, 1873-03-26
ll0arlng on tho Petitions and answers In
,tho Bankruptcy Proceedings Against
tho q. ". Telegraph
Company.
Mr. D. A. Gage, Deputy Sheriff
Ayers, Superintendent Bliss,
and Secretary Bond
Give Evidence.
The Answer Of the Defendants In the
Sny Island Trouble.--The
Other Side.
a Trial Of Considerable Intcrest
to Landlords and Tenants,
Criminal Court News, Bankruptcy Mat-
ters, Notes Of Interest, and
New Suits.

oflnl1nal tourt N6Ws, Bankruptcy Mnt-
ters, Notes Of Interest, and
New Snits.
The hoaring Of the petition for adjudication Of
tho Great Western Telegraph Company, and
answer thereto, cnnlo up before Judge Dlodgett,
Soaterday. Tho examination of witncgseo took
up tho whole Of tho day, and was continued oyor
Till this morning. Tho first Witness examined
was Air. Ayor, Of Chicago, who affirmed that Ito
holds In his possession the writa Of execution in
favor of Cook County National Dank against tho
Great Western Telegraph Company. They were
received by him at $50 p. nj. OH the 14th Dec.
last, and the amounts are 81 GB40G, 81, ,49G. .10,
and 3731.5G, in which amounts coats aro included.
Tho late of these executions is tho 18th Dec,
Inst.
David 4. Gngo, lato Presstlont Of tho Gon,pa-
hy, testified that tho Company was insolvent at
the timo of tho execution. Part of tic notcs
were given In ronewal Of other notos previously
discounted by tho bank. All tho uotea upon
which judgment Ind boon obtainod roro such
Renewals. Flo wihhcd to havo the Commercial
National Bank tho first CREDITOR and as the notes
were indorsed by himself ho took natural in
terest in thoir ultimate fato. In crosa-e1amlnn-
tion, he stated thlt the notes we're given to Sela
Reeve, who vas building the limo for tho Com
pany, and who draw tho funds as tho work pro-
crossed, md who put IN his bid subsequently.
The bRlanco WAS generally in Reero's favor.
Witness was not converHant with tho affairs Of
tho Company, but considered TINT in August,
1872, the Company was inEolvont, and Ind its
creditors presented claims and prcssed for pay
ment, 1t would not have beon ablc to comply. At
that tno tho Company had disbursod to sclah
Reeve for tho building Of lines between s20o 900
and 100000, which lines wcro FREQ Of oncun,-
bEanco. Tho work waa dono at tlln rate Of 5000
per milo. Tho unpaid subscriptions footed up
betwoen s300,000 and al00,o 600. It's liabilities
were between $50, 600 and 200, which amount
docs not include claim Of 6elah Rooye in tho
vicinity Of 100000 for which he holds tho Com
pany'B certificates but Which tho new Doard con-
tests. This indebtedness is mado up Of
the notes held by tho bank and
By JOHN G. Hilton, and sundry accounts.
Witness tiret held the Hilten notes, having given
them to lliEto:l in August last Witness receiyod
Rcoyo and used in building the linc. AIr. G. III.
Gray nid himself in Jrno Inst, as Executive
Committee. met and authorized thu muking by
Otis, the Treasurer of tho Company, Of pr1ns-
l,at, ho considered, tho power to mako buci
notes for tho Company. The duties OF Assistant
Secretary mud Tfeasr or Wero performed by Na-
than lscoyc, brothcr Of selah, tho contractor.
WtMusB stated that i'll the transactions bctwoen
himself and Recvo ho novor received u cent of
profit, and that auyono WHO stated otherwise did
not toll tho truth. .,
After recess, Mr. Diss, Inspector and supcrin-
tcudcnt Of tho Company, states that during tho
1879 his salary varied from 81 500 to- 81, ,010.
At prcsclt his salary is $4,000. Tho Company
aro al t:prcsont paying thoir Secretary aud ucl.-
cru, Collector $4,000 per un,.11n, aud their Treas-
= I'm T6rf att,$,
enlary, and tho Committee receives II per dion
nllownuco.. The Company WIS indebted to- him..
ut tho tlmo tho new board Of management waa
formed, to tho amount Of 500 or $500. which
ho Ind not since received III toto. lie thought
tho limo within Cook County could DO worked
ut n profit, but waB not Of great COM
!ncrc!al value. The most valuable part Of tho
limo was TINT which runs between CAicago aud
milwaukee,. Tile most valuable portion within
The State Of Illinois was that between Chicago
ind Princeton. Some revenue llas accr,ied from
tho bnBineas between Chicago and Evanston. Is
acquainted with Mr. Mcdonald md hlr. Whit
havo stuffed to him tAat they would mako theiif
money out Of the line. Considers that tho ILL
nois lines Of the Company, if isolated from out
s!do connection, would bo more valuable than
Exspl.ued That tho apparent incrcase Of
6alarcs was not 60 great as it appeared, aB tho
former Secretary, with nominal Halary, had an
assistant At 73,eoo per annun,, which he sup
posed tho Company paid. Thinks tho Company
Aas about 500 miles Of limo within tho State Of
illinois. The average duration or, telegraph
lines Of tho old style WAS from IS to 20 yoarB,
but modern line would provo moro durable.
The manual cost Of repaira amounted to about
10 or is per cent. The Company pays largo
commisaion to alcssrs. Bond aud Ayros, amount
ing to $500 q month zach. The largost monthly
earnings Of the limo within his menory woro
$4,000. Tho aysrage for the last throo months
'waa 81 200 or thorcabouts, part OF Which woro
duo to Othor compnt,ies Ihn ]o,yeBt eross re-