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Appeal from District Court, Potter County; H. L. Umphres, Judge.
Mike C. Le Master was convicted of unlawfully becoming indebted to a state bank of 
which he was president, and appeals. Reversed and remanded, and rehearing denied.


In the prosecution of a state bank president for unlawfully becoming indebted to the 
bank by being a member of a partnership which borrowed money from the bank in the name
of two others, it was error to admit evidence of transactions after the alleged offense 
tending to show a partnership at that time.


An instruction to convict if defendant became unlawfully indebted to the bank of which 
he was president, without stating that he must have become indebted through a secret 
partnership alleged in the indictment, held erroneous.


Evidence in the prosecution of bank president for unlawfully borrowing money through 
secret connection with a partnership to which the loan was made, held insufficient to 
show that defendant was a partner, and through the partnership became indebted to the 
bank.


Indictment held to sufficiently charge the defendant bank president in a general way with 
becoming indebted to the bank, but not to authorize admission of evidence of transactions 
showing his indirect liability through membership in a firm to which the loan was made.


In prosecution of bank president for unlawfully borrowing money from bank, held, that the 
court should have limited evidence of subsequent transaction to its effect as tending to 
show existence of partnership of which president was a member, declared on in the indictment.


Permitting the state to withdraw evidence held error, regardless of whether the evidence 
was introduced by the state or elicited by accused on cross- examination of the state's 
witness.

In prosecution of bank president for unlawfully borrowing money through a loan made to a 
firm of which he was a secret member, held error to instruct on the law of partnership 
without applying such law to the facts.

Error in an instruction in a case wherein accused was convicted required a reversal, where 
it was speculative as to what the verdict would have been under a correct instruction.


Failure to instruct that defendant should be acquitted of unlawfully borrowing money 
from a state bank of which he was president, through his secret membership in a firm, 
unless the partnership existed as alleged, held fatal error where the evidence as to 
the existence of the partnership was conflicting.
**830 *578 A. A. Lumpkin, of Amarillo, and Cooper & Merrill, of Houston, for appellant.
*579 Martin, Kinder, Russell & Zimmermann, of Plainview, and C. C. McDonald, Asst. Atty. 
Gen., for the State.


DAVIDSON, P. J.
Appellant was convicted of becoming indebted to a state bank, of which he was president, 
in the sum of $8,000.
The first count in the indictment sets out the particulars of the transaction relied upon 
by the state, but this count was discarded by the court in submitting the case to the 
jury, and he submitted only the second count, omitting the third count. The count 
submitted charged that appellant was duly elected, qualified, and acting president, and a 
member of the board of directors of the First State Bank of Amarillo, a banking corporation 
theretofore incorporated and engaged in the business as a state bank in the city of 
Amarillo under the authority of the laws of the state, and as said officer he became 
indebted to the bank in the sum of $8,000, without the consent of the majority of the 
board of directors, and without having the matter duly registered or inscribed upon 
the minutes of the bank.
The indictment is attacked in that it fails to apprise the defendant of the nature and 
circumstances of the case and wherein he had violated the law. He invokes the statutory 
rule, which is settled, that everything necessary to be proved must be alleged in the 
indictment. The writer is of opinion this indictment is too general and does not 
specifically notify the defendant of the transaction for which he is to be tried, and 
that the only allegation in the submitted count is of a very general nature and to the 
effect that he became indebted to the bank in the sum of $8,000 without proper authority 
from the board of directors. The writer is of opinion, without going into a discussion 
at any length of the matter, that the count submitted to the jury is not, within the 
contemplation of the law, sufficient. The general allegation that appellant had become 
indebted to the bank in the sum of $8,000 is too *580 general. There is a want of 
particularity about it, and it does not inform the defendant of what transaction he 
is charged. There is nothing to describe the manner of indebtedness, or how it came 
about, so as to notify defendant of the matters and transactions that he was to meet 
by the proof. The first count set out particularly these different matters and gave 
appellant notice of how and when and the circumstances attending the indebtedness, 
and how it came about, but the court did not submit this to the jury. This much is 
said in a general way.
It will be noticed upon investigation of the case that all the facts to be relied 
upon by the state were known at the time the indictment was presented, and as to 
how the indebtedness was created, if there was any. The facts in this connection, 
as relied upon by the state, were made through the testimony of an accomplice, 
McSpadden. His testimony, substantially, is that Morris came and notified him of 
the fact that he could buy an optional cattle contract, the cattle being in Arizona; 
that he thought this option could be bought at $5,000, and if he had the money the 
trade could be made and profit made out of it by selling this contract for an enhanced 
value to other parties. His object in calling McSpadden was that McSpadden might enable
 him in some way to get the money. They discussed it, and McSpadden, not having the money,
suggested they see appellant, who was president of the State Amarillo Bank, and get him 
to furnish the money. Appellant was called, and McSpadden's testimony is to **831 the effect 
that after discussing it appellant agreed to furnish the money; Morris and McSpadden 
signing the note at the bank for $5,000. There was something said to the effect that 
it was not probable that the option could be bought at $5,000; that it might take more 
money. McSpadden further testified that appellant, Morris, and himself agreed that 
Morris and McSpadden were to sign a note to the bank and have the money transferred 
to their credit, and that appellant was to be a partner in the profits and maybe 
losses, but his name not to be known in the matter, and in this way that appellant 
became a partner in the purchase of the cattle option contract. He also testified 
that there was no other cattle contract, in contemplation or discussed between them at 
the time. His language was: 
"Yes, sir; it was agreed that Mike C. Le Master was to advance the money on the condition 
that I went along and used what influence I possessed to keep Morris from getting drunk, 
and Gus agreed not to get drunk any more, and straighten up. There was nothing said at 
that time about any other transaction. We were to do the best we could. We did not know 
exactly how much money it would take, but we were to let Mr. Le Master know. We wanted 
to get an option on the cattle for spring delivery and then sell the option. The agreement
 was that Mr. Le Master was to advance the money to be paid as a forfeit on the cattle 
and Morris and myself were to go out there and get a contract and purchase them and sell 
the contract."
This occurred on the 26th day of December, and on the 27th a note *581 was executed by 
Morris and McSpadden to the bank, appellant's name not appearing in any of these matters. 
Upon signing the note Morris and McSpadden left Amarillo and went to El Paso. They there 
got in touch with the owners of the cattle and bought the option. The owners of the cattle, 
however, required $8,000 instead of $5,000. By wire appellant was notified of that fact. 
He took the Morris and McSpadden note and wrote above the 5,000 3,000. The intention it 
seems was to make the note for $8,000 instead of $5,000. The deal was made, and in three
 or four days the option was transferred at a profit of considerable amount and closed
 out, and Morris and McSpadden came back to Amarillo and deposited the money in the state 
bank at Amarillo, and on the 6th of January took up and paid off the note. Appellant was 
not in Amarillo at the time, but was in Ft. Worth. He knew nothing about the payment of 
the note until later information was conveyed to him. Morris testified in many respects 
as did McSpadden, but he denied that Le Master had or was to have any interest in the 
option contract, and was in no way connected with the profits or losses. In fact, he was 
in no sense, or in no way interested in the contract, nor was he to receive any profits,
 dividends, or pay any losses. Appellant testified in his own behalf as did Morris. 
After returning to Amarillo and taking up the note McSpadden and Morris, without the 
knowledge of appellant, went to New Mexico with a view of purchasing other cattle. 
Appellant had nothing to do with this and knew nothing of this matter.
[1][2] There were other subsequent cattle deals by McSpadden and Morris which the 
state undertook to connect appellant with by McSpadden's testimony. Both Morris and 
appellant denied that there was any partnership. There was evidence introduced by 
the state to show these subsequent transactions over the protest and objection of 
appellant. We are of opinion these objections were well taken. The court also failed 
to limit this testimony. Having admitted the testimony, the court should have limited 
it. It was not in reference to the original case and could not be, and if it was 
introduced for any purpose it was to show that by reason of the subsequent transactions 
between the parties that they were partners in the original transaction declared 
upon in the indictment. As before stated, we are of opinion these matters should 
not have gone before the jury, but having been permitted to be introduced, the court 
should have limited them to their proper office in his charge. The state's testimony 
as well as that for the defendant all agree that if appellant had any connection 
with any of these transactions it was the one based on the note, and the sum finally 
drawn from the bank of $8,000, which was paid back within ten days by Morris and 
McSpadden. McSpadden says there was no other transaction in contemplation or under 
discussion. Morris uses the same language and testifies to the same thing, so does 
appellant. So it would be evident that subsequent transactions if entered into 
independent or disconnected with *582 the first, not growing out of or related to 
it in any way, could not come into the case as testimony on the question of partnership 
in the first transaction.
There was nothing said, as McSpadden, Morris, and Le Master all testify, as to any 
other trade either then or in contemplation for future dealings. The fact that later 
they may have made other trades, or that appellant may have become interested in later 
transactions, could not afford testimony proving a partnership in a single transaction 
which begun and ended with itself. These latter matters had no relation to or bearing 
upon the case; they did not serve to identify or develop the case; were not res gestae, 
nor could possibly reach the question of system. The matter is here dealt with generally 
without going into details as shown by defendant's bills of exception with reference to 
these matters. There are several of these matters, all of which upon another trial 
should be excluded.
[3] The state introduced Mr. Mood as a witness, and was proving by him some matters 
that occurred on the trial of a civil case in which he took down the testimony as 
stenographer. It seems they were seeking **832 to prove the testimony of apellant 
while testifying in his own behalf on the trial of the civil case. There are several 
pages of these questions and answers set out in the bill so as to make it clear and 
plain. It developed in his testimony that on the trial of the civil case appellant 
won; that the jury found a verdict in his favor. When the testimony of Mr. Mood was 
complete, or they had become satisfied about it, the state moved to exclude all his 
testimony from the consideration of the jury. The appellant excepted. The state's 
counsel put their motion to withdraw the testimony on the ground that they did not 
purpose to introduce the record in the civil case. These matters are generally stated, 
and not the details. We are of opinion that the objections of the defendant were well 
taken. The testimony should have remained before the jury. Among the early cases on this 
question in Texas is Speight v. State, 1 Tex. App. 552. The first section of the 
syllabus of that case sufficiently states the question: 
"If the accused elicits testimony adverse to himself, he must take the consequences; 
and he is not entitled to have it withdrawn from the jury because part of the same 
proof, when offered by the prosecution, had previously, on his objection, been excluded
 by the court."
In that case the defendant moved to exclude testimony introduced by himself that he 
thought adverse to him. The state would occupy no better position under the same 
circumstances than would appellant. The testimony, as said in the Speight Case, if 
illegal at all, was his own testimony, and we opine he ought to be held to take the 
consequences, and could not exclude it simply because it was found to be unfavorable 
to his case. In Moore v. State, 6 Tex. App. 563, the question came again. The headnote
 of that opinion is as follows: 
"If the defendant elicits testimony adverse to himself, he must abide the consequences; 
and that a state's witness, upon cross-examination by the defendant, testified to a 
confession made after arrest, is not cause for *583 a new trial, as having improperly 
gone to the jury."
The doctrine was approved in Allen v. State, 8 Tex. App. 67, and Robins v. State, 9 Tex. 
App. 671. In the case of McDade v. State, 27 Tex. App. 641, 11 S. W. 672, 11 Am. St. 
Rep. 216, the question again came. At page 689 of that report (11 S. W. 675) the court 
said: 
"In the seventh assignment of error it is complained that 'the court failed to instruct 
the jury that the declaration of Allchin to Felker that threats had been made against 
him by defendant was not any evidence that such threats were made, and that they should 
not consider such statement as a part of the evidence for that purpose, when it was 
expressly requested so to charge by defendant.' This evidence was drawn out by defendant 
upon the direct examination of his witness Felker, and neither the prosecution nor the 
court was responsible for it. If the defendant elicits testimony adverse to himself he 
must abide the consequences"--citing Speight v. State, 1 Tex. App. 551, and Moore v. 
State, 6 Tex. App. 562.
The state having introduced Mr. Mood as a witness, and his testimony being introduced 
without objection from the defendant, the state could not, because the testimony was 
somewhat damaging to its case, withdraw it from the jury. The state introduced it and 
could not withdraw it over objection of appellant. The above cited cases seem to settle 
that question.
There are exceptions to the second subdivision of the charge on various grounds. This 
subdivision limits the jury to the second count, and charged if the jury should find 
appellant was an officer duly elected, qualified, and acting president and a member of 
the board of directors of the state bank, and that the bank was incorporated, etc., and 
he became indebted to that bank in the sum of $8,000 without proper authority from the 
board of directors, they should convict him. It will be noticed in this connection that 
this charge submits the fact that he was president and one of the board of directors. 
The indictment, while it mentioned the fact that he was an officer and member of the board 
of directors, it did not attempt to charge him with being guilty of violating the state law
 as a director, but only as president or acting president. The president cannot borrow any 
amount of money from the bank without proper authority. The indictment did not undertake 
to charge any matter that would make him criminally liable as a director. He was charged 
as the president of the bank, and not as a member of the board of directors. If he was 
sought to be convicted as a director, then the charge should have specifically brought 
that matter to the attention of the jury.
[4] It will be noticed that this charge does not undertake anywhere to inform the jury 
as to the relation of appellant to the amount of money or the circumstances by which he
 could have possibly been indebted to the bank. All the testimony and the indictment 
excludes the idea that his name was on the bank books. The proof all shows that it was
not, and that there was no contract and no evidence in the bank books, records, or 
papers that his name was in any way connected with *584 any indebtedness to the bank. 
The only way by which it was sought to hold him liable was through the testimony of 
McSpadden that he was a secret partner in the profits and losses that might arise in 
the option contract which Morris and McSpadden accomplished and for which the bank is 
supposed to have furnished the $8,000. In order, therefore, to hold appellant guilty, 
the charge should have conformed to the facts, and in order to hold him the state would 
have to show that he was guilty under the circumstances detailed by the state's witness 
as partner. In other words, in order to convict appellant the jury should have been 
instructed that they would have to find that appellant became indebted to the bank by 
means of this partnership matter **833 about which McSpadden testified. This was the 
state's case, and it was all the state had or put into the trial. In this same connection 
it may be well enough to notice that section 3 of the charge is a general statement of 
the law of partnership as understood by the court in giving his charge, and it reads as 
follows: 
"A partnership is formed by two or more persons placing their money, effects, labor and 
skill or some one or all of them in business with the purpose and intention of dividing 
the profit and bearing the loss in certain proportions and may be made and entered into 
either by express agreement, oral or written, of those forming the partnership, or it 
can result from the conduct of the parties in relation to the business. Those forming 
the partnership are partners. When a partnership is formed each individual partner in 
relation to partnership business in law binds himself and each of the other members of
the partnership jointly and severally for any partnership obligations made in furtherance 
of the partnership enterprise and within the scope of the partnership business."
[5][6] This is all the charge with reference to partnership. It will be seen that it has 
no reference to and is not connected back with the other charge; nor does the other charge
 refer to partnership, nor is the jury charged that if appellant was a partner within the
 terms of the law with McSpadden and Morris, and under that partnership there was or 
could be an indebtedness created for which appellant would be responsible, they might 
convict. This definition of partnership is thrown into it in a general way without any
 application of the rule of partnership to the facts in the ease, or facts of the case 
to the partnership. In the second clause of the charge which submits the law for 
conviction the partnership is not mentioned. Under the facts it was all the state 
had upon which to predicate a conviction. In the charge on partnership it does not
 inform the jury that if appellant connected himself with this indebtedness by means 
of this partnership, and was responsible under the terms of the contract by reason of
 this partnership, that he might be liable for the indebtedness, but instructs the jury
 to convict for the indebtedness in the second clause, and gives a general definition 
without any application of the law to the facts of partnership. If appellant was 
guilty at all it was under McSpadden's *585 testimony to the effect that he agreed 
to divide the profits and losses and carry the partners under the contract, and that
he did furnish the money from the bank. The state admits error in the charge on 
partnership as given, but asserts the error was favorable to appellant. It was error, 
and we think harmful. The error is conceded; the verdict was guilty. What may have 
been the verdict under a correct charge is speculative, but it is not speculative 
that he was found guilty.

[7] There is another phase to this charge that is fatal. McSpadden swore to this 
partnership as set out in the early part of the opinion. Morris and appellant denied 
it emphatically. There was an issue sharply drawn by this testimony as to whether 
this partnership existed or not. The bulk and the weight of the testimony was that 
the partnership did not exist. The jury so found by their verdict in the civil 
proceeding and exonerated appellant as partner and found in his favor in the suit 
against himself and Morris by McSpadden. This was shown by the testimony of Mood. 
Now the converse of the proposition, had the partnership been properly charged, 
was if the jury should find there was no partnership existing between these parties 
at the time, they should find in his favor and acquit him. Such omission is fatal 
error.
[8] It is contended that the evidence is not sufficient to show that appellant was 
a partner, and that through the partnership became indebted to the bank. The writer 
is of opinion that this proposition is correct. McSpadden testified, and he alone, 
that appellant was to be connected with the profits or losses, and Morris testified 
positively that such was not the case, and that he and McSpadden alone were 
responsible, and that he was to get two-thirds of the profits and McSpadden one-third, 
and that appellant had nothing to do with it. McSpadden testified they were to be 
equal partners, each getting a third. There were some telegrams passing between the 
parties with reference to this $8,000 option contract introduced by the state, but 
these did not show that a partnership existed. It was with reference to the fact 
that the $5,000 first agreed upon and mentioned in the note was not sufficient, and 
appellant agreed to furnish the extra $3,000 from the bank, and later wrote it in the 
note. The note was payable to the bank, and appellant was in no way concerned with it,
 and if he was connected in any manner with it it was by reason of McSpadden's 
testimony, which appellant and Morris both denied. As it occurs to the writer, there 
is no testimony which supports or corroborates McSpadden in his statement. If, 
however, the state should further prosecute, the testimony should be limited to 
the transaction about which the witnesses testified and not extend it to subsequent
 contracts in no way connected with or related to the one under investigation.
The judgment is reversed, and the cause remanded.


*586 On Motion for Rehearing.
[9] On a former day of the term the judgment was reversed and the cause remanded. 
The state contends in a motion for rehearing that the court was in error in holding 
that the indictment was not valid. It was stated that the general allegation that 
appellant had become indebted to the bank in the sum of $8,000 was not specific enough
 and entirely too general; that it was wanting in particularity, and failed to inform 
the defendant of the transaction, for which he was **834 to be tried. The writer, 
upon further investigation, still adheres to his original views. The majority, 
however, do not agree with him. Under the view of the majority the former opinion 
will be modified and the indictment held sufficient to charge appellant in a 
general way with becoming indebted to the bank in the specified sum. The indictment 
contained three counts. The first set out the facts attending the transactions 
by which it was sought to connect appellant with violating the banking law, he 
being president of the bank. That count, however, was not submitted to the jury 
by the court, and passed out of the case. The second count was submitted in which 
the general allegation was made that appellant became indebted to the bank of 
which he was president. Under these allegations the state would be required to 
prove that appellant had become directly indebted to the bank, and that proof of 
the matters and facts set up by the state in its evidence would not meet the count 
upon which the conviction was obtained, which evidence was to the effect that 
appellant and McSpadden and Morris entered into an agreement by which they were to 
buy cattle and the bank furnish the money, predicated upon a note given by McSpadden 
and Morris, and the money transferred on the books of the bank to their credit, and 
that appellant would be a partner in the profits and losses of the cattle transaction 
for which the note was given to secure funds in payment of the cattle. Appellant's 
name does not appear anywhere either in the note or on the bank books, and on the 
face of the transaction he is not directly shown to be connected with any of those 
matters. In other words, it was a secret partnership, if it existed. This was 
perhaps the most serious question in the case so far as the evidence was concerned. 
So following the views of the majority, the count will be held sufficient to 
charge an offense, but not to admit evidence of the transactions showing an 
indirect liability as sought by the state; that this would be a variance 
between the allegation in the count submitted and the evidence, and therefore the
 evidence did not support the finding of the jury under the count and the charge 
submitting that count.
In regard to what was said in the original opinion with reference to a bill of 
exceptions which contains matters and things set out through the witness Mood, the 
state contends that the opinion was *587 in error in holding that state's counsel 
was responsible for withdrawing all the testimony of Mood from the jury. The 
contention is that the state did not withdraw the statements of Mood on cross-examination 
by appellant's counsel to the effect that appellant had won the civil suit. Strictly 
and technically speaking this contention may be correct. The bill in regard to this 
matter shows that when Mood was placed upon the stand and the various questions asked 
and answers elicited, he was then passed to appellant's counsel for cross-examination,
 and, among other things, it was elicited from him that appellant had won the civil 
suit in which McSpadden sued Morris and himself for settlement of alleged partnership 
matters, which involved the $8,000 matter. State's counsel objected to this cross-examination 
as to the matters elicited from Mood, but the court overruled the objection upon the
 ground that the state had drawn out the matter, and this was a legitimate cross-examination.
 When this occurred the bill of exceptions recites that: 
"Thereupon the state rested, and stated they desired to consult a moment, and within
 a few minutes returned to the court, and through their private prosecutor, Mr. Martin,
 stated to the court, 'We are not going to introduce any of the record, and we ask that 
the court strike out the testimony of Mr. Mood in regard to it.' (The record referred to
 being the transcript of what purported to be the statement of facts in the case of W. A.
 McSpadden v. R. A. Morris et al., in which the state's counsel had attempted to prove up 
by A. M. Mood for the purpose of offering the same and parts thereof to impeach the 
defendant as a witness.) The court then stated, 'What part of the record do you have 
reference to?' Mr. Martin stated in reply to such question, 'All of Mr. Mood's testimony 
identifying the record, since we are not offering any of the record, that evidence 
would serve no purpose. We do not intend to offer the record, and we would like to have 
this testimony stricken from the record, since it does not tend to prove any issue in 
this case."'
Thereupon defendant's counsel objected to the withdrawal of any of the testimony by the 
state for the reason they had offered the same, and when it was proved harmful to them 
they desired to withdraw it, and that it was material and beneficial to the defendant, 
and that they had no power to withdraw it when they had offered it themselves, and they
 considered it harmful to then be permitted to withdraw it. The court, not specifically 
ruling on the objection, turned to the jury and instructed them as follows: 
"I will strike out and instruct the jury not to consider the testimony of Mr. Mood."
In the former opinion the writer was under the impression that, legally speaking, state's 
counsel were responsible for being really the moving parties in getting the matter before 
the jury as well as to its final withdrawal or exclusion after putting it in before the 
jury; that it was too late for the state to withdraw it after cross-examination of the 
witness in reference to the matter they had drawn out; and that their motion, had it 
been sustained, would practically have operated to withdraw all the testimony of the 
witness Mood, *588 whether it was direct or cross-examination. If the writer was in 
error about this, then counsel for the state may not have been altogether responsible 
for the withdrawal of Mood's testimony favorable to the defendant. But the matter was 
so intermingled--the direct and cross examination taken--with the remarks of the court
 it occurred to the writer that the effect **835 of the state's motion was to withdraw
all the testimony, especially in view of the fact that this motion was not made until 
after Mood developed the fact that appellant had won the civil suit. This testimony 
seems to have been introduced by the state for the purpose of laying some predicate 
with reference to the case and the testimony of defendant in the civil suit, but when
 Mood testified to the fact that appellant had been eliminated from that record by the 
verdict of the jury, counsel moved to exclude or withdraw the testimony from the jury. 
State's counsel insist strenuously that they did not undertake to withdraw the testimony 
introduced on cross-examination, and that they were only undertaking to withdraw that 
which they introduced. Without going into any detail about the matter, or any discussion, 
we place it as the record does, so that it will be fully understood and its effect and 
result from the whole bill of exceptions may not be unjust to either side. The result, 
however, would be the same. This testimony was withdrawn from the jury, and under the 
circumstances it should not have been withdrawn. It is deemed unnecessary to discuss 
the other matters.
Finding no reason why the motion for rehearing should be granted, it is ordered that 
said motion be overruled.
Tex.Crim.App. 1917.
LE MASTER v. STATE.
196 S.W. 829, 81 Tex.Crim. 577
END OF DOCUMENT

================

Appeal from District Court, Potter County; H. L. Umphres, Judge.
Mike C. Le Master was convicted of unlawfully becoming indebted to a state bank of 
which he was president, and appeals. Reversed and remanded, and rehearing denied.


In the prosecution of a state bank president for unlawfully becoming indebted to the 
bank by being a member of a partnership which borrowed money from the bank in the name
 of two others, it was error to admit evidence of transactions after the alleged offense
 tending to show a partnership at that time.

An instruction to convict if defendant became unlawfully indebted to the bank of which
 he was president, without stating that he must have become indebted through a secret 
partnership alleged in the indictment, held erroneous.

Evidence in the prosecution of bank president for unlawfully borrowing money through 
secret connection with a partnership to which the loan was made, held insufficient to
 show that defendant was a partner, and through the partnership became indebted to 
the bank.


Indictment held to sufficiently charge the defendant bank president in a general way with
 becoming indebted to the bank, but not to authorize admission of evidence of transactions 
showing his indirect liability through membership in a firm to which the loan was made.


In prosecution of bank president for unlawfully borrowing money from bank, held, that the
 court should have limited evidence of subsequent transaction to its effect as tending to
 show existence of partnership of which president was a member, declared on in the indictment.


Permitting the state to withdraw evidence held error, regardless of whether the evidence was 
introduced by the state or elicited by accused on cross- examination of the state's witness.

In prosecution of bank president for unlawfully borrowing money through a loan made to a 
firm of which he was a secret member, held error to instruct on the law of partnership 
without applying such law to the facts.


Error in an instruction in a case wherein accused was convicted required a reversal, 
where it was speculative as to what the verdict would have been under a correct instruction.

Failure to instruct that defendant should be acquitted of unlawfully borrowing money from 
a state bank of which he was president, through his secret membership in a firm, unless 
the partnership existed as alleged, held fatal error where the evidence as to the 
existence of the partnership was conflicting.
**830 *578 A. A. Lumpkin, of Amarillo, and Cooper & Merrill, of Houston, for appellant.
*579 Martin, Kinder, Russell & Zimmermann, of Plainview, and C. C. McDonald, Asst. Atty. 
Gen., for the State.


DAVIDSON, P. J.
Appellant was convicted of becoming indebted to a state bank, of which he was president, 
in the sum of $8,000.
The first count in the indictment sets out the particulars of the transaction relied upon
by the state, but this count was discarded by the court in submitting the case to the 
jury, and he submitted only the second count, omitting the third count. The count 
submitted charged that appellant was duly elected, qualified, and acting president, 
and a member of the board of directors of the First State Bank of Amarillo, a banking 
corporation theretofore incorporated and engaged in the business as a state bank in 
the city of Amarillo under the authority of the laws of the state, and as said officer 
he became indebted to the bank in the sum of $8,000, without the consent of the 
majority of the board of directors, and without having the matter duly registered 
or inscribed upon the minutes of the bank.
The indictment is attacked in that it fails to apprise the defendant of the nature 
and circumstances of the case and wherein he had violated the law. He invokes the 
statutory rule, which is settled, that everything necessary to be proved must be 
alleged in the indictment. The writer is of opinion this indictment is too general
 and does not specifically notify the defendant of the transaction for which he is to 
be tried, and that the only allegation in the submitted count is of a very general 
nature and to the effect that he became indebted to the bank in the sum of $8,000 
without proper authority from the board of directors. The writer is of opinion, w
ithout going into a discussion at any length of the matter, that the count submitted 
to the jury is not, within the contemplation of the law, sufficient. The general 
allegation that appellant had become indebted to the bank in the sum of $8,000 is 
too *580 general. There is a want of particularity about it, and it does not 
inform the defendant of what transaction he is charged. There is nothing to describe 
the manner of indebtedness, or how it came about, so as to notify defendant of 
the matters and transactions that he was to meet by the proof. The first count set 
out particularly these different matters and gave appellant notice of how and when 
and the circumstances attending the indebtedness, and how it came about, but the 
court did not submit this to the jury. This much is said in a general way.
It will be noticed upon investigation of the case that all the facts to be relied 
upon by the state were known at the time the indictment was presented, and as to 
how the indebtedness was created, if there was any. The facts in this connection, as 
relied upon by the state, were made through the testimony of an accomplice, McSpadden. 
His testimony, substantially, is that Morris came and notified him of the fact that 
he could buy an optional cattle contract, the cattle being in Arizona; that he thought 
this option could be bought at $5,000, and if he had the money the trade could be made
 and profit made out of it by selling this contract for an enhanced value to other 
parties. His object in calling McSpadden was that McSpadden might enable him in some 
way to get the money. They discussed it, and McSpadden, not having the money, 
suggested they see appellant, who was president of the State Amarillo Bank, and get 
him to furnish the money. Appellant was called, and McSpadden's testimony is to 
**831 the effect that after discussing it appellant agreed to furnish the money; 
Morris and McSpadden signing the note at the bank for $5,000. There was something 
said to the effect that it was not probable that the option could be bought at $5,000; 
that it might take more money. McSpadden further testified that appellant, Morris, and
 himself agreed that Morris and McSpadden were to sign a note to the bank and have the
 money transferred to their credit, and that appellant was to be a partner in the 
profits and maybe losses, but his name not to be known in the matter, and in this way that 
appellant became a partner in the purchase of the cattle option contract. He also testified 
that there was no other cattle contract, in contemplation or discussed between them at 
the time. His language was: 
"Yes, sir; it was agreed that Mike C. Le Master was to advance the money on the condition 
that I went along and used what influence I possessed to keep Morris from getting drunk,
 and Gus agreed not to get drunk any more, and straighten up. There was nothing said at 
that time about any other transaction. We were to do the best we could. We did not know 
exactly how much money it would take, but we were to let Mr. Le Master know. We wanted 
to get an option on the cattle for spring delivery and then sell the option. The agreement 
was that Mr. Le Master was to advance the money to be paid as a forfeit on the cattle 
and Morris and myself were to go out there and get a contract and purchase them and 
sell the contract."
This occurred on the 26th day of December, and on the 27th a note *581 was executed by 
Morris and McSpadden to the bank, appellant's name not appearing in any of these matters. 
Upon signing the note Morris and McSpadden left Amarillo and went to El Paso. They there
 got in touch with the owners of the cattle and bought the option. The owners of the cattle,
 however, required $8,000 instead of $5,000. By wire appellant was notified of that fact. He
 took the Morris and McSpadden note and wrote above the 5,000 3,000. The intention it seems 
was to make the note for $8,000 instead of $5,000. The deal was made, and in three or four
 days the option was transferred at a profit of considerable amount and closed out, and 
Morris and McSpadden came back to Amarillo and deposited the money in the state bank at 
Amarillo, and on the 6th of January took up and paid off the note. Appellant was not in 
Amarillo at the time, but was in Ft. Worth. He knew nothing about the payment of the 
note until later information was conveyed to him. Morris testified in many respects as 
did McSpadden, but he denied that Le Master had or was to have any interest in the 
option contract, and was in no way connected with the profits or losses. In fact, he 
was in no sense, or in no way interested in the contract, nor was he to receive any 
profits, dividends, or pay any losses. Appellant testified in his own behalf as did 
Morris. After returning to Amarillo and taking up the note McSpadden and Morris, without
 the knowledge of appellant, went to New Mexico with a view of purchasing other cattle. 
Appellant had nothing to do with this and knew nothing of this matter.
[1][2] There were other subsequent cattle deals by McSpadden and Morris which the state 
undertook to connect appellant with by McSpadden's testimony. Both Morris and appellant
 denied that there was any partnership. There was evidence introduced by the state to 
show these subsequent transactions over the protest and objection of appellant. We are 
of opinion these objections were well taken. The court also failed to limit this 
testimony. Having admitted the testimony, the court should have limited it. It was 
not in reference to the original case and could not be, and if it was introduced 
for any purpose it was to show that by reason of the subsequent transactions between 
the parties that they were partners in the original transaction declared upon in the 
indictment. As before stated, we are of opinion these matters should not have gone 
before the jury, but having been permitted to be introduced, the court should have 
limited them to their proper office in his charge. The state's testimony as well as 
that for the defendant all agree that if appellant had any connection with any of 
these transactions it was the one based on the note, and the sum finally drawn from 
the bank of $8,000, which was paid back within ten days by Morris and McSpadden. 
McSpadden says there was no other transaction in contemplation or under discussion. 
Morris uses the same language and testifies to the same thing, so does appellant. 
So it would be evident that subsequent transactions if entered into independent or 
disconnected with *582 the first, not growing out of or related to it in any way, 
could not come into the case as testimony on the question of partnership in the 
first transaction.
There was nothing said, as McSpadden, Morris, and Le Master all testify, as to any 
other trade either then or in contemplation for future dealings. The fact that later 
they may have made other trades, or that appellant may have become interested in 
later transactions, could not afford testimony proving a partnership in a single 
transaction which begun and ended with itself. These latter matters had no relation
 to or bearing upon the case; they did not serve to identify or develop the case; 
were not res gestae, nor could possibly reach the question of system. The matter 
is here dealt with generally without going into details as shown by defendant's
 bills of exception with reference to these matters. There are several of these 
matters, all of which upon another trial should be excluded.
[3] The state introduced Mr. Mood as a witness, and was proving by him some matters 
that occurred on the trial of a civil case in which he took down the testimony as 
stenographer. It seems they were seeking **832 to prove the testimony of apellant 
while testifying in his own behalf on the trial of the civil case. There are several 
pages of these questions and answers set out in the bill so as to make it clear and 
plain. It developed in his testimony that on the trial of the civil case appellant
 won; that the jury found a verdict in his favor. When the testimony of Mr. Mood was 
complete, or they had become satisfied about it, the state moved to exclude all his 
testimony from the consideration of the jury. The appellant excepted. The state's 
counsel put their motion to withdraw the testimony on the ground that they did not 
purpose to introduce the record in the civil case. These matters are generally 
stated, and not the details. We are of opinion that the objections of the defendant
 were well taken. The testimony should have remained before the jury. Among the 
early cases on this question in Texas is Speight v. State, 1 Tex. App. 552. The 
first section of the syllabus of that case sufficiently states the question: 
"If the accused elicits testimony adverse to himself, he must take the consequences; 
and he is not entitled to have it withdrawn from the jury because part of the same 
proof, when offered by the prosecution, had previously, on his objection, been 
excluded by the court."
In that case the defendant moved to exclude testimony introduced by himself that he 
thought adverse to him. The state would occupy no better position under the same 
circumstances than would appellant. The testimony, as said in the Speight Case, if 
illegal at all, was his own testimony, and we opine he ought to be held to take the 
consequences, and could not exclude it simply because it was found to be unfavorable
 to his case. In Moore v. State, 6 Tex. App. 563, the question came again. The 
headnote of that opinion is as follows: 
"If the defendant elicits testimony adverse to himself, he must abide the consequences; 
and that a state's witness, upon cross-examination by the defendant, testified to 
a confession made after arrest, is not cause for *583 a new trial, as having 
improperly gone to the jury."
The doctrine was approved in Allen v. State, 8 Tex. App. 67, and Robins v. State, 
9 Tex. App. 671. In the case of McDade v. State, 27 Tex. App. 641, 11 S. W. 672, 
11 Am. St. Rep. 216, the question again came. At page 689 of that report (11 S. W. 675) 
the court said: 
"In the seventh assignment of error it is complained that 'the court failed to 
instruct the jury that the declaration of Allchin to Felker that threats had been made 
against him by defendant was not any evidence that such threats were made, and that 
they should not consider such statement as a part of the evidence for that purpose, 
when it was expressly requested so to charge by defendant.' This evidence was drawn 
out by defendant upon the direct examination of his witness Felker, and neither the 
prosecution nor the court was responsible for it. If the defendant elicits testimony
 adverse to himself he must abide the consequences"--citing Speight v. State, 1 Tex.
 App. 551, and Moore v. State, 6 Tex. App. 562.
The state having introduced Mr. Mood as a witness, and his testimony being introduced 
without objection from the defendant, the state could not, because the testimony 
was somewhat damaging to its case, withdraw it from the jury. The state introduced 
it and could not withdraw it over objection of appellant. The above cited cases seem 
to settle that question.
There are exceptions to the second subdivision of the charge on various grounds. T
his subdivision limits the jury to the second count, and charged if the jury should
find appellant was an officer duly elected, qualified, and acting president and a 
member of the board of directors of the state bank, and that the bank was incorporated,
 etc., and he became indebted to that bank in the sum of $8,000 without proper authority 
from the board of directors, they should convict him. It will be noticed in this connection 
that this charge submits the fact that he was president and one of the board of directors.
 The indictment, while it mentioned the fact that he was an officer and member of the 
board of directors, it did not attempt to charge him with being guilty of violating the
state law as a director, but only as president or acting president. The president cannot 
borrow any amount of money from the bank without proper authority. The indictment did 
not undertake to charge any matter that would make him criminally liable as a director. 
He was charged as the president of the bank, and not as a member of the board of 
directors. If he was sought to be convicted as a director, then the charge should 
have specifically brought that matter to the attention of the jury.
[4] It will be noticed that this charge does not undertake anywhere to inform the 
jury as to the relation of appellant to the amount of money or the circumstances 
by which he could have possibly been indebted to the bank. All the testimony and 
the indictment excludes the idea that his name was on the bank books. The proof 
all shows that it was not, and that there was no contract and no evidence in the 
bank books, records, or papers that his name was in any way connected with *584 any 
indebtedness to the bank. The only way by which it was sought to hold him liable 
was through the testimony of McSpadden that he was a secret partner in the profits 
and losses that might arise in the option contract which Morris and McSpadden 
accomplished and for which the bank is supposed to have furnished the $8,000. In 
order, therefore, to hold appellant guilty, the charge should have conformed to
 the facts, and in order to hold him the state would have to show that he was guilty
 under the circumstances detailed by the state's witness as partner. In other 
words, in order to convict appellant the jury should have been instructed that 
they would have to find that appellant became indebted to the bank by means of
 this partnership matter **833 about which McSpadden testified. This was the 
state's case, and it was all the state had or put into the trial. In this same 
connection it may be well enough to notice that section 3 of the charge is a 
general statement of the law of partnership as understood by the court in giving 
his charge, and it reads as follows: 
"A partnership is formed by two or more persons placing their money, effects, labor 
and skill or some one or all of them in business with the purpose and intention of 
dividing the profit and bearing the loss in certain proportions and may be made and 
entered into either by express agreement, oral or written, of those forming the 
partnership, or it can result from the conduct of the parties in relation to the 
business. Those forming the partnership are partners. When a partnership is formed 
each individual partner in relation to partnership business in law binds himself 
and each of the other members of the partnership jointly and severally for any
 partnership obligations made in furtherance of the partnership enterprise and 
within the scope of the partnership business."
[5][6] This is all the charge with reference to partnership. It will be seen that 
it has no reference to and is not connected back with the other charge; nor does 
the other charge refer to partnership, nor is the jury charged that if appellant 
was a partner within the terms of the law with McSpadden and Morris, and under
 that partnership there was or could be an indebtedness created for which appellant 
would be responsible, they might convict. This definition of partnership is thrown 
into it in a general way without any application of the rule of partnership to the 
facts in the ease, or facts of the case to the partnership. In the second clause of 
the charge which submits the law for conviction the partnership is not mentioned. 
Under the facts it was all the state had upon which to predicate a conviction. In 
the charge on partnership it does not inform the jury that if appellant connected 
himself with this indebtedness by means of this partnership, and was responsible 
under the terms of the contract by reason of this partnership, that he might be 
liable for the indebtedness, but instructs the jury to convict for the indebtedness 
in the second clause, and gives a general definition without any application of the 
law to the facts of partnership. If appellant was guilty at all it was under McSpadden's 
*585 testimony to the effect that he agreed to divide the profits and losses and carry 
the partners under the contract, and that he did furnish the money from the bank. 
The state admits error in the charge on partnership as given, but asserts the error 
was favorable to appellant. It was error, and we think harmful. The error is conceded; 
the verdict was guilty. What may have been the verdict under a correct charge is 
speculative, but it is not speculative that he was found guilty.
[7] There is another phase to this charge that is fatal. McSpadden swore to this 
partnership as set out in the early part of the opinion. Morris and appellant denied 
it emphatically. There was an issue sharply drawn by this testimony as to whether 
this partnership existed or not. The bulk and the weight of the testimony was that 
the partnership did not exist. The jury so found by their verdict in the civil 
proceeding and exonerated appellant as partner and found in his favor in the suit 
against himself and Morris by McSpadden. This was shown by the testimony of Mood. 
Now the converse of the proposition, had the partnership been properly charged, was 
if the jury should find there was no partnership existing between these parties at 
the time, they should find in his favor and acquit him. Such omission is fatal error.
[8] It is contended that the evidence is not sufficient to show that appellant was a 
partner, and that through the partnership became indebted to the bank. The writer is 
of opinion that this proposition is correct. McSpadden testified, and he alone, that
 appellant was to be connected with the profits or losses, and Morris testified 
positively that such was not the case, and that he and McSpadden alone were 
responsible, and that he was to get two-thirds of the profits and McSpadden 
one-third, and that appellant had nothing to do with it. McSpadden testified 
they were to be equal partners, each getting a third. There were some telegrams 
passing between the parties with reference to this $8,000 option contract 
introduced by the state, but these did not show that a partnership existed. 
It was with reference to the fact that the $5,000 first agreed upon and mentioned 
in the note was not sufficient, and appellant agreed to furnish the extra $3,000 
from the bank, and later wrote it in the note. The note was payable to the bank,
 and appellant was in no way concerned with it, and if he was connected in any 
manner with it it was by reason of McSpadden's testimony, which appellant and 
Morris both denied. As it occurs to the writer, there is no testimony which 
supports or corroborates McSpadden in his statement. If, however, the state 
should further prosecute, the testimony should be limited to the transaction 
about which the witnesses testified and not extend it to subsequent contracts 
in no way connected with or related to the one under investigation.
The judgment is reversed, and the cause remanded.


*586 On Motion for Rehearing.
[9] On a former day of the term the judgment was reversed and the cause remanded. 
The state contends in a motion for rehearing that the court was in error in holding 
that the indictment was not valid. It was stated that the general allegation that 
appellant had become indebted to the bank in the sum of $8,000 was not specific 
enough and entirely too general; that it was wanting in particularity, and failed 
to inform the defendant of the transaction, for which he was **834 to be tried. The
 writer, upon further investigation, still adheres to his original views. The 
majority, however, do not agree with him. Under the view of the majority the 
former opinion will be modified and the indictment held sufficient to charge 
appellant in a general way with becoming indebted to the bank in the specified 
sum. The indictment contained three counts. The first set out the facts attending 
the transactions by which it was sought to connect appellant with violating the 
banking law, he being president of the bank. That count, however, was not 
submitted to the jury by the court, and passed out of the case. The second count 
was submitted in which the general allegation was made that appellant became 
indebted to the bank of which he was president. Under these allegations the state 
would be required to prove that appellant had become directly indebted to the 
bank, and that proof of the matters and facts set up by the state in its evidence
 would not meet the count upon which the conviction was obtained, which evidence 
was to the effect that appellant and McSpadden and Morris entered into an agreement 
by which they were to buy cattle and the bank furnish the money, predicated upon a 
note given by McSpadden and Morris, and the money transferred on the books of the 
bank to their credit, and that appellant would be a partner in the profits and 
losses of the cattle transaction for which the note was given to secure funds in 
payment of the cattle. Appellant's name does not appear anywhere either in the note 
or on the bank books, and on the face of the transaction he is not directly shown to 
be connected with any of those matters. In other words, it was a secret partnership,
 if it existed. This was perhaps the most serious question in the case so far as the
evidence was concerned. So following the views of the majority, the count will be held 
sufficient to charge an offense, but not to admit evidence of the transactions showing 
an indirect liability as sought by the state; that this would be a variance between the
 allegation in the count submitted and the evidence, and therefore the evidence did not
 support the finding of the jury under the count and the charge submitting that count.
In regard to what was said in the original opinion with reference to a bill of exceptions 
which contains matters and things set out through the witness Mood, the state contends 
that the opinion was *587 in error in holding that state's counsel was responsible for 
withdrawing all the testimony of Mood from the jury. The contention is that the state 
did not withdraw the statements of Mood on cross-examination by appellant's counsel to 
the effect that appellant had won the civil suit. Strictly and technically speaking this 
contention may be correct. The bill in regard to this matter shows that when Mood was 
placed upon the stand and the various questions asked and answers elicited, he was then 
passed to appellant's counsel for cross-examination, and, among other things, it was 
elicited from him that appellant had won the civil suit in which McSpadden sued Morris 
and himself for settlement of alleged partnership matters, which involved the $8,000 
matter. State's counsel objected to this cross-examination as to the matters elicited 
from Mood, but the court overruled the objection upon the ground that the state had 
drawn out the matter, and this was a legitimate cross-examination. When this occurred 
the bill of exceptions recites that: 
"Thereupon the state rested, and stated they desired to consult a moment, and within 
a few minutes returned to the court, and through their private prosecutor, Mr. Martin, 
stated to the court, 'We are not going to introduce any of the record, and we ask that 
the court strike out the testimony of Mr. Mood in regard to it.' (The record referred 
to being the transcript of what purported to be the statement of facts in the case of 
W. A. McSpadden v. R. A. Morris et al., in which the state's counsel had attempted to 
prove up by A. M. Mood for the purpose of offering the same and parts thereof to 
impeach the defendant as a witness.) The court then stated, 'What part of the record 
do you have reference to?' Mr. Martin stated in reply to such question, 'All of Mr. 
Mood's testimony identifying the record, since we are not offering any of the record, 
that evidence would serve no purpose. We do not intend to offer the record, and we 
would like to have this testimony stricken from the record, since it does not tend 
to prove any issue in this case."'

Thereupon defendant's counsel objected to the withdrawal of any of the testimony by
 the state for the reason they had offered the same, and when it was proved harmful 
to them they desired to withdraw it, and that it was material and beneficial to the
 defendant, and that they had no power to withdraw it when they had offered it 
themselves, and they considered it harmful to then be permitted to withdraw it. 
The court, not specifically ruling on the objection, turned to the jury and 
instructed them as follows: 
"I will strike out and instruct the jury not to consider the testimony of Mr. Mood."
In the former opinion the writer was under the impression that, legally speaking, state's
 counsel were responsible for being really the moving parties in getting the matter 
before the jury as well as to its final withdrawal or exclusion after putting it in 
before the jury; that it was too late for the state to withdraw it after 
cross-examination of the witness in reference to the matter they had drawn out; 
and that their motion, had it been sustained, would practically have operated 
to withdraw all the testimony of the witness Mood, *588 whether it was direct 
or cross-examination. If the writer was in error about this, then counsel for 
the state may not have been altogether responsible for the withdrawal of Mood's 
testimony favorable to the defendant. But the matter was so intermingled--
the direct and cross examination taken--with the remarks of the court it occurred 
to the writer that the effect **835 of the state's motion was to withdraw all the
 testimony, especially in view of the fact that this motion was not made until 
after Mood developed the fact that appellant had won the civil suit. This testimony 
seems to have been introduced by the state for the purpose of laying some predicate 
with reference to the case and the testimony of defendant in the civil suit, but when
 Mood testified to the fact that appellant had been eliminated from that record by 
the verdict of the jury, counsel moved to exclude or withdraw the testimony from the 
jury. State's counsel insist strenuously that they did not undertake to withdraw the 
testimony introduced on cross-examination, and that they were only undertaking to 
withdraw that which they introduced. Without going into any detail about the matter, 
or any discussion, we place it as the record does, so that it will be fully 
understood and its effect and result from the whole bill of exceptions may not be
 unjust to either side. The result, however, would be the same. This testimony was 
withdrawn from the jury, and under the circumstances it should not have been 
withdrawn. It is deemed unnecessary to discuss the other matters.
Finding no reason why the motion for rehearing should be granted, it is ordered 
that said motion be overruled.
Tex.Crim.App. 1917.
LE MASTER v. STATE.
196 S.W. 829, 81 Tex.Crim. 577
END OF DOCUMENT
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