He gave his evidence in a continuous statement, unaided by questions from the attorneys. In explanation of his knowledege of banks and banking, and to show his competency to testify as an expert, he said he worked upon the failure of the Penn Bank, of Pittsburg, involving $2,000,000, the Metropolitan, of Cincinnati, involving $3,000,000, and the Fidelity, of the same place, for the wrecking of which its president, E. L. Harper, served a term in the Columbus prison. He said he came to this city on Aug. 27, 1893, under directions from the Controller of the Currency, and took charge of the Indianapolis National Bank and made an examination of its affairs. His investigation was general, except in those particulars which appeared to him to be irregular. He examined, in part, the books of the glue works, curled hair company, cabinet company and the bank. He remained until Dec. 22, under the control of the Controller In March of the present year he returned under the direction of the Department of Justice. On his first visit he had a conversation with A. S. Reed. He went to the office of the cabinet company and asked for the books of the plow company and the veneer and panel company and Reed told him there were no such books, or that he would not find any such books. Mr. Hays said he felt some little embarrassment in talking to Reed, as he knew the latter had been arrested, and told Reed that what might be said to him could not be considered confidential in any way, and to say nothing that would incriminate himself. Reed said he had nothing to conceal. Mr. Hays asked him for the minute book of the cabinet company, and he said it would be found in the cash drawer, but it was not found after considerable searching. Reed was asked if the company did not keep a bill book, and said the only thing of the kind was a private memorandum belonging to himself, which was kept at home. Hays thought the book was properly the property of the cabinet company, as it was the only book upon which the details of the multitude of transactions with the bank were entered. Reed said Hays might see the book and make any examination of it that he desired. and afterwards brought it to Hays at the bank and permitted an examination of it and answered all questions put to him concerning the entries upon it. fter this Reed turned the book over to Hays voluntarily. Reed said nothing about the deposit of $44,000 on May 9, 1893. Hays could not find upon the books what he wanted to know about this deposit and asked Reed about it. Reed said Haughey had sent for him about May and said the $27,000 carried as cash items and the overdraft must be taken care of, as they were liable at any time to be called upon for a report to the Controller, or to have a visit from a bank examiner. Reed suggested how it might be fixed. When he went back to the cabinet company F. A. Coffin asked how he got along at the bank, and was told that the $44,000 in paper was prepared and taken down and deposited and the cabinet company given credit for it. Hays told Reed that from his examination of the books he saw that the paper of the cabinet company in the bank seemed not to be drawn against value, and Reed said there was no pretense that it was drawn against value, and Haughey knew it was not. Reed said they had endeavored to keep within the ten-percent. limit, and when his attention was called to Section 5200 of the United States statutes providing a penalty for discountcounting bills in excess of the ten-per-cent. limit unless drawn against value said it was the first time he had éver heard of a law. such Mr. Hays then took the stock book and read the names of the stockholders of the company for 1893. They were as follows: A. S. Reed, 1 share; P. B. Coffin, 418 shares; Walter Stanton, 22 shares; Rhoda M. Coffin, 476 shares; Flora R. Coffin, 167 shares John M. Roberts, 11 shares: Lydia R. Coffin, 151 shares: W E. Coffin, 468 shares F. A. Coffin, 1,286 shares, and John Roberts, share, disposed of March 28. 1893. In January 1882, dividends had been declared as follows: Roberts, $12,240 F A. Coffin, $12.240; W E Coffin. $7,480; C. F. Coffin, $5 440. The expert said that the account of the cabinet company with Lydia R Coffin, of New York, closed by the execution of a note to Mrs. Coffin for $10,826.07 The books indicated that the note was given for a dividend. The minute-book of the cabinet company showed that in 1893 F. A. Coffin was receiving $7,500 as president of the company, P. B. Coffin $5,000 as secretary and A. Reed $1,500 as treasurer Mr Hays testified that the capital stock of the cabinet company was increased from $110,000 to $150,000 by putting paper in the Indianapolis National Bank. Mr. Hays testified that on June 30, 1893. F. A. Coffin's account with the cabinet company was overdrawn $4,100, notwithstanding he had on Jan. 6 of that year received a dividend of $12,000. The account was made good on July 24, 1893, the witness said. Mr. Hays further testified that the books of the cabinet company showed that on Feb. 22, 1889, the patents of the company were valued at $2,200; on the following day they were valued at $51,000. Before the cross-examination of Mr. Hays by the defense Mr. John P. Frenzel was called to the stand by the government and testified that the debt of the cabinet company exclusive of that to the branches and the bank. was about $30,000, and including that to the branches and Lydia R. Coffin was about $83,000. The government asked what efforts he had made to dispose of the property since he had been in possession of it, but an objection to the question was sustained and the court adjourned till 2 o'clock. EVIDENCE FOR DEFENSE.