The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-11-18
No Accounts of Money Expended
Were Ever Suppressed
SERIOUS COUNTER CHARGES
Supported by Affidavits of Agricultural
Society Directors
4 Conspiracy Is Alleged to Gain Possession
Of the Property
0svernor Budd Will This Morning Accord
. Hearing to tho Parties and 1ore
Developments Are Expected.
Lynch flakes . Denial

Special to The Herald
eSACRAMENTO. Nov. lin answer
70 the charges preferred against them by
Lewis Thorne. ex.seoretary of the board
Of directors of the Sixth agr cultural dis.
trict, J. G. Newton, George Hurd, d. c.
Stephens, W. II. Wiley ald r. r.
Brown, through their attorney, state that
tine moneys which are alleged to have
been nisnppropr!ated were voted on in
regular meeting Of the board and allowed
for personal services rendered for tend
ing gates, grand stands, ETC.. during fairs,
and the granting of said sums was done
after receiving legal aivice on the sub
jsct an with the full appreciation of
Hon. II. II. Markham. governor OF the
state at that time; they absolutely deny
that they ever suppressed any account of
any money expended for this or any
other purpose, in any OF their reports to
the state board of examiners. In reply to
an allegation that the board of directors
had entere into s.c:ct agreement with
Munroe Salisbury. In which they we're to
receive individual profits, for the use OF
the grounds of the association, to the
amount of 33 1-3 per cent of the gross
proceeds, tney .le an absolute denial,
and also state that the complainant never
paid tn EN- the sum of $50 EACH as their
individual pro rata Of said 80 1-3 per cent
of the proceeds; they allese that during
the Salisbury exhibition and races they
performed o, directors unusual and ex-
traordinary services as gate keepers and
Judges. and for SO doing resolution was
passed by the board of directors granting
to J. G. Newton, GeOrgu Hurd, d. @.
Stephens, w. H. Wiley, X. R. Brown
and q. T. Wright the sum of $50 each for
eight davs services at the rate of $40 per
day. A.W. Barrett, who was present four
days, received $40. and Director Androus
being absent from the state and perform
ing no labor, received no compensation;
they further allege that no sums OF
money received were appropriated from
any of the funds of the state hut were
taken from funds accumulated by tho
successful management of the trust aud
estate conveyed to them by dead; and
this action on their part was in perfect
good faith and with the honest bt lief that
they were legally entitled to a pecuniary
return for their labor rendered.
In addition to their answer, Attorneys
Mitchell and Cuttern, who are represent
ing the boari, have flied a series of sen.
sationai charges In which they claim that
prior to January "a, 1895. a conspiracy
was entrsd into BY E. T. Wright, Louis
Thorne, W. 9. Pendleton, Senator s. N.
Androus, Assemblyman ]. G. Lynch and
others for the purpose of diverting the
title and possession of the buildings and
grounds from the trustees, and appropri-
ating the income to private USES. They
state that when the agricultural district
No. 6 was formed fifteen years ago, they
received perpetual deed of trust TO a
piece Of property, valuel at $4,000, with
stipulation thas the property was to be
used exclusively for the exhibition of
agricultural stock display. Since receiv-
ing the property its value has increased
until at the present time 1t is worth $175,-
has been under the direction of the state,
ana tho mem bers of the board OF direc-
tors we,e appointed by the governor
They further allege that the conspiracy
embodied an attempt to purchase ma.
jOrity OF the stock OF the association at
the nominal price of 500 per share, and
that bill was secretly railr0aded
through the session of the last legislature.
said bill providing that all holders OF
onsinal .msm bership certificates in dis
trict agricultural societies might form
stock com panies with the right to elect
boards OF directors, and all other rights
and privileges enjoyed by corporations.
In support of these charges the follow
ng afidavits have been presented:
u. g. Stephens, being first duly swo'n,
deposes and says, that on Or about the
LIST day OF April, 1895, this sffiant being
at the time one OF the directors of Dis.
trlct Agricultural association No. 6, in a
convefsat,on held in the city OF Los An
geles. with John G. Lynch of San Ber-
nardinO county, ariant demanded to know
the reason why he. the said Lynch, in
trodnced an1 ad socated the passage of
the act OF the legislature now described
the state OF California, passed at the
thirty rst session of the legislature of
the state of California, 1895, and he, the
sail Lynch, replied: II saw chance to
make $50, 0oO or $40. 900 and did not pro-
Pose TO let the opportunity slip"
deroses and says that prior to the intro
duct on of The resolutions allow ing the d.
Yectors of the Sixth District Agricultural
association IS per diem TOR certain serv.
ices, as set forth in the minutes Of said
association he consulted Gov. H. II.
Markham. as to the propriety of said d.
rectors voting themselves and receiving