New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-01


employedi A. Only from street report -, -,
o. You nave no Information from Stockwell what
O Will, YOU were a director OF the Company did you
receive any Information as 10 sums OF money whl1h
we're being expended for tbs procuremen' Oh tnS SUI
O. Were You consnlted as director, was the man.
this dspurs 'menG brought % your Attonllonn
after ward during yonr connection Win tue ConP'"'
Dir. Beck-was Mr.. s.ockwon speculating in tho
@ Were momoer. OF the Board of Direction .pocu-
lating IN the stOcki A. presume So more or icSs'
O. You were 7 A. I was; oought tho stock anu solu
1t before director while L was dire'tor' "uu
@ were other members Specializing at that time a.
cannot say from my own knowiehge ,ny v wsion
o. WIS the amount OF the disbursement lait before
vo,I very Two or three mon his 'eore tue Bo1rdf a.
Yes Sir theY lad before thr Executive Com NJ
tee aud tno report that Committee was presenter 70
the Oari OF Directors once mouth Tor Inspection or
O. g. that all The which was paid out. that ap-
peSre nDn the books OF the Company, Was su(Ject 10
your inspec 4 Jui A. MI IN detail
Az Ooo WIS naii 20 Irw,nI a. i would like state to
inc what canes hof0fe the Bhari Ino sIlo
aent presented to them IL the CONDITION oil me Co'I
plny, In it would be. for instance money IN hands
OF particular agents, an thrc WOud Do suns ol monty
IN rwus hands IA tle Slh ffLncisoO aSoL' O'nor SUMS
IN other ngeuts' niLds.
O. Daring the tins Irwin was In Washington attend
Ins 10 ms SUBSIDY. IRON January 10 MAJ your books
$4,000 Were his accounts iald O94Jre yOuf a.
O. Why mott A. 1 don't know that the Board was
aware OF his expenditure ia money. Tho hSureS thdt
would go the Executive Committee wnuli be the
amount Of money IN the na lds VI the san Francisco
agents, which Or less. 81 tult In giving TINS
statement Baru did not go into tue ex ninaOn %
the DOOEs Of tho Company 10 nll Ou as 10 sue eOrocE
ali. IL tDOK the statements presented 10 theh
a, tue statements Of the condition OF tHe Company.
@ WoulJu'; tue large Item OF S6OoO' attract "'ou'iou
Pul inquiry A Yes, II must.
O. D.i IL do sol A. don't remember what was said
mae meeClnR was not mrmbr OF the Executive
Committee. A. member of tho Board never Inquired
" Gether any money was expended OF these Urge
amounts. no such Statement was l1id before Tue
Board
@ sn'tit fact that II the condition of tho Com
pany had Oren XnOwn you now know IT, aud all those
false euriesS20DO)O IT, john RJdOb sl5l00 before tna
and false entIies-ad bjen maGo II would nave
affected the price OF stocks materially A. think IL
would
O. Therefore President and Board of Directors that
would specutats IN the stocks of tue Company would
not h., been likely Op the world the frauds
that being committed hecIus6 1t would an'ct the
stockl A. That would have depended On whether they
O. They were the whose duty 1t was to know the
tru H. aud could gdmoe acoOriing as tue truth could al
feet interest Would NJ they gamble accord
ing to their INTEREST," A. Yes, SIR.
O. You now know tnat tuer1 were great frauis' ana
that tal.e entries had been made on the books A
understand so from this investigation.
O. Thar fact must have been known to tho officers OF
the Company II not to yOdf A. Ii must have Deeu
known . President
@ And the truth OF such facts would have materially
AFT ;ce1 stOck,l A. Yes, Sir.
O. l. it, therefore, considered legitimate thing for
men nigh In position IN corpora Oht OF shat h' % 10
specuatng when there are fraudulent entries made
TO conceal the tluJli A. NJ, S.r.
O. Wno composed the Executive Committed A l
dOL'L know. tulnk mere were nye.
O. Tupy the gentlemen with whom you were
associated nearly three years ago You must remember
some of them A. | cannot tell without refreshing my
memory. The Executive Committee OF the Board were
changed once IN three Dy the bylaws. They
appointed by the President once In six months,
O. Did Mt your bylaws limit the authority OF the
President In the issue OF checks In small sum- aud for
particular purposes A. The President aud Executive
COMMITTEE nad the general management or the business
q. Do You remember that the Executive committee
reported 10 the the face hat on May "a the Pfes
dent had given his own checks for sl5oO'O to MI irwin
O. Ought not that fact il true TO have been before
the Executive Committed A. think It mad -
q. That Committee ought 10 have known the lacJ as
wei az the PRESIDENT a. Yes.
O. II they did know 1t they mover reported 1t to your
A. No. Sir. . -
late in the stock with the expectation OF an additional
subsidy and aid that false entries were necessary,
Was there any officer OF the COMPANY during your con-
nection with 1t who had placed himself In the best
position to operate IN the stock succesSfullyf A
don't know OF any.
O. VINO appeared to have the most knowledge OF the
actual condition Of the Company and ts disbursements
aud liabilities during the hrst part OF 1921 a. Mr'
n H1d he fhe mower as President 10 exchange checks
the Executive Committed A. There was resolution
on the books OF the Company think offered by nysef
that no loan Of the funds OF the Company should Dc
made upon securities that had market value in the
street, and with not less than 20 per cent margin III Tue
loss. . a., $500 .-
the Company funds any amount without the knOw
edge OF the Company Il there any Limitation OF tue
bylaws against III A. don't know that there Is
O. Did that differ from the power no mad Of making
regular disbursements! A. No.
D. Did tne bylaws limit the amount he was author
IL II to pay1 A. think the amount was 5000 as the
limit. -.,--
O. II he wanted paw out larger sum OF money than
s. 0JO would require some sucn resolution as that OF
Fec. IA, 1872 A. Yes.
Ing the checks aud charging them to another account
there WAS limit 4. No, Sir.