The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-05-12

sll ,00o.00o OF beads for a nominal sum,
while other purchasers paid the market
rate. All receipts from subscribers
were Jumped. aud no itemized list OF
payments was kept SO far as can be
learned. 1t was very difficult to show
whether the Willard syndicate did or
DID not pay for their bonds.
Mr.. Edes teatiied that during hia
work as financial agent for the Chicago
and Northern Pacific the Oregon and
IranscontineDtal had borrowed about
S45OO,0OO from the Wisconsin Central.
The money waa paid back few months
later, aad the transaction is OF interest
in showing the intimate relations exiet-
ing between tho Northern Pacific, Via
consIn Central, Oregon and Transconti-
mental and the Chicago and Northern
Pacific, Gil pretty much controlled by
the same partlee, and the way in which
they loaned money to each other.
Mr.. Spofford WAS TO have testified, but
was excused on account of tho absence
OF his counsel.
Mr.. Spofford's refusal to testify was
based upon the prosump tion that the
present hearings were inatituted in order
to obtain evidence TO use against Mr..
Willard and others, and that the circuit
court OF Wisconsin had no juriediction
to institute and prosecute the inquiry,
and that the clerk OF the district court
OF Southern New York had no power to
subpoena him.
At the request OF Mr. Petit the sub
pmaa under which Mr.. Spofford was
called, was read, Master Carey then
saying he was powerless in the matter,
and that it muat be referred to the
United States court.
Mr. Edss then took the stand and
produced the check and deposit books
OF the Oregon and Tranacontlnental
which it WAS hoped would show who
paid the money received from the bonds
of the Chicago and Northern Pacific.
The books showed deposit OF 80 $780,
$50 on June 2. 1890. to the credit of the
subscription for the Chicago and North
ern Pacific bonds. This sum had been
deposited in five different sumo. ia the
same bank ON the same day. An item
lied account showed these were made
up OF q score or more small sumo.
Against eight OF these, aggregatlug
1926, 5S7, were marked the letters :" h.
"" These, MIR. Edes said, meant that
they were received from Mr.. Willard.
None OF the otheI items were marked.
"Now," said Mr.. Petit, you have
only received hslf OF the $4,000, 600 that
YOU should have resolved; where 10 the
other half2"
II don't know"
swell, VINO did not pay upP"
81 don't know"
"What is your recollection ?"
"My recollection isl don't recol-
lect.'
Don't you remember any one who
did not pay up?''
"Ne."
"Out OF the half that did not pay
don't you recollect any oae?"
Eyes. Mr.. Smith"
what is the total OF Mr.. Wizards
payment"
$50 fsr as can see here, it was $685.
537. paid on June 20"
"Were any subsequent payments
made on account OF these bonds?"
"YeH, said Mr.. Edes, "$4, 354, 100 WAS
paid on June 10Th"
"Wke paid it?"
"Well, it was paid on account of the
purchasers OF the bonds, but | don't
know the individual payers"
The money so received and deposited
by the Oregon and Tr&nscontineStal was
paid over to d. s. Wegg on the same
day, Mr.. Wegg being one Of the trustees
Tor the stock holders of the various prop
critics then being consolidated into the
Chicago and Northern Pacific.
The search for the persons who did
not pay for their bonds grew warm, and
the lawyers and witnesses got very
much tangled up in questions, mostly
on tigursa. Finally, Mr. Mcknight.
counsel fer the receivers. suggested
that perhaps tbs records OF the transac-
items with the United States Trust COM
pany with the Chicago aad Northern
Pacific would throw same light on the
subject, and asked for their production
tomorrow morning.
The meeting then adjourned until to-
morrow at 10 q. M. Mr.. Mcknight
aiterward explained that it would prob
ably appear that the missing 1000, 900
for the bonds had been obtained through
the United States Trust company, and
OF course would not appear on the books
of the Oregon and Transcontinental.