Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-19
RECEIVER BONNER.
He Relates the History of the
!. & G. N. Troubles.
NsCORD'S BANKING ORDERS.
Jay Gould Paid Without Any Specific Or
der-Knew of No Agreement With At
torney-General Hogg-How Re-
ceivers Improved the Road.
Special TO the Gazette.


tive committee resumed its Investigation
into the International and Great Northern
receiyershlp at 10 a. m. to-day. Col. L. NJ.
Bonner. one of the receivers who. while un-
der crOss-examination, was withdrawn to
allow Judge Clark to testify as to the usual
salaries allowed receivers, attorneys and
special masters in the receivership cases in
which he Clark was engaged, and also to
allow w. B. Slosson to testify as to the sa /
aries paid to receivers by the Missouri.
Kansas and Texas railway, was recalled
and his cross-examination resumed by Judge
Finley.
Receiver Bonner was on the stand during
the entire session and testified sub
stantially as follows: The re-
ceiyers' vouchers were kept on file in
the auditors Office at Palestine to which
certified orders of the court were attached.
The total disbursements in a period of six
months was about s., 500, 900, the validity of
which was passed upon by the special
master in chancery and approved by the
court The physical Es a and financial :;
passed into the hands of the receivers was
bad They found only S23, 600 on hand,
when appointed. They were appointed on
the 10th of March, 1889, and found claims
due and unpaid amounting 10 SEQ, coo
Taken altogether the road was
NOT IN GOOD CONDITION.
Parts of it were very bad. The stations
were poor and dilapitated. Much of its
track was unballasted. There was gen.
eral deficiency in rolling stock. The en-
gines were old and some We're worn out.
The cars were poor and not sufficient to
give proper and prompt dispatch TO traffic
of the road. Under the management of the
receivers seventy-one miles of old track had
been relaid with fifty-six-pOund steel rails.
The road had been ballasted. Iron bridges
haa ,nta E1ndnln1nn
Brazos, Trinity and Neches rivers
and Bushy creeks Nos. l and 3
Sixteen new engines had been
purchased, six passenger cars and four or
six baggage cars, white the remaining roll
ing stock had been thoroughly overhauled
ana repaired. New and handsome dopots
had been erected at various points. Nalua-
bic property had been purchased
for depot purposes at Georgetown and
good building erected. They had replaced
cid wooden worthless tanks with iron ones
of the most improved patterns, they had
replaced rotten and worn out ties with new
ones. They had fenced over 800 miles of
line, which proved a great saving to the
company. They had generally improved
THE PHYSICAL CONDITION
of the road increased the speed of trains
by betterment of the track and rolling
stock and thereby rendered accident less
liable. The Columbia tap portion of the
line was yet in bad condition. The
traffic over it would not warrant large
expenditures to put it in good
condition. The betternent of the main
line as described had largely increased the
earring capacity Of the road and enabled it
to accommodate all traffic seeking trans
portation over il. The investigation of
Gould's obligation on the company was COM
mitted to Col. Herndon. and it was
for money that was due. He remembered
looking into the validity of the Gould debt
He understood the amount claimed was
correct and due, and he thought
il proper to have no Investigation made.
He never conferred but once with
c. T. Bonner He did not question his
statement He did not send a telegram to
Attorney-General Hogg communicating the
fact of the stockholders meeting of the In
ternational and Great Northern. He had
no AGREEMENT OR UNDERSTANDING
with him. He thought the intervention
should be sustained. His impression was
that the Missouri, Kansas and Texas people
were intervening TO get control of
the International and Great North
ern. He was not at Palestine
when the injunction was served, did not
know it was to be served, was not sur
prised when it was. He did not know of
meeting C. NJ. Eddy prior to the iniunc-
lion. He recollected meeting him afterward..
He thought it was the purpose of the Mis-
souri,. Kansas and Texas TO secure control
of the International and Great Northern
and operate it in their interest He was
not in court when Finley rendered his resig-
nation. He did not know what took place
in the court room. He knew the day of the
resignation as the day that Finley had been
allowed $4,000, and spoke to Finley about
it.
Redirect by Alexander-The witness
stated G. NJ. Eddy, prior to his appoint
ment IS receiver, had been manager of the
Missouri. Kansas and Texas. He had I'M
derstood that the Missouri, Kansas and
Texas held majority of the stock of the
International and Great Northern. He de-
sired the intervention of the attorney gen
eral to prevent the Missouri, Kansas and
Texas from securing control of the Inter-
national and Great Northern. His relations
with the attorney general
WERE NOT HOSTILE,
and he would not have heSitated to make
any reasonable request of the attorney
general He did not think he laid the facts
hefess the Encouragement for Injunction
fSuteedings.
In reply to Mr.. Gresham-He never re-
membered having conferred with Eddy as
to the injunction or consulting him about it.
By Alexander-He remembered the
writing of the Brown letter. He did not
telling c. Z. Bonner that Attor-
Hogg wanted TO see him. If
he told him it was fact 1t was also
fact that railways were always in bad
when placed in the hands Of
receivers. The $1,000 was paid to Gould
without any specific order. The order
was, however, made. There were other
applications for payment, but the special |
masters report was adverse. He had |
heal of no threats or criticisms about hay-
ing paid the S50,000 An attempt was made |
some time ago by Receiver Campbell to get |
rid of Col Herndon general solicitor,
ON THE GROUND OF ECONOMY.
Campbell gave Herndon notice. The i'm |
provements on the line were ordered on his |
application. He did not know whether |
was given the iti- |
gants of these improvements or not. |
The lumber for these improvements was |
purchased on bids. He borrowed the $50. |
900 on receivers notes. 1t took some |
time to learn the condition Of the |
road. The loan was made after |
Bonner & Bonner were the depository. |
He did not make one cent on !
ii as it never came into Bonner & Bonner's |
possession. There was large balance to |
the credit of the company year after. |
1t was a special deposit. He could not state |
the profit made by Bonner s. Conner. 1t |
was not $4,000 No bank kept enough |
funda on hand to meet its deposits. !
IF CLAIMED AT ONE TIME.
He had not examined the law relative to |
deposits. He had SIS, 600 on deposit in the |
First national bank at Longview, but |
it was carried on the books |
made at Judge McCord's request. |
10, oaIa jt,nt IL, l,,4,-