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# TRIAL OF EX-SENATOR GRAHAM.
TESTIMONY INDICATING THAT HE EMBEZZLED SE-
CURITIES OF THE WALLKILL NATIONAL BANK IN
ORDER TO NEGOTIATE A CALL LOAN FROM THE
MARKET SAVINGS BANK.
The trial of ex-Senator William M. Graham, charged with misapplying the funds of the Wallkill Na- tional Bank, was begun yesterday in the United States Circuit Court, before Judge Benedict. Ex-Judge Fuller- ton appeared as counsel for Mr. Graham, who preserved a very quiet and confident demeanor. Assistant United States District-Attorney Purdy conducted the prosecu- tion, and in his opening remarks to the jury spoke sub- stantially as follows:
The prisoner is indicted under Section 55 of the Na- tional Bank act, which says "that every President, director, cashier, teller, or agent, of any association who shall embezzle, abstract, or willfully misapply any of the moneys, funds, or credits of the association, or shall, without authority from the directors, issue or put in cir- culation any of the notes of the association shall be deemed guilty of a misdemeanor, and upon convic- tion thereof shall be punished by imprisonment not less than five nor more than 10 years." The prisoner is in- dicted for converting and misapplying the funds of the Wallkill National Bank. It is always difficult to prove such charges except by surrounding circumstances; but the circumstances of this case point so clearly to the guilt of the prisoner that it does not seem possible for him to escape conviction. We shall show you that when the bank suspended the directors made an examination of its affairs, and found that its entire capital, amounting to $123,000, and $25,000 in deposits, had dis- appeared, with the exception of about $600. On that day, Nov. 23, 1872, the directors also discovered that Horton, the cashier, had absconded, that Graham was absent, and that the bank was in charge of a boy. It will also appear that, in the first instance, Graham embezzled the securities of the Wallkill National Bank for the purpose of negotiating a call loan from the Market Savings Bank, and that he afterward illegally withdrew from the First National Bank money deposited to the credit of the Wallkill National Bank, to take up the securities left in the Market Savings Bank for the call loan referred to. The investigation of the affairs of the bank shows, going back as it does through a series of years, that Graham was as guilty as the cashier. In February, 1871, the bank was in an in- solvent condition, and the Controller of the Currency wrote to Mr. Graham saying that the affairs of the bank were almost bad enough to justify its suspension, and that, for the future, they must be properly attended to. I propose to select a few of the many transactions of the Wallkill National Bank and submit them to the jury, so that they may perfectly understand this case. I shall show by the evidence that Graham and the cashier kept a stock account with Jay Cooke & Co., and that checks were drawn on the funds of the Wallkill National Bank to the amount of $10,000, and were applied on that account. Now the books of that bank show no such account, and yet it appears from them that the money was paid to Jay Cooke & Co. It will further appear that Graham indorsed a large num- ber of notes left at the bank for collection, sold them to a Mr. Gallaudet, and put the proceeds in his own pocket: that Mr. Conklin of the Market Savings Bank, Mr. Gra- ham, and Mr. Horton, the cashier of the Wallkill Na- tional Bank, engaged in stock speculations; that their accounts were kept in the former bank; that Graham's account was kept in his own name, and that he took certain securities left in the Wallkill National Bank and deposited them in the Market Savings Bank as securities for his call loans. After Conklin had left that bank, Graham took from it his securities to the amount of $11,917 25. On Jan. 26, 1872, Graham drew a check for that amount and paid it to the Market Savings Bank; but it was not credited to that bank until almost a month after.
Judge Benedict here suggested that, as conviction on any one count of the indictment would be sufficient, it would be better for the Government not to go into all of the counts at first. Acting upon the Judge's suggestion, Mr. Purdy said that he would for the present take up the count charging Graham with paying to the Market Savings Bank $11,917 25 of the funds of the Wallkill National Bank, and the following witnesses testified in behalf of the prosecution:
Abraham A. Bromley-I reside in Middletown: Mr. Graham was the President of the Wallkill National Bank in that place; I was one of its directors when it failed; we had a meeting on the third day after the bank failed, when we found that Mr. Graham had been absent; we sent for him and asked him what had become of the money he had taken from the First National Bank; he said that he had given $8,000 of it in five-twenty bonds to his father-in-law, Mr. Denton.
Elbert Hegeman-I am assisting the assignee in closing up the affairs of the Market Savings Bank, and I was the assistant teller of that bank; the book handed to me is one of the bank's books, and it contains its account with Mr. Graham. [The book was excluded tempora- rily.] The check shown to me is indorsed "James Den- nis, Receiver of the Market Savings Bank," and Mr. Graham's signature is on the check; it was deposited in the National Park Bank by the Market Savings Bank on Jan. 26, 1872, the day of its date; the cut on it shows that it was paid by the First National Bank, and it was drawn by Mr. Graham; the books of the Market Savings Bank show that it was credited on them.
Judge Benedict (after a long discussion)-Did you see the prisoner pay anything in connection with the ac- counts in that book?
The witness said that he had not, and he was directed to stand aside.
James Dennis-I am an appraiser of real estate; the check handed me bears my signature, and when I wrote it I was the receiver of the Market Savings Bank; the check is to my order; both Horton and Graham had call loans in that bank, and I was one of its trustees be- fore I was appointed receiver; after I had been in the bank a few days as receiver, Graham and Horton came to take up their loans, and they did so; in order to give them the money I had to indorse the check; my counsel told me to do so; on Jan. 26, 1872, when Graham and Horton came to take up their loans, I found the amount of the check from the books, and I gave them nothing but the collaterals and the call loan notes; the check balanced the prisoner's account.
The cross-examination elicited nothing new, and the check was admitted in evidence. It was for $11,917 25, and the books showed that it covered Graham's indebt- edness to the bank.
H. R. Mills-I was the general bookkeeper of the Market Savings Bank, and the book handed to me is the call loan book of that bank; I kept it, and it contains Graham's account: I was present when Graham came to take up his call loans, and he said that he wanted to take up all loans standing against him; he paid the amount of the loans, and the securities were handed to him: on Jan. 26, 1872, $11,917 25 balanced Horton's and Graham's account with the Market Savings Bank.
Mr. Purdy put in evidence the certificate of the or- ganization of the Wallkill National Bank.
Geo. F. Baker-I am the cashier of the First National Bank; this check (it was the check for $11,917 25) was paid in full, with the funds on deposit to the credit of the Wallkill National Bank.
B. A. McDonald testified-I am an accountant expert, and I have examined the affairs of the Wallkill National Bank; on Feb. 19, 1872, I found a check in that bank for $11,917 25: it was charged to no one, but was credited to the First National Bank; in the books of the Wallkill National Bank I found no account with the Market Savings Bank.
Mr. Purdy here asked the Court to direct a verdict of guilty if the jury believed that Graham used the check in question to take up his call loans in the Market Sav- ings Bank. Judge Benedict said that he would do so in the absence of any evidence on the part of the defense.
Ex-Judge Fullerton-Suppose, your honor, that on the same day in which Graham withdrew the $11.917 25 from the First National Bank, he deposited an equal amount from his own private funds.
Judge Benedict-That would make no difference; if Graham illegally laid his hands upon the money depos- ited to the credit of the Wallkill National Bank, he is guilty.
Ex Judge Fullerton-It is very evident that we have been taken by surprise by the introduction of the books of the Market Savings Bank, and we desire time to ex- amine them. My client thinks that he can show that the call loans were made to the Wallkill National Bank.
Ex-Judge Fullerton was given a chance to examine the books, and the Court adjourned till to-day.
# ROMANCE OF A MURDERER'S ESCAPE.
END OF THE MAGGIE JOURDAN TRIAL-THE CASE
GIVEN TO THE JURY.
The trial of Maggie Jourdan, accused of aiding the murderer Sparkey to escape from the Tombs
