The Newtown bee., 1891-05-29
VOLUME XIV.
Elon's Oil Speculations.

small scale. Elon Booth also had
 personal account of his own that com menced in May, 1884. It is said, bu with how much truth the BEE does no know, that Elon made his boasts in hi early oil dealings of making $500 il three weeks and that this glittering state ment was what started others in the mad career, which has resulted so disas trously to those tempted to throw them selves into the mad maelstrom of oi speculation.
 The transactions in which ElOn be- came connected with Mr Jonas com menced in 1885. On November p, 1885 MT Jonas telegraphed to the New York firm, asking if they considered the mar ket safe to buy oil on a 10 per cent. mar gin and, later, ordered them to buy him 1000 barrels of oil below 95, promising to put up the margin on the next day. The 1000 barrels were bought and check for $5G0 of his own money was forward ed by mail as per agreement. It was in December of the same year that another purchase was made of 1000 barrels and, December 7, this telegram was sent to the firm in New York:
 Transfer from my account to the account of Charles Jonas $500.- Elon Booth.
 This was Elons first advancement and the money was to be used to keep good the margin. Other purchases were made from time to time and, according to the fluctuations of the market, more money was called for to keep good the margin. January lG, 1886, this letter was sent Gregory, Ballou & Co.,:
 Please transfer to Charles Jonas 5000, but don't let him draw any without my order from this date. will hold his account good, so if his margin expires, do not sell him out, but inform mel Elon Booth.
 February 9, 1886, the firm received an- other order as follows;
 Buy for Charles Jonas 5000 oil at 80 and transfer from my account sufficient margin to hold it. Do not sell any until further orders. II Elon Booth.
 About this time, more margin was called for and, in place of advancing money Elon signed an agreement, which was accepted by Gregory, Ballou & Co.,, as follows:
 hereby promise to keep good d margin of at least per cent. on 10000 barrels of oil, cer tihcates for which are held by you for the ac- count of Charles Jonas and, in the event of the said MT Jonas wishing to sell any part or all of the said oil at profit, he is at liberty to do so without my order, provided he does not draw any cash from the account.-EIon Booth. Witness, Charles B. Glover.
 December II, 1886, another order was sent Gregory, Ballou &5 Co:
 IDOn the order Q Charles Jonas and l., R Booth, sell any part Of the oil held by you tor said Charles Jonas d,upon same parties der, buy it back. At no time, however, shall they increase the quantity now held by you for said Jonas-L Elon Booth. In presence of l.. B. Booth.
 Mir Jonas was now carrying 20, ,000 bar rels of oil and prices were on a decline. The firm was also carrying 1000 barrels for c. T. Booth, with l.. B. Booth as surety and 1000 barrels on Booth x Jo- mass account, making in all, for the three parties, p, 1000 barrels. August 2G, 1887, this order was sent the firm and it proved to be the last one:
 Sell 10 or l5 thousand of oil on account of c. Jonas X Co.,, with the understanding that I have the privilege of buying back when the market is in shape.-C. Jonas, L. B. Booth
 About this time, the whole p, 1000 bar rels were sold out at a price below G5, which incurred heavy loss.
 The prosecution will seek to establish the fact that these several orders which Elon Booth gave the firm prove him to have been partner in these transactions and responsible to them, while the de- fense will claim that Elon simply acted as a guarantor to keep good the margin for Mir Jonas and was in no wise a part ner with nor was to participate in any of the profits, if any accrued. The case is being fought inch by inch and neither side will leave a stone unturned that will have weight in helping to establish it's claims. It is a case of more than ordina- ry importance, involving questions affect ing brokers in their transactions, as well as those who do business Con margin) with them. The letter books of the firm show copies of many letters sent to Elon Booth after the firnal sale, none of which were answered by him personally. Tow ard the close of last weeks examination, the counsel for the prosecution produced letter written by l.. B. Booth, of which we give copy:
 Gents Mir Booth, think, wants to give you cash to settle up the Jonas matters, instead of leaving any Of his securities with you. He wants it finished and ended. He will have great deal of money coming on July l, or i'm mediately after and wants them to fix the matter. wish you would write him, extend ing time of settlement to July 15 and that no further time would be allowed him. By grant wi m a Ia peculiar and know would readily pay the cash down when he has it in hand, rather than put up collateral.-[L. B. Booth, for Elon Booth. Newtown, May 29, 1888.
 To go over the correspondence which covers all these transactions in detail is necessarily slow process, requiring a great deal of care and investigation. MT Gately, who is personally acquainted with the parties, from his former resi- dence in Newtown, was the witness on whom the firm relied for the correspond ence, consequently the time spent in his examination was lengthy, occupying three full days. Although it might seem to layman that the case is dragging with snail like pace, yet it is evident that there is no disposition on the part of counsel on either side to cause unneces- sary delays.
 The Testimony,
 Charles Jonas has lived b years in Newtown. Before coming to Newtown, lived in London, England ,one year and, previous to that, was in Germany. Am tailor by trade. Knew Elon Booth for l5 years. Have known Curtis Gately or years and Gregory < Ballou about the same time. Have had business deal- ings with Gregory, Ballou & Co. Can- not tell when my dealings commenced,