been taken in regard to Stoltz’ attorney, application for which he made to the court when he entered his plea of not guilty.
The case is the first of the criminal actions to be tried in connection with the closing of the Plainview State Bank on March 4. With four indictments against him, Kennedy was called for trial at 1:30 PM Monday of this week. At that time the selection of the jury began, two Plainview men being chosen. The jury was completed just before six o’clock as follows: Jess Herron – garage man, Plainview, Ernest Tesmer – farmer, West Albany, John Berktold – farmer, Mt. Pleasant, Henry R. Gray – business man, Plainview, Henry Eversman – farmer, Kellogg, Bert Hoskins – garage man, Zumbro Falls, John Muldon – farmer, Gilford, Chas. Giesler – farmer, Lake City, Lawrence Holden – grocer, Lake City, Charles Cleveland – farmer, Glasgow, Tony Beck – hardware man, Lake City, John Sexton – farmer, Oakwood.
The actual trial began Tuesday morning with County Attorney John R. Foley prosecuting the case unassisted. Following a brief history and explanation of the bank affairs, Foley began the presentation of evidence by calling John G. Schultz, bank examiner to the stand. Schultz identified the books presented by the state as those of the Plainview State Bank and testified that he had visited the bank officially as examiner last fall and twice later on business of the banking department on the complaint of one of the bank’s depositors. In the cross examination McMeekin fixed the fact that the bank had closed voluntarily and that the examiner had made visits to the bank in the few months preceding its closing.
Foley then called C. L. Mikkelson, deputy bank examiner in charge of the bank affairs, to the stand. He further identified the books and papers and the handwriting of officers of the bank, particularly that of Kennedy in the transaction which was to be taken up. The transaction on which the case centered covered the payment of interest and the sale of notes. The sum of $280 was paid to John Joachim last December on recommendation of the bank when he had wished to draw $4,000 from the bank for which he had a certificate of deposits and which he had intended to deposit elsewhere. The notes he purchased bore eight per cent interest of which the bank was to receive one per cent as commission. The interest was paid when due to Mr. Joachim from the cash account of the bank and a slip was placed in the cash drawer to show the disposition of that amount. Later on January 12 following John A. Appel paid interest of over $400 to the bank on notes totaling over $5,000 on four notes fro money which he had borrowed from the bank. He also paid some on the principal of the notes and in the transaction cancelled the old notes and made two new ones totaling $2,500. The falsification of the records occurred in the entry of the interest paid by Appel. The entries in the ledgers of the bank showed that Appel had paid $280 less than was due and was actually paid. The listing of the interest in this manner cancelled the shortage in the cash account for the money paid Joachim and left a perfect balance in the bank books. Objections sustained by the judge prevented the prosecution from bringing out further facts in regard to the $4,000 note transaction with Joachim.
In cross examination McMeekin brought out the fact that Kennedy worked with the officers in the state banking department in every way possible to assist them in straightening out the tangled records. That he had rescued information only once and that was on this $280 transaction. He also endeavored to show that no money was gained by the bank or any one in this case.
Mikkelson continued on the stand in the afternoon and John Joachim was also called. John Appel was in the hospital at Wabasha and his testimony was taken in the evening and read to the court the next morning. Several Plainview men were called to the stand as character witnesses for Kennedy and the testimony was finished.
Foley opened his plea to the jury summing up the evidence and bringing out
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