The daily gazette., 1880-11-29
From s.,u raay.. L.s. EDITION.
THE SUPERIOR COURT.
CONTINUATION OF THE LIBEL SUIT
MR.. MONEY ON THE STAND.
Specially reported for the Gazette.

On the reassembling of Court at 10 |
O'Clock this morning, evidence for the |
defendant was continued in the libel |
suit of the Delaware State Fire Insur- |
ahce Company VS.. William T. Croas-
dale,
George b. Money, of DelawareCity, |
was recalled and testified to the orga- |
nization of the Insurance Company, in |
Delawa City, in 1875, with Messrs.
Rollins, of Philadelphia, Myers and
Hollister, of DuPage county, Illinois,
ana Cleaver, Price, Ash aud himself
as Directors. Witness was elected
President, and Myers Secretary, but
there was no Treasurer. Myers pro-
duced large number of abstracts of
titles OF land on which mortgages were
to be executed as security for the stock
business.
An office was opened, but no stock
was subscribed to or issued at the
time. Afterwards some stock was is.
sued to Mr.. Ullman, head of law
firm in New York in payment for land
in Dauphin county, Pa, which was
negotiated for by Phelps and decided
To witness, without his knowledge. -
The price was $50, 900, to be paid in
stock. Twenty thousand dollars of the
stock Vas issued, and witness demur-
red against the payment of the balance
until he could examine the land. The
balance was not delivered to Ullman
until about the time witness retired
from the company.
| Mr.. Money said before the balance
of the stock was paid to Ullman he
had an agreement that the land was to
DO examined by geologist and min
ing engineer, and If his report was not
sal isfactory the stock was to be with
held. The examination was made by
Mr.. w. w. Lance, of Philadelphia,
and was handed to the Company.
Mr.. Bates said he had served notice
upon Messrs. Lore and Whiteley to
produce this paper and asked ii they
had done so.
Mr.. Lore replied that the defendants
did not have the pap5r and it did not
belong to their Company.
Witness said the papel had been gwen
into the custody Of Mr.. Myers, Seer, tary
Of the Company. He had 10. seen the
paper since November, 1875. To the
best of his knowledge tie rel port stated
hat the iAnd was valueless for mineral
purposes, and was only available as or
binary mountain land. 1t gave no es
innate OF the money value Of The laud
Mr.. Myers, as custodian of the Com
pany's funds, was directed to pay Lance's
bill of $6v, but he failed TO do so, and
Mr.. Lance recoverel it by suit through
anthony Higgins, Esq. The balance
of the stock To be paid for the land was
de iveted to Ullman aud David X
/ ID . L.. ,t..lt
consulted with hs attorney, aud theI
turned over the stock and the report tC
MYERS. Soon afterwards witness resigned
the Presidency Of the Company, Ullmat
uad brought suit III the U. ). Court
Philadelphia, for the recovery OF tn,
balance of the stock Witness wa.
asked u assign pAlt OF tie land L
Myers, HollisteI aud Phelps, retain The
balance himself, and each give a mort
gage, accompanied by bond, to tb,
Company. Mr.. Money said his suspic
ions mad been aroused by an article Ii
the Philadelphia Herald, in relation t,
the Company, and referring more par
ticularly TO Myers aud Phelps. He the.
set out making inquiries in regard /,
these two men by letters directed Il
!. their former places Of residence. Tn
other Delaware members of the Com
pany had meanwhile withrawn and tn
witness also withdrew.
Before retiring from the Compan,
Mr.. Money SAID he conveyed his till
in the PENNSYLVANIA land TO either My
ers or Holhstcr, he could not remem
Der which. He said he inspected th
land and was on it for two days.
was, to his Judgment, about the sam
a 1 Mr Fort m hannh -
the witness stand yesterday. The OF
ly other stock save that issued for thi
land, while witness was President, wa
10 the amount of $4,000 for land i
Kent county, Del. The land wa
decided to him, and he afterwards cor
veyed it to Mr.. Myers. A copy of til
Iced was shown to the witness an
recognized. No money was paid fo
this land in addition TO the stock. n
actual value of this stock had eve
been computed, but the par value wa
either $25 or $50, he could not remen
ber which. Up to this time these tw
tracts of land were the only securitit
the Company held, but no stock busi
ness had yet been done. The Ker
county farm was purchased subject
mortgage of 81 600. No stock wa
ever issued to Myers for the securitit
he put into the Company. Winei
did not consider the stock of the Con
pany worth anything at the lime, an
would not have been willing to pun
chase it at any price.
On cross examination Mr.. Money sa
ne was elected President in July, 1877
10 about December, same year. II
Directors first met in July. Messr
Cleaver, Myers, Ash and Price we
present. They were then all citizens
Delaware. A subscription list WI
Jpened, but he did not remember IT,
any stock was subscribed to until Il
time of the first land purchase, in Sc
tember, 1875. Witness never su
scribed to any Of the stock, but said
was to have taken five shares. 1t W
understood that the other Direclo
we're to subscribe. Witness said he hs
not resigned his Presidency when u
10000 of stock was issued to Ultima
tnough he was not then acting ir tn
capacity. When ne conveyed u
Dauphn county land TO Myers, Phel
and Hollister, the consideration nam,
was $4,000, though he never receiv,
anything. A paper was shown hi
which he recognized, as his conveyan