Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1870-04-22


Iof the bonds
| CUES 15 Bow or in what way was that losi
isettled. es you have recsiots for the same mum
lber of bords.
| AIRS l paid the .oss out of my own means
| In answer to question 8 | said the money
raised from hypothecation CT bonds WAS used tC
redeem The bonds. 1 wish to explain The
object of hypothecatiDg the bonds as to raise
money u margin, FIR the purpose of :,urchas
ing bonds in the market. to sustain AID keep ur
the price of bonds. I with others, went into
the purchase well to sustain the credit OF the
State ss to make money by the purchases, think
ing the bonds would rise in the market 1t was
for that reason that I authorized Utiey i ough-
erty to hypothecate bonds of the Company.
iplaced by me in th :ir hands, and whereby,
though did not receive the money thus raised
myself, I obtained q credit with them to pur-
chase such bonds Especial tax bonds) IS de-
brokers' phrase, to carry the bonds purchased
by me as 1 might desire they having in their
hands the funds raised by hypothecating the
bonds as fund for their indemnity.
| Ones. 16. Have you the settlement which you
say made between yourself and Utley
Dougherty if rot, what has become of I?
for it yesterday, but did not fint it. It may be
among some of my papers-I don't know
mean my private papers. in my Office.
Ques. II. Have you derived, or are you, or do
| you expect, to derive any profit. advantage or
benefit, directly or indirectly, for yourself or any
else from the use sale sdr po0r
Company, or any CT them-if 80. state what,
when and in what way?
Ans i nave not 2QO 90 not expect TO- S1LuSE
for myself or any one else.
Cues. Is. Have any funds, arising from the
! sale or otherwise of said bonds in any mahner
been used By you or any one else. in or about
your or their private transactions, or business OF
any kind-if so, how much, how and where?
Ans. They have not except, as have before
stated.
CUES 10. Have you used any state bonds
issued since 1sb May. 1865, or the proceeds of
any such State bonds, or do you know or have
you any inform alton and what, OF any such bonds
or proceeds having been used by any one, to
procure or assist in procuring, the passage OF
any bill or bills through the Legislature
or Convention of this state, If so, state all the
facts fully?
Ane. 1 have never used any such bonds or the
proceeds of any such bond or bonds myself, for
any such purpose or purposes. Nor do know
or have any information from any one tsave
heareay) of any such bonds proceeds having
been SO used by any one else.
Sworn and subscribed before the Commission.
THOMAS BRAGG, Chairman.
March %, 1870.
In connection with Question 3 which
Mr.. Jones stumbles over We direct atten-
ton to the following statement flom the
evidence of Colonel S. Med. Tate former
road, which possibly accounts for some Of
the proceeds, and which renders Jones
liberality (see Question ~ very doubtful
have no personal knowledge of the disposal
of any bonds, or the proceeds OF any bonds, by
the parties named il the Treasurers statement.
l heard A. Jopes sometime IN september, 1859.
while in Ncw York. say that lie had sold twenty
bonds, but he did not state at what price. l am
not it was in Sept ember: bu: am certain it
was sometime in the Fall Of 1869. He said that
these were all that he had cold and had sold
these IN order to have mis- bonds made good de-
livery At the Stock Board. know that what is
to keepu the price Of North Carolina bones.
vas req 1ested to draw up the agrt ement. did
so. l did not eign it; il was signed think by
9wepsen, A. J. Jones, DR.. Sloan, Generai Little
field and come others not cOnnecteI wi II any OF
our Railroads. The agreement y as i'll substance
that the bonds owned by he signers, they
said, and which it was q so eaid they hsd pEr-
chased at the stock Board, should be held in
common stock and kept off the market, and in
that way the price of the bonds would be kept
I'D as it was thought. I wrote on the back of the
agreement that l would rot sell any 'nds I held
individual faster than they sold the Joint
bonds il some respectable house, which should
make the Sales | mean to say these were, or
were claimed to be private and not Railroad
Company b nds. l don't RENT mber the amount
of the bonds. but it over million The
agreement for some reason WAS not carried out,
it fell through 1 had directed Broker to buy
for me individually some bonds at the Board -
He bid for and got So bonds, $1,000 each at So
to Sc and by agreement with A. J. Jones a like
amount bought at the same prices in my
name for him. paid for the whole !; he, Jones.
desired me to hold the 55 bonds his account,
which did, the bonns went down rapidly, L went
to him and he placed in my hands 30 North Caro-.
lima specisl tax bonds as security for loss, I
agreeing to carry the bonds for him at per
cent. interest upon costs. subsequently, I
think on or about the 9th of December, 1868, the
whole OF the bonds. IS in number, were sold on
my account By Soutter & Go, a. SO cents, lacking
about $500 Of paying the original costs and in
terest Of the SIS bonds. di not know how or in
what right Mr.. Jones held the said 90 bonds
handed to NE by him. I gave Mr.. Jones g. re-
ceipt for the 20 bonds, in which think they are
described.
It would seem from the testimony Of t.
s. Lutterloh that the firm Of Jones & Lut-
terloh, of Fayetteville, were carrying on
bushes upon the strength of A. J. Jones
Railroad deposit. To show to what extent
these deposits were made, how long they
were permitted to remain without interest,
and the responsibility Of the firm, we
quote the following extracts from the tes-
timony of Mr.. Lutterloh
Cues. 3. Have you any money in your posses
sion, in III pos .esei1n Of Jones Il Lutterloh,
placed with you by A j. Jones if 40, state how
much
Ans We, that is Jones I.utterlOh have nov
in our hands tie SUM of forty three thousand
six hund. ed and uinety-three dollars aud thir e n
cents
Q1es 4. Is that all the money deposited by
him 3; if not. state what other sum sums were
by him deposited with you?
Ans. Inc ABOVE IS Tie balance low on manu- .
he had deposited more, OF all deposited, he hss
drawn out the gum OF seven thousand five nd a
dred dollars.
CUES. 5. Please state when these deposits we're
made, and in what amounts?
Ans. On the 18th Of October 1869 he deposited
$20,893 10; January 18Th, 1870, he made fur
Their deposit of $50 800.
CUES. 8. We're Jones l. Lutterloh to pay inter
est for the use OF the money II 60 at what rate,
and for whose benefit?
Ans. We were not ; do not pay interest on
deposits, unless there is special agreement SO
to do.
Ques. II. What capital invested, or what
is the capital employed in the banking business
of Jones & Lutterloh
Ans We have no invested capital, nor was
any particular sum put into the business. We
keep our individual funds on deposit in the Bank
Our own deposits together, think, have been.
upon average, about twelve thousand dollars
Other deposits included, think the average
sum on deposit has been from one hundred to
one hundred and twenty-five thousand dollars
We do business deposits, taking care to keep
| on hand sufficient TO pay the calls of de
positors. We make losns TO a small extent only
Our chief business is the buying Of cotton and
| selling naval store bills,