The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-02-09
TIE PACIFIC RAILROAD ALLEGED COZ.
SPMACY CASE.
Continuation Of the Examination.
Before Justice Bowling.


The examination into the alleged conspiracy to
defraud the Union Pacific Railroad Company was
continued yesterday before Justice Downing at the
Tombs. The evidence SO far given is weak, and
the story OF the fraud II there was one, Is very IN
volved and ambiguous.
Goodall, being placed on the stand, was closely
examined and cross-examined by District Attorney
Hutchngs and Mr.. Lapaugh, the counsel for the de-
fendants:-
l got my commission for negotiating the loan;
shared the $500 commission with Barrow, Seeiey
and himself; Wilkinson got portion or 1t for intro
d1cing him to Seeley; the others got their portion
for similar introductions Captain Young introduced
headquarters; asked II IN making the affidavit
would be ,l protected oy the company and he said
Cross-examined by Mr. L.apaugh-It was optional
with me to pay the portion OF my commission to
those men.
BY the District Attorney-I understood from Mr.
Lyon that the bonds were to be sold ny WolT at
eighty-cght, anu the difference between the amount
loaned 70 the company, less interest and discount,
lenders; could not say If the money advanced by
Mr.. Won was his own; heard from MIR. Lyon that
Waterhouse, Pearl co. would advance the money
to purchase the bonds.
BY mir. Lapaugh-i addressed Mr.. Adams, on being
introduced Dy Captain Young, first; asked that the
company would protect me from clyn ana criminal
processes If made the afiidavlt he sad he would
Try 10 do so; was told by captain Young before
that that my AFFIDAVIT would be taken; that was on
the previous day; was aware he was coming TO
take the AFFIDAVIT, and was therefore prepared.
District Attorney Hutchtngs here stated that two
Of his Witnesses, VINO had been notified 10 appear.
had not yet arrived. He intended 10 prove by
them That Wolr was not responsible man.
Mi. Lapaugh said that nc could not see what evil
dence had been produced by the prosecution 10 war
rant the detention OF the prisoners. There wa,
broker In Wall street WHO understood what this
was.
Justice Bowling here stated that 1t was impossible
to know what the prosecution meant to do. lie had
asked several times but could get no satisfactory
answer. lie would hear AIR. Lapaugh on the motion
to dismiss reservlng the right Of the prosecution to
examine the remaining witnesses afterwards.
Mr. Lapaugh then moved to dismiss the case.
There was nothing In the evidence already taken to
show an attempt Of fraud. 1t was clear breach Of
not matter to the company whether the
parties who loaned the money were re.
when the bonds stood at 102 and the paraes
lending had take the risk OF tneIr being higher
specified in the contract. An action for breach OF
contract to the difference between the value
Of the bonds at the time Of the loan and on the day
which they were sold would have proper grounds,
but the company has not lost dollar this trans
action and there Is nothing to prove that the con-
tract would be broken. There is therefore nothing
In law or evidence to justify this prosecution.
Justice bowling asked the counsel to suspend his
argument in order that witness for the prosecu-
duncan +. Jett, being sworn testified as follows:-
am cashier for Waterhouse, Pearl Co.; recOg-
to Waterhouse, Pearl & Co., and was deposited in
the Fourth National Bank; don't know that any OF
this money was drawn from the bank after beng
deposited; neither Wolf nor Lyon had any checks
drawn ON our house; draw the checks Tor Water
house, Pearl Co.; drew check Tor 81, 5Ss 50 for
this certificate Of deposit, and another FOR SAIL H.
and another for $4,000 knew that the check for the
last named amount was returned to US some days
ai,erwaras WAS paid 81 me f9nrtn National ma,
firm OF r. ]. Thomas h Co., came to Warehouse,
Pearl Co., and said he desired to purchase no. 600
Union Pacific bonds, that he could get them for
twenty cents and II we would advance the money
he would like to make purchase. Mr. Pearl called
me into the back ONCE and asked me II thought
he could raise 100000 ON 10000 Union Pacific
bonds; remarked that l would try; after going
round 10 several houses succeeded in negotiating
with Mr.. Eakin for 500, 600; came back and told
Mr.. Pearl whereupon he agreed TO advance $loS,000
to r. J. Thomas n son; Mr.. Thomas brought In
MIR. Wolf and think Mr.. Lyon; he introduced me 10
MIR. Woln as the man to whom the bonds belonged,
as the man that was 10 pay the money to and re-
thai Mr.. wolr deliver the bonds there; Mr.. Thomas
then gave me q memorandum Of how he wanted the
checks drawn; In accordance with that memoran-
DUN l got the certificate OF deposit paya-
BILE 10 the order Of Simon Wolf for the $95,5sS 49,
giving waterhouse, Pearl Co.'s check for same
Fourth National Bank also cneck $4,4l1 IL, pay
payable to the same order; that completed the pay
ment Of the 10000 bonds. at ninety cents; the
only persons known to Waterhouse Pearl 4 Co. in
this transaction were p. ]. Thomas x Son.
To the District Attorney saw these bonds, but
did not take the numbers. IL am receiving bonds
and delivering them again quickly don't generally
take the numbers. The numbers should be taken.
Justice Dowhng-Suppose was robbed OF bonds
numbers were not taken In the house where bought
tnems
witness--I don't know sir; the numbers should be
taken, but don't always have time TO do 1t.
Examination continued-The bonds were sold to
Cisco Co. and others at ninety-ive cents; did not
know that the Pacific Railroad Company held the
bonds collateral security; Waterhouse Pearl 4
Co. loaned on the bonds to Thomas X Co., under
standing that they had right to dispose OF the
bonds at any time to reimburse themselves.
Crossexamned by Mr. Lapaugh-The loan was
made on the day Of the certificate Of deposit; 1t was
understood then tnat Warehouse, Pear a. Co.
would he mt liberty to sell the bonds at any time to
disDurse them; that Is the usual way for all call
loans; alter received the bonds gave them to
Thomas EaKin Co.; our house paid on the Sd or
4th OF January changing the c0llateras as Is fre-
quenily done; the checks came back to Warehouse,
Pearl Co. in the usual way the certificate OF de-
post from It's appearance now, must have been paid
TO the Union Pacinc Company; have been engaged
In the banking business about 1--WE or SIX years, and
In New York since July, 1865.
Justice D0wllng-I desire that the checks be pro-
duced here tomorrow morning.
The case was then adjourned until this morn
ing at nine O'Clock. The prisoners were remanded
aud the witness ordered TO the House II Detention.