Article Text
OF PICHER DEALS UPRIGHT, DEFENSE AVERS Attempt Made to Prove Depression Caused Financial Difficulties SHORT SESSION HELD Embezzlement Case Not Likely to End Before Tuesday Defense attorneys had called their fourth witness to show that M. Gaines and E. were legitimate and good faith when their embezzlement trial was adjourned Saturday afternoon until Monday morning. There little prospect of finishing the case before Tuesday night, Special Judge R. Hill told juror at m. Saturday when court adjourned. Bankard, Joplin mining man with experience, was last detense witness be called Saturday gave valuable testimony support of the fense theory that Gaines and Wolff, of along with the defunct Bank of Picher, merely victims of the depression which began in 1929. The state little headway with of Bankard, Frank Sharpe, another Joplin mining pert; Henry Oesterle, manager of the Van Buren Zinc company, Younger Miami, photographer who took pictures of the smelter. Relaxation for Jury The jury kept together during the week-end but was lowed newspapers with the trial stories removed, radio, trip to church and effort was being made to truck to take them on tour of the county Sunday, enabling each visit home few minutes. The has been jury together for six days. Judge Hill said Saturday that other bank would tried this term, but that he would take the of the criminal docket as soon as this case is cluded. Almost all defense testimony when adjourned Saturday dealt with the value of the Van Buren Zinc property by Gaines Wolff and concern from which the allegedly worthless trade ceptances in embezzlement charge emanated. Smelter Valued at $300,000 Sharpe valued th smelter Van Buren, Ark., $300,000 smelter with $88,000 vage value. Bankard valued the smelter at $300,000 $450,000 October, 1929, when the trade ceptances for $20,000 were issued. Oesterle testified concerning smelter purchases from the Mine Mill Supply Company at Picher, another project. Defense said that Gaines and Wolff would be the witness stand near the close of the trial, with defense witness following Defense Outlined William defense attorney, laid the basis for defense with an opening statement the jury in which he clared four trade $5,000, each, on which the are based, executed faith, in legal form security and no way represented any embezzie Gaines and Wolfi were pictured by Thomas victims of the market crash and as being unaware alleged manipulations the bank merly vice of the bank, who died soon after the bank failJanuary 1930. Thomas gave details of the lives the bank officials, showing how both finally came this district from other states and became associated mining tures. ventures proving profitable, the extended their interests, Gaines gaining control most of the of the Bank Lucas Employed Because of his in banking, Gaines employed Lucas, then state bank aminer, upon the advice of the state to operate at the bank. Lucas, Thomas was looked upon by the state banking one of their bank examiners and well liked was by his associates. banking department thoroughly the condition of the Picher bank, Thomas said, "and they winked situation right the up Gaines upon Lucas run the bank, Thomas told the jury, only there few times during and 1929. Purchased Smelter In 1928, when smelters began curtailment the buying of Gaines his associates decided to organize unit to own and operate their smelter, Thomas said, and began with New York capitalists. Thehse italists which $500,000 used to purchase smelter at Van Buren, during this period, Thomsaid, that Gaines learned the Mine and Mill Supply Company, which Gaines Wolff owned stock, had of approxi mately the bank. When Gaines questioned accordThomas, told him the Van Buren which (Continued Page Five)
