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* T A Y L O R O L O G Y *
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* A Continuing Exploration of the Life and Death of William Desmond Taylor *
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* *
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* Issue 35 -- November 1995 Editor: Bruce Long bruce@asu.edu *
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* TAYLOROLOGY may be freely distributed *
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CONTENTS OF THIS ISSUE:
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Testimony of Charlotte Shelby
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Testimony of Leslie Henry
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What is TAYLOROLOGY?
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TAYLOROLOGY is a newsletter focusing on the life and death of William Desmond
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Taylor, a top Paramount film director in early Hollywood who was shot to
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death on February 1, 1922. His unsolved murder was one of Hollywood's major
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scandals. This newsletter will deal with: (a) The facts of Taylor's life;
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(b) The facts and rumors of Taylor's murder; (c) The impact of the Taylor
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murder on Hollywood and the nation; (d) Taylor's associates and the Hollywood
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silent film industry in which Taylor worked. Primary emphasis will be given
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toward reprinting, referencing and analyzing source material, and sifting it
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for accuracy.
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Special thanks to Dave Downey, for providing the transcript material
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reprinted in this issue!
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Testimony of Charlotte Shelby
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Charlotte Shelby, the mother of actress Mary Miles Minter, was one of
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the major suspects in the 1922 Taylor murder. Her broker, Leslie Henry,
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was later charged with stealing money from her account; he pleaded guilty
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and in 1933 was convicted of grand theft and forgery. Shelby and Minter
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subsequently sued his employer, Blyth & Company, in an effort to recover
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the money taken by Henry. The civil case went to trial in 1936, but was
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settled out of court before the trial concluded.
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Most of the testimony in the two trials pertains to the intricate
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details of financial transactions. But there are some interesting insights
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into to the relationship of Charlotte Shelby with her family and her broker.
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The following are extracts from a pre-trial deposition given by Charlotte
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Shelby.
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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
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Q. ...I am talking now about a contract whereby you had a portion of the
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earnings of Miss Minter...Now, I am asking you one specific, very definite
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question; what percentage did that contract give you, as you remember it?
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A. To the best of my recollection I think it was thirty percent.
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Q. Of the gross earnings?
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A. Yes, of the gross.
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...
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Q. Now, this contract with the Famous Players was made on the 17th of June
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1919...Prior to April 1, 1920, what did you do with Miss Minter's
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earnings? By that, I mean simply this: did you take them as your own, on
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the theory that she was a minor, or did you put any part of them in a
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separate bank account?
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A. It was in one bank account -- or in several bank accounts; I can't say
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just one.
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Q. Well, was it in her name or yours?
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A. Some of it was in her name; some in mine.
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Q. ...Now, after April 1, 1920, did you receive the payments due Miss Minter
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under the Famous Players contract?
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A. Naturally, as Miss Minter's mother and her business manager I collected--
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Q. I didn't ask you that. Just answer the question yes or no.
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A. I collected the moneys; I collected the moneys from the studio, yes.
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Q. Do you remember how you collected them, whether they were in currency or
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by check?
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A. By check.
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Q. Do you remember how the checks were payable?
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A. To Mary Miles Minter.
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Q. And when you collected them what did you do with them?
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A. I signed them and deposited them in the bank.
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Q. You say you signed them; you mean you signed your daughter's name to the
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checks?
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A. Yes, I have always signed her name to her checks.
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Q. In whose name did you deposit them?
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A. In my name, principally--for the investment account. I deposited some in
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her name.
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Q. I didn't ask you anything about an investment account. We will come to
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that later. I am asking you now about your bank account. Did you keep
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any bank account in the name of Mary Miles Minter?
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A. I kept a checking account in her name.
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Q. With what bank?
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A. First National Bank of Los Angeles.
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Q. And you had a bank account in the First National Bank in your own name?
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A. Yes.
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Q. Did you deposit the seventy percent of her checks in her name?
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A. No.
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Q. Have you any idea what percentage you did deposit in her name? I am
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talking now from April 1st on -- April 1, 1920.
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A. I can't answer you. I kept no memory in perfect detail of the banking
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account. I deposited earnings with the exception of her checking account,
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in the First National Bank of Los Angeles.
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Q. Well, you made all the deposits there in your name, did you not?
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A. Not altogether. She had a checking account.
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Q. And about how much did that average, if you remember?...
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A. I can't answer you how much. I don't remember...My daughter was given a
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checking account which she used for just spending money around the studio,
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and whatever she needed.
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Q. And the rest of the money you deposited in your own personal account?
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A. Yes, in the name of Charlotte Shelby.
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Q. Now, I will ask you this before we leave it; have you any idea how much
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per month you deposited to the credit of your daughter Mary?
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A. No, I don't remember...
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...
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Q. Did you instruct either Mr. Babcock or Mr. Henry to purchase securities in
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the name of your mother?
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A. No; Mr. Babcock and Mr. Henry discussed the diversity of purchases after I
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had related to them what an income tax specialist had told me; and I
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believe it had used in the accounting with some other of the stars because
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of the large surtax and the heavy income of money, and it had been
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suggested to me that if the account was distributed with the other members
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of the family that it would considerably relieve the paying of a very
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large surtax.
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Q. You say it had been suggested.
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A. Yes.
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Q. Who made that suggestion?
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A. The party who was then making up my income tax reports. She was a Miss
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Marjorie Berger.
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Q. She was the one who suggested it to you?
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A. Yes, she made the reports of most of the -- a great many of the stars in
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the motion picture business; stars and directors. And she did not say "Do
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it." She said it had been done in the report of others, and she thought
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it was a very fine thing; I mentioned it casually to Mr. Henry and Mr.
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Babcock, and they thought it was very fine -- "We will do that."
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Q. Can you place the time when Miss Berger made this suggestion to you?
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A. Well, it was during the winter of 1919 and 1920. It was while she was
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making out the income tax report, which was filed before March 1920.
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...
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A. I was very proud of being associated with a firm [Blyth & Company] whose
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growth I participated in, for they handled every dollar that I earned and
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my two children earned from 1919 to the present time.
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Q. Well, now, you say "you earned." Did you have any earnings, other than
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the thirty per cent from moneys out of your daughter's -- Miss Mary Miles
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Minter's -- money?
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A. I have always earned money. I have never had anyone to provide for me, so
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I have been left dependent upon myself to provide the wherewithal for
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myself and my children until they could make money.
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Q. All right; now what earnings did you have outside of the thirty per cent
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from Miss Minter's contract, what other earnings did you have?
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A. I was in no other business at that particular time except as manager for
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my daughter.
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...
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Q. About what time of the year did she leave home?
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A. In the autumn of 1922.
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...
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Q. Did you ever prepare any statement to show the amount of money that you
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had invested for your daughter Mary?
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A. No.
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Q. Did you ever prepare or have anyone prepare a statement for you?
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A. I never asked anyone to.
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Q. Now, Mary finally employed counsel to represent her, did she not?
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A. Oh, after some time; I don't remember at what time it was, but some time
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after she left home.
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Q. Did you employ any counsel to represent you?
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A. No, I didn't employ any counsel to represent me. I only went to my
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attorney, Mr. Mott, who represented the family -- Mary as well as myself.
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Q. You went to Mr. Mott at what time?
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A. Oh, I had always gone to Mr. Mott since he had been recommended by my
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attorney, Dennis O'Brien in New York City, out here.
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Q. Mary was at first represented by Mr. Neil McCarthy, was she not?
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A. Yes, she engaged him first; or rather, he was engaged for her first; she
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did not engage him.
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...
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A. It is a simple matter. I had decided before I bought the property in
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Laughlin Park that I would take a substantial part, or a part, of the
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thirty percent which had been allotted to me by mutual agreement of
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counsel, and Mary -- and that I would put what little I could save into
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real estate; and that is how I know that that which I put into real estate
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were moneys that I had in mind investing for the purpose of seeing if I
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could make something other than just interest on bonds, or just -- in
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other words, I would put money allotted to me in real estate, but I
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couldn't afford to put any money of my daughter's in real estate, because
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of the uncertainty of it; I felt sure -- my banker, my lawyer, and my bond
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house all told me "Bonds are the things to invest Mary's money in," but I
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was willing to take a little part that I earned as her manager and see
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what I could do in the real estate business.
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Q. Then am I to understand that in this mental record which you kept of these
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transactions, the bonds that you bought were hers and the money you put in
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real estate was yours?
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A. I never invested any of Mary's money in real estate...I put that which had
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been allotted to me in real estate...
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Q. Madam, the point I am getting at is: did you invest all your thirty
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percent in real estate, or did you claim an interest in some of the bonds
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which you had bought?
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A. No, I did not consume all of the thirty percent allotted to me; a portion
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of it -- in real estate. The rest was invested in bonds.
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...
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A. ...The first time I went to New Orleans after my return from Europe was
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after my mother's death in 1925. I think I went in January, 1926, to
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appear in the settling of my mother's estate -- or in a suit, rather, that
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had been developed after my mother's death.
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Q. You went on from New Orleans to New York, did you not?
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A. Not directly, no.
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Q. Well, did you ultimately go to New York?
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A. Yes...I went from New Orleans to Florida; and having recuperated from
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illness in Florida, for which I was forced to go to a hot climate
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immediately, after recuperating, I went to New York. And I think it was
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some time in February; the latter part of January or the first of
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February.
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Q. What hotel did you stay at in New York, do you remember?
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A. I went to Louisiana by appointment to meet an attorney, and to visit a
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relative.
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Q. Well, I didn't ask you that.
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A. And to appear in the suit which had been filed against my mother's estate,
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and having been born in Louisiana, having a very vast and wide
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acquaintance in Louisiana, I am very, very well known; certainly I
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registered as I was known, and am.
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Q. What name was that?
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A. Charlotte Shelby.
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Q. And when you got to New York, whatever hotel it was that you stayed at,
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did you register in your own name there?
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A. I registered in my legal name there.
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Q. What is your legal name?
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A. Mrs. Pearl Miles Reilly.
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Q. Well, then, your name of Charlotte Shelby is not your legal name?
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A. No; it is a family name, but not my legal, married name.
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...
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Q. ...Now, you went to Europe the first time, as I remember, in 1927.
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A. In 1921, my two daughters and I went to Europe.
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MR. LEWINSON: 1921, and then 1926.
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...
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Q. What was the date of that settlement?
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A. I met my daughter [Mary] in Paris before the Christmas holidays, some
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little time before the Christmas holidays, and we got together some short
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time before Christmas.
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Q. Well, that was the year 1926?
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A. Yes, in December of 1926; and she understood -- partly -- her mother;
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anyway we came together; and we went down to the Western Union office as
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we had planned, and we sent a cable to each of our attorneys stating that
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we had met, and we had settled our affairs between ourselves; and she
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instructed her attorney to dismiss the suit, and I telegraphed -- cabled
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-- my attorney that God had intervened and brought mother and daughter
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together.
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...
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Q. Mrs. Shelby, can you tell us now -- you bought a piece of property in
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Laughlin Park I think I asked you about; you took that in your own name,
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did you not?
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A. I bought it with my own money, took title to it.
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Q. I didn't ask you about that. You took the title in your own name?
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A. Certainly.
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Q. You also bought this residence that you afterwards turned into an
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apartment house hotel, which is referred to as the Casa Margarita, did not
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you?
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A. Yes; that was a business venture.
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Q. And you took title to that in your own name?
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A. Yes.
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Q. You purchased that with your own funds?
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A. Yes.
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Q. The Laughlin Park place you sold, did you not, later?
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A. No, I did not sell it. My daughter [Margaret] sold it for me.
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Q. Well --
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A. I permitted it to be sold.
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Q. Well, I say, you sold it, didn't you?
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A. As owner, yes.
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Q. You signed the deed to it and took the profit from it, did you not?
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A. No.
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Q. You did not?
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A. No.
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Q. You bought that, approximately, as I remember, for $35,000, and sold it
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for how much?
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A. I paid $36,000 for it.
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Q. What was the gross selling price?
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A. $180,000.
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Q. And out of that you had to pay commissions, and so forth -- did you pay
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your daughter Margaret commission?
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A. No.
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Q. You did not?
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A. No.
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Q. Did you pay any other real estate agent any commission?
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A. Yes.
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Q. Who?
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A. I have forgotten the name. I did not negotiate the property, nor was I
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present during the time; my daughter negotiated the entire deal for me.
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Q. Well, you did not pay her any commission, then?
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A. No.
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Q. Your daughter, Mrs. Fillmore, would then be able to tell us about the
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negotiations and who they were with?
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A. Yes, she could tell you all about it.
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...
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A. I bought the New Hampshire property in 1921; we moved into the New
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Hampshire house I think in May, or some time in the spring; soon after we
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went into the house, we went to Europe. We returned from Europe in 1921
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in August; very late in the autumn of 1921. Mrs. Fillmore had completed
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the first house she was building in a new subdivision of Frank Meline's.
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We temporarily moved into Mrs. Fillmore's little home as a wish of Mary's.
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I may add this -- Mrs. Fillmore's house was built as a real estate
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venture; she had built the house, of course, to sell it; and the house
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being completed, Mary fell in love with the little house, and insisted
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that we go over and live in it until Margaret sold it; to please her and
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make her happy, we took some of the New Hampshire furnishings and remained
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in Margaret's home until Margaret did sell the home, which was in the
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spring of 1922; at that time we moved back into the New Hampshire house.
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...
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Q. Miss Berger was your income tax expert from 1920 on until after you left
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for Europe, was she not?
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A. No.
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Q. Well, how long did she represent you?
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A. Until after my connection and my daughter's connection with the studio had
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finished.
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Q. That was in 1923?
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A. Yes. I don't remember if she made out my 1922 tax; I have forgotten.
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...
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Q. I understand from your testimony thus far, Madam, that the first year
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after you started doing business with Blyth & Company, when it came time
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for Miss Berger to prepare your income tax return, that you asked Mr.
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Henry to gather the necessary data with reference to the investments which
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you had made through Blyth & Company; is that correct?
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A. That is correct.
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Q. And that thereafter, it is your recollection that he furnished from year
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to year -- he furnished the same data to Miss Berger without any specific
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request on your part to do so.
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A. Yes; to Miss Berger and to Mr. Mitchell, who made our tax report after
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Miss Berger -- and later to Colonel Hutchins.
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Q. Well, now, when did you employ Mr. Mitchell, if ever at all, as an
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accountant for you?
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A. Well, after the termination of my daughter's, Miss Minter's, contract with
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the Famous Players-Lasky Company; I no longer needed the expert advice of
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an income tax specialist, who specialized or made it a special business
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for the motion picture stars and others connected with the motion picture
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industry; I then asked Mr. Mott if he knew somebody who would make out the
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tax for me, and he suggested his accountant, Mr. Mitchell, and he made up
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the tax for -- I don't know whether it was one year or two years. For one
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year, I know. I don't know whether he made it for two years or not.
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Q. Well, wasn't Mr. Mitchell employed by you as an accountant in connection
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with the accounting suit which Miss Minter had brought against you through
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the O'Melveny firm?
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A. No, I never employed any accountant in that suit. I don't know what Mr.
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Mott did, but as far as I am concerned, I never employed anyone; but Mr.
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Mitchell made out my income tax report.
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Q. Did you ever have any discussions with Mr. Mitchell about this accounting
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suit?
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A. No.
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Q. In 1920 and 1921, did you attend to having the income tax return made for
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your daughter, Miss Minter, as well as yourself?
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A. No; I did not make out their return at all; Miss Berger made out the tax
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report.
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Q. I understand that.
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A. I furnished all data, all canceled checks and wardrobe -- publicity -- and
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general -- expense account.
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Q. Did your daughter, Miss Minter, have anything to do with the making out of
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this return herself?
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A. No, she didn't know anything about it.
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Q. As her manager --
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A. I furnished the data.
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Q. Well, you saw to the making of her return; by that I mean, not that you
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made it up personally, but you attended to it, the same as you did, and to
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the same extent only as you did, your personal tax? In other words, you
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say as her manager you attended to seeing that a tax return was prepared
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for her, did you not?
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A. Yes, I saw that Miss Berger had all of the data prepared that she
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demanded.
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Q. Now, how about Miss Minter's tax return for the year 1922; that would be
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made normally in March of 1923, which as I understand was after she left
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your abode?
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A. Yes.
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Q. Did you attend to making her tax return for that year?
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A. No, I only supplied to Miss Berger the data that I had on hand; it would
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not be complete, because the year was not completed, nor was the contract
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completed, before Miss Minter left home.
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Q. Well, I do not mean to imply that you yourself prepared the return in any
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way. What I am trying to get at is, after Miss Minter left your house in
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1922, did she attend to seeing that a return was prepared for her, or did
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you continue to give instructions to Miss Berger to prepare it, and
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furnish whatever data you had?
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A. Miss Minter herself went to Miss Berger's office and took with her
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whatever data she had. Meantime, I had taken all the available data that
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I had to Miss Berger.
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...
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Q. Now, Mrs. Shelby, did you ever, before leaving for Paris in 1926, discuss
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with Mr. Henry the Taylor murder case.
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A. Oh, yes.
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Q. And when did that occur?...
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A. I came back from New York at one time, and a lot of publicity had burst
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forth --
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Q. I am not asking you about that.
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A. I arrived --
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Q. I just asked the date, if you remember.
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A. Now, I am telling you; I am trying to fix the date, if necessary -- if you
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will bear with me; I can't give you the date.
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Q. All right.
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A. I arrived in Los Angeles soon after a lot of publicity and during the time
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of a lot of publicity about that affair; being quite indignant, I suppose
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I expressed myself not only to Mr. Henry but to anyone else I happened to
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come in contact with.
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Q. Did you ever discuss with Mr. Henry between the period of 1919 and the
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time you left for Europe in 1926, any of your income tax problems?
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A. No. Problems? I had no problems?
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Q. Well, then, if we eliminate the word "problems" and simply say your income
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tax for any of those various years, did you discuss that with him?
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A. I had no discussions and conversations with him...
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...
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Q. ...Did you tell Mr. Babcock that if Mr. Henry left the firm, that you
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would take your business wherever he went?
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A. What?
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(Question read.)
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A. Why, of course not. What an absurd question.
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...
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|
Q. Now, getting back to your first meeting with Mr. Gilmour, did you
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|
establish what year that was? It was the time you say your daughter
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[Margaret] sold you out of house and home?
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|
A. Yes; sold the house at Fremont Place, and we had to spend the holidays in
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New York, waiting for the Ambassador Hotel to be opened; and I think it
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was 1920.
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...
|
|
Q. I am not asking you how much you had invested as a total. But your
|
|
testimony is to the effect that you were collecting all of the earnings of
|
|
your daughter Mary, and that you endorsed her name on them with your name
|
|
under it, or wrote your name under it.
|
|
A. Well, I don't think I ever wrote my name under it. I just wrote "Mary
|
|
Miles Minter" -- been doing that since she was a little kid, five years
|
|
old -- six years old -- seven years old -- always.
|
|
Q. You are mistaken on that, Mrs. Shelby, because we have photostatic copies
|
|
which I will show you, if you wish.
|
|
A. Of her signature?
|
|
Q. No, of her name with your name written under it.
|
|
A. Oh, it may have been, at times; I don't remember. It wasn't important
|
|
anyway, about the money.
|
|
...
|
|
A. ...and then later, on another occasion when Gordon Chester came to the
|
|
house in the evening to go over more data that he was gathering to take
|
|
down to Blyth and Company's office, Mr. Chester said "Henry said to me 'I
|
|
could blackmail Mrs. Shelby if I wanted to.'" "Well," I said, "he has
|
|
nothing to blackmail me for;" and I had no fear -- forgot it. And then I
|
|
thought no more about it, and I didn't take that as blackmail; I didn't
|
|
take it even as intimidation, because I knew there was nothing to even
|
|
frighten me, and I was not worried or frightened; there was nothing for me
|
|
to be concerned about; and after Henry got out of jail he called me -- I
|
|
don't know when it was; I don't know what time he got out of jail, in fact
|
|
-- but I was called in a very short time, in the dead hours of the night
|
|
-- it must have been twelve or one o'clock -- and I was told, he said
|
|
"Mrs. Shelby, this is Mr. Henry." He said "I have some letters, and you
|
|
had better see me;" at that time, I put up the receiver. He called me the
|
|
next night or the night thereafter -- I cannot be certain about the times;
|
|
my maid was occupying the guest room next to me, and when this phone would
|
|
ring she would come in frantic with fear, for having this criminal who was
|
|
out of jail call the house; and she probably would remember. Well, I
|
|
called the next night and said I had to see him -- if I knew what was good
|
|
for me, I would see him; that he had some letters. Well, letters did not
|
|
concern me, and I put the receiver up. I am accurate in my knowledge of
|
|
what he did and what his criminal lawyer did; his criminal lawyer kept
|
|
telephoning me -- we had to have Deputy District Attorney Burgess stop it;
|
|
terrorized my house, terrorized my maid, and he threatened me; he said if
|
|
I knew what was good for me --
|
|
Q. You say he threatened you. You mean Mr. Henry or Mr. Judson?
|
|
A. Harold Judson, -- yes.
|
|
MR. LEWINSON: Well, pardon me just a minute. I think the witness already
|
|
testified that Henry threatened her...Now, she testifies also that Judson
|
|
threatened her.
|
|
A. Yes. Then my daughter Mary was visited in was visited in her home by a
|
|
party with the letters, all of my letters --
|
|
Q. Well, who was the party?
|
|
A. I may say a party unknown to me, because I did not see the party; I would
|
|
prefer to say a party unknown to me at the time; so the letters were shown
|
|
to her, and she was told that she should indict me for robbing and
|
|
swindling her, and that she should have the Federal Government indict me
|
|
for fraud; and as a matter of fact she was strongly urged to see that I
|
|
went to jail immediately -- exactly. I not only have it from my daughter
|
|
Mary; I have that from her maid, who was the housekeeping woman at the
|
|
time, a woman of very strong character and very well known -- one Dorothy
|
|
Herbertson; very well known in Los Angeles, and has been for years.
|
|
Q. Madam, all you have testified is strictly improper, because it is all
|
|
hearsay.
|
|
A. Improper? It is quite the truth, if you want to investigate it. So much
|
|
the truth, Mr. Sterry, that it even almost took my daughter Mary's life;
|
|
at a late hour in the evening I called her on the telephone and she told
|
|
me she was going to blow her brains out.
|
|
MR. LEWINSON: Mrs. Shelby, please confine your answer to the question.
|
|
A. Yes, I am going to tell it. Why should I hold back anything to shield
|
|
Blyth & Company or that villain, Henry, or anybody connected with them?
|
|
Why shouldn't you know it? Yes, I held the receiver when she was going to
|
|
blow her brains out, and while I heard it, my maid ran in from the guest
|
|
room and she listened, and I held the receiver so we could both hear, and
|
|
I was terrified.
|
|
Q. Mrs. Shelby, you cannot testify to matters which are outside of your
|
|
knowledge.
|
|
A. That is not outside of my own knowledge. I got it from Mary's maid next
|
|
morning, that when I was talking to Mary on that telephone, that Dorothy
|
|
Herbertson walked into the kitchen, picked up the receiver, and having
|
|
heard a few of these words, ran to Mary's room and took the gun away from
|
|
her. Now, there are not only Mary and myself, but there are two witnesses
|
|
to testify to the truth of it.
|
|
...
|
|
A. A segregation of the bonds belonging to Mrs. Fillmore -- they would
|
|
certainly have been separate and apart from any bonds belonging to myself
|
|
and/or Mary.
|
|
Q. Well, how about the segregation between the bonds belonging to you and
|
|
those belonging to Mary?
|
|
A. Oh, I was not concerned about "segregation."
|
|
Q. What?
|
|
A. I was not concerned about what belonged to me and what belonged to Mary.
|
|
...
|
|
Q. You testified that you had decided to put your thirty percent of Mary's
|
|
earnings into real estate and Mary's money into bonds; do you remember
|
|
your testimony?
|
|
A. Yes, I did that from time to time.
|
|
Q. Did you discuss that subject with Mary?
|
|
A. No, I don't know that I did at all. That is amusing, most amusing; I
|
|
mean, why should you inquire? Why should anyone be interested in our
|
|
affairs? I am sure she had no idea of even questioning what I did with my
|
|
thirty percent, or even her own; she knew that I invested her money with
|
|
Blyth, Witter & Company in bonds, and depended on me, and I depended upon
|
|
that firm to give her good service.
|
|
Q. Well, Mary, you said, had no business ability or knowledge or experience.
|
|
A. Not a bit in the world -- not a particle -- and never will have.
|
|
Q. So you did not discuss with her at all that fact, that you would put your
|
|
money in real estate and hers in bonds?
|
|
A. Why, no. I was not called upon to do so.
|
|
...
|
|
Q. Did you have any discussion with him [Henry] in 1922 about certificates of
|
|
stock having been delivered to you in names of persons other than yourself
|
|
or members of your family?
|
|
A. No. I did not buy securities in anybody's "name;" I bought them and paid
|
|
for them; they were delivered to me. No names were discussed.
|
|
Q. Did you have any discussion on that subject with him in any of the
|
|
succeeding years?
|
|
A. No.
|
|
...
|
|
MR. LEWINSON: First, with reference to the date of the birth of Mary, and
|
|
her birthplace, I now state that Mrs. Shelby if interrogated on that
|
|
subject, would testify--and I stipulate the fact to be -- that Mary was
|
|
born on April 1, 1902, at Shreveport, Louisiana; that the place of her
|
|
birth was a rented house in the city of Shreveport, the street address of
|
|
which Mrs. Shelby is now unable to give. I suggest, however, in that
|
|
connection, that the vital statistics on file in Shreveport will give you
|
|
that information.
|
|
MR. SCHWARTZ: If any.
|
|
MR. LEWINSON: Well -- if any? There is the information available; she was
|
|
born in a place, and the place has an address.
|
|
MR. STERRY: I suppose he means if they have vital statistics. Well, she was
|
|
born under the name of Juliet Reilly?
|
|
MR. LEWINSON: Juliet Reilly.
|
|
*****************************************************************************
|
|
Testimony of Leslie Henry
|
|
|
|
The following are depositions and trial testimony made during April
|
|
through July 1933 by Leslie Henry regarding his trial for forgery and
|
|
grand theft. [Also see Taylorology #5.] He pleaded guilty and testified
|
|
voluntarily. There are a number of interesting discrepancies between
|
|
his testimony and the testimony of Charlotte Shelby reprinted above.
|
|
|
|
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
|
|
|
|
A. ...There are lots of people who have confidence in the house [of Blyth &
|
|
Co.]. In the case of Mrs. Shelby -- securities left by Mrs. Shelby were
|
|
not left with Blyth and Co. for that purpose. They were left with me.
|
|
I am talking to you just as honestly as I can. I want you to get that
|
|
clear.
|
|
Q. As long as you are on that subject, tell me what is on your mind.
|
|
A. While I gave her receipts of Blyth & Co., nevertheless so far as the
|
|
handling of securities was concerned and the placing of them in Blyth &
|
|
Co. where Blyth & Co. would have known what they consisted of, that was
|
|
very remote from Mrs. Shelby's thought or intention.
|
|
Q. Well in developing that, I would like to have you state the facts and the
|
|
circumstances under which the securities were received and why you make
|
|
that statement.
|
|
A. I receipted for them in that way for the simple reason that Mrs. Shelby
|
|
was afraid that Miss Minter's attorney would arrive at what Mrs. Shelby's
|
|
bond holdings were, or the location of the property and had Blyth & Co.
|
|
been in possession of them -- I don't know if you have the right to go in
|
|
and join the bond house as a litigant and compel them to show up holdings.
|
|
She was afraid of that. While I receipted for them for Blyth & Co., the
|
|
bonds were not to be held in safekeeping with Blyth & Co.
|
|
Q. Where were they to be kept?
|
|
A. They were to be kept by me in Pasadena or anywhere else in order to keep
|
|
them from being discovered by one of two parties, either by the Government
|
|
or by Miss Minter's attorneys in particular.
|
|
Q. Why did you give a receipt for them in the name of Blyth & Co.
|
|
A. For two reasons. First for Mrs. Shelby -- for one reason very largely.
|
|
Mrs. Shelby herself -- while Mrs. Shelby wanted me to keep those
|
|
securities out of any knowledge of Blyth & Co. that would become available
|
|
to Miss Minter's attorneys who might seize them or attempt to locate the
|
|
securities and seize them -- while she wanted me to have them and keep
|
|
them away from that contact or knowledge of Blyth & Co., she still wanted
|
|
to be under the protection of Blyth & Co. by having the receipt made by me
|
|
as representing Blyth & Co.
|
|
Q. Go ahead with your explanation.
|
|
A. That is my explanation...She was solicitous that different property she
|
|
had, and particularly that which was here, was to be unknown to anybody,
|
|
and particularly to Blyth & Co., because of the acquaintance of our
|
|
officers, the members of our firm with O'Melveny's office or firm, and
|
|
things of that nature, so that either through personal contact or by legal
|
|
action there could be compelled a showup of Mrs. Shelby's holdings. That
|
|
was her reason for the selling of the securities in 1925 and the
|
|
repurchase in 1925 and 1926 under fictitious names. It was to keep that
|
|
element of concealment.
|
|
...
|
|
Q. I noticed there were a lot of fictitious accounts in December, 1922. What
|
|
was the explanation for those?
|
|
A. When Mary left home in 1921 [sic] that was when Mrs. Shelby again got one
|
|
of these ideas of concealment.
|
|
Q. That was the first time, as a matter of fact?
|
|
A. Yes.
|
|
...
|
|
A. ...What the situation was then, I was in the position of having to
|
|
maintain secrecy for Mrs. Shelby concerning her securities. She had made
|
|
a very heavy conversion of her securities under fictitious names to
|
|
accomplish that...Mrs. Shelby was maintaining a position at that time
|
|
toward her daughter and toward Mr. O'Melveny that after the payment of any
|
|
such settlement as they agreed on, that she would only have some fifty or
|
|
seventy-five thousand dollar securities left.
|
|
Q. Was that before she went to Europe?
|
|
A. Yes, before she went to Europe. When he tried to make a settlement. Mr.
|
|
Mott and I and Mr. O'Melveny met. The first demand was on a half million
|
|
dollar basis, and then they talked of even a $250,000 basis that is
|
|
including the Casa property. Mrs. Shelby maintaining a representation
|
|
then that her holdings were only somewhere between fifty and seventy five
|
|
thousand dollars. It was vitally important as she saw it, to have no
|
|
access through Blyth & Co. by record or otherwise, that would indicate
|
|
what her actual holdings were...It was left strictly to her how they were
|
|
kept, so long as they were kept out of the knowledge of Blyth & Co. and
|
|
O'Melveny's office or the Government Agents for fear that through any
|
|
government inspection of income tax return of anything of that character,
|
|
the information might be uncovered to Miss Minter or Miss Minter's
|
|
attorney.
|
|
Q. You did not actually tell her that there would be no record of the
|
|
securities, did you?
|
|
A. No record in Blyth & Co. I told her so far as these securities purchased
|
|
under fictitious names were concerned, there would be no record in Blyth &
|
|
Co...
|
|
Q. But as to those that were taken under fictitious names, there would be a
|
|
record with Blyth & Co. under the fictitious names?
|
|
A. Yes, but there would not be anything to indicate they were Mrs. Shelby's
|
|
holdings...Many of these so-called fictitious names were actually clients
|
|
of Blyth & Co. The purchases made under those names were not placed on
|
|
the cards of those clients in our office. Otherwise, it would be
|
|
confusing. They belonged to Mrs. Shelby or Mrs. Fillmore. Those holdings
|
|
would be entered under Mrs. Shelby's or Mrs. Fillmore's name on some card.
|
|
...
|
|
Q. How did it come, when you had the whole telephone book to draw from, the
|
|
names of customers were selected.
|
|
A. We are going into a long story of dishonesty. There was a credit of $2.50
|
|
for every new client. Had I used new names, I would have been credited
|
|
with new clients. In other words, I could have used ten or fifteen or
|
|
twenty new names, which would have constituted new clients. I would have
|
|
been entitled to a bonus. I would have had that as a rating over other
|
|
salesmen.
|
|
...
|
|
A. ...Mrs. Shelby, however, had this in mind, Mr. Lewinson. She had the
|
|
determination in her mind that litigation or no litigation, by any manner
|
|
or means in which she would beat the attorneys to it -- when I use that
|
|
term I mean have the advantage by movement over them in any way that she
|
|
would not have to surrender a dollar of anything to Mary, as far as she
|
|
could.
|
|
Q. That is to Mary personally?
|
|
A. Yes.
|
|
Q. And the idea of that, in part at least, was the protection of Mary and
|
|
others?
|
|
A. That was stated continuously.
|
|
Q. At this time in collaborating with Mrs. Shelby and in purchasing
|
|
securities under fictitious names, you were not conscious of doing
|
|
anything dishonest?
|
|
A. Not at all. That matter of concealment was a problem of hers and was one
|
|
which I saw was vital to her, in determining that the securities --
|
|
Q. And her ideas may have been legitimate and proper, and so far as she
|
|
expressed them, they were?
|
|
A. Yes.
|
|
...
|
|
A. The only thing is that at that time it was just a perfect uproar. I never
|
|
went through hell and high water higher than that was.
|
|
Q. Will you enlarge upon that?
|
|
A. I suddenly discovered a new picture so far as feelings were concerned.
|
|
There was extreme bitterness between her [Mary's] mother and herself that
|
|
seemed to go beyond business. The mother, on the other hand, was critical
|
|
of the daughter as being wayward and things of that character, and
|
|
absolutely unwilling to have any advice from her or discussion with her.
|
|
Mrs. Shelby then told me that her daughter was then charging, that Mary
|
|
was then passing the word that she had killed Taylor.
|
|
Q. That who had killed Taylor?
|
|
A. Mrs. Shelby. That Mary was doing that because her mother was jealous of
|
|
Taylor and her associations -- I hope I cannot be sued for libel, because
|
|
I am trying to tell you the truth.
|
|
Q. You need not have any apprehension on that score.
|
|
A. I am trusting you and trying to tell you what I know of this thing. Then
|
|
came very clearly into line the intense bitterness between Margaret and
|
|
her sister. I saw little of it in Mary because I saw little of her.
|
|
...
|
|
A. Whatever I have been discussing here -- all purchases of securities under
|
|
new names, all of the rest of this I have been discussing here in relation
|
|
to the employment of the different counsel, I am positive came after the
|
|
Taylor murder. There was untold bitterness mixed up in that.
|
|
...
|
|
Q. Did you prepare such a schedule or statement?
|
|
A. I did. It was a long extensive thing...The purpose of that paper, as
|
|
eventually developed, Mrs. Shelby told me, was that this showed that at no
|
|
time had Miss Minter had any cash available for the purchase of the
|
|
Laughlin Park property. She kept her all invested up. It eliminated the
|
|
Laughlin Park property as any property that Miss Minter could have
|
|
possibly purchased because at all times she had this block of securities
|
|
she had purchased. There was a lot of bitterness over that Laughlin Park
|
|
property...
|
|
Q. You understood it at the time, did you not, Henry, that Mrs. Shelby was
|
|
making the claim in good faith that it was her money that went into
|
|
Laughlin Park property?
|
|
A. She was making a claim all right.
|
|
Q. You understood there was a basis for the claim?
|
|
A. You are drawing a conclusion in my mind. I had purchased no securities
|
|
for Miss Minter. This total block of securities at that time -- I could
|
|
not differentieate between what should be assigned to Miss Minter or what
|
|
should be assigned to her mother. Here was a big block of securities,
|
|
while purchased in a variety of names, was in Mrs. Shelby's personal
|
|
account. Anything developed out of them was retained by her -- a
|
|
commission was paid to Margaret for the purchase of that property.
|
|
Q. You stated a moment ago that you were surprised that your accounting
|
|
showed that the Laughlin Park property was purchased with Mrs. Shelby's
|
|
and not with Mary's money.
|
|
A. I was not surprised at it. It was only to establish clearly -- I don't
|
|
question it probably was Mrs. Shelby's money. I was handling any money
|
|
that was there, and it was up to me to determine whether it was her money
|
|
as manager's compensation, or whether it was her portion of what was
|
|
earned which was used to buy the Laughlin Park property. What actually
|
|
developed was that here where possibly there was no designation of bonds
|
|
as being Miss Minter's property and reported as such in her income tax
|
|
form, anything of that character, it suddenly came around in this set up
|
|
whereby there was not a possibility under it to show where there had been
|
|
at any time cash available for the purchase of this property by Miss
|
|
Minter...
|
|
Q. At the time you prepared this account, you regarded it as an honest
|
|
account, did you not?
|
|
A. If that was Mrs. Shelby's use of the money? I don't quite get you.
|
|
Q. Let me put it this way.
|
|
A. I recognized Mrs. Shelby as her daughter's manager, and if she said that
|
|
was the way the money went, that was the way the money went.
|
|
Q. In other words, you did not regard the account you had gotten up as being
|
|
a dishonest contract to defraud Mary?
|
|
A. No, I didn't at the time, because at the time I prepared that statement it
|
|
was to show what Mary was supposed to own. I didn't and I don't know
|
|
whether Mrs. Shelby had the idea when it was first prepared but it
|
|
eventually wound up against the possibility of Mary ever having the money
|
|
to buy Laughlin Park property. That was really surprising to me.
|
|
Q. So apparently it was prepared with that plan in mind?
|
|
A. I don't know what the plan was. I did what I was expected to do. Later
|
|
it was used in that way.
|
|
...
|
|
Q. You met Mrs. Charlotte Shelby, I believe, as has been stated from the
|
|
probation report, during the Liberty Loan campaign in 1917?
|
|
A. Either late in 1917 or early in 1918.
|
|
Q. Your first business relations with her, I believe, were in February 1920?
|
|
A. Yes.
|
|
Q. At that time you were employed by Blyth, Witter & Company?
|
|
A. Yes.
|
|
Q. The report also showed, I believe, that at the beginning of the business
|
|
relationship between you and Mrs. Shelby, she insisted that you should be
|
|
personally responsible for any securities you might sell her?
|
|
A. She did.
|
|
Q. What was your answer to any such request by her?
|
|
A. I told Mrs. Shelby that the house I represented nor myself could guarantee
|
|
the securities that were sold, by reason of the quantity of them and the
|
|
number of investors to whom they would be sold, and that for me to assure
|
|
her that she would be personally guaranteed in her investments would be an
|
|
injustice to others who might not assert a requirement of that kind, and
|
|
on the other hand that for me or the house to make any such guarantee to
|
|
her was unfair, for the simple reason that it would be a physical
|
|
impossibility for any house, with millions of dollars of securities
|
|
outstanding, to make them all good in the event of loss.
|
|
Q. Were you later called upon to make good any securities which had defaulted
|
|
in any way?
|
|
A. I was, yes.
|
|
Q. When was the first time, Mr. Henry?
|
|
A. I made good in the winter of 1922, or early in 1923.
|
|
...
|
|
Q. What did you state to Mrs. Shelby on those occasions as to her request to
|
|
pay that back?
|
|
A. I told Mrs. Shelby I could not pay the interest on the Portland Flouring
|
|
Mills; that I did not think in the first place it would be necessary and
|
|
that is she would wait until the adjustment was made between dividends and
|
|
interest on those defaulted bonds, through an exchange for the Sperry
|
|
Flour Mills Company preferred stock, that she would probably be taken care
|
|
of. Mrs. Shelby said, "I haven't anything to wait for, I have my money
|
|
now," and I told her that the adjustment I was satisfied would take care
|
|
of it. She said, "You understood very well when I first dealt with you
|
|
the circumstances under which I dealt with Mr. Stoddard Jess, who was
|
|
president of the First National Bank. He had always been in the position
|
|
where if anything went wrong with my securities, he would take care of me
|
|
personally." I told her the situation was an impossible situation, and
|
|
that I thought it would have been an injustice to Mr. Jess to have imposed
|
|
it on him. She said, "It would not have been any imposition on him, for
|
|
the simple reason that he was himself the head of the bank, and would see
|
|
that the First National Bank took care of anything she had." She came
|
|
back and drove at me on the point that I did understand that any
|
|
obligations I sold her became my personal obligation, if I could not get
|
|
it out of the house, and as a result, in the winter of 1922 or the spring
|
|
of 1923 I paid her the interest.
|
|
...
|
|
Q. BY THE COURT...Why was it necessary for you to make good to Mrs. Shelby on
|
|
the interest of bonds she had bought, when there was a default in those
|
|
bonds, to make good her losses; that isn't the usual custom of brokerage
|
|
houses, is it?
|
|
A. No sir.
|
|
Q. When you sell customers securities, you do not guarantee that those
|
|
securities will continue to pay interest, do you?
|
|
A. No, you don't; you maintain quite the contrary position, and the only
|
|
answer, Your Honor, that I can give is this: Mrs. Shelby is a hard
|
|
trading woman in the first place, as far as business is concerned, in my
|
|
personal situation I was confronted by a woman who so far as any other
|
|
person I knew of with whom she had done business--well, she pressed down
|
|
on them, not only pressed down, but after breaking with them, abused them
|
|
or passed criticism on them throughout the business community, and put
|
|
them in a position of where, as in my particular case, had developed out
|
|
of the income tax situation, put them in a position of, or rather put me
|
|
in a position of where, even if I had broken with the account -- it was a
|
|
good account and I want that thoroughly understood -- but had I broken
|
|
with her, I would not only have lost the business, but I would have been
|
|
subject to abuse, and certainly I would never have been free of the
|
|
liability that approached a criminal nature, so far as the income tax
|
|
return of 1920 was concerned, by reason of one thing I had done in
|
|
connection with the return.
|
|
Q. BY THE COURT: Then, your position is, in effect, that Mrs. Shelby was in
|
|
a position to blackmail you, and you felt she would use that power?
|
|
A. I would not say blackmail me, but had any investigation developed out of
|
|
the income tax situation, which was certain to come if she went into
|
|
litigation with her daughter, the complete onus for what she had done and
|
|
been the beneficiary of, with regard to the 1920, 1921 and 1922 tax
|
|
returns would have been thrown on me, on the basis of complete ignorance
|
|
of what was involved in her income tax picture.
|
|
Q. Did you make any inquiry when you were first approached on the subject of
|
|
responsibility, to find out whether the statement was true that Stoddard
|
|
Jess had also guaranteed her against loss?
|
|
A. I couldn't, Judge, and I wouldn't have done it. As a matter of fact, to
|
|
me it sounded more like a woman talking at the time and trying to lay the
|
|
foundation for something that might happen in the future. Stoddard Jess,
|
|
as a matter of fact, was sick, which sickness turned out fatally, as Your
|
|
Honor will remember, and it was on his recommendation that she came to me.
|
|
...
|
|
A. Mrs. Shelby called me [in 1920] and told me she would have a dinner at her
|
|
home, and said it would be just a little family party, herself and her
|
|
mother Mrs. Miles, and Mary and Margaret and myself. She said she wanted
|
|
me to absolutely be there, and that she expected I would have an
|
|
opportunity to talk with Mary, and not only listen to Mary, but possibly
|
|
correct Mary's viewpoint or attitude toward herself.
|
|
Q. At that time, Mr. Henry, did you have any idea that Mrs. Shelby was
|
|
attempting to, or going to attempt to deprive Mary of her earnings?
|
|
A. Not at all.
|
|
Q. Incidentally, when was the first time that you became fully cognizant of
|
|
the fact that such an intention existed on the part of Mrs. Shelby?
|
|
A. After the preparation of a set of charts by me, some time late in 1923.
|
|
Q. Up to that time in 1923, what was your feeling in respect to Mrs. Shelby's
|
|
attitude towards Mary and her earnings?
|
|
A. I felt that Mrs. Shelby was holding on to the control of the money much
|
|
beyond any good effect, so far as Mary was concerned. What I mean, not
|
|
holding the actual possession, but withholding information from the girl,
|
|
which would possibly raise some question in the girl's mind against Mrs.
|
|
Shelby.
|
|
Q. What did you feel as to Mrs. Shelby's attitude, whether it was one of
|
|
attempting to deprive Mary, or to protect her, up to this time in 1923.
|
|
A. I felt very much that Mrs. Shelby was trying to protect Mary. I thought
|
|
she was doing it in a very unintelligent way, and I told her so.
|
|
Q. The things you did at that time, and later, up to 1923, did you do with
|
|
the intention in mind, of assisting Mrs. Shelby in doing what you and she
|
|
considered to be the best thing by Mary?
|
|
A. Yes, I did.
|
|
Q. On this theory, I wish you would state what took place there.
|
|
A. I sat next to Mary. Mary was at one end of the table, and Mrs. Shelby at
|
|
the far end, and I was seated next to Mary. The dinner itself, the
|
|
conversation at the dinner, was valueless, so far as this testimony is
|
|
concerned, other than that Mary would only answer "yes," or "no," so far
|
|
as her mother was concerned, and Margaret was ignored, even by Mrs. Miles,
|
|
so just a very desultory conversation with me was had...After dinner, as
|
|
we came away from the table, Mrs. Shelby came up to me and she whispered
|
|
to me, "I wish you would make some opportunity to have a few words with
|
|
Mary alone." I moved around the table with Mary and stood alongside of
|
|
the fireplace that was on the side of the room. I went into part of the
|
|
conversation I had with Mary at the dinner table. I said, "Mary, you talk
|
|
of never again working, so far as the Government is concerned, and Liberty
|
|
Loan campaigns, if the necessity arises. I don't think you believe that.
|
|
I think you would be the very first one to step out and do anything you
|
|
could under those circumstances." Mary very forcefully said, "I would not
|
|
have anything to do with it, if I had to do it over again; I would never
|
|
have had anything to do with the Liberty Loan campaigns, nor with any war
|
|
work in the future." She said, "I was exploited commercially throughout
|
|
that entire situation. My what appears to be patriotism, I felt, was done
|
|
for nothing at all but to exploit me for the value of the box office."
|
|
Q. Did she say who was exploiting her?
|
|
A. She told me, "My mother carried me around from one place to another under
|
|
circumstances which I did not like, for the sole purpose of getting the
|
|
publicity value from the effort...From the time I have been a little girl,
|
|
an infant virtually, my mother has used me for commercial purposes, and
|
|
has used me for my earning power." She said, "I have been surrounded
|
|
always with the business associates and friends of my mother, who could be
|
|
of value in making further commercial progress." She said, "I have been
|
|
deprived of my childhood; I have never been permitted to play with
|
|
children of my own age or associate with them," and called my attention to
|
|
the night before I had gone to Australia, when at Mrs. Shelby's request I
|
|
had attended a dinner in the Helen Mathewson house. She said, "You
|
|
remember the type of people you saw there. That has been my life ever
|
|
since I was a child." She wasn't much more than a child then. "As a
|
|
matter of fact," she said, "whenever I have had a chance to be with those
|
|
of my own age, my mother has seen to it that they have been eliminated,
|
|
and I have been associating only with studio directors, accountants and
|
|
business managers of the film companies, and advertising men," and so
|
|
forth. She ran down the line of the type of associations of her mother's
|
|
that she had to find her life with. She said, "You know, when I came out
|
|
to Santa Barbara, I was only about 14 years old." She said, "That has
|
|
been my life, and that was my life even before then, and has been my life
|
|
since." Mary called to mind my own youngster. I had a little girl who
|
|
was then 5...she said, "You see to it, as the result of my experience,
|
|
that the daughter of yours, Barbara, always plays with people of her own
|
|
age, and has the association of children and young people, and her own
|
|
life." She said, "I am getting -- I am awfully sick of Hollywood, I am
|
|
sick of the commercialized existence I have been living in, and the first
|
|
time I can, either through the contract ending, the immediate contract
|
|
ending or some other way, get out, I am going to leave everything and live
|
|
my own life."
|
|
Q. Did you report the extent of this conversation to Mrs. Shelby?
|
|
A. Yes.
|
|
Q. When?
|
|
A. That same evening.
|
|
Q. You told her what had been said?
|
|
A. I told Mrs. Shelby and her daughter Margaret of the effect of my talk with
|
|
Mary, and I told them that I felt she was very much dissatisfied, and Mrs.
|
|
Shelby said to me, "Just ignore it, do not pay any attention to it; she is
|
|
being influenced by someone on the outside."
|
|
Q. At this time, in 1920, did you purchase any securities in the name of
|
|
Margaret Shelby?
|
|
A. Yes...The conversation was substantially that Mrs. Shelby told me she
|
|
wished to buy securities in the name of her daughter Margaret Shelby; that
|
|
Mary wanted to provide $100,000.00 as a protection for Margaret, and that
|
|
Margaret, as a matter of fact, from not being associated with the film
|
|
industry, although an actress, was entitled to protection, entitled to
|
|
some remuneration from Mary by reason of not being a competitor with her.
|
|
Q. Go ahead; did you ever talk to Miss Minter about that matter?
|
|
A. I did.
|
|
Q. When?
|
|
A. In 1923.
|
|
Q. What did Miss Minter say about this $100,000.00 fund for Margaret, for not
|
|
being a competitor?
|
|
A. She told me, "If there is a $100,000.00 fund to be created for Margaret,
|
|
it should have been created out of her [Shelby's] own 30 per cent of the
|
|
contract;" that so far as she was concerned, she owed Margaret nothing;
|
|
that she has maintained her for years in luxury and idleness, and that all
|
|
she received from her was envy and criticism. I told her, I said, "Your
|
|
mother has told me and Margaret has told me that Margaret was an actress
|
|
in the East and that she stayed out of pictures so as not to be a
|
|
competitor with you," and Mary told me, "If my mother or Mrs. Shelby could
|
|
have made an actress out of Margaret acceptable to the pictures, she would
|
|
have had her in them long ago," and she told me that she had attempted by
|
|
various facial operations to make her presentable before a camera, and
|
|
having failed in doing that, she was now making a misrepresentation so far
|
|
as her being a competitor with Mary was concerned, and that if any
|
|
provision was to be made for Margaret, it would have to be made out of
|
|
Mrs. Shelby's own 30 per cent of the contract.
|
|
...
|
|
Q. Do you know whether anyone was acting as income tax expert for Mrs. Shelby
|
|
in 1920 and 1921, and if so, who was it?
|
|
A. Mrs. Marjorie Berger.
|
|
THE COURT: She wound up in the Federal penitentiary, didn't she?
|
|
A. Yes, sir.
|
|
Q. Did you have any discussion with Mrs. Shelby along in March of 1921
|
|
concerning Marjorie Berger?
|
|
A. Yes, Mrs. Shelby told me that Mrs. Berger would probably call on me for
|
|
information concerning her investments, and asked me neither to give it to
|
|
her nor to discuss her affairs in any degree with Mrs. Berger, and later
|
|
Mrs. Berger did call me and asked that I indicate the securities from
|
|
which the income was derived that was to be reported, and I told her that
|
|
I did not understand that would be necessary and withheld the information.
|
|
Mrs. Shelby, on my telling her of this, told me that Mrs. Berger was
|
|
altogether too friendly with Mary, and that any information which she
|
|
would receive on investments, she might carry on to Mary, and it was for
|
|
that reason she did not want Mrs. Berger to know about them.
|
|
...
|
|
A. Now, with regard to the income tax. In the income tax for 1921, when I
|
|
was consulted with regard to Mrs. Shelby, there were considerable profits
|
|
derived through the sale of securities. Mrs. Shelby wanted the profits
|
|
shown on the returns of Julia Miles and Margaret Shelby, and not on her
|
|
own, while any losses might be taken to her own account. I prepared
|
|
statements of those investments made in the previous year or two years,
|
|
and submitted them to her and pointed out to her where she was only
|
|
courting trouble for herself so far as the government was concerned in
|
|
making statements which were contrary to the books of Blyth, Witter &
|
|
Company, so far as the purchase of securities were concerned; and
|
|
secondly, that the very unusual matter for returns under the name of Julia
|
|
Miles and particularly under the name of Margaret Shelby, were not
|
|
supported by any figures on Blyth, Witter & Company's books or even by the
|
|
ownership certificates filed with the bond coupons during the year. Mrs.
|
|
Shelby's only answer to that was, "Mr. Henry, this is my property, and I
|
|
can do with it as I please, as between myself, my daughter and my mother.
|
|
Whatever income I wish to show as paid to them is quite sufficient." In
|
|
so far as my own position was concerned, and she said, "Marjorie Berger
|
|
will take care of that, on the information by the return of the Federal
|
|
Agent before the return is actually made." I was simply in the position
|
|
of having to accept the statement of the woman on her own distribution of
|
|
the property and the statement of the income for those years, and the
|
|
profits and losses, and take them according to her own allocation of the
|
|
property, but so far as the Government is concerned, the return was made
|
|
by Marjorie Berger and Mrs. Shelby in association, and the only thing I
|
|
could do was to take the very figures compiled and submit them.
|
|
Q. Did you do that each year?
|
|
A. I did.
|
|
Q. You gave Mrs. Shelby the figures showing her actual income on the
|
|
securities purchased through Blyth, Witter & Company?
|
|
A. Yes.
|
|
Q. You turned that over to her?
|
|
A. Yes, sir.
|
|
Q. And did you know until 1928 that she had not returned the income, or
|
|
declared the profits and dividends received by her and turned over by you
|
|
to her -- did you know that during any period up until 1928?
|
|
A. No, I did not: the only concern I had about her income tax return for the
|
|
years 1921, '22, and '23, was the possibility that if an investigation was
|
|
held, the Government would show that income had not been allotted
|
|
according to the purchases on the books of Blyth, Witter & Company, and
|
|
Mrs. Shelby and Mrs. Berger would deny any possible knowledge, and would
|
|
refer to me as her financial agent, and as the only one who had prepared a
|
|
statement of the income from her securities; but it wasn't until 1928 that
|
|
I did know that she had not returned a penny of it.
|
|
...
|
|
Q. Did you have numerous discussions with Mrs. Shelby, at her request,
|
|
concerning the Taylor murder, or supposed murder?
|
|
A. I did, yes.
|
|
Q. In other words, you were called upon to advise her as to various things
|
|
arising out of that?
|
|
A. I can say this, Mr. Judson, that immediately after the Taylor murder case
|
|
a telephone call came through to my office from Miss Margaret Shelby. I
|
|
dodged answering it; I knew what the call would mean, and it was several
|
|
days afterward that I finally did come to the house and excuse myself to
|
|
Mrs. Shelby for not showing up.
|
|
Q. The deposition shows you had numerous discussions about that time
|
|
concerning the suppression of publicity, and the purchase of letters from
|
|
a Los Angeles newspaper, and so forth, that they had obtained possession
|
|
of.
|
|
A. Yes.
|
|
Q. You also had further discussions about that affair I believe in 1925, when
|
|
the case was agitated again, and there was a possibility of the indictment
|
|
of Mrs. Shelby?
|
|
A. It was in the spring of 1926.
|
|
Q. Did you have numerous discussions at that time with her upon the subject
|
|
of her possible indictment for the murder of Taylor?
|
|
A. It was the possible indictment of Mrs. Shelby in the Taylor murder case
|
|
that was the one thing that made me agree, so far as Mrs. Shelby was
|
|
concerned, on leaving the country, and her feeling concerning the
|
|
possibility of that indictment.
|
|
Q. In these troubles between Miss Minter and Mrs. Shelby, were you called
|
|
upon by Mrs. Shelby to prepare various charts, accounting statements, and
|
|
discuss them with Mrs. Shelby's attorney and various accountants?
|
|
A. I was.
|
|
Q. What was the first statement you prepared, just in brief, without stating
|
|
the details of it? About when was the time of that?
|
|
A. I am glad you asked the question, because it is in line with another
|
|
observation of Your Honor's, and I would like to straighten it out. It
|
|
was in connection with -- in 1923, Miss Minter had again told her mother
|
|
apparently, that she had engaged a lawyer, and her mother had established
|
|
through some source that Mary had actually visited a lawyer, and Mary
|
|
demanded an accounting. I urged Mrs. Shelby to make an accounting to Mary
|
|
at that time, and make a segregation of the property, but by all means to
|
|
put it in trust for the girl, a plan that once and for all would close out
|
|
the troubles that existed between them. Mrs. Shelby insisted upon me
|
|
making an account, and furnished me three income tax returns, 1920, 1921
|
|
and 1922, which were the sole basis for any making any statement to her.
|
|
I protested that to her on the basis that it would unsettle further Mary's
|
|
confidence, and unquestionably challenge a genuine accounting from her,
|
|
which bothered or worried Mrs. Shelby immensely. This statement, so-
|
|
called, was the $165,000.00 statement, and not a settlement, and I would
|
|
like to make it thoroughly understood here, that so far as that statement
|
|
was concerned, I had no more intention of appearing to represent that to
|
|
Mary Miles Minter as a settlement of the property between her mother and
|
|
herself, than I would have had of killing the girl. The whole purpose of
|
|
the statement at that time to her of any kind was with the idea that it
|
|
might relieve the accounting which was large in Mrs. Shelby's mind.
|
|
Q. After the discussion you had with Miss Minter concerning this statement
|
|
you had a talk with Mrs. Shelby, did you not?
|
|
A. Yes.
|
|
Q. In which you recommended that Mrs. Shelby knock off of these income tax
|
|
returns the expenses charged against Mary, which Mary had said were
|
|
clothing purchased by Margaret Shelby and Mrs. Shelby? Didn't you
|
|
recommend that to Mrs. Shelby?...
|
|
A. I told Mrs. Shelby that if she did not have an accountant go through and
|
|
actually analyze the expenses charged against Mary on the income tax
|
|
return for 1920, 1921 and 1922, that she should make at least a flat
|
|
arbitrary cut in those charges. Incidentally, the charges and expenses on
|
|
Mary Miles Minter's income tax return, as returned for 1921, 1922 and
|
|
1923, resulted in 1928 in the government assessing an extra tax of
|
|
$146,000.00, and to that extent was Mary right in charging that no
|
|
accounting based upon the income tax returns was right, and it was with a
|
|
knowledge of something of that, that I urged Mrs. Shelby at the time to
|
|
have a stringent accounting made.
|
|
THE COURT: Let's see if I follow you on that, Mr. Henry. I gain the idea
|
|
from what you have said, and also from the probation report, that you had
|
|
made a list of the securities carried on the books of Blyth, Witter &
|
|
Company, as purchased by Mrs. Shelby, and the income derived from these
|
|
securities; that you presented the list to Mrs. Shelby, and that she had
|
|
returned to the government a statement in respect to income tax
|
|
assessments, which did not correctly set forth the income derived from
|
|
these securities, but omitted considerable of that. Is that a correct
|
|
statement?
|
|
A. I think I am a little confused, Your Honor. I don't know whether the list
|
|
of investments made by Mrs. Shelby refers to the forms which I had made up
|
|
in 1921, when Mrs. Shelby wished arbitrarily to throw all profit to Julia
|
|
Miles.
|
|
THE COURT: As I understand it, this list was made up showing the amount she
|
|
actually had invested in securities and the income derived from it.
|
|
A. Yes.
|
|
Q. But instead of using that as a basis for income tax, some other basis was
|
|
used, which did not correctly show the securities she held?
|
|
A. No, sir; the amounts reported to the government had they been reported
|
|
which I did not discover --
|
|
Q. That is what I am trying to find out. Won't you please try to answer one
|
|
question in a direct manner? Is it or is it not true -- I will make it
|
|
simpler, so there cannot be any misunderstanding -- is it or is it not
|
|
true that you furnished Mrs. Shelby a list of her investments and the
|
|
amount received therefrom?
|
|
A. Yes.
|
|
Q. Did she or did she not use that list in making up her income tax report?
|
|
A. Of 1921?
|
|
Q. Yes.
|
|
A. She did not.
|
|
Q. What did she use?
|
|
A. None.
|
|
Q. So her income tax report, according to her statement for that year, did
|
|
not show the amount of her investments or the receipts therefrom?
|
|
A. No.
|
|
Q. I see. Now, then, if I understand you further, in making an accounting or
|
|
statement to her daughter, she used as the basis for that statement, the
|
|
figures returned to the government, and not the actual figures showing the
|
|
amount of stocks and bonds she owned?
|
|
A. Yes.
|
|
...
|
|
Q. When was the first time that you felt that Mrs. Shelby intended to deprive
|
|
Miss Minter of her earnings?
|
|
MR. CHOATE: What is the materiality of that?
|
|
MR. JUDSON: It is this: the report states that Mr. Henry assisted Mrs. Shelby
|
|
in defrauding Mary Miles Minter, and I intend to show that Mr. Henry felt
|
|
that everything he did, up until late in 1923, or the early part of 1924,
|
|
was done in the bona fide belief that Mary Miles Minter was in need of
|
|
just such protection, and that they could not afford to let her have her
|
|
securities, and that it was only at that time in 1924, that he realized
|
|
that Mrs. Shelby did not have any such laudable idea in mind, but intended
|
|
to keep everything she had, which was everything. That is the purpose of
|
|
it.
|
|
THE COURT: I think that is a proper line of inquiry, but that question only
|
|
calls for a date.
|
|
A. Late in 1923.
|
|
Q. Do you recall what brought that forcibly to your mind?
|
|
A. Yes.
|
|
Q. What was it?
|
|
A. A meeting in Mr. Mott's office, and the preparation of a four-page report
|
|
of investments supposedly made for Miss Minter, of an accounting of funds
|
|
due her.
|
|
Q. What particular circumstances concerning that matter and this report
|
|
caused you to feel that way?
|
|
A. Mr. Mott, after looking over that statement, said "That is fine, so far as
|
|
the statement of the securities purchased for Miss Minter is concerned,
|
|
but her attorney is anxious to know about the Laughlin Park property and
|
|
Casa Margarita, and the property at 721 New Hampshire. What about that?"
|
|
and Mrs. Shelby turned to the statement and said, "Mr. Henry has taken
|
|
full account of that..." and it showed that in the years from 1920 to 1923
|
|
that Miss Minter could never have had the money to buy the Laughlin Park
|
|
property which had just sold for $185,000.00.
|
|
Q. In other words, by means of this chart, which you yourself prepared, you
|
|
were fortified in a position which wiped out any possibility of Miss
|
|
Minter being entitled to any part of that $150,000.000 profit made on that
|
|
property?
|
|
A. Yes.
|
|
Q. When you prepared the chart, did you have any such thing in mind?
|
|
A. I did not.
|
|
Q. Did you know that Mrs. Shelby was going to use it for any such purpose?
|
|
A. I did not.
|
|
Q. This lawsuit and this trouble went on for a period of several years, did
|
|
it not, between Miss Minter and Mrs. Shelby?
|
|
A. Yes, it lasted from 1920 up until the final lawsuit, which I don't think
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was dismissed until February of 1928.
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Q. During that time you were called upon to see Mr. Mott, Mrs. Shelby's
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attorney?
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A. Yes.
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Q. And Mr. O'Melveny, Miss Minter's attorney?
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A. Yes.
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Q. ...And go over these various charts you had prepared?
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A. I did.
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Q. Were there various legal matters taken up by Mrs. Shelby with you, at
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which time she told you she would not discuss them with anybody else,
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other than you, and did you perform services as the result of those
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things?
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A. I did, yes.
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THE COURT: I have come to the conclusion that Mrs. Shelby's handling of her
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daughter's affairs was not for the best interest of the daughter, but in
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effect she was feathering her own nest at her daughter's expense. Did you
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confide that discovery to Miss Minter?
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A. Did I?
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Q. Yes, did you tell Miss Minter about it?
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|
A. No.
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Q. Did you go to the District Attorney's office with any information that
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might lead to any investigation?
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A. I did not.
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Q. You continued to work for Mrs. Shelby and aid her in her schemes?
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|
A. Well, if Your Honor please --
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Q. Can't you say "yes" or "no"?
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A. I worked with Mrs. Shelby.
|
|
...
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Q. The thing I cannot understand is this: if you felt that Mrs. Shelby owed
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|
you money, and I can very well understand your feeling that, considering
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|
all the time you had put in on her affairs, why you didn't ever ask her
|
|
for money, or render her a bill.
|
|
A. Had I asked Mrs. Shelby for five cents, in connection with that matter, in
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|
view of what had transpired so far as the income tax and the rest of it
|
|
was concerned, Mrs. Shelby would have looked on me as a blackmailer.
|
|
Q. That is your conclusion.
|
|
A. My conclusion, yes, but I had had to talk to her about her own attorneys,
|
|
one after the other, about real estate men that dealt with her, about
|
|
moving picture people who had dealt with her, about her own daughter, and
|
|
in no single case did I ever find one word of appreciation for a service
|
|
rendered where money had been paid for it, and in every case did I find an
|
|
effort to avoid payment. I did have, so far as the account was concerned,
|
|
the desire to maintain that account for the house; the house looked to me
|
|
for the maintenance of it as a matter of business. On the other hand,
|
|
this long period of association that I had with her, the various channels
|
|
into which it carried me, all that Mrs. Shelby saw in that was -- well,
|
|
what she saw in it I cannot tell you, unless she seemed to think it was a
|
|
beautiful friendship of some kind.
|
|
...
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|
Q. Did Mrs. Shelby authorize you to deposit various and sundry amounts of her
|
|
money in your own account?
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|
A. She did.
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|
Q. In your personal account?
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|
A. Yes.
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|
Q. Not even a trustee?
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|
A. Not even a trustee. I made checks out, made them personally, Leslie
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|
Henry, without "trustee."
|
|
Q. Then you took checks and drew them out of that account and made them
|
|
payable to the fictitious persons and deposited them to your own account,
|
|
didn't you?
|
|
A. I don't understand exactly what you mean.
|
|
Q. You took money out of these so-called fictitious accounts and took
|
|
proceeds from time to time and put the amounts in your own account?
|
|
A. What fictitious accounts are you referring to? There were no fictitious
|
|
accounts.
|
|
Q. How about the name of Landis?
|
|
A. Those were names of persons through whom Mrs. Shelby purchased securities
|
|
for herself and her daughter, Margaret Fillmore.
|
|
Q. You took money out of the Landis account by check --
|
|
A. Not at all.
|
|
Q. How was it taken out?
|
|
A. It was Mrs. Shelby's own money used for the purchase of those securities
|
|
and when those securities were surrendered to Mrs. Shelby in the name of
|
|
the fictitious persons, the receipts for the bonds bearing the names of
|
|
the fictitious persons were signed by Mrs. Shelby herself or her daughter
|
|
Margaret.
|
|
Q. In many instances those checks were endorsed by your secretary, Miss
|
|
Baber?
|
|
A. I don't quite understand you.
|
|
Q. You don't follow me?
|
|
A. No. Let me ask you this: do you mean dividend checks received in the
|
|
names of fictitious persons on stock?
|
|
Q. That is correct.
|
|
A. Exactly.
|
|
Q. Yes.
|
|
A. Those were received in the names of fictitious persons: they were the
|
|
property of Mrs. Shelby, and the fictitious person's name was endorsed,
|
|
and Miss Baber initialed it or I did and deposited it, and the funds
|
|
forwarded to Mrs. Shelby.
|
|
Q. What happened to the funds when the check was endorsed?
|
|
A. It was deposited in my account, the account of L. B. Henry, Trustee.
|
|
Q. In many instances, it was your personal account, wasn't it?
|
|
A. Oh, yes.
|
|
Q. And how did you, in your own account, distinguish between the assets of
|
|
Mrs. Shelby's account and your own?
|
|
A. It was difficult to establish.
|
|
Q. It was almost like a family affair, wasn't it? You put her money in your
|
|
account, and you just used it when you wished?
|
|
A. Mrs. Shelby, at the time you are referring to, was in Europe, and the
|
|
funds advanced to her, or to her daughter, were on her own order, those
|
|
funds made available to her as she required them. They were not supposed
|
|
to be in the account of Blyth & Company, but they were supposed to be in
|
|
my personal possession. She knew about that, and knew I was the purchaser
|
|
of drafts forwarded to her in France.
|
|
Q. There was no written agreement between you and Mrs. Shelby for the
|
|
transaction of her business?
|
|
A. There is enough -- no, there was no written agreement.
|
|
Q. At the time she began to transact business with you, she did not agree to
|
|
pay you a salary, or retainer?
|
|
A. Not at all.
|
|
Q. Then your own statement that she had not paid you anything was -- the fact
|
|
she did not pay you anything, was not the refusal to live up to any
|
|
agreement on her part?
|
|
A. No.
|
|
Q. There never was any understanding between you and Mrs. Shelby with respect
|
|
to payment for your services?
|
|
A. None.
|
|
Q. And as the Court asked you at the inception of this hearing, you never
|
|
tendered an account to her asking her to pay for any of these services?
|
|
A. Exactly.
|
|
...
|
|
THE COURT [after rendering a verdict]: Now, there is just one other
|
|
thing that I feel it is my duty to say in this connection, gentlemen.
|
|
In summing up the matters set forth in the Probation Officer's
|
|
report, and in referring to the matters, or some of the matters contained
|
|
in the deposition, the Court has had occasion to say that it appears
|
|
therefrom that Mrs. Shelby is just as culpable in one way as Mr. Henry is
|
|
in another. I make that statement, however, solely by reason of the
|
|
statements set forth in the Probation Officer's report and the statements
|
|
made by Mr. Henry, and also from some material in letters attached to the
|
|
deposition in the civil case, which letters were written by Mrs. Shelby to
|
|
Mr. Henry. Mrs. Shelby, of course, is not on trial here, but naturally
|
|
her name has had to be brought into this matter and I don't want anything
|
|
I have said to be regarded as condemnation by the Court of someone not
|
|
before the court on trial. I do say this, however, that sufficient has
|
|
developed here that I believe it to be the District Attorney's duty to
|
|
make a very thorough investigation, either through his own staff of
|
|
investigators, or by referring the matter to the Grand Jury of this
|
|
county, to determine whether or not sufficient evidence upon which to base
|
|
an information or an indictment against Mrs. Shelby in connection with the
|
|
use by her of funds belonging to her daughter, Mary Miles Minter, if it
|
|
develops that has been done, can be obtained. I think the District
|
|
Attorney should have such an investigation made, and I think it is the
|
|
duty of the District Attorney, and I request him to perform that duty, to
|
|
take the matter up with the Federal authorities, in order that they may
|
|
make such investigation as they may deem proper with respect to the
|
|
alleged violation of the federal income tax law on the part of Mrs.
|
|
Shelby, or possibly on the theory of conspiracy between Mrs. Shelby and
|
|
Mr. Henry, for the purpose of defeating that law and evading the payment
|
|
of those taxes. I don't say that I am convinced that Mrs. Shelby has been
|
|
guilty of those things; she isn't on trial, but I do think that sufficient
|
|
has developed by the statements of Mr. Henry and by the letters that Mrs.
|
|
Shelby herself has written to make such an investigation not only proper
|
|
but desirable. I therefore make that request to the District Attorney
|
|
that he have those matters gone into very thoroughly...
|
|
*****************************************************************************
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|
*****************************************************************************
|
|
For more information about Taylor, see
|
|
WILLIAM DESMOND TAYLOR: A DOSSIER (Scarecrow Press, 1991)
|
|
Back issues of Taylorology are available via Gopher or FTP at
|
|
gopher.etext.org
|
|
in the directory Zines/Taylorology
|
|
*****************************************************************************
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