The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-06-25
FULL TEXT OF THE EPIsTLRs
THAT PASSED BETW ZEN
GERALD AND WHIT
TAKER.
WHITAKER RGOAPITULATEs'
IA clear Insight Into the Part Played by
Jay Gould in the Ty or litigation

the receivership Investigation of the
International and Great Northern re-
Gel vership, resumed their hearing al
4 0 o. IN. today. The direct eXamina'
Eion of Colonel Herndon, who was on
the stand at the hour Of adjournment
Yesterday, was resumed by Judge
Alexander. The witness, in reSumlng
hi. testimony, occupied considerable
dime in supplying omissions in his
evidence of yesterday, and amending
some portions OF it, so it would cor
respond with the documentary plead
iugs already filed 10 evidence. He,
however, gave no new facts OF any i'm
Yortance beyond what was drawn .out
IN the testimony yesterday.
Today Col. Herndon underwent a
most searching investigation by Judge
Alexander, and able, cool and col
lectei as he generally is, he was fire.
nuently surprised and nonplussed by
some of Judge Alexander's interrog,
atories. The relations OF the Missouri,
Kansas and Texas with the lnterna-
fjonal and Great Northern and the
slbsea uent litigation that occurred
between them and in which Jay Gould
played no inconsricuous part, was
again gone over aut thoroughly ven
Hated, and was in the main corroho-
,rltiye of what has already been
brought out in the evidence.
In reply to Judge Alexander's inter
rogatory as to what representation
gay Gould and the Missouri, Kansas
md Texas had in the International
md Great Northern board Of directors
before it went into the hands of re-
aeiyers, witness replied Gould had
i've and the Missouri. Kansas and
Texas four. He attempted to name
Che directory, but not recollecting all
che names, abandoned it. Witness
understanding was aud is that the di-
gectory up to March 1, 1880, was a
Gould board. After that 1t was a
Missouri, Kansas and Texas board.
Declined to state that they had ar
rived at an agreement; they had 0
% lrtial adjustment of the differences
The reasons assigned by Cochrane
for representation in the Internationa
and Great Northern receivership were
that Gould held a majority of the
floating indebtedness OF the company
and was also interes ed in the second
bonds. There were matters
about the adjustment which, as coun-
sell prevented him from disclosing.
The adjustment was made prior to
March list, 1880. In the adjustment he
the Missouri, Kansas and
Texas and was their counsel until
April 1st, 1889. The court by DEGREES
made judgment a lien on the trust prop
erty to be paid from time to time by
the receivers, as the earnings of the
road over and above its expenses could
Justify. The books were their own.
The Intervention of the Missouri,
Kansas and Texas was for the value
~ $4,000 shares of stock of the Inter
naff1hsl anu Great Northern company.
He mapped out the policy of the re-
This was put before the
resignation OF Finley and the appoint
ment of Col, Eddy. He had no ground
to assent or TO dissent from COL
GGsIdy's appointment
AZ the meeting ON Saturday night
prior to the confirmation of Receivers
bonner and Finley the discussion was
general as to who should represent the
receivers in the management OF the
affairs of the company. He preferred
to be general solicitor.
Chiffon stated that he and Duncan
would prefer being general attorneys.
The question of salaries was also dis
cussed and agreed upon. Chiffon die
not state that he (Herndon) was goine
to be the general adviser of the execu
tive department, to attend to the fisca
affairs and see that the obligations o.
the company under the receivershiT
were faithfully carried out In conform
ity with the DEGREES of the court, ant
apply for branch orders to enable the
receivers of the road to transact its
business for the best interest of it.
creditors. Also to draw all orders az
fecting the physical or financial con,
sdition OF the company. Occasionally
in his absence the general attorney
applied for orders.
He had complained to Bonner abou
some order which was not correctl,
made and that the orders should b,
correct and kept consecutively ant
under the jurisdiction and supervision
OF one person, and that II he was no
the proper person to draw thes,
orders they had better get someon,
else.
At the conclusion Of Col. Herndon',
testimony, which was very yolumin
Gus and developed nothing sensational
except that Mr.. Gresham remarked
one object of the investigation was t.
besmirch Hogg, the other to destro,
McCord. Representative Gerald in
PRODUCED the letters between him an,
Whitaker, which were entered on tn
record as follows:
GERALD TO WHITAKER.
AUSTIN, Tex. Mach 9, 1S9l.-H. M
Whitaker, Esq, Tyler. Tex, Dea
Sir: My purpose is to offer a resolu
ton in the house to raise a committe
to investigate the International rail
road receivership. am moved to tn
course by the following facts: Fc
months have heard it stated that tn
receiyership was precipitated b
Messrs. Herdon, Chiffon, Duncan an
Others by Intervening in n Suit filed n