Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1883-03-24
TESTIMONY TAKEN
By Special Master A. J. Hicks, In
the Railway Suits
Instituted by Clements Russell, Of Mas
sillon, Against the c., T.H 4 W.
R. R. Co. Schemes of
Various Sorts.
EVIDENCE OF PERKINS AND RUSSELL

CLEVELAND, O., March 23.-Special Master
A. J. Hicks resumed the taking OF testl-
mony in the suits of Clement Russell vs..
The Cleveland, Tuscarawas Valley and
Wheeling Railroad Company, at the once
of the clerk of the United States District
Court, at 10 o'clock yesterday morning.
Judge Boynton, Judge Dickey and +. A.
Angel, Esq, appeared for the plaintit,and
Judge Tyler for the defendants. Mr.. L. K
Perkins was again called to the witness
stand. He testified that there were no
other directors OF the road besides Seian
Chamberlain, Amasa Stone, and w. o.
Streator interested in the association when
the bonds we're purchased; that these
three were interested in the purchase
TO about 65 per cent OF the entlre
S628, 900. He did not know Wnat tne
Net Earnings
of the road were for 1881. Did not know
that the net earnings for that year would
pay 5per cent. on all the bonded indeoteo,
ness OF the road; did not know that the net
earnings for 1881 were nearly $35O,OOO, or
similar figure for 1882; knew that ii there
was this amount of net earnings and that
amount applicable to the payment OF IN
terest on bonds, the bonds would be very
valuable. A net earning in one year OF
S35O,OOO on a $i,0OOOOO investment
would make the bonds very
valuable, Personally he did not
know anything about the earnings OF 1881
and 1882; knew that the bonds had no
market value that the interest thereon
was not paid, and that the officers Oh tne
road in response to repeated inquiries salu
there was no money with which to pay the
interest.
Judge Boynton-Did you not know that
these net earnings were largely expended
in improving the road, laying new ties and
rails with view of making sale oil the
road?
Mr.. Perkirs-I knew that there was con-
siderable money spent IN new ties TO re-
place rotten ones, and In steel rails TO re-
place worn out iron ones. Continuing tue
witness said: "Do not know what the
monthly earnings of the road were when
Thrown Into the Hands of n Receiver
Think | and my associates paid all the
bonds were worth and even more. There
never was q written paper, agreement or
contract between the parties who purchased
these bonds. There was an agreement that
is, we agreed to purchase the bonds and
apply them to the purchase OF the road. l
have never seen any written agreement IN
regard to the purchase of these or other
bonds. The part these bonds were to take
in the division OF the new organization IS
a matter entirely with ourselves. Every
single bond participates in the reorganna-
tion at its cost"
Clement Russell, the plaintiff, was then
called. He said: II am stockholder and
director Of the Cleveland, Tuscarawas Val
ley and Wheeling Railroad Company, and
have been from the company's organization
to the present time. About the last OF
January or the first of February Mr. Per-
kins read TO me paper purporting to be
signed by body of men forming syndl-
cate for the purpose of purchasing and re-
organizing the company. He read moth
ing concerning any disposition OF the bonds
in controversy though all other bonds were
mentioned AS to the division among the
associates. Parties holding first mort
gage bonds of the Elyria and Black
River were to go into the syndicate at par,
with principal and coupon. The holders
Of first mortgage bonds of Elyria & Uh-
richsville were TO 90 in at par, with princi-
pal and coupon. The bonds of 1877 we're
to go in at 50 cents fiat. If | signed the
syndicate | must put in my bonds at 50
cents and pay ID per cent. in money, though
what the money was for | could not learn.
! had conversation and correspondence
with W. S. Streater in relation TO the value
OF the series OF bonds now known as the
$627 900 bonds. These bonds sold in the
market for whatever parties were forced to
take. About the llth of December last
they were worth more than they sold for;
we're worth, say dollar for dollar, under
An Honest Management OF the Road.
Under prudent management of the road
they would have sold below par; owned
some bonds of that issue; | owned them
absolutely; never gave my consent to the
hypotheCating of these bonds for the pur-
pose of securing any loan; the company
had other securities; | was at the meeting
when the resolution was posed: nothing
was said about hypothecating these bonds
any more than what was contained in the
resolution"
Cross examination by Judge Tyler
There was nothing said in regard to these
bonds during any conversation had with
Mr.. Perkins or DIR. Streatur during the lat.
ter part of January; the talks and nego.
tiatiOns between us were IN regard to the
Claim bonds; | bought these bonds,
$4,000 worth; don't remember whether
had any other bonds at that time or not;
don't know whether bought these bonds
before or after my conversation with Mr..
Steator; paid more than % cents fiat for
the bonds. bought the bonds now in
court at 80 cents on the dollar. DR.. Strea-
tor wanted me to join him in buying the
Nc Lain bonds. Do not know of any bonds
being offered for % cents or less.