The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-02-06

pursuance OF the plan already devised he went with
Lyon on the next day Saturday the l9tn December
to the company's ofice and introduced Mr. Lyon TO
Mr. Ham as the attorney OF the party who had the
money to lend. Mr.. Ham, Mr.. Lyon and opponent
went in,o private 0ffice aud Mr.. Charles Tutue,
the Assistant Treasurer OF the company was called
IN, and to him Mr.. Lyon was introduced, as ne mad
been to Mr. Ham. Mr.. Ham or Mr.. futile asked
Mr. Lyon who his principal was, and he stated that
his principals name was simon WON. Lyon IuI-
ther stated TO futile and Ham, as an lnducement 70
them TO carry out the proposed loan that Woln was
retired merchant, man or means ana perfectly
responsible which statements deponent says were
false and untrue and known TO deponent ana Lyon
to be at the time they were made. Deponent says
that said Wolf was not retired merchant and was
aesaay solyent ct this time; futile ana Ham men men
therenpon lyon stated that Mr.. BUSHNELL one or the
directors OF the company, knew him, whereupon
Mr. BUSHNELL who happened 10 be at the time In the
oaice OF The president called IN and that as soon
as ne entered where Lyon, Tuttle Ham and deponent
were he recognized Lyon and after the compliments
OF the day were passed between them said that
Whatever Mr.. Lyon said all right, which state
ment seemed to satisfy Messrs futile and Ham, and
OF 100000 on the terms which they had mentioned
IL was then agreed between the parlies-Ly0n repre-
the company should receive Of Wolf 500 900 Qess
Tour months interest the time for which the loan
was to De taken and less two per cent lhalf Of one
per cent month I0r four m0nths) leaving the sum
OF sos, $50, and that the company should on the
receipt Of thus last mentioned sum give their pro
mlssory NOE ior 100000, payable In four months,
without interest to the order or simon Wo and that
the company should also hypothecato and pledge to
the said Wolff 100 OF their first mortgage bonds as
collateral security for the repayment OF the loan
upon maturity, when he should return the bonds
pledged; when the terms had been arranged Lyon
stated That ne wOud go out and see his party, mean
Ing Wolf, and requested Ham to have the bond and
note prepared, ana also receipt for Wolf TO sign.
and further suggested that the numbers Of the bOncs
should be stated both III the note which the CON-
pany was to give Wolff and In the receipt which
ranged for the contamination Of the loan in the alter
noon OF the same day. all this happened on the morn
ing OF December and IN the presence Of Lyon rutte
Ham, Bushnell and deponent; before Lyon left the
companys office Ham remarked that the same bonds
which the company pledged as collateral security
must be returned on the payment of the note, TO
which remark Lyon and deponent both replied, "Of
course;' deponent and Lyon then repaired to the
office OF the latter, As Broad street. where by pre-
arrangement they met Wilkinson and Wof; de-
ponent had never Wolf up to this time, but
that Lyon had informed him that Wolff was the man
then made a calculation OF the exact amount oil
money needed and the amount they would have to
companys ONCE been to the ONCE Of WaterSouse.
Pearl * Co., and disclosed to them the plan
which had been devised to get the bonds and made
arrangements with them to advance the exact
amount necessary to make the loan, and as soon as
the bonds were procured to take them ut eighty
eight cents on the dollar OF Their par value, and the
differences between eghty-eght cents on the dollar
and what Waternouse Pearl Il Co. should have 10
advance in order to get the bonds to be paid over to
him; 1t was a part of Lyons arrangement with
Warehouse, Pearl Il Co. that the latter should have
all they could get from the sale OF the bonds at over
vancing the money; Lyon told deponent that he had
made this arrangement with Warehouse, Pearl Co.,
amount sss sSoj because taey da not want to nave
their names appear IN any way In the transaction.
In order to getover this diiilcuylt took considerable
ingenuity, but 1t was accomplished In this way
Waterh0use Pearl n Co. deposited in the Fourth
National Bank sos, $50, for which the bank issued
certificate OF deposit to the effect that d. f. Jett
(Waterhouse h Co.'s cashier) had deposited sos 900
In that bank to the credit OF Simon Won and paya-
Bile to mis- order on the re urn or the certificate prop
al n Gpr
tfcate Of deposit in their own possession
till they received the bonds 1t would not do
to close the loan In their Oice, 80 they requested
that it might be done in the office OF Thomas Eakin
the Hanover Bank Building, Nassau street, and 1t
accordingly arranged; when everything was ready
deponent says he went TO the ONCE OF the said
pany and requested that the bonds and note and
receipt be sent with nun across the street, where
the bonds note and receipt to one Of the companys
messengers, with Instructions; deponent and mes
Bank Building Lyon was waiting, Wolf was on
the opposite side OF the street, near the Post
office, waiting preconcerted signal to be given by
deponent, when he was come over and go up to
Eakin's Office and sign the receipt and endorse the
certificate OF deposit deponent did not go up stairs,
but remained outside; Lyon went up with the mes
senger to rakin's Office, where the bonds were to be
counted over and where some one from Warehouse,
Pearl Co.'s was waiting with the certificate OF de-
post to deliver the receipt Of the bonds when all
was arranged Lyon came GOWN and told deponent
they they were ready; when he gave the signal to
and told deponent that the thing had gone through
all right; Lyon Wolff and deponent then went back
Lyons office I'm Broad street and told wilkinson
who had remained there all the time; wilkinson
over; Lyon said, 'I' go out and get share;" he
went to Waterhouse, Pearl & Co.'s Office. In New
street. and brought back just $1,000 in greenbacks:
the next day Lyon got the balance In q check
OF Warehouse, Pearl & Co. for about $1,000,
which, added to the $4,000, made $4,000 to
divide between Lyon, Wilkinson, Wolf and
deponent. and which deponent supposed was
to be divided equally; $500 was frst set aside TO
pay r. J. Thomas Il Son, OF Exchange place, who
had introduced Lyon to Warehouse, Pearl Co.;
Thomas Il Son had received, as deponent uDder-
stood, $1,000 for similar introduction in previous
transaction. and they claimed 81, 900 IN this case
also; but Lyon said he had rot or by paying them
$500 after deductng the $500 0ne-quar.er Of the
balance, a little over $4,000 was paid to dep0nent
kept the other two-fourths for himself and Wolfr
deponent does not know whether Wolff received his
fourth or not; when the loan was closed deponent
went to the Office Of the Union Pacific Railroad CON-
pany and the company paid him $500 additional, be-
Ing his commission Of 0ne-haf Of one per cent for
gotlaing the loan, which $500 deponent divided as
follows, VETO Barrow. s125; to Seelye, $125; TO
Lyon, $685.: 10 Wilkinson. $S3 80 and to himself
ldeponent, $50 80; Lyon told deponent that Thomas
Pearl Co., which the latter company put up to get
the bonds.
Subscribed and sworn before Vincent Clark Notary
Public, the LIST day Of February, 1869.
After the affidavit had been read The counsel for
the prisoners cr0ss-examined the witness, Goodale,
at considerable length, but no new facts were
elected. The Court adjourned the further hearing
Of the case until to-day, at one O'Clock.