The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-03-24
TESTIMONY TAKEN.
THE TuscARAwAs RAILROAD SUIT.
The Evidence In the rs4dIns Trial, Against til,
TuseArswm Valley 4 wheeling RoAd-Thc
rlAIntIrs StOrI-An Alleged Freeze
Out Gamt-GsnPral News Notes.

lnony in the suits Of Clement Russell vs.
the Cleveland, Tuscarawas Valley & Wheel
ing Railroad Company, at the office OF the
Clerk OF The United States District Court, at
10 o'clock Yesterday morn. Judge Boynton,
Judge Dickey, and L. A. Angel, Esq, ap.
peared for the plaintiff, and Judge Tyler
for the defendants. Mr.. E. r. Perkins was
again called to the witness stand. He tes.
titled that there were no other directors OF
the road besides Selah Chamberlain, Amasa
Stone and W. $ Streator interested in the
association When the bonds were purchased;
that those three were interested in the
purchase OF about G5 per cent OF the entire
SJ9S, 900. He did not know what
the net earnings of the road were
for 1881. Did not know that the
net earnings for that year would per
cent on all the bonded indebted.
ness Of the road; did not know that the net
earnings for 1881 were nearly $3.50, 600 or
u similar figure for 1882; knew that if there
was this amount OF net earnings and that
amount applicable TO the payment OF inter.
eat on bonds, the bonds would be very
valuable. A net earning in one year Of
$3.50, 900 or a 81 ,000, 600 investment would
make the bonds very valuable. Personally
ho did not know anything about the earn.
ipgs OF 1881 and 1882; knew that the bonds
had no market value; that the interest
thereon was not paid, and that the officers
OF the road in response to repeated in
0uiries said 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 steel rails with view OF making sale
OF the road?
Mr.. Perkins-I knew that there was con.
siderable money spent in new ties to re-
place rotten ones, and in steel rails to
replace worn out iron ones. Continuing the
witness said: "Do not know what the
monthly earnings OF the road were when
THROWN INTO THE HANDS OF A RECEIVER.
Think l and my associates paid all the
bonds were worth and even more. There
never was a written paper agreement or
contract between the parties who pur-
chased these bonds. There was an agree
nent, that is, we agreed to purchase the
bonds and apply them to the purchase Of
the road. 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 matter entirely with
ourselves. Every single bond participates
| in the reorganization at Its cost."
| T.. Hha .Is.u I Enftar Sparatorv nj tha
company, was then colled and was asked
by Judge Boynton II be bad the book OF
record Of the actions OF the O., I. V. & W.
Railroad.
Witness-Yes, sir.
Q.-How far back does that record ex-
tend?
A.-From the organization Of the COM
pany to the present day.
Mr.. Cutter turned to page 200, and read
resolution adopted by the Executive
Committee Of the Board Of Directors, ut a
meeting held January 81, 1850, at which
there we're present Selah Chamberlain,
Amasa Stone, DR.. Streator, James Mason,
and L. 7. Myers. The resolution was
offered by Mr.. Stone, and provided for the
pleding Of any securities oil the company
in order to borrow Sl00, 600 or more TO
complete the Erie extension. The Board
OF Directors approved the resolution, and
at meeting OF the stockholders held
March 10, 1850, a resolution was passed
approving the acts and proceedings OF the
Executive Committee and Board OF Direc-
ters, aud also approving Of the action Of
the special meeting Of stockholders held
previously.
Judge Boynton-As secretary Of the
company, do you know OF any other au-
thoriy for hypothecating these bonds?
A.-No, sir.
Counsel for plaintiff here requested the
presence OF MIR. Selah Chamberlain. Coun-
sci for defendants admitted that the S2l0,-
600 given Robert Chamberlain by Selah
Chamberlain was bona fde, permanent
pitt, made for the especial purpose OF
making this loan, no Indebtedness being in
existence at the time. With this admis.
sion, Mr.. Chamberlain was not called.
Clement Russell, the plaintiff, was then
called. He said: IL am a stockholder and
director OF the Cleveland, Tuscarawas Val.
ley 4 Wheeling Railroad Company, and
have been from the company's organiEa-
tion to the present time. About the last
OF January or the first Of February Mr..
Perkins read 10 me 9 paper purporting 10
be signed by body OF men forming a
syndicate for the purpose Of purchasing
and reorganizing the company. He read
nothing 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 ( Black River
we're to go into the syndicate at par,
with principal and coupon. The holders
OF first mortgage bonds OF Eyria 4 Uhrichs:
vile were to go in at par, with principal and
coupon. The bonds OF 1877 were to go In
at 50 cents flat. II | signed the syndicate
must put in my bonds at so cents and
nay Is per cent In money, though what
The money was for / could not learn. l
had conversation and correspondence with
w, S. Streator in relation to the value OF
the series OF bonds now known as the
SO97 900 bonds. These bonds sold In the
market for whatever parties were forged to
take. About the 1lth Of December last
they were worth more than they sold for;
were worth, say dollar for dollar, under
AN HONEST MANAGEMENT OF TIE ROAD.
Under prudent management Of the road
they would have sold below par; l owned
some bonds Of that issue; ! owned them
absolutely;I never gave my consent to
the hypothecating Of these bonds for the
purpose Of securing any loan; the COM
pany had other securities; was at the
meeting when the resolution was passed +,
nothing was said about hypothecating
thesO bonds any more than what was con.
tanned In the resolution"
Cross.examInea by Judge Tyler-There
was nothing said in regard to these bonds
during any conversation ! had with Mr.
part OF January; the talks and negotiations
between US were in regard to the McClain
bonds; bought these bonds, $4,000
worth; don't remember whether had any
other bonds at that time or not; don't
Lnnw whether | bought these bonds before