A sensational disclosure rocked the Jay Hough trial: Hough’s partner, John B. Milholland, planned to murder the Idaho mining man whom they were defrauding.

James F. Callahan, the victim of Hough & Milholland’s $400,000 embezzlement scheme, said Hough himself told him Milholland was planning to kill him and that Milholland was carrying a gun for that purpose.

“Yes, Hough did tell me that,” Callahan said on the stand. “I told him about seeing the gun while Milholland was driving me out to Hayden Lake on one occasion. I was never afraid of John Milholland, for I always knew he was a coward. I told Jay Hough – when he told me about Milholland’s planning to kill me – that I blamed him for not telling me about it at the time.”

In other words, Hough should have told Callahan about it sooner, instead of telling Callahan about it only after Milholland was dead. Milholland shot himself when the fraud scheme unraveled and police came knocking at his door.

Hough was on trial for forgery in the scheme. He contended he was bullied into participating in the scheme by Milholland.

Hough claimed Milholland had also repeatedly threatened his life.

Callahan was asked on the stand about his feelings toward Hough.

“I don’t think the defendant treated me right, but I have no animosity or hard feeling toward him now,” Callahan said.

Hough eventually confessed to participating in the fraud scheme and cooperated with local authorities.