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Witnesses Give In Testimony Trial of Bains A. Mulholland, Former Director, Takes Stand and Testifies for State The trial John Bain, his two John H. and Robert Bain, his son-in-law, W. Merle Fisher, four officials the chain of twelve Bain banks which failed year begun last week when Special Prosecutor Edwin Raber outlined the case Judge John court. Two other officials closed banks, Frank Mulholland, director, and Walter H. Buhlig, Bain's physician, were granted separate trials, on motion their lawyer, Grover Niemeyer. "There will be total loss of the savings accounts," Mr. Raber The assets worthless when few preferred creditors there will be nothing left for the public. The Bains stocks and bonds customers and this there be per cent Addressing himself to the judge, hearing the case without Raber outlined what he expects Bain made enormous real estate loans from the bank and only worthless equities remain. throughout the bank's history was money his worthless notes and use buy estate mortgages. son-in-law would high appraisals real estate boost neighborhoods then the unsuspecting public would be sold the stock. Bain's general method, Raber said, over-value property and then give mortgages banks and John Bain, Inc., on these overvaluations. John Bain, stole $40,000 just before banks closed," Raber Judge O'Connor. when say stole, mean just that; stole the money. directors the banks let Bain run things will. One of his practices throughout the history banks was shift real estate mortgages from one bank another, always reimbursing himself with from the banks. The West Englewood bank, instance, carries $110,000 of stock John Bain, which unlawful and worthless asset "Bain created helding company dispose stock which he knew be worthless when sold Salesmen called into conference the Bain family and instructions were given them follows: 'Anybody sell good stuff. We're employing sell these securand you don't them hire other salesmen will. Things 'like this," prosecutor said, show that Bain and the others what was Says Banks Insolvent 1929 John Bain borrowed right \eft. His debts right 000 owed to the closed banks notes; owed John Bain owed the Continental Illinois Bank and Trust company $59,000 owed the Chase National Bank New York; $100,000 owed named Peterson, and nearly his sons His banks 1929, but kept going for He said the clearing house found that eight Bain banks, which should get rid of such paper but that this never done all the banks left the clearing house. "That Raber said, the Auburn Park Trust ings show assets there, peddled worth paper other banks for the last this spiracy Robert banks closed. took doors closed Francis Busch the effect for every bank would part any the fendants. He defended the bankers' the ground caused collapse incompatible Attorney Busch spent relating Bain's history and Bain, the opened, 1906, his known the Englewood Trust business,' tinued, principally real bonds and mortgages the buying selling property. The the banks became courage into the glewood build that virgin where had hesitated. did and real Before the debacle affected property, the loans Admit Into Evidence Records twelve closed banks evidence last Thursday. action was by Raber lay groundwork witnesses who (Continued on Page