The Newtown bee., 1891-05-29


 New York, Do you consider the marke safe to buy oil on 10per cent. margin !? 7 The same day, 1 telegraphed them, "Bu l 5000 barrels below 95 and you will re , ceive the money for margin on SatuI day." The order was filled and I sen my check for $560. l do not recollec = making any agreement in writing or Oth erwise with the firm previous to Novem . Der 25, 1885. 1 preserved no letters re ceived from the firm in my transactions Do not remember receiving letter iron the firm December z. Have no recOllect ion of sending telegram at that time t'
 buy 5000 barrels oil for me. 1 wrote tht firm, December P, to buy me 1000 bar rels at S5 cents. Suppose l saw Elol about December7. He came to my shop The first conversation he had with mt about oil transactions was in Novembe
 or December, 1885. He asked me if would buy oil. Said he would let me have $500. l told him did not care any thing about money, but would rather he would help to keep up my margin. He gave me writing to telegraph to Greg. Ory, Ballou < Go. It was:
 Transfer to the account ot Charles Jonas from my account $5O0-[ Elon Booth.
 This was December :, 1885. It was at my shop. He came to get a coat. He said l was a pretty good fellow and he
 
 at first. Nothing said at that time about a guaranty. He did not ask me to give any security for the money he advanced. Nothing said about reimbursing him, nor when should pay back money he might advance. Don't recollect whether any thing was said about my paying interest on the money. We talked about the con- ditiOn of the market at that time. ElOn thought, as the market had dropped sev- ;+ HxN 1rol,, t<, and there might be d little money in it.. Don't know as Elon spoke of his own previous dealings in oil. He knew I had some dealings at the time and how much 1 had. l told him l thought it best to buy at every point down and sell at ev- cry point up. He agreed with me that it was good idea. We thought it safer to buy in a small way. Nothing said about Elon's having control in part or in whole of the account. Don't recOllect as anything was said about his having an interest in it. Don't remember whether anything was said about the $500 being held as a margin upon oil 1 then held or upon what 1 might purchase later. It was to be used in the transactions for speculations in oil. Idont know the con- ditiOn of my accounts with the firm at that time. It was good or l would have been closed out. His money was used to guar antee my margin. The $560 1 first sent was for margin in oil. The firm had then bought and were carrying for me 1000 barrels of oil. I did not borrow that money. It was my own. l don't recOl- lect whether the firm notified me, later in December, that they had purchased 5000 barrels for me. Cannot state the amount of oil l was carrying in December, 1885, or the amount of margin l had put up. l never placed any money of my own with the firm after December for a margin. No one except Elon ever placed any money to my account for margin after December, 1885. l understand the whole amount ElOn deposited for me was $3500. suppose 1 have received statements from the firm about my accounts. They came to me once in five or six weeks. 1 have none of them in my possession. l gave them to l.. E. Booth; it might have been one or two years ago. He wanted to look them over, did not care to keep them and have not seen them since. 1 eXam-2 ined them when they came. In January, 1SS6 1 called on Elon at Josiah BOoth's3 house and told him the margin was ex-i hausted and they wanted more. He saids all right and advanced me $l000. A Writ-j ing was drawn up and saw Elon sign it. It said:
 Buy for Charles Jonas 5000 at 80, but do notE sell dHy ullIIl IuIlHCl OluSlS.
 The second paper was signed in theE post office. I don't know who those Or-s ders were to be given by, but supposed. were to be given by me. All orders be- fore the paper was drawn were given by me. Nothing said about security, or paying back the money or paying inter- est. Nothing was said as to the amount of oil 1 was carrying, but we both said that when 1 got up to 10000 barrels, then stop. don't recollect giving any orders after the paper was drawn. l don't know what was the condition of the market at that time. Our next conversation was in February, 1886: 1 saw him at what is now the post office. He was clustering the wall there. Charles B. Glover was present. 1 had been down to New York to see the firm and they were calling for more money. If I did not put up my margin, they would sell me out. They were then carrying 20,0 ,000 barrels for me. Curtis Gately drew up paper at his of flee in New York in my presence and said that if Elon Booth would agree to that they would carry my oil for me longer. The substance of the writing was:
 l promise to keep good for Charles Jonas a margin of at least per cent: on the oil he is carrying In the event of Jonas wishing to sell all or any part ot it at profit he is at lib erty to do so, provided he does not draw any cash from the account.
 Elon said he had no money loose to put up then, but would sign the paper and that would be sufficient. He read the paper over three times and said, ''It is all right. I'll sign it," and signed it. Elon said 1 must not buy any more that was enough. Don't recollect any converse tion with Elon about buying or selling oil after that writing was signed. drew no cash from the account after February 6, 1886. I was to draw no money until he was paid back. l told him that when the oil came around all right, then he would have his pay first, if l got any thing, if he kept the margin all right. Elon said ought to pay it back anyway. 1 told him that if he stuck to his agree ment, it would not be necessary to pay anything back; it would come right it. self I never promised him anything, if the price should go down and if he sold at loss. If the margin was kept up and it sold at profit, he would get it back anyway. l never promised to pay him a red cent unless It was sold at a profit. Nothing at all said about paying EiOn @ profit. I told him would pay him the interest on the money. If he would see the account through, I would pay him legal interest. This was after the writ ings were signed. He guaranteed, before this, for the firm of Booth & Jonas. That account was closed before this commenc- ed. It was through the same firm and in 1885. The account was closed at prof. it, which was divided between my part ner and myself. We paid Elon interest and made him present of $50. Nothing was said to Elon about present in the last transaction. When I commenced with Gregory, Ballou & Co.,, nothing was said about my proposed purchases. From then down to the time of the first agree ment, I bought and sold as the market warranted. The firm knew of my finan- cial standing, think. Never knew of their sending any statement to Elon Booth. Never knew of their giving him notice of any purchases or sales. Elon said was capable of making money. ] told him could never lose money on it. if 1 kept up the margin. He said, ssNo