Trending
Grants Stay Of 40 Days To
Defendant To Move
For New Trial
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GUILTY OF MAKING
FALSE STATEMENT
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Defense Claimed
Statements Not Made
For Purpose Of
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After deliberating for less than four hours on the innocence or guilt of Robert Eidsvold whose trial on the charge of having unlawfully, willfully and knowingly made a false statement to the Brown County Bank for the purpose of obtaining credit and extensions of credit for the Minnesota Central Creameries, Inc. took up practically all of last week, the jury returned a verdict of guilty shortly before eight o'clock Saturday evening. Sentence was postponed until Wednesday afternoon at two o'clock at which time Judge Olsen sentenced him to hard labor at the state prison at Stillwater until duly discharged according to law and not to exceed two years. A stay of proceedings for 40 days was granted to enable the defendant to make a motion for new trial and eventual appeal to the supreme court. Bond pending such motion was fixed at $5,000 and the defendant was remanded into the custody of the sheriff, until such bond is furnished and approved.
Upon cross examination Eidsvold stated that he was 44 years old, married,wife living and one son Robert aged 12 years. He stated further that he had lived in Hennepin County for 25 years and that he had never been convicted of any crime.
Motions For Dismissal Denied
It took the State until Thursday morning to introduce its side of the case. The opening statement of Thomas V. Sullivan one of the defendant's attorneys was made shortly before noon. The introduction of testimony for the defense consumed Thursday afternoon and most of Friday, both parties having some rebuttal testimony late Friday afternoon. Saturday morning, Co. Atty. Streissguth summed up for the State, followed by Attorney Thomas V. Sullivan for the defense,the Judge concluding the charge to the jury shortly before four o'clock in the afternoon. When the State had rested, the defense made a motion for dismissal which was denied, and again when all the evidence was in the same motion was renewed with the same ruling.
Witnesses On Stand
The following testified on behalf of the State: H.W. Bond, Alfred Penkert, Chas. Weilandt, Albert Steinhauser, L.A. Beardsley, George Hogen, John Nagel, Fred Pfaender, H. H. Flor of New Ulm, A.P. Rischmiller of Gib-bon and Chas. F. Maurer of Arlington H. F. Aude, Minneapolis, S. J. Winterer, H. R. Horn and A. E. Dexter of Minneapolis. A. P. Rischmiller and Chas. F. Mauerer testified that a party by the name of Schmugge whose note the local creamery was carrying as an asset was worthless and S. J. R. Winterer who had given his note to the Eidsvolds for $4500 appeared in person and testified that he had absolutely nothing when he signed the note and that he had no property at this time.
Valuations On Property
Chas. Weilandt, George Hogen, John Nagel and Fred Pfaender testified as to the value of the real estate in New Ulm and A. E. Dexter testified as to the value of the creamery's property in Minneapolis. In their financial statement the lots in New Ulm, three in number, were carried at $10,000 and according to the opinion of these witnesses, they were worth not to exceed the sum of $1,000 each. The building according to the experts were worth considerably less than set forth in the financial statement.
Inventories Overvalued
Alfred Penkert testified as to the value of the butter, eggs and other products on hand as of the date of the financial statement which was the basis of the indictment. The quick assets of the concern which were carried on their statement as inventories were given a value of over $107,000. According to Penkert's testimony these so-called inventories were worth a great deal less than the amount at which they were carried. Geo. A. Bergalin, former bookkeeper of the Eidsvolds testified that as long as he was with the company at New Ulm, no actual valuation of the plant had ever been made; that the values as to the real estate and equipment were taken from former statements.
Minneapolis Property
Not Transferred
In the statement also appeared as assets of the local concern, the Minneapolis property which it was claimed had been transferred to the local corporation. Such a transfer was never made and the records of the Eidsvold concern in Minneapolis failed to show that a resolution had been adopted authorizing the transfer to the local company. The defendant testified that such a resolution had been adopted, as did also his brother Henry, and attorney L. H. Joss of Minneapolis produced a carbon copy of the resolution which he had prepared for the transfer of the property and which was to have been entered in the records. Thos. E. Johnson and Fred Meen, both contractors of Minneapolis testified as to the value of the buildings in New Ulm and Minneapolis, placing the value approximately as high as they were carried in the financial statement. Other witnesses called and who testified for the defense were Albert L. Gag, Geo. A. Bergalin and O. W. Landrum.*
Other Cases Continued
There are other indictments pending against Robert Eidsvold. These with the indictments returned against Henry Eidsvold were continued until the November term.
The main contention of the defense was that the financial statements which were submitted to the Brown County Bank were not given for the purpose of obtaining credit, but for the purpose of showing from time to time how the business of the corporation was progressing.
New Ulm Review
September 15, 1926
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