, 1872-11-28

More of the Elevator Firms Trans
actions Unfolded.
The Agreement. with Armour Abo11t
Taxing Charge Of the
Warehouses.

heg1ster Hlbbard, and in reply to interrogatariea
by the counsel for creditors, responded as fol-
lows: The Northwestern, Mum 8; Scott. and
Union Elevators were conveyed on Sent. g. by
deed, to George Armour, which deed was made
at ~ltness' own suggestion, and for the rea-
Bon, as he told Armour, that Mum l. Scott we're
embarrassed, and he wished to protect the pub
lie in the use Of the elevators. Did not know
that he stated to Armour the extent Of the Ea-
bilities but said it would take about $500 900 to
carry them through. Armour consented to ac-
copt the deed on the day following the first con-
rersation, without any pledges whatever on his
own part. The object Of making the deed was
to put Armour in possession Of the ele-
vators, being satisfied that everything
would be done rightly. It was under
stood, though nothing was SAID, that Ar
mour would carry on the elevator business as
Mum i; Scott had done. Hiram Wheeler was
present at this conversation, and no one else.
Mr. Hoyt had not at that time stated that he
was going to advertise any mortgage held by
him. Scott WAS not present at the preliminary
negotiations, but witness informed him before
the deed was executed. The intention was that
all parties in the elevator interest should re-
ceive their portion OF the benefits resulting Init
this WIS not 80 with regard to outside parties,
~
outside parties, and would have done SO
if they had been left alone. The
indebtedness of Mum 4 Scott to parties expect
ed to bo benefited vas about 100000. Schedules
fled show about what that indebtedness was.
About $500 had been paid on claims against
Mum, Norton l. Scott the firm OF Mum g.
Scott have paid about $4,000 worth Of claims.
There we're call loans Of Mum i Scott outstand-
ing at the time Of making tho deed to Armour,
about 600 to the National Bank Of Illinois.
There were no other call loans, but Mum d
Scott were indebted to tho banks besides the
amounts appearing in their statement; about
555, ,000 to the Union National, about 925, 900
to the Northwestern, $4,000 or $4,000 to
Did not know whether these banks had been
paid or not; they had not been paid by Mum &
Scott; these we're not put on the schedule, be-
causo the banks had col1aterals; they might
the claims would not be outstanding. Tho Ma
tional Bank Of Illinois had received it's money
through Armour CO., who had colaterals and
took up the notes. Didn't know whether the
was that as all the banks held collaterals they
had realized the outstanding indebtedness.
Tho Wyndham National Bank. Of Connecticut,
had warehouse receipts as collaterals to- the
amount Of $4,000; didn't think that had been
taken up; didn't know, but supposed there we're
from 1000 900 to 2,500,oo0 receipts outstanding
besides those mentioned. Tho firm Of Mum,
Norton l. Scott bought, sold, and shipped grain
outside the elevator business, and In violation OF
the agreement of 1866, in which outside business
OF Mum l. Scott the elevator interest had no
ehare.
The property conveyed to c. g. IT. Wheeler, |
Sept. %, 1872, was for $4,000 as elevator diri-
dends, because the Wheelers needed tho money
badly. Didn't know anything about Hugh Ala
her, and never talked with him about the wheat |
corner. There WAS IN agreement between Munn
l. Scott, John Lyon, and 3 Canadian whose
name witness could not lscall, in regard to the
wheat corner. They nude pool, and Mum d
Scott put in $4,000 Didn't know whether
Hugh MINER was in the agreement OF not It is
not true that S300, 900 Was mado on that corner
so far as Mum & Scott was concerned, but what
ever was made, Mum & Scott would be
entitled to their shnre. Never cali
I'D for any account of amounts
received because they always supposed there
vas 1e4s on it. The property conveyed to Ar
mo11 i Wheeler was Alunn t. scott's inter-
tst in the Elevator Association.
Witness guessed he would not answer how tho
Indebtedness mentioned in l1unn g. Ecott's
schedule to George Armour occurred, because
10 didn't want to. Couldn't say what the
mount Of indebtedness WAS to Armour, Nun
yer, theWheelers, Perry Smith, and Dunlap d
1chay. The proportion Of the indebtedness to
ach OF these parties WAS in the same proper
ion as their interest in the Elevator Associa-
ion. Didn't think he would answer out OF what
hat Indebtedness arose. Declined to give an
nswer why he would not answer.
The matter was thereupon presented to the |
'ourt, who takes it under advisement until
londay.