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Cohn Will Claim Act Not Illegal
CONCLUDED FROM PAGE ONE. will be asked to identify certain bank records and documents which in the main, will be introduced by the state as its case in chief With few exceptions, all the state's evidence will be in the form of bank records other documents, Mr. Mattice Mr. Noel, in his opening statement to the announced that the defense would not dispute facts of the alleged embezzlement transactions be introduced by the but will contend that the transaction was wholly legitimate.
Mattice Outlines Case.
Mr. Mattice, in his opening statebank. ment, asserted that the state would introduce evidence to convince the that the defendant "wrongfully jury handled and fraudulently appropriated money of the bank the use another person. The indictment is based on bank the alleged appropriation of money investor belonging to the bank to the Fralich Realty Company .50 dividend check to stockholder in the realty company. of in most Three other officers the bank fiscal inand S. Meyer, vice president, and the Julian Kiser, also vice president, were indicted by the grand jury on charges of and grand Bank larceny in connection with the leged illegal transaction. The defendmen, ants asked separate trials and the state elected to try Cohn first. already The defense attorney, in his statement to the jury, characterized the bad alleged appropriation He by the bank officers bank funds to the credit of the which had money on deposit in the bank. paid.
Declares Intent Not Evil. "The prosecuting attorney has merely disclosed his theory of the case to you. This supposed taking of money must be shown to have been by evil design. We expect introduce evidence show that such evil design existed,' Mr. Noel declared. Opposing attorneys have clashed numerous question of intent in the case. the state's position that state must that the defendant had general intent to embezzle whereas the defense will insist that the prosecution must prove beyond reasonable doubt that the defendant embezzled money for specific purpose and that he had specific intent in so doing. of money to the credit of the company was in the the bank's business and to the best judgment of these officers in full with the Mr. Noel contended. He outlined the growth of the bank from small insurance business to banking institution with deposits aggregating almost $6,000,000 at one time and he also detailed the organization of the Fralich Realty Company and its business transactions with the
Cites Bank's Business.
1916 and 1931 the bank 210 preferred issues approximately "Until the did permit depositor to lose one cent. He pointed out that the sales of stocks and bonds was major part of the bank's business and said that instances the bank acted as agent for the companies for stock issues that bank, therefore, sent out all dividend checks the bank. "The organizers the Meyer Kiser built their business on dignity and they held the confidence of all he asserted. "There have in this case The people have informed about this whole thing with contended that during the period the bank paid dividends of the defunct realty company the company earned more than the total dividends He admitted, that most of the money earned by the concern was used to pay judgment liens obtained against the apartment house erected by the realty company. The liens paid totaled about $11,000, whereas, the total amount alleged to been appropriated from the pay stock dividends totaled $14,490. Net earnings of the realty company during the period were $15,088.03 according to Mr. Noel.
Says Offense Not Committeed. "It could not have been an offense on the part of the bank to advance money to the realty company because the realty company had earned more money to pay the dividends, he declared. Mr. Noel declared that if the realty company had not been forced to pay the lien judgments, that money would been to repay the bank for money the defunct company the payments. members of the jury, must whether these men had the intent steal the It can not be shown that they diverted one dollar to their pockets. If they had, you would not be trying this little case, Mr. Noel The defense attorney said that the bank advanced dollars to companies to meet dividend payments and that when the bank was closed approximately $146,000 owed the bank by the companies for said, had been advanced. The also pointed out that the state banking deperiodical examination of books of the bank, did not criticize the practice of making advances to the
Mention Blast in Apartment. Both Mr. Mattice and Mr. Noel, in their opening statements, disclosed that mysterious explosion occurred at the apartment building erected by the realty company soon after was completed and that the bank caused receiver to named for the realty concern and that court action taken to force the company that insured the building pay the insurance for the loss. The defense attorney contended that W. Wichman, cashier at the bank was named vice president the realty company "to protect the interest stockholders of the The bank, to Mr. Noel, purchased the $90,000 preferred stock issue for and then sold the stock to customers of the bank. second $25,000 stock issue also was sold, the said. Mr. Mattice that bank officers turned the sale preferred stock issues after the general business of the bank had declined and because profit be made out of the sale of the stock.
Asserts Bun Foreseen. "They considered that any one or more of the realty companies defaulted on their preferred stock dividend payments, there would be an avalanche of stockholders, descend on the bank, thus causing run on the bank. They then sat down and agreed pay the and thus sustain and uphold the realty comand also thereby sustain and panies uphold the bank's bond and securities business from which the officers deriving Mr. Mattice were "They, other words, used said. bank funds bolster up, maintain and uphold these realty companies then in financial He said that the state would show that the dividend payment was "system" instigated bank officers to aid the realty
