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CORYDON*sON TRIALIn Federal Court At IndianapoHs George W. Applegate’s CaseTried Firstf.Cases Of Wilson E. Cook And Ben S. Applegate To Be TakerUp Next—Indianapolis Paper SaysaCkisilA Number Of Corydon People At Indianapolis To Testify Some For The Government And Some For DefendantsTHETRIALns.1\1-hAs stated heretofore in the Demo-crat, last Monday, June 19, was the date set sometime ago for the trial of George W. and Ben S. Applegate and Wilson E. Cook, of this place, in the Federal Court at Indianapolis, on charges growing out of the failure of the Corydon National Bank, Februarythe transaction. The cases of Wilsoi E. Cook, president, and Ben S. Apple gate, vice president, indicted or charges of embezzlement and making false records, will be disposed of after the case of George W. Applegate isdecided.We also find in Tuesday's Indianap-r-l-ili-1-te■ »18. George and Ben and Mr. Cook olis News the following account aboil were officers of the bank, and the Fed- J what occurred in the trial of Georgi eral Bank Examiner who spent two W. Applegate, on Monday last, whic! weeks in the bank, with an assistant, j refers to the testimony of Leandei prior to the date of closing, claimed Bottles and Arthur B. Riehert, both oaithat he had uncovered many illegal transactions by the men now on trial at Indianapolis, and later a siecial agent of the Department of Justice, of the United States Government, spent several days going over the records and files of the hank, apd we suppose that most of the testimony to be given on the trial for the prosecution, (for the Government), will lie furnished bv Federal Bank Examiner Morgan, and the Special Agent, whose name we have forgotten. However, Arthur B. Riehert, Cashier, Sam Itiely, Teller, and Misses LauraWallace and Mildred Farish, bookkeepers, or clerks, in the bank, are at the trial and are supposed to know much about the records and transactions which Bank Examiner Morgan and the Special Agent had access to and claimed they found.'Whom testified for the government:BANKER TOLD HIM HISBOOK WAS DESTROYEECorydon Depositor Tells of Note GiverHim By ApplegateEMBEZZLEMENT IS CHARGED.Leander Bottles, a farmer living near Corydon, testified in the federa court Monday afternoon that rnonej he had deposited in the Corydon Na tional Bank had not been lent by hin to George W. Applegate, vice-presideni of the hank at the time the bank closed, February 18, 1922. His testimony was given for the government in the case against Applegate, who is charged with embezzling $6,500 of tb€ bank's funds on February 17, 1921. After the bank was closed the defendant together with Ben S. AppleThere are also some other witnessed gate, vice-president, and Wilson E1Iwho wore subpoenaed from here to testify for the prosecution, and agoodly number were called for the defense. As far as we know’ the following persons were called in the cases on one side or the other:Arthur B. Riehert, Laura Wallace, Mildred Farish, Sain Riely, W. H.Flora, Leander Boottles, C. BlaineHays and Deputy Assessor of Harrison township, Dan Marshall. We don’t know that he is a witness, but Judge Thos. J. Wilson is at Indianapolis also. Also, in addition to the three defendants theirwives are all a* Indianapolis.Cook, president, were indicted or charges of embezzlement and making false records.Day Before Bank Closed.Bottles testified that the day befort the bank was closed George W. Apple gate came to his farm and gave him a note for $5,000, which was dated back to August 15, 1921, He said he understood the note was for some of the money be had on deposit, but that he did not inquire closely, as he thought that what the banker did was all right When be learned the bank hadClosed, he said, he told Annies te thewhether to testify in the cases we do not know.All we have heard from the trial as we go to press is contained in the following short news item which appeared in Indianapolis.CORYDON BANKERS ON TRIALApplegate, Ac-Case of George W.cused of Embezzling Funds, May Go To Jury Today.(Indianapolis Star.)The case of George W. Applegate,ex-vice president of the First National bank of Corydon, Ind., charged with embezzlement of $6,500 in national bank funds, which started yesterdayin Federal court, is expected to go to the jury today.Applegate is accused of taking the money from a special account of Leander Bottles, a Corydon farmer. The defense howrever, contends that although Bottles had an account with the hank for some time, he wushed more interest on his money. Applegate, it was said, told him to transfer the account to Applegate himself, whowould give him 6 per cent, interest on the money. Applegate’s counsel maintain that the transaction was a private one in which the national banking laws were not affected.The bank has become defunct since paid this interest.replied: “No, not under the circum-tsances.” Bottles said he offered tc return the note if Applegate would give him, Bottles, his bankbook. Applegate replied, he said, that the bank book had been destroyed.It is contended by the government in the case against George W. Applegate that the $6,500 taken was deposited to a special account held by Bottles, and that Applegate appropriated the money. It is contended that Applegate used $6,025 of the sum to pay a debt he owed the bank.Contention of Defense.The defense contends that on February 17, 1921, Applegate borrowed the $6,500 from Bottles and gave Bottles a note for the money. The transaction, it is contended, was a private one and did not come under the national banking act.Arthur B. Riehert, former cashier of the bank, testified for the government. He said that on August 15, 1921, Bottles received interest amounting to $195 and presented a deposit ticket made out in Applegate’s hand writing. He said it was not shown who paid the interest, whether the bank or some one else. In answer to questions asked by Judge A. B. Andersojfe the witness said it appeared “thar the bank.LATER—Word came to the Eureka Telephone exchange late Tuesday night, from one of the witnesses from Corydonthat the jury had found George W. Applegate guilty of the charge against him. —We do not know what penalty will be im posed by Judge Anderson.
Newspaper Details
Corydon Democrat
Corydon, Indiana, US
Wed, Jun 21, 1922
Page 1
Full Page
Clipped by
Stephen T.
USA 26 Oct 2019
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