618. Citizens Bank & Trust Company (Bisbee, AZ)

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# EDDLEMAN AND NOLAN # HELD IN SUM OF $50,000 # BAIL TO GRAND JURY (Continued from fake 1.) not secured in any way by President Eddleman, The $5,000 was entered on the books as paid back as follows: March 6, $1,500; March 7, $2,500; March 23, $1,000. These notes Ex- aminer Marshall stated, were still in the bank and overdue when the notice was recently given to close it. M. Newman, one of the directors of the closed bank, was sworn. He knew little or nothing about the inside work- ings of the bank. He heard Nolan had resigned, but was not present at the meeting of the board of directors at which his resignation was read. He knew of no board meeting since Janu- ary 1, 1908, and had no knowledge of the $5,000 charged to the First Na- tional Bank of El Paso and later cred- ited to President Eddleman's account. Mr. Newman was not cross-examined. Scott Whaley, vice-president of the bank for several years, did not recall any conversation he had with Presi- dent Eddleman authorizing the El Pa- so transaction. He remembered of Eddleman mentioning something about a note in El Paso, but recollected no details of the conversation. He did not remember having sanctioned any of President Eddleman's notes cover- ing the amounts to repay the $5,000 which had been paid out of the bank funds to the First National Bank of El Paso. Mr. Whaley said his mem- ory was indistinct on these matters. His answers were all non-committal. Cashier Cull promised a sensation when he mentioned the fact that there had been trouble between some of the directors and President Eddleman over the counting of money in the bank. He testified that he had been cashier of the bank for but two and a half months. He knew nothing of the Eddleman notes. He had not sanctioned them as cashier of the bank. He knew nothing of the en- tries on which criminal charges were brought. The ledgers in which these entries were made were in the care and under the direction of President Eddleman. The note case was also in President Eddleman's charge. The first time he saw the notes was after Bank Examiner Marshall came in March. After he had heard of the trouble between some of the directors and President Eddleman over count of the bank's money, Cashier Cull said he sat in the back ground. He left the whole matter of running the bank to Eddleman. What Cull did know, it developed, was hearsay, and as such was ruled out by Commis- sioner Stanford District Attorney Alexander asked Cashier Cull if he was present when President Eddleman pointed a pistol at the head of one of the directors who made a move to count the bank's money one day. Attorney Goodrich ob- jected to this question and the object- tion was sustained by Commissioner Stanford. The government's case closed with Cull's testimony. District Attorney Alexander asked that the defendant be held on the evidence submitted. Attorney Neale, for the defense, ask- ed for dismissal on the ground that no proof of a crime had been submitted. He said the government must first prove that the $5,000 El Paso trans- action entered on the bank's books was not a legal transaction, and that, he said, they had not done. Commis- sioner Stanford overruled the request for a dismissal of the case and or- dered Eddleman held to await the ac- tion of the grand jury. President Eddleman was next charged with falsifying the semi-an- nual report of the bank made Decem- ber 31, 1907. In this report the sum of $5,741.88 was reported as repre- senting the bank's gross earnings and profits for the six months previous. Examiner Marshall on the stand swore that December 31, 1907, the sum of $1,000 had been entered in the bank's ledger as having been received as interest. No such sum of money was received, Marshall testified. How- ever a ticket for it was being carried in the cash drawer with no equivalent to represent it in the bank. Under date of December 3, 1907, the sum of $4,000 was entered in the bank's ledg- er as having been received as inter- est. Nothing but the ticket in the cash drawer was in the bank for this entry. There was neither cash or se- curity given to warrant such an entry on that date, the examiner swore. Both these amounts were included in the sum of $5,741.88 credited in the semi-annual report as the bank's gross earnings and profits for the six months previous. There was absolute- ly nothing to show for this $5,000 given in the bank's semi-annual re- port. It had its existence in fact only in two pieces of green pasteboard tickets, according to the testimony of Examiner Marshall, President Eddleman was held for the grand jury on this charge with- out evidence being offered by the de- fense. He was also held on a third charge of making a false entry in connection with the same transaction. Examiner Marshall was the only wit- ness. Former Cashier J. H. Nolan was held on two charges, one of misap- plication of funds in payments made on a note for $5,000 signed by Fred Sutter and made payable to the or- der of R. M. Moore. The note was on the Citizens Bank & Trust Company. It was represented on the note that 300 shares of Shattuck stock were given as security for this note. Ex- aminer Marshall stated, however, that no security was found in the bank for this note when he made his examina- tion on March 20, 1908, and when the bank was closed. Nolan was held for the grand jury without any evidence from the de- fense. He was also held on a charge of falsifying an entry on a bank report made August 22, 1907, when he gave $29,318.17 as the amount of lawful money and specie in the bank at the close of business on that day. There was no such amount of money in the bank at that time, Examiner Marshall testified. Commissioner Stanford held Nolan for the grand jury's action on this charge District Attorney Alexander ad- dressed the court on the amount of bail that should be fixed. He said the social position and business promin- ence of the men held warranted a high bond. He said thola