The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-02-07
T,gE PACIFIC RAILROAD ALLEGED FRAUD.
Confirmation Of thc Observation-Disclosures
nient of rhe Defence.

L
| Confirmation Of abe Observation-Disclosures
aent al rhe Defence.
The examination OF the implicated parties was
continued before Justice Bowling yesterday AFTER
noon In the course OF the crosse Examination Of the
witnesses futile and Gooda II came 10 light that
| the defence VIII insist upon It's HAVING been usual
financial transaction for which civil action might
| be brought to recover damages, but which IL no
crime ON reading the sobjoined testimony this win
| be made apparent
Mr. Charles Tuttle Assistant Treasurer Of the CON-
pany, was recalled by the prosecution and con-
clIded his testimony as foilows:-Had slight pre-
vous acquaintance with Mr.. Lyon; did not place so
much confidence in his statements from acquaint-
ance, which was only by meeting him a. commuter
on the New Haven road, out the reference to Mr..
BUSHNELL one OF the directors, induced him TO rely
upon Mr.. Lyons statements; the value Of the bonds
was l02 less one per cent commission; don't know,
or his own knowledge that the bonds had been sold,
but saw SOME Of them; Mr.. Ham showed them to
witness about month after the loan was effected;
did not see any in tine possession OF Nj. Cisco.
On cross.examination the witness stated that he
participated In the negotiation OF the loan by con-
senting to the arrangement and receiving the
money; the consent was verbal does not recollect
the precise words; the consent was given TO Nh.
Hams his impression Ii that he said he believed it 10
be all right they had better take the loan; this was
his hest recollection; they mad the subject under
consideration and he could not say in what way IL
done; the place was the 0fiice Of the company;
Mr.. Ham and the witness did consider the subject;
IL not sure whether Mr.. Lyon and Mr.. Goodall were
present al the time not; received the $780, 600 be-
tween one and three O'Clock In the afternoon; the
sutaton was between ten and eleven O'Clock OF the
same day; it might have been later; had seen both
Mr.. Lyon and Mr.. Goodall that day before enter
ing into the consideration of the subjects
with them about this loan; gave them the answer
that the company would accept the loan; portion
Of the time Messrs. G0odall and Lyon were in
side room near the main Office OF the compaTy il
not sure whether himself or Mr.. Ham communicated
had an understanding with Mr.. Ham TO accept the
foan but Is unable to say whether this told to
MT Lyon by MI Ham or the witness: put afterwards
witness had an understanding with Mr.. Lyon
about 1t; said to Mr.. Lyon that he would
accept the loan, give the note OF the company
and 10 first mortgage bonds as collateral;
the promissry note CT the company was not
delivered by myself saw the note; the paper shown
hun on former examination is In general terms
best recollection II is an exact copy; he read the
original note; it was signed by oliver Ames as pre-
sdent; Is not sure whether 1t was signed by J. j.
Cisco as treasurer, or Charles Tuttlc assistant
treasurer; il was dated the 10Th OF December; the
for loans; was In part printed like the exhibited;
never was money broker; was in The dry goods
1rer Of the company IN 1884, the note given for This this
loan was note with cOliateras; does
Know what a negotiable promissory note
Is; in tine general sense used among
merchants be should think that the note given for
tins loan negotiable one certainly not n not
accompanied by the collaterals; II SO accompanied
the witness is not prepared to say haying examined
the notel whether II il or Is not negotable; knows
chat note drawn to order and endorsed Is neg0t-
able and thar the endorsement carries with il the
co!lateras mentioned In the note; the endorsement
by the payee Of the note IN question would transfer
TNA "a 1C nd
does not state that the bonds described should be
held for any definite length OF time have frequently
negotiated notes IN thesfOrm OF this. The inquiry
whether transfers are made by the endorsement Of
the note by the payee and then passing il from hand
10 hand with the colaeras was objected TO- but the
answer was that the witness was not aware Of any
such transfers FROM hand to hand they negotiate
with parties who hold the paper Till maturity. An
argument OF counsel here ensued TO the pertn-
ency Of this line OF inquiry, it being claimed BY the
defence that IN negotiating promlssory note with
collaterals no crime il committed. The Court per-
mtted the ss-exaniinatiOn TO proceed As TO the
custom Of the compaDys Office the witness repeated
the last answer he gave and added that the coua-
BILE paper; neither Mr.. Wilkinson nor Mr..
Wolf was present when the consent was
never spoke TO Mr.. Wilkinson: thinks he saw Mr..
Wolf in the once tMr. Wolf was ordered 10 rise
and put his hat); thinks 10 on the 18th or De-
cemher; he IL not clear about IT. his Impression IL
that Mr.. Go0dail Wrought Mr.. Wolf there and said
this was the man TO make the loan; the witness does
not rec0llect what he himself said and believes he
has already stated everything he knows OF the oc-
currence; all the notes made by the company are
numbered; those prior to No. 500 were all used for
loans obtained for the company; they generally con-
tanned description or the colaterals, but not al
ways; he would explain that notes are not always
given for loans, but for purchases, as railroad
iron and the like: there were other nrst mortgage
bonds ont as collateral to large amount, the same
as these; the bonds are saieabe without the note
Mr.. Cisco WINS not in the Office at the times the note
was not previously signed; II 1t was signed by Mr.
ture; the Union Pacific Railroad Company was in
jured by the sale OF the bonds pledged az collatera
lateral bonds were sold: Knows ,aey were ee sod
within three days alter the issuing Of the notes. And
subseqneni to the loan: the injury TO tho company
our selling bonds by breaking down the
price, and another was the difference between the
current price and the amount received for them; he
understands they were sold in the neghborhood OF
o.; was not present NC the sale OF any Of these
Maas par NJ Knows nonnr b as ssc
Henry NJ. Lindc; the bonds were sent by Mr.. Lin
dell to he delivered; believes he saw them in the
December; they may have been through the hands
OF half q dozen clerks; saw some 0f those bonds
alnce; thinks he saw some On the ed OF December,
In the possession Of Mr. Ham; rccolecis the circnm
stances; was IN the ofice; does not know that he
was present rs the purchase Of any Of these
personal knowledge Of such purchase; Henry b.
Ham was then and n still secretary or the company;
Mr. Lyon referred Them TO Mr.. Bushnell, director
OF the company; witness spoke 10 Mr. Busnnen, who
said that SIR. Lyon all right and respectablc the
The 10 Contract the loans Witness %as ire
person to whom special authority given to make
the loan; would not have made the loan but fa Mr.
Buahnell's vouching for the responsibility Of Mr..
Lyon; has personal knowledge VI the inlnry done to
the company; knows mat these bonds were oncred IN
the market &C low rates. DE Haven Co., OF PhilatoI.
phia bought thirty bonds; these ready for de.
livery when Mr.. lie Haven was informed that the
bonds were pledged collateral and ha refused 10
take them; knows brokers who offered these bonds
and sold tnein one by the name OF Scott the others
name he does not recollect; not present Of any
OF these sales BY Scott; the injury "a the company
was---tho company sells the bonds at lc2--these
bonds were sold Mt 90; the lower price wil get ali
the customers; the company complains, not VI the
injury. but for selling bonds which were pledged In
trust; don't know when he became acquainted with
Mr.. 0o0dall; Mr.. GooQall was never authorized to
make loan; paid him $500 for making thie loan:
Mr. CoQda came 10 the once ana said he knewa
party VINO would lend money n the company wished
10 borrow anJl this statement led TO this transsc
ton; there are entries on The books Of the company
Of this transaction made ~ tho time OF the consuYn.
nation of the loan; the bonds, when delivered upon
the consummafion OF the loan, were undoubtedly