The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-06-01


out consideration. and assea witness II he said soy
Witness replied that he said anything
likei
BY Mr. Fryc-As matter Of fact, did you ever give
Mr. Blame $3.50 900 in bonds without consideration
A. No, sir.
Witness Lever was connected with the Union Pacific
Company; don't know Norton Hiss & Co, and never
had any transaction with them the bonds spoken OF
by witness as being owned by Mr. Blame, he under
stood. we're bought by Blame Tor other parties.
Elisha Atkins, OF Boston. testified he had been d.
rector Of tho Onion Pacific company since 1860, and
had been member OF the Executive Committee all the
time. except in 1871 first knew about the Fort smith
and Little Rock bonds in 1871. when an order came TO
tho treasurer pay draft OF Norton Bliss Co. Tor
SCl, coo, for scvcntylve Of them owned by Colonel
Thomas A. Scott understood II was in leu OF paying
largo salary TO Mr. Scott; Scott OF immense value
the road and Increased the market value OF It's Sc
curtes always supposed that Scott took hold OF Unlon
Pacific in order to make a connection 10 the Pacific
coast for tho Pennsylvania Central road the bonds OF
the Little Rock road worth about sixty thinks
that was their general value at that time. although
knows that some were sold high as sevcnty-onc;
witness would sold his Tor sixty at that
time. but made mistake y not doing so; " the ar
rangcmcnt had been carried out with the South
crn Improvement Company the bonds would have been
very cheap sixty; bonus accompanied the sale Of
SCOTS bonds; witness knew that some inquiry was
made the Board OF Directors about the purchase OF
these bonds anu satisfactory explanation gwen; never
heard that AN investigation would involve Mr. Blaine.
James Mulligan, Of Boston. testified rs ioilows:-
BY Mr.. Hunton-Q Stale your residence ana voca-
tioas A. l reside in Boston and treasurer OF the
Globe Theatre.
Q. Have you ever had any connection with the Little
Rock and Fort Smith Railroad Company? A. had,
through Mr. Fisher
O State what IT was? A. was bookkceper and
cashier for tho Adams Sugar Refinery, in which Mr..
Fisher was partner kept some accounts for Dir.
Fisher for the Little Rock and Fort Smith bonds
O. Where arc those books? A. In Boston.
O. In tho possession Of Mr.. Fshcrs A. presume
O. Do you know anything about tho sale OF any
Little Rock and Fort smith road bonds by Mr. FISHERY
O. To whom were they soldG A. They wero sold
through Mr. Blaine 70 parties in Maine
O. State their names.
Objected 70 by Mr. Frye, and tho question with
drawn.
O. DO you know Of tte sale by Warren Fisher or
Josiah Caldwell Of scveny-ive bonds OF the Little
Rock and Fort Smith Railroady A. know OF num-
Der OF bonds that sold, but have no knowledge
Of any specific seventy i've bonds; there were num-
Der OF bonds so. In the State OF Maine; that was NIL
the transaction OF which kept any account
Q. Can you state whether the number OF bonds sold
TO persons in Maine through Mr.. Blaine amounted 10
scvrnty-Avef A. Yes; they amounted to twice that
number
O. DO you know of any sale of bonds by Fisher
Caldwell to Thomas A. Scott A. M, SIR; do not
know about bonds sold outside further than those
sold through MI Blame TO his friends in Manc.
q. How much did those bonds bringf A They
Melted MIR. Fisher forty-ive cents on the dollar
Q. Was there any bonus accompanying the salcs OF
those bondsy mean did the purchaser OF those
bonds got in addition to them stock or something else
Of tho company a Yes 81. cold $40 ooo wort, q,
bonds and got orty five cents the dollar for them,
did he transfer along with them other bonds or stockO
O. How mucha A. Sometimes moro and sometimes
Qlwhat was the usual amount of stock given as
bondss a. suppose paid $780, 600 in cash for
fifty first mortgage bonds, he received tho bonds,
$4,000 in common stock and $4,000 In preferred
stock-somc gtssnoro and some css
O What was tho'valuc of that stockf A. do not
know whether there any value TO Il; It's par value
was $780, these bonds sold through Mr. Blaine netted
Mr. Fisher foriy-nve cents on the dollar; Mr.. Blaine
made contract for theni
Mr. Hunton to the wilness-Tell us the transaction
without mentioning names
wtness--I cannot tell you about that cannot tell
you value Of the stock because two parties got the
benefit OF IT,
MIR Hunton-I will get at It in another way. Mr.. A.
comes into Mr.. Fishers oflcc and buys ten bonds
OF the Itle Rock and Fort Smith Railroad Company,
the par value Of which $4,000 Mr.. Fisher gets
for thus and along WITH inc e1n9s gives
Of common st0ckY A. Yes.
O. So that instead or the purchaser getting bonds TO
Ing $0OO0 preferred stock representing S100 900 and
common stock representing slo.Ooos A. Yes, sir.
Q. so that the stock and bonds which represented
at par value $50 900 brought only 800. A. There
. third party TO be paid. and cannot give you the
particulars without stating who It was
Q Who that third party who got portion Of tho
pays A. understand that that Is objected to.
Mr.. Frye object to going into that main transact
ton.
Mr. Hunton--I am endeavoring to ascertain from
tho witness the value OF the bonds, which value here
have got by actual sale.
n ri If
these bonds?
Mr. Hun,on-what Mr. Fisher sold those bonds for
Witncss-All that know H. what my books show
and what Mr. Fisher got for Them; they netted Mr..
Fisher forty FIVE cents the dollar for The amount OF
the bonds calling the stock vauelcss but taking the
bonds that were given to tho third party then the
whole ncttcd Mr. Fisher $4500o
q What was the gross amount which Mr.. Fisher
for $40 600 in bonds $4,000 N preferred stock and
$40. 900 in common stock
witncss-You want me to tell you also what the in
BY Mr. Iawrence-what was tho cash price at which
the bonds werc soldY' A. All that know about the
price Is what they Melted to Mr. Fisher
BY Mr.. Iawrcncc-what did he pay this person
who acted as broker in the saleY A. will tell you
how much in bonds Mr. Fisher delivered for that
amount OF money-how much the buyers got and how
much the other party got
Mr.. Fryc-I object TO that
Mr.. Hunion ito wiinessl-Ycu say that Mr.. Fisher
got forty-nvc cents the doarf A. Yes taking the
commission out that Is the actual amount he nettcd
from the bonds that no gave out
Mr.. Hunton--And no had TO pay third party for
selling those bombay A. Tho third party made the
contract with different persons In tho State Of Maine
q How much did Mr.. Fisher pay this third party
A. He paid him about as much he the other
one; " my memory serves me right there about
coo In money paid by the parties for which they
got $3.50 900 OF common stock $4,000 Of preferred
stock and $130,0t0 cf first mortgage bonds; and tho
third party was TO get $780, 0oo Of Ia nd grant bonds and
$32. 900 Of rst mortgage bonds for his share IN the
transaction; that ~ what Mr. Fisher gave out for this
$3.50, 600
Q. The transaction to which you nllude involved
$130.O00s A. II did.
Mr. Frye objected TO the testimony as having no
connection with the Union Pacific Railroad Company.
Mr. Lawrence moved to strike out OF the record all
that related the sale OF those bonds except tho fact
that they sold vt given price.
Mr. Hunton--Thc examination OF this witness was
undertaken for other purpose and has been directed
other point than the value Of those bonds tho
market ITO the witnoss:) This sale, as understand
involved Sl30 900 of rst mortgage bonds 600 OF
preferred stock and $3.50 900 Of common stock. What
the realized by Mr.. Fisher for that $500. 900
in bonds and stocky A. One hundred and thirty thou
sand dollars and he had to the third party $50 900
OF land grant bonds and So, 500 OF FIRST mortgage
. bonds.
a. And from the whole transaction no realized