Jasper County Democrat, Volume 9, Number 43, Rensselaer, Jasper County, 26 January 1907 — GILMAN TRIAL ON. [ARTICLE]

GILMAN TRIAL ON.

Ex-Banker Facing Embezzlement Charges. JURY OF FARMERS TO DECIDE CASE And Trial Begun In Earnest Wednesday.- Ex-Appellate Judge Wiley One of Defendant’s Attorneys. The trial of Fred D. Gilman, proprietor of the Home Bank of Goodland, which closed its doors June 14, 1904, and who until a couple of weeks ago was a fugitive from justice, is now on in the Newton circuit court. The jury was secured Tuesday afternoon after which court was adjourned until Wednesday morning, “when the state’s witnesses had been summoned to appear. . The jurors are; Levi Pierce, Albert Rich and James L. Flemming of Washington township, Elam Flemming and Grant Reed of Iroquois township, Charles Battleday of Jackson, Robert Archibald of Beaver, John Betz of McClellan, and Walter Sorenson, Wm. Grafnitz, Andrew Thompson and C. Christensen of Lake. The jurymen are all farmers and all reside north of the Iroquois river. Ex-Appellate Judge U. Z. Wiley has been added to the defense’s galaxy of attorneys —Darroch of Kentland, Babcock of Goodland, and Parkison of Rensselaer—and Frank Davis of Brook has been employed to assist the state’s attorney, Mr. Graves. Mr. Sellers of Monticello does not appear in the case, as reported that he would.

For some reason the case of Peter Buck of Goodland, who had deposited $55 in the bank shortly before the failure, and which it had been decided to try first, has been side-tracked and that of John Condon, a Goodland saloonist, has been substituted. Condon testified that he bad called at the bank on the Saturday before it closed at Gilman’s invitation, and the latter had asked him how he was fixed* for’currency, saying the bank was a little short of ready funds but had plenty in Chicago and would have it there the next day. Condon let him have $75 that be had in his pocket and told Gilman he bad more at the saloon and would bring it over. After leaving the bank, however, he became suspicious and did not return with any more funds. Some of the witnesses’ testimony shows how hard pressed the bank was for fuuds. For example, we quote from tbb testimony as published in the Newton County Enterprise. Constable Brothers owed a note of $7,000 to the First National bank of Logansport.’ They deposited that sum in the Home bank and instructed Mr. Gilman to take up their Logansport paper. Gilman applied $4,000 on the Logansport note and placed the remaining $3,000 on deposit to the credit of the Constables. Later one of the brothers called at the Home bank and asked for the redeemed note. Gilman said he had given it to the brother. The brothers consulted and made another demand for the note.. This time Gilman bad forgotten where it was but would look it up. They waited a few weeks and then found their note. It was still in the Logansport bank with $3,000 due on it. Dr. Klymer bad given Gilman $6,000 to pay for land which Klymer had purchased in La Porte county. Gilman paid one of the thousand dollar notes and held the residue of the money. In the meantime Klymer had gone to Wyoming for a year’s residence, supposing the land deal closed. On his return he found the land still unsettled for and that the money be had left with Gilman to Ky off the notes was in the Home nk on deposit. G. D. Klymer, as agent for his father, the above witness, made a demand at the bank early in June, 1904, for $3,000 of his father’s money to take up the outstanding notes on the land deal. Gilman said that money was tight but that he would pay one of the thousand dollar notes if Klymer would wait until September for the balance. Klymer agreed to this, but in a few days the bank closed and the

Klymers lost the money which they had intrusted to Gilman to pay off the land notes, and also had the notes to pay. Frank Alexander testified to a deposit of $99.90. Mr. Alexander, according to his testimony, had entrusted Gilman to pay his taxes. The bank books showed that the taxes had been 'paid, but there were no tax receipts to be found. The duplicates at the court bouse showed the taxes still due and Mr. Alexander had them to pay again. J. H. Alexander also testified to a complicated state of affairs. Two notes signed by him, one for SIOO and one for $l4O, found their way into the Home bank. Alexander, prior to the bank failure, had made various payments into the bank to be applied on the notes, aggregating a sum sufficient he believed to liquidate the notes. After the bank closed Alexander found that the payments made bad riot been endorsed on the notes, and one of them be had to pay again. Gilman’s aged father. Hon. W. W. Gilman, lost about S7OO of his own funds in the bank and $1,400 trust funds, while Will Gilman, Fred’s eldest brother, lost S6OO. Mrs. Gilman occupies a seat at the rear of her husband’s counsel, and notes carefully every word uttered in testimony against her husband, yet manifesting no pleas- 1 ure or displeasure toward those who are called to relate the story of their losses through the Home Bank. She is standing loyally by Mr. Gilman. Most of the witnesses are simply testifying to the amounts they bad on deposit, and to the fact that they had received 18 per cent from the trustee. Some sixty witnesses were examined Wednesday. The trial will probably occupy two or three weeks’ time. At the solicitation of Judge Hanley Auditor Purkey has issued a call for the County Council to meet in special session at the court house in Kentland on Friday, February 1, for the purpose of considering an appropriation to be made available to employ additional council to assist the prosecution.