The true Democrat., 1856-05-13
From the Memphis Appeal, May ?. The Cincinnati & Little Rock Slate Company Case.

From the Memphis Appeal, May ?. The Cincinnati & Little Rock Slate
 Company Case.
 The preliminary examination of the brothers H. M., A. c. and E. w. TRUE, was commenced yesterday morning before Justices HILL and HORNE, at the office of the former.
 The following witnesses were sworn: Col l.. J. Dupree, Isaac Phelon, L. D. Stickney, R. M. Kirby, Messrs. Dyer, Tutfs, Dugan, Smith, Ferguson and Winans.
 A motion was made for severance in the case which, after some little controversy, was over- ruled by the court.
 R. M. Kirby, esq, was then called and testi- fled as follows:
 H. M. True got money from me under false pretences; he get from me upon his represent tations S4, 800, when came here. 1 had been here but short time when was introduced to Mr. True by Mr. Ferguson. True's represen- tation of the business to me induced me to take stock. He said the company had a slate quarry at Little Rock of from forty to sixty acres, of which forty acres were aid for. l was satisfied from True's statement that the investment was good one. 1 went to Little Rock and found A. c. True and inquired of him where the land was; he pointed out small piece of land but did not know exactly where the land was. 1 saw Mir. Beebe who held note for the last payment; 1 found two and half acres, or three acres, it was all they had; 1 made the last pay ment on the land of $50; do not remember how much the Trues said was paid for the land but think they said about S9OO. said 1 had paid out nearly that amount. They then said that it was between S7OO and $500 Mr. Smith was there as casher or agent; he told me the company only owned 212 or 3 acres. The title lo,,I cboura1 tbat tho land GS0D II M True had the title bond; never saw the title bond until after 1 went to Little Rock. gave True my notes on representations; would not have given them had known how matters stood. 1 was deceived by Trues statements; True was to have been paid back the amounts he stated that he had paid out by the stock holders. so that each stock holder would have come in for an equal share there were eight of us True said he had paid in between S8OOO and S9 OOO; l thought that he might have used a portion for the purpose of paying for the land and the balance would be used as bankrupt funds; he told me he would settle up the matters of the concern as soon as he could get the books from Little Rock: It was about the first of January that I gave my notes; the expense account did not show or include the price paid for the land, but showed what had been paid out for labor E the quarry; True represented that he had clear deed for the land before l advanced him any money; he had no deed at all, he only had a title bond. True presented an account for ex- penses, here tis, (here the account was pre- sented) he was to be paid back, and this was to be presented at the bank as an account in his favor of S8, 15O, which l understood was the amount of the expenses before l went into the concern. 1 do not know whether or not my notes were negotiated; he said that he got the money on my notes which were for 5000; l do not know what become of my notes; found one with c. w. Cherry and paid it, at maturity; Mir. F-paid the others; they were all 90 day notes; True told me he would hand over the stock at any time; but 1 appears that the stock was all the while in New Nork in the hands of man by the name of J.. Some time afterwards he wanted the books, and which he said were in New York with portion of the stock, and he said he would have to pay S3,- 800 before he could get them; he said there was balance due on the books and on the stock; was surprised when I heard of it; he never had told me anything about it. QIcre the bill above referred to was presented.) This was written by MT. Stckney; took possession of the office on the 16th of April; this document was made out under Mir. Trues direction; 1 found it after my return from Little Rock; it will be seen that he hasscredited himself with s, 800 Jones interest There are other parties owning stock; the entire stock is represented to be S25O,O0O, of which True cams from S12O,- GOO to S13O,OOO; True does not know how much stock he really had at the time he made the representation; suppose he only had what he got of Dyer; do not know what he paid for Dyers interest, but l suppose $2,5OO; he said he paid for it out of his own means; he never showed an exhibit of what he actually owned, but created an impression in my mind that he owned stock to the amount of from $12O,OOO to $13O,OOO; paid my money for the purpose of buying an interest in the concern, and thought was buying the eighth of from $l2O,- GOO to S13O,OOO; shares are valued at 5000; True said that stock to the amount of $25O,- GOO had been issued; he said that some gentle men in Cincinnati and New York owned small amounts; understood that he was to appro- lriate my notes to the payment of the S3,5OO; I consented to the payment of the $3 ,5OO for the purpose of getting the books; they are here now; they came while l was at Little Rock; when went to Little Rock 1 found the books there in such condition that could not un- derstand them; went to Little Rock at the instance of True; had been to New Orleans on business for the company; when returned I found True in feversh state in regard to the business. 1 rue Sau ne WdDtcu Iuc to SO oNci and have Smith arrested, that he had been stealing the money of the concern; when got there Smith gave me some letters which True had written him. (Here the letters were pre- sented.) True said that the books would show Smith to be defaulter; he told me to go over and look into matters, and if 1 found it neces- sarv to have Smith arrested; everything was so vaGue that could not understand how matters stood: there was but one set of books the books have been mutiated since they came here; True said there was new set of books that Smith had been making up; told Smith wanted new set of books so as to show how each mem- Der stood; Smith told me there were no books belonging to the old concern except some me- morandum books; True trembled very much, and was very much excited; Smith did not gve me the letters in Little Rock; he gave them to Mir. Ferguson here. Here the following letters were read:
 Memphis, November l. 1855
 DEAR SMITH: have all fixed; have taken an office corner of Madison street and Bank avenue, on Madison street-$5OO a year; took possession of it to-day; have got a good safe in it, oilcloth stool, chairs counter, desk, etc., all neat as pin, and 0. K. Shall advertise in g few days; shall commence redeeming our issues tomorrow; yet you need say nothing until oive YOU orders. Shall have few thousand laid in within week; shall send to New York
 d0r1fV VUov .