100 years ago in the Inland Northwest: A riveted public heard contradictory arguments over who was the ‘arch-criminal’ in a high-profile fraud case

John B. Milholland gave a vial of morphine to his business partner Jay Hough, it was claimed in court – supposedly to use in a suicide pact when their gigantic fraud scheme collapsed.

However, Milholland never intended to commit suicide himself, Hough’s attorney said. Instead, Milholland secretly wanted Hough to commit suicide so that Milholland could pin all of the blame on Hough.

Milholland intended, the attorney said in his closing arguments, to paint Hough as the “arch-criminal.”

The opposite happened. Hough became suspicious of Milholland’s suicide pact idea, and instead of drinking the morphine, Hough went to police.

“When Milholland called up Hough’s residence the following morning he was surprised and astonished to find that Hough was still alive,” the attorney said.

After Hough told police about the fraud and the apparent suicide pact, officers raced to Milholland’s house. Milholland shot himself while officers were at the front door.

Now, in Hough’s fraud trial, he and his attorneys were painting Milholland as the arch-criminal, who bullied and threatened Hough into participating in the scheme.

The case had caused a sensation in Spokane, and “all available standing room” was occupied during closing arguments. The case had been sent to the jury.

Also on this date

(From the Associated Press)

1864: Congress authorized the use of the phrase “In God We Trust” on U.S. coins.