, 1861-10-26
THE COLBY INVESTIGATION.
More About the c. s.c.&M.c Co.
HOW PATENT RIGHTS ARE SOLD.


Hnw p1wRNT RTaHTN AHE enTn
sAO" @1@0A @~"4S'
7r1.i IT. ct
a I0ug1 W1Enes8 Oh t1a 0ta1Q. |
--. ----..
OF MATTHEW LAFL[N,
J.. D. WARD, g. ": WILSON. J. ].
+: TH0MPsON AND N. y. BOuIUN. i
+:
:
The Common Council resumed the investi'
.,tfo,,, ~ Alderman ro1bv 1ast evening. eleven
kst,on ~ A.es aa.-@ue~t La 1872 T~s,aa-~ea. ~
atuesiaen nssn9 F1eseAs, st ~tAA@'1 - ~
Na1d Was called 10 t0e etanos
rpsrho.7 or JASPER u. WARu
~. ~ +o,,an a. v.1Eozv a,a
ol an n IN ~ Mtthy lothsy ~ a1ai1. % hnom 10y Az. ~
cory ana hatnaem asata 1aAa ~ AnsM ~, ,a tne
most OF tne dHeGLole IL Lae CmcaSo
Stone, Coal and Mining company, when
suit Was commenced fof the use OF the
company In the name OF Meo0er Vs The City
Was employed by the Company In that at
ton; 1t commenced two years ago last snm-
mer; this suit was brought to recover
balance Claimed ~ ~ nas ~ st.aat sontLae' ios
sn;t % 1ss sett1ed. noti1ng vas done bnt fllinp
Ala. CoIhv knew 81 fhe suit: nv DrincinI
neeotfatio1. @ Tare | with Ellithorpe: 1ffeuuenfie
"a az si Go1hv IN t7e street and snnke ahant II.
snit: can't remember anV disfinct conyer:a,
fions with Rim: once or twice. Ehen I Rave
met MIN with Elithorpe. the isster wo1Ii ak
~ 1ess ;nte !ssted in ia neoot;ations. 80 thinE
Eo1hu ,ros a1Tore ~ The negot;ationa Int don't
1nn1yy whathar 10 nnnaeHfad to 10 aasf7a.
nasnt. ibera aas onite a n11mfer n nsners
n1eced ~ nv han6e had rantrart and
{ fh3nt rstimatea ~ aon:ss - asttIat.s.
nr;ce NV imnre ssfnn "a tLs+ Il 1oas S1a ~.
Tece,ved the naners froT H;nnan ns ssnrsta,
oF tha comment th;nl "a 49, ,.t 49, ae ees,J ~
naoot,s4io1 xae dora ~ ~, -. Ino
en- ri the Anal aeiieTnan+ ma aTanfnT gha,,
We f7ail neootiat;nns 3th He5nsS " ~ sra "a74
psgye1 my ey.n - setts apteasty oscause
Hetsfa +e mhans mo4" ,,ass tS pe e. ooms Ieso1eet
~, ha15. 4h,1I' a n11 papei5 t 9p p.1S5o y
1e5rnad Ihen hr,onss9,t H., enit frnrn F;:1;.
thorne that the clairr I1a5 he heen ~ nrran9ei: +
remember bili In chancerv WA was flied and an
iniunctIon procured. suhseduent to fbe fine
Of sgree ment to make tie settlement. so '''
Crnps examination waived hv Mr Van
Bnren.
o,,s,+,,o,-v ~, :. r.,,,,,
2Es1laoAf os aA17hE" LAFA1h'
vas President Of the Caicago Stone, Coal
the original members were Colby, Ellithorpe.
Of the Company wss to macada1uize, get con
tracts, eel ont patent rights and work quar-
ries Hnman was Secretary and Holt Treas-
'urcr; the capital stock was $4,000 there
were owned By Smith, SO by Holt, 20 By Dun
ham, 90 by myself, and one each by Colby g.
ElGthorpe; there Was purchase made By
the Company from Colby g. Ellithorpe; the
purchase was sec, 600 on the quarry property !;
they signed the contract the tools and a
{r,k% ~ H.. L. -.
the Company took out q patent ou the
crusher; the contract for macadamizing West
Randolph street was assigned in blank and
| put In my hands for trust till the Company
was organized We were to lean them 81 ,O00
in N oney, in consideration and had to re-.
| 5000; provided they made certain pay
! ments, they were to have half the stock; thsy
never n ade the payments; Ill the estimates
on the Randolph street work were Included
| in the assignment; they bound themselves
for $500 or $4,000, and was pledged at Tux.
hams for 81, 500; after It was redeemed. I had
it: 1 took It to Ward and recaiyed ahonf
| $l,20O on it; that was the first estimate:
have seen it recently in the Court House: il
whether The amount was endorsed nnon #
The estimate at this time he1o1,ped r. III
| cnmnanV: fhe cnmnarv never 7ransfsr.ad
It: suit WA af1erwards trnuoht tn
recover rom the cfty: Co,by WIS st
that time one Of the Directors and knew
! ahout the enft and the eett1ement: thf
settlement was brought before the Board
and all of them assentyd to it: [ supposa the
eetimate was deliverei m to Ar Wsrd the
Secretary made the Settlement snd the com.
pany rot their pay; the Secretarq Is now II
Brooklgo. N. VI never saw tie estimste
after the settIement nntil Within ten dsps
since. After the settlement never hea-d Coi
| by claim any Of the money: he never fmnt
tie trade @ with VIII coIbT and Eiiitborn % Wasteer 9e
avenue had not heen ma Tacadarnizef }o anv er
tent Eilithorpe and ColbY had tt the ~ manage @ e
Council; think Colby aud Ellithorpe atartei
the idea: they nronosed to t1et a contTact
the companv felt some 3nterest in hav,nr i,
done; they did it at their orn expense, hoping
to get something ont Of the citv: think na OF
der in Ills respect vas 81 passed ] s. the Board M q q
to GET pay ont of lie citv III. TaSior Was t.
do eonaid9erafie of tha Torlk. INIT hs d;dn,t dt
much: tie companV furnisbed the stone aui
pa.d tie hands tbink they expended abon
Sl.WO; think Colby superintended tha Worl
while it was In progress never saw any cit,
tract never understood there WAS contrac
made with the city don't recollect asking tn
city for anything; 1ahen 7 sold my stock I dida'
consider my czains soorth much the work wa
| done In two or three weeks there WIS an oh
ject In completing the work to advantage on;
selves; the street vas not continued farthe
north than cur quarry; the street was abon
; fifty rods from Chicago avenue; Western ave
nue. Was graded up to the Whisky Poin
. road think we graded small part Of 1t
Twas President two years; sold out whe
Durham did; I sold to Mash &, Danks !; I dom
ested in The company and its assets now ; CO
, ! By and Ellithorpe paid the loan somehow o
: the settlement; the company paid them a
} allowance Of 81 COO On the Randolph stree
, contract to bring round settlement with th
; city; the company afterwards furnished som
! four or five thousand dollars in addition to th
: capital stock; don't ts1nk TIE shareholder
! made a Qreat deaz out Of it; I do,
lihe to tell all the Losses; I beliey
EuithoFpe sold out the patentright afte
9 wards; he wasn't very particular about Il
1 he sold thtp right to the United States; I don
p know how much he got, the company nev,
4 got anything for it; when I was with Ell
u thorpe in New York, he wanted to sell out t
e nun in Oregon; made him insert Il Or
fbis deed .cas oood for The zqao@e UnitSd State
r at the time sold out, Colby and Ellithurl
!. had one share, and / undgrstood they cal
promised with Nash and Danks. some Hay
8 other, and cot the patent rlght back in The
It hands; I don't know how It Was done, but
!, suppose thev knew: I believe there were gon
:: clear sky notes also among the assets.
u Cross E1auiuaton. .-o-Wheu Has Il
T. company orpanizedp Ain September /
i. October, .1s5s. Q.-HoW long 6efo
nIrn1ss san ana Fi1;th "aa ts y
4 ana Coloy ano EL1tnorpe: - A-s9@e s3a M tlns
H.