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(Continued From Page 1.) staff withdrew it and allowed McLaughlin to proceed. Letter, Telegram Shown. This morning's evidence all had do with what Davison had the hearing in bankruptcy. At this hearing, he was first questioned about an order for $18,500 in bonds, placed with him by Fred and W. Shew of Grandview and later by the bank. The troduced as evidence letter written by Ben Luckenbill, assistant cashier of the Commercial bank, to the Continental Illinois Bank Trust of Chicago, ordering the bonds, and also the Commercial bank's telegram to the same company cancelling order. This telegram read fdi"Mistake in order for Fourth Liberty loan bonds. Do not is-
Conversation Denied. Davison, according to the record of the bankruptcy testified that McCullough was not the bank when the letter orderthe bonds was sent. He said ing that McCullough did not know about the order until after it had been dispatched. He further testified that he and McCullough conferred and decided their account Chicago was so low that they better cancel the bond Asked on Oct. he had versation with the Shews in which he told them that the Liberty bonds would soon be ready for Davison denied livery, them on that date. with either of When he was by the late Weaver at the hearDavison testified that his son Mark had taken the telegram cancelling the bona order to the said he did not Wapello depot. think he had informed the Shews of the cancellation. if the Shews Asked on the day came to order the bonds the bank did not have $24,216 depositin Chicago, Davison said he forwas, but believed was about that. He said on Oct. had on deposit in Chiasked if Oct. 8 was on didn't have in Chicago. He didn't remember, Didn't Want Cash. Davison said he tried to tell the Shews he would order of these would give them it in cash and the balance few days, but nothing would but he must all bonds. They didn't want any cash, he as serted. Asked how much of balance he in the Commercial bank, didn't remember. Reminded was $13,000, he said whatever the books was right. Davison testified that would us down pretty close, we have hardly any funds did nis account time, we good business too then the them, other hanks sup- Oakville Grandview you hve when say had of and none too late interests of too strong munities, and of were going our serves." Asked cash lough "when corn cents with 1931. fighting At this lough was you any run on of failure His hearing was to culties on American between and which The for with Davison, the bank's the bank hearing, listed number of pieces said that for of real estate acquired by the was more bank in payment of debts to the bank, the intervening years from 1908 until the bank closed. slow These the following Colip farm, 260 acres; bid on were making; foreclosure, with some of land bank acquired later and paid for from but was assets of the bank. they would George Beane farm, 186 acres, very short taken for payment of debt. The McGinnis farm, 140 acres, Cedar Rapids chased at sheriff's sale, then the statement, deeded to Blair in 1920 and Chicago later deeded back. could Will Rogers farm, 221 acres, taken back in name of Davison to offset some of his losses. Davison, Huron Island farm, 160 acres, Luckenbill acquired from George Beane in conferred and further payment of his debts. cided Frank Foor lots in south part Hicklin to town, taken back for payment of them in raising debt. ference with Bird land, 100 acres, acquired by purchase. Rome farm, Henry county, a.cquired by purchase. agreed to Cline lots, across from the morning (Oct. courthouse, taken over in payment to have of debt. the statement Didn't Know Bookkeeping. At this point McCullough's Attorney was read as follows: "All these land deals grew up, resenting the and am perfectly willing to mit didn't know how to handle bookkeeping end of it, and we handled it in different for just simply grew; there was times tion. when didn't know just exactly the correct way to handle it. These various transactions came about ways and we hearing, the them in different called the The Rome farm, which was cumbered for was handled the by the borrowing $10,000 old from the National State bank of predecessor Burlington on the partner's bank. Young dividual notes, the statement of McCullough showed. The Rome the purpose notes along for thre or four worth renewed every six months some years, and the partners later took $3,000 While out of the profits of the bank to reduce the debt, finally paying the of the bank funds punched him an investment, the statement said: showed. McCullough, in his statement, bonds. You admitted borrowing money of the bank individually, either on demand or time notes. He didn't know when that practice started. At this point he mitted his account was when the bank closed. Much for Explaining statement that know the condition at that McCullough said: have never claimed to be man; was just much for me; had troubles of two in this town, bank and bank at throwed to and the accumulated mean the accumulated all those various banks. We had all their troubles of their joys. could that the industrial this country were for the farming comthat it was just time when most little country banks Iowa to the wall, including when this was, McCultestified in the statement went down to 18 bushel along in July, though then we were losing battle." hearing Mr. McCulasked there was the bank at the time and he answered explanation at that much land," and "too much frozen according to record, blamed much of their diffithe failure of the and bank which they owed $90,000 and $100,000 held much of their collateral for the loans. Withdrawals Heavy. statement then enumeratMcCullough's trips to Cedar Rapids, Des Moines, and Chicago and conferences Arthur Springer, attorney, and others employees over three four day period. McCullough. the statement, nearly year there money going out than there coming "It wasn't run, it wasn't run; people were simply more money than they there was some after the Davenport closed, not guess, to show that be serious within time. night, after the following trip, to went for stating he raise cent there. This Friday, and early Saturday morning with Attorney Springer, B. and Mark Davison at about deAttorney see he could assist funds. In the conHicklin that mornaccording to the statement, partners decided it wasn't "fighting longer" and any close. Saturday 10, 1931) the bank did open and then they decidreceiver appointed, revealed. showed objections of Schuyler Livingston, who was one of the attorneys reppartners that hearing, to the question of when to have receiver appointed, on the grounds it callprivileged
Old Depositor Called. Before going into McCullough's the bankruptcy state late Monday stand Henry Young, 79, Wapello and first of the bank that was the the told of going into the bank shortly before closed with of buying than of government bonds the money he had on he was talking with bank employes, Young testified, Davison came over him, in the back, and "Henry, just leave your money right here. It's just as safe and me were rais- ed boys together and wouldn't misrepresent to Young then decided leave his money the bank for another year, said. Prosecutor Gray asked him: "Did Davison say to about the bank's condition and the bank's Young replied that Davison had told him: "Look at the land got behind this thing, we don't make any bad loans. Your money just safe as would be any place" The witness testified that he never received any of the money he on deposit when the bank closed. In addition to Mr. Young, the state also called and had been ruled out previously witness on land but Judge Barker changed his ruling and allowed him to appear. defense attorneys pointed that his appraisals of land tracts ownby the bank were remarkably similar those given George Adye, Murphy denied that he had consulted with the latter. Thompstated it was his opinion that the Commercial bank was insolvent before closed, but ruling later deleted this testimony from the record. During the of George Adye, at the opening the afternoon session Monday, Livingston asked Adye he didn't have "bitter attitude" toward McCullough and Davison since the bank closed. Adye said he "had ben ambitious in this investigation."
"Framed Proposition." Adye claimed credited between him and Joiner Davison the on Dec. 17, 1931, the highway was "framed after ingston asked him on the purportconversation and Adye had admitted meeting Davison there. According to the record, Adye was credited with having told Davison he knew about the investigation, showing letter in which the statement, "McCullough and Davison are not like Jesse James, they haven't any horses," was allegedly included. According to the questioning, Adye was credited with having promised to try to stop the if McCullough would pay $5,000 of the $5,200 due the Adye family. Davison was credited with having said he couldn't pay, that he had turned everything and Adye was quoted as havsaid, and Roy too old are to get stuck that way. Adye denied showed the letter referred Walter Baumgardner Cecil McClurkin. Adye was also questioned by defense counsel whether had asked the Rev. Arms, Methodist pastor at Wapello, to him power handle the claims the church against the bank. He was asked he did not to the say minister, don't care about the expense, want He this, admitting though that he and others had talked to number on the matter of obtaining powers of attorneys for three or five in the bank Martin Gives Estimates. M. Martin, one of the trustees, placed his on farms and town properties carried as assets in the bank receivership, also that of the partners. Eis valuations included: Bird farm, McGinnis farm Colip farm, 080; Beane farm $1,530; Huran Island farm, $1 an acre; Presbury farm, $16,176; tract of bridge, 5.91 acres, $25 an acre; Wapello Island rarm, $1,620; Rogers farm, $13,120, muffman farm, $6,055; Buster land, $25 an acre; Davison farms in Des Moines county, $19,020; Bethel farm, Pomtizius farm, $6,965; Shaw farm, $3,600; land of Wapello, 37 acres at $20 per acre. He placed valuation on the town properties including those in the bank partners only part at $11,405. Attorney Livingston asked Martin how it happened that on more than dozen properties his estimates were identically the same those made by Adye. Martin said he did not know that to be fact until but that had made dividual figures, had they compared them later. Livingston tried to bring out that the Bird land was assessed much higher figure than the value by and attempted to introduce tax receipts covering the Bird property for 1931. The state objected and the court sustained the objections. that view of the court's position on tax receitsp he would delay troducing them until later. Martin was questioned in detail by Livingston his estimate the Buster pasture land, which Martin figured at $10 acre. He attempted get the witness place valuation on the live spring on that land, and after much questioning Martin figured it would be worth about one-third of the land value. "Then without the this land would be worth but $6 an Livingston asked. Martin told him that $10 an acre with the spring was figuring the value of the land pretty high. for Vote Coupons
