New Britain Herald Newspaper, October 17, 1928, Page 10

WATKINS TAKEN T0 PRISON TODAY (Continued from First Page) tion of this case, as 1 endeavored to keep in mind while I was presenting it from the mouths of witnesses, that the charge here, the main charge, is conspiracy to defraud the public. Watkins has sueceeded in various other places in the country with his enterprises, and his purpose in coming here, was, of course, to enter into the same conspiracy that he had succeeded in in other places, and when he arrived here first—his plan was first to enmesh and em- barrass public officials and men prominent in the life of this state. Now, that is laid in the information That is a part of the charge of the state. So he came here. Your Honor will remember, in May of 1927, and with this sole purpose in mind he then began to take into camp as many public officials and prominent people as it was his power to take into- camp; so on May 26, 1927 which about coincides with Wat- Kins' appearance here, as Your Hon- or will remember, he became con- neted with Callahan & Company at a special meeting of the board of di- | rectors of the then Callahan com- pany. “As appears from an exhibit which | was offered in court last week the following vote was passed: ‘Upon motion, duly made and seconded, it was resolved that be, and he hereby is authorized ‘o interview His Lxcellency the Gover- nor, in accordance with a proposi- tion submitted to the board of di- yectors at this meeting. That was attested by J. Verner Anderson, who was then secretary of that corpora- tion, and who was a witness here in this case. “Now, at that time, or very short- ly afterwards, the governor bought 10 shares of Winthrop Gregory & company, and held it until sometime, as 1 think the record will show here, in July, when it was sold for $250. The certificate of stock is here and the check is here with records the salc. Has Documentary Evidence “Now, next on December 30, mark you, If Your Honor please, this was after the bank commissioner had ex- | amind into the affairs of Winthrop Gregory & company and The Na- tional Associated Investors; it was after the two leading newspapers of the city of Hartford had refused to accept the advertising of this cern; it was after Mr. Conland's ac- countants had been there and had examined the books and said that the books were bad that they would not proceed further with their investigation! that on December 30, in pursuance of his conspiracy which he had formed upon his arrival in Hartford, he sold to His E the Governor, on December 20, shades of The National Associated Investors at a price of $15 per share, and the market price at that time was $26 or $27 a share, and between Januarw 5 and January 9, following, these shares were sold at a profit of gomething very near §1,200. Now, I oam not interested in any confroversy with the state’s witnesses, but the documentary evidence, which T have in my possession, if Your Honor pleases, estzblishes the truth of the witnesses’ Anderson testimony with respect to those two stock fransac- tiops with His Excellency the Gov- crnor. 50 Pallotti Had Shares “Now, if 1 have overlooked any- thing. Your Honor, it is cerfainly un- intentional, 1 think 1 shonld have re- terred to the fact that Mr. Pallotti, who was then secretary of the state, had substantially the same dealing with the stock of Winthrop Gregory | & company, and with the stock of The National Associated Investors that His Excellency the had. Mr. Pallotti also bought 10 ghares of Winthrop Gregory & com- pany early and sold it early and he also bought 100 shares of ‘The Na- tional Associated Investors and sold it at a profit to himself of nearly $1.200." Enmeshed Hurley Mr. Alcorn was severe in his con- demnation of Commissioner Hurley's interest in the case, saying: “Now, there is one more feature to count that is of importance in this case, because, I say, as | said at the outset, it was Watkins' plan not only to embarass but to enmesh public officials, .f he could do so, and so he carried on the books of Winthrop & Gregory company an account which was known ac- count No. 15. That account was er- ronecously referred to by a witness the other day as the account of Robert E. Hurley. It is incorrect insofar as the middle initial is in error. The & s No. 15, but it was under the name of Robert v, and that Robert Hurley is who 1s the com- missioner of s police of the state of Connecticut. Now, Watkins de- sired no interference in his opera- tions. He knew that the day of reckoning was coming. he knew that sooner or later the crash would come and he wanted to get just as many of the officials of this state enticed as it was possible for him to get. He knew that it was not un- likely that when the crash did come and he should flee the state, as he did, taking with him everything that was at hand, that it was not unlike- ly that the bavk commissioner might ¢ naturally would turn, to joner of state police for vestigation of the crime, Now, fortunatelv that was not the course that the bank commis- sioner pursued. But that account it Your Honor please, shows on Jan- uary, 1925, after the bank com- 2d been there and in and was inve ting, the affairs of The National Asso ciated Investors, Winthrop Gregory & Company and Watkins Com- pany, after the newspapers had re fused the advertising, after it be- came known, or should have been known at least, that this corporation was, and Watkins 7 cloud, there s charged on this et account shares of that stock, on January 192€, at $15 a share and ‘hg market at that time was 8O- 26 or 27. Fourteen dayx jater nuary 19. 1928, this ECER s was sold at ard checl was i as his proft Now, on Jdanuary 1928, an- other (00 shares were charged to his missioner vestigated, wn sent to Mr. and 27, the secretary | Governor | under a | Hurley account No. 15, and that remains on the books wuntil March 31, 1928, which was a few days before Wat- kins' flight, when he was entered up- on the books as cancelled. Mr. Hurley, if Your Honor please, 1 think,—to show the methods un- der which Watkins did his business —it was dated Hartford, Conn., 1-19-25; it was payable to the order jof Robert Hurley for $1,174.80, and |it was signed R. W. Watkins, and |M. A. Connors, cashier. It is a {Winthrop Gregory & Company | |check, and it was endorsed on the {back “Robert Hurley.” 1 think it is Robert T. Hurley, but at any rate, it |is Robert Hurley on the back. “Now, the significant thing to me, {if Your Honor please, and one of the transactions that mystifies me is the fact that that check did not go through apparently the bank ac- count of Mr. Hurley, but it bears the endorsement of having been cashed. ! That is a large sum of meney, it a large check to cash, but. appar- | ently it was cashed and what becan of the money, of course, I don't kuow, but T know that it, to employ a phrase that was often used during the war—there was a phrase used I think with the respect to the sinking of ships in mid ocean, as follows: purlos versenkt’, sink without trace, and it seems to me that that | was cashed in order that the | tion might be sunk without | ‘Kzan Knew Woman Used Alias | Mr. Alcorn dealt at length with/| | Mr. Egan’s association with the case | as follows: Now, if Your Honor pleases, 1 said at the outset that it was my duty to reveal to Your Honor every | fact which I regarded as essential | to Your Honor in the disposition of ! this case \ “Mr. Egan was attorney for The National Associated Investors; he | was also attorney for Watkins and | he was also attorney for Winthrop | Gregory & Co. Now, just before | Watkins fled the State of Connecti- | cut, which occurred on April 5, of 11928, a check was drawn—a draft | signed by Frank H. McMahon, as- | sistant treasurer of the Riverside Trust Co. under date of March 27, 1928, for $70,000, No. 20211 was drawn to the order of M. E. Tressler. That draft was endorsed ‘M. | Tressler’, who was Margaret E. Wat- kins, the wife of the accused, and | was endorsed by Roger W. Watkins. | That draft was taken to New York, and lacking proper identification, the cashing of that draft was re- | fused and it was brought back to | Hartford, taken to the bank, and | there it was cancelled. Then, on | April 2d, which was two days be- | fore the flight of Roger W. Watkins, | another draft was prepared at the | Riverside. Trust Co. signed by | | Frank H. McMahon, assistant treas- | urer, dated April 2. 1928, pay to the order of M. E. Tressler, $50,000, | and the bank, on the back of that | draft are the endorsements of M. Tressler and William E. Egan. ow one of the vices of that transaction, as I see It. and it is all in line with the conspiracy of Wat- Kkins to not only defraud the public but to enmesh and embarrass every- body with whom he came in contact who had any influence at all, was |the fact that M. E. Tresslar, who | endorsed that draft directly over | Mr. Egan's signature, was none other than Margaret E. Watkins, the | wife of the accused. and Mr. Egan | { must have known that Margaret E. Watkins, when she signed that M. 1. Tresslar was signing a fictitious name, or using at least an alias. “Now, on that day, it Your Honor | please, $20,000 of that $70,000 was | siven in cash to Mr. Watkins: $50.- 1000 was endorsed, as I have already |indicated, and was deposited in an account which was opened by Mr. Egan in his own name in the River- !side Trust Company and immediate- ly a check was drawn to cash for | $25,000; the cash was turned over to Mrs. Watkins. Later another check for $13,000 was drawn to cash, and later several other checks vere drawn to cash, and later still, and while Mr. Watkins was a fugi- tive from justice, $1,000 was glven |to Barber. a man named Barber, who came from Scattle, Washing- ton, in the interest of Watkins the fugitive. “Out of this account?” asked the judge. $15.000 on Tegal Expenses “I don’t know where it came from, sir,” said Mr. Alcorn. That is | one of the things we have not been able to determine. Now, we find | from a summary of the amounts | which have been paid over to Mr. Egan, that between November 2. 1927, and April 10, 1928, a total of 1 $15,100 was paid and charged on | the books as legal expenses, either lon R. W. Watkins & Company or its | predecessor Winthrep Gregory & { Company | “We find that a check from | Kitching & Co., brokers of Boston, | Mass, dated April 3, 1928, in the |amount of $1 5, drawn to the order of R. W. Watkins & Co., payment for 500 sh&-es of Boston Gas was endorsed R g { Watkins & Co, by R. W. Watkins | and William E. Fgan, and that| check is attached to my papers. | “We find also checks dated Janu- fary 21, and March 1, of 1928, which I will refer to later. So that the summary of the amount of money that has been directly traced to Mr. amounts to something over | If we make an allowance 0 which was probably used | |in payment of the corporation fee when the Delaware corporation was organized, it Your Honor please, it | | would he something over $91,000. | Conspiracy in Manipulating Funds | “Now, on the books of the cor- poration there were carried several accounts, if Your Honor please, and | Mr. Egan's account was known as No. 14, and on December 30, 1927, he was charged with 1,000 shares of National Associated Investors 12 1.2 and was debited with §12.- 500 No money was ever put up for any purchase of any stock on |this account January 5, 1928, 30 shares were sold at nuary 24 shares were sold at 27 1-4; Janu- ary 10, 1928, 20 shares were sold at 127 1-4; January 19, 1988, 22 shares were sold at 3-4. January 19, 1928, 100 shares at and pay- ments, credits were given to Mr | Egan for those lar, sums in return |for the sale of the stock | “Again, there is an entry of 100 shares charged under date of Febh | . and a debit charge on the 0. Then on Feb. § » cancellation of §on ishares. Now, in this ftransaction, if Your Honor please, there are two | | | of those transaction. | of the state attorney's office. NEW RBRITAIN DAIL —e— checks that figure; one is check No. 5481 for $1,783.50; another check No.. 5482 for $975, which checks were charged to Mr. Egan’s account, that is, account No. 14, but they were drawn to the order of J. H. Caird and used by him in connec- tion with his purchase of a Lincoln automobile. If there is not a con- spiracy on the part of Mr. Watkins in the manipulation in the funds of the corporations, then I don’t know what evidence we could find that would show it. No, there was anoth- | er secret account that he charged on the books, accounts No. 12, which | was Mr. Healy's account and there was also a similar charge for 1,000 shares of National Associated Inves- | tors at 12% and a credit of sums amounting to in the aggregate of something over $5000, and no money was put up in regard to any Brainard's Profits “I have already alluded, I think the other day—it appeared in evi- dence the other day that Mr. J. Ed- win Brainard, the lieutenant gov- ernor, was charged with 100 shares of this stock, January 31, 1928, at $20 a share, and that it was sold. and he reccived the difference, amounting to $79.20. At first a check was given drawn in the name of Mr. Brainard for $799.20, and later that check was cancelled and another drawn pay~ble in the same amount to cash and the check was cashed. Sentences Recommended Mr. Alcorn made the following statement in° recommending sen- tence: “It seems to me that a minimum of 9 years and six months and a maximum of 15 years, with the maximum provided by the statute, is little enough to be given to this man, Watkins, who has the record and history that I have detailed to Your Honor here today. He is merciless in his dealings with people who have money. If a man has money to part with or a reputation to lose, if he deals with Watkins, both will be gone bhefore he has finished with them, and he certainly has brought consternation to Hartford and to Connecticut. He has taken from the people who can ill afford to lose it, large sums of money. His victims are legion, and I feel quite sure, if Your Honor please, that he ought to have the sentence that I have asked Your Honor to impose upon him. “With respect to his wife, I can almost say I am indifferent as to the punishment Your Honor may inflict upon her. She has two little children and she has a mother who is upon her death bed, and any clemency, out of the goodness of your heart, that you can extend to her. in spite of all her wrong doing in her deal- ings, would meet with the approval “With respect to Maynard, as 1| say, he i8 the least guilty of them 211; but as to Guy, Guy ought to be punished, but I think when we have | the man who had the training and the skill and the inclination to en- gineer a scheme of this kind before us on a plea of guilty, when he is adequately punished, it makes little difference what ‘becomes - of those who really did his bidding.” Judge Imposecs Sentences Before he sentenced Watkins Judge Brown said: “I think it is only fair for the court to say, in passing sentence on Watkins that it considers the county of Hartford and the state of Con-| necticut and 1 think from the record | that he has made, as it has been| disclosed here this afternoon, many other states of this country are in- deed fortunate to have such a pub- lic prosecutor as is ‘he state’s at- torney of Hartford county and to have such an able assistant as the state's attorney of this county has in Mr. Hickey and the others who have cooperated in running this thing down. “After the thing is all over it {8 surprising almost to me that a man of your proclivities and desires and intentions, can by fast thinking and | deceit and fast moving. defraud peo- ple right and left, often of all they have, life savings, and then move on to repeat the proposition somewhere else. Maybe it is unfortunate for you, and it is certainly unfortunate | for the public, that many vears ago | and punishment which your course of conduct so richly deserved; but, of course, I realize that the court is not here to lecture you, hut it is here to do its duty, Which T will try to do to the best of my ability. “T think the setate’s attorney has | The plan, which had been previous- faithful tq her husband, such a hus- band as yours, finds herself in, and in passing sentence I am trying to take that into account. I am also trying to take into account the sug- gestions made of your family situa- | tion, as to your children and as to your mother. The sentence of the court in the case of Mrs. Watkins is hat she be confinegd m the county ail for a period of one year, and T will say, for the information of | counsel, that I will leave this matter open for counsel to take up with the court, so that perhaps some means | can be worked out so that Mrs. | Watkins can give some attention to her mother and perhaps to her chil- dren. That T will take up with you gentlemen later. Mr. Healy of counsel for the de- fense made a plea for his clients, explainfng that he was not defend ing him for any actions prior to h: coming to Connecticut. After the prisoners had been le: away to spend the night in th county jail, Mr. Alcorn, addressir the court, said: “I ought to say to Your Honr that my investigation of this situ tion is not yet ende corn, *“so much has been disclos which possibly involves others tt I feel I have a iuty to perform ho ever unpleasant it may be, and 1 that reason my office is conducti further investigation of this enti matter. I am going to ask ) Egan to confer with me in my roo immediately after Your Honor tak a recess, and I hope, Your Honc before you leave for the day, that may have an opportunity to infor: you as to whether there will be any thing further for the court today So if Your Honor will take a tem porary recess I will be able to in- form you very shortly.” ‘That's all,” said Mr. Alcorn later, in asking the judge to adjourn court, SUNDAY CONCERTS AT THE BURRITT New Britain Musical Club Votes to Give Programs Monthly Sunday concerts at the Burritt hotel ballroom, as substi- tutes for the abandoned concerts at the Camp school auditorium, was voted upon favorably by members of the New Britain Musical club at the first business meeting of the sea- son held in the basement of the Commercial Trust Co. last night. ly evolved by the executive board, was placed before the club by Her- bert Woods, member of the hoard. In addition to these concerts there will be a limited number of ap- pearances given in connection with Parent and Teacher associations, | when desired. The first of these will take place in the Stanley school on Friday evening. There will also be a reciprocity concert given with the Afternoon Musical club of Danbury, local mu- sicians going there January 10. Later the Danbury club will give a | concert in this city. Other recipro- city concerts with music clubs af- filiated with the State Federation of Music clubs are in prospect Leslle Fairchild and Lewis C. Granniss, hoth of Bridgeport, were present and gave spirited addressos | regarding musical club activities in Bridgeport. So far as is possible | at the present time the local club is adopting some of the ideas that originated in the Park City. The | Sunday hotel concert plan is the | firet idea to be adopted. Later it is hoped to adopt others. The Bridge- rorfers gave many valuable tips, | some of them novel, others the product of keen showmanship. Messrs. Fairchild and Granniss have been leading spirits in the remark- able success of the Bridgeport club anl the local club realizes fully that it had the benefit of expert advice last night Preparation of distinctive pro- grams, the avoidance of hackneyed music no matter how famous, and the best of cooperation with the program committee was assured. House meetings will continue, President Marcus 11. Fleitzer pre- sided last night and assured the been very fair and considerate in | recommending the acceptance of | your plea, which was accepted last | week and 1 think that you are well | advised and were wise to plead guilty rather than to stand trial any | further. The sentence of the court §s | on the 21st count that the accused be imprisoned in the state prison for |not less than nine vears and ®Ix|ful friend last night and appeared months, nor more than ten years and that he further pay a fine of £10,000. The sentence of the court is. | that on the first count, the accused be imprisoned in the state prison for the term of five years, the sentence | St{on the second count to begin at the |matcn expiration of the sentence on the | first count. “I think T should say, kins, that in passing sentence on vou, the court of course, as the | and as your coun- | ppreciate the situa- wife | Mrs. Wat. tion which a |been trouncing his veteran pet regu- trying to be lan opinion, Ask A Person How He Sees club no pzins would be spared to make the oncoming s ason a suc- cees from every standpoint, Master Pleads rl)(;g‘ Be Saved From Lickings Detroit, Oct. 117 (M—A dog's master assumed the role of faith- before the city council of Wyandotte | a suburb, with a plea that his dog | be protected from “lickings” ad- | ministered by a neighbor's dog John Campbell pleaded that his | dog was ten old and no for his neighbor's younger The latter, he said, has years canine. larly of late A legal question as to how far the | council could go in protecting one dog from another was raised, and was referred to the city attorney for And he may boast of both his near and far vision. Which really mean: And prove it, too. s little or nothing. How about these questions?—Do you see comfortably as you see witheut straining your eye Without headaches? ing or frowning? well as well? Do » Without squint- The correct answers to these questions are revealed by our examination. My Specialty : Frank E, Eyesight PHONE 1905 Comfortable Vision Goodwin pecialist 327 MAIN ST. Home Is Where the Heart [s— And the Little Yellow House proved happier than a mansion to Emmy Milburn! But in the beginning, it was different. Emmy did not want to be Sal- ly-in-our-alley, as she called Flower street, for anybody. “I'm through with Flower street and everything that goes with it, forever and ever!” She wanted to live her own life, have freedom and independence. Even Robb, who loved her dearly, did not count. Beatrice Burton'’s Latest Story “The Little Yellow House” Emmy could picture life with Robb on $200 a month. .. .the little house near the mill. .. .an alarm clock shrieking every morning at half- past six....coffee....a lunch to pack....the five o'clock whistle at night....Robb coming home to supper....movies, perhaps....maybe a drive in a small cheap car....that would be their life. Nothing else. Oh, life could be cruel, couldn’t it? It had never given her anything but poverty, she told herself. And now it was offer- ing her Robb and his love in one hand and offer- ing her a lifetime of poveyty with him in the other. It's not fair, she said bitterly. Then, she determined to lead her own life. Be independent. Have freedom. Use lipstick and cut her hair. Do anything she wanted to. She would have her own money and clothes of her own instead of her cousin’s cast-offs. Emmy did have her independence. Then, one day it flashed ino her mind that there was more to the Life Ideal than just breaking away from vour family and going to live by yourself in an apartment. You had to make your own life and vour own pleasures. You had to go out and gath- er in your friends and hold them. So, in the end, Emmy found real happiness back on Flower street in The Little Yellow House—and with Robb. Here is a wonderful story of a girl's crusade in these days when vouth is having its day—a story you will long remember. Don't miss it. Starts October 18 in the The HERALD —ta—s <