The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1891-07-09

ceived. Witness did not tell McCorC
of the telegram he had re
ceived. Witness had not received
telegram from s. H. H. Clark. HI
knew Clark expressed a preference 70
his appointment as receiver, but die
not tell McCord. Told it to Duncan
and others. Whitaker & Bonner OPP
posed witness appointment. They die
not want receiver and if one was ap
pointed they did not want him
Clark's wish was a matter of hi
knowledge and he did not intend to
allow it to enter as factor in his ap-
pointment. Whitaker 81 Bonner
being opposed to his appointment
had filed protest against 1t.
McCord did not tell witness thai
Herndon had been filing affidavltI
against him (McCord) at Austin anc
that he wanted Herndon removed
McCord had suggested that Herndon
be retained, and Bonner and Chiffon
opposed Herndon's removal, and
Herndon was still general solicitor.
By Mr.. Garwood-Witness meant by
enormous the expenses OF the legal
department, and this did not
apply to the services oil
| the general attorneys but
| to other expenses in connection there
with, and which could be reduced by
dispensing with the general solicitor
and other expenses could be reduced
by the economical administration of
the property
By Robertson-Witness knew Moth
ing about the Palestine suit, was not
interested.
BY Mr.. Witness said the
main objection to his appointment in
Tyler was because the people there
wanted Duncan Whitaker and Bon
ner were opposed to him on general
principles.
He was appointed receiver two weeks
after Col Eddy's death; had no infor-
nation that his appointment was ac-
ceptable to New York parties at inter
est. A Mr.. Hill, representing them,
came out and made a thorough in
spection of the physical condition OF
the road as we'll as the management,
and made a favorable report and ex-
pressed satisfaction with the manage.
ment.
Witness did nat know how Gould
felt. Mr. S. II. H. Clark seemed pleas
ed at his appointment and the way he
was conducting the affairs of the road,
and had expressed himself to that
effect.
By Duncan-Gould had no interest,
DIS he knew of, in responsible way
way with this investigation. No one
appeared in that manner except the
Farmers Loan and Trust company.
The reports submitted correctly show
ed the condition OF the property and
the disbursements made, and for what
purposes made.
By Mr.. Garwood-If Gould's entire
judgment had been p lid it wJul Id have
been at the expense OF the better
ments of the road. The receivers had
the property in condition to do
increased and safe traffic, and hence
increase its earning capacity. When
it passed under receivership it was
in very poor condition. The road bed,
bridges, locomotives, cars, depots and
everything pertaining to the property
needed repairing.
The road was virtually a wreck. The
receipts for 1883 were SO, 05O,O0O while
under the receivership they were ovel
100000 annually. The purpose o.
the receivers was to improve the prop
erty, comply with the company's con-
tract under it's charter and comply
with all the provisions of the laws Of
| the State.
By Mr. Gresham-The company's
property is insured in the Fire Associa,
ton OF Philadelphia.
Witness explained the examination
of Gould's claims and reiterated what
he stated yesterday. 1t was not fact
he became q party to the examination
when the $4,000 dollars was paid. He
| believed when the receivers paid $780,
900 they had acted without authority,
and had better go about reimbursin2
| themselves. His report was filed in
| the clerks office. The investigation
disclosed the fact that Gould had a
| legitimate claim against the lnterna-
tional and Great Northern, and it was
not fact that Gould was transferring
the funds out of the Golfers of the COM
pany to his own pockets.
He never read Bonner's petition. He
explained the general orders of the
court; came to the conclusion that the
Galveston News claim for $1,000 was
irregular. When Investigated no wit
nesses were called or sworn.
Col. Eddy had made a statement,
anu Unls, WIFI COl. DOuneT . leJleIS,
coupled together with the assessment
against the company for the lobby at
Austin, furnished the basis for my ad
verse report against the News claim.
He gave no notice of investigation,
but wrote to Bonner and Eddy to re.
place the amount in 80 days, or he
would present the matter to the court.
Whitaker & Bonner were attorneys
for Jay Gould. and not for the Inter
national and Great Northern. There
fore they had no legitimate claim
against the latter for attorney fees
Did not decline to allow the claim of
the general attorneys for fees. Col.
Eddy's accounts as receiver have been
adjusted and the salary paid since his
death. His estate was solvent and
could be made responsible.
BY Mr.. Breitz-The witness favored
investigation. Col. Bonner and he
appeared before the legislature on the
passage of the resolution and de.
manded investigation.
By Mr. Robertson-Bonner and Ed
dy had not repaid the $1,000 allowed
IL n