The Newtown bee., 1891-06-05

DooOl ol IIOA DOOJus
 Maturin M. Ballou: Have been a mem- Der of the firm for six years; broker in New York since 1877. Am a member of the stock exchange, but not of the oil ex change. I have had seat on the stock exchange for six years. My dealings in stock and oil have been extensive, but limited in oil compared to those in stocks. Compared with other firms in New York, we have done large commission busi- ness. Some of our business was done on a margin. Buying and selling on mar gin is an extensive business. Margin as applied to oil is either money or security deposited by the customer to secure the broker from loss while acting for the customer, to secure the broker from de- cline in stocks, interest on the oil carried and other expenses. If it becomes ex- hausted, the broker has right to call on the customer to give security or cash to keep the margin good and, if he don't keep his agreement, the stock is sold out. We endeavor to give customers notice,
 
 can't wait to hear from his customer be- fore he must sell, he sells it out. The oil, in part, is in transit, some in pipe lines, some in barrels and the oil com pany's assessments are to protect them selves from loss; some one must also pay for the storage of it. When broker is carrying oil and lends it to some other broker, the certificates are renewed. Have seen the certificates for the oil we bought for them many times, ill box with oth- CT securities. Carried them long time. Know that at one time, we only had this 10000 barrels and we had the certificates for them ill box. Have a stock ledger and the examination of the books, with the clerks assistance, told me that. Think l can show by the books the time between November 25, 1885 and August P, 1887, when we were carrying those certificates. From the receipt and deliv- cry book, think I could trace when these certificates were in hand. Know they can cot be traced by numbers. Don't know how many of them were loaned or hy- pothecated, or when they were loaned. They were such oil certificates as they would naturally call for, if they asked for any. My special operations were in the stock department. MT Gately had charge of the oil acconnt. He was not a member of the oil exchange. The oil was bought through those who were Was never on the floor of the oil eX- change; my knowledge of their customs 1 have learned through my dealings with members. The rules and regulations of the stock exchange change from time tC time. Don't know whether that is true of the oil exchange, but think it is. Had no personal experience at the clearing house. Gregory, BallOu & Co. did not deal on their own account in oil between November p, 1885, and August P, 1887 Had no special connection with the Jonas account until after the sale, August 27 1887. Don't remember having a genera knowledge of this account when it start ed. Took very little interest in it. Saw Jonas at our office a few times and talk ed with him and saw l.. E. Booth there SoLlCs IhIbh 4Il odUClJ LttNl IIOlC GO 1AN with the account, from the fact that Jon as came from NewtOwn, where MT Gate ly formerly lived. Knew Elon Booth il 1885 and had known him for years. Knew he was a man of considerable means Knew him in Newtown and he had beer at our office. Knew nothing about Jon as. Heard some one say he was a tailor Don't think l enquired much about him until after the sale of August 27, 1887 Down to the time of the sale, had n' special supervision of the account. Don remember the sale, or the circumstance connected with it. My attention wa called to the condition of the accoun some time prior to the sale, but I don remember giving the order for the sale though I may have done so. There wa a special panic in oil and stocks in Au gust, 1887. MT Gately paid more atten tion to the oil account than any one else Do not recall any conversation with hin about the sale. We were very busy. panic was raging, we were much worried about our business and l do not remem Der whether or no l gave the order tt sell. It may have been made upon tho authority of Gregory or myself, or oul joint authority Don't remember wher my attention was called to it after the sale. Don't remember that either Jonas l.. B. Booth or Elon ever claimed the oi was sold without authority. Can't say ifsthe order from Jonas and l.. B. Booth to sell 10000 or 15, 1000 barrels was called to my attention when it was first receiv. ed. No claim was ever made by them that the oil was to be bought back whe1 the market got in shape, as I remember Subsequent to the sale of August P 1887 there were no negotiations in regard tc re-opening this account with myself ol any member of the firm. Am very sure the claim has never been made that the oil was sold out without giving them mo- tice and these parties never suggested that the account should be re-opened. L. B. Booth called at our office after the oil was sold, think, more than once. At least two or three times l distinctly re- member in connection with this oil ac- count and to answer letters we had writ ten to him concerning these accounts. We had long talk before we commence ed the suit and we delayed putting the suit into the lawyers hands, to give ad- ditional time. In the Summer of 1888, L. B. Booth called at our office and brought a certificate for 100 shares of Western Union stock, handed it to me and told me Elon had instructed him to give it to our firm to cover the indebtedness on the ac- count and to hold as security. Told him the security would have to be endorsed