The herald., 1895-08-17

gentlemen: Mr.. Smith mildly protested,
DEE on Mr. Dorn's statement that II
would suit him exactly. his honor an
nounoed a recess until 7:3O o. clock.
Az 1885 o'clock Judge Mckinley again
took his seat on the bench, when Mr..
Smith asked leave to amend his COM
paint setting forth that certain named
oondholders, representing 81, 24O, OoO, had
ehtered into an agreement to purcnase
the road for their own use and beneht;
and that M. II. Sherman had entered
INTO an agreement By which the STOCK
ers majority OF the sotck. to enaoie
them to control the property, they TO
have certain time in which to redeem
the road. 1t is further alleged that ". d.
Pond is large stockholder In the pan
francisco Savings union, ana 1nereiore !,
not qualified to act as trustee. Inc uSua
allegations of Misrepresentation OF tneir
duties by the trustees are repeated, and it
is further set forth that II proper effort
is made the road can be sold Tor more
than enough to pay the full amount OF
the bonds and the interest.
Mr.. Smith then read at length from the
code as to the duties of trustees as set
forth, showing that trustee cannot
traffic in trust property for his own
benefit. and must not put himself in a
position OF temptation, the law recognize
ing the fact that q man cannot always
be trusted to work against his own inter-
ests for the benefit Of others. Mr.. Smith
argued at length to show that the So
called deed Of trust under which it was
attempted to make the sale was in fact
but a mortgage to secure decd, and did
not convey the legal title. Mr.. Smith
urged at length his amendment to his
complaint, and asked that the court ad-
nit the same, as evidence, when it can be
argued at length at the proper time.
Judge Bicknell briefly objected TO the
amendment to the complaint, saying that
among other Things 1t came too late. The
advertisement mad been running for
sJme weeks. and 1t YVES harshIp to be
retarded at this stage of the proceedings.
Judge Bicknell LAID special stress on the
up this large property, which. il
neglected. would rapidly depreciate in
value and at this late day they should
not be stopped.
Mr.. Dorm followed, briefly rsfuting Mr..
Smiths contentious to the deed of trust
or mortgage and Mr.. Ponds connection
with the San Francisco Savings union,
clos ng by asking that the amendment
offered be denied.
Mr.. Smith followed. referring briefly to
the authorities he relied upon to sustain
his position and continuing his argument
on the lines he had previously covered.
;. After lengthy argument Judge McKin-
icy QSulcu tIlo llOtlOU W aIu6UQ tDo COM
plaint, and Trustee E. B. Pond again
took the stand.
In answer to questions by counsel Mr..
Pond said that he objected to the post
pOnement of the sale because the road was
in condition TO very rapidly detcrior-
ate, and he thought much bettor price
could be obtained now than six months
hence. Mr.. Pond said that he had heard
of other bidders for the pre- rcpsrty, but
did not go into particulars, as COUNSEL for
defendant objected. which objection was
sustained by the court. Mr.. Pond SAID
that he had examined the books OF the
corporation and also the road. He did
not know anything about the Pasadena
road, nor the cars running over them.
They were not included in the inventory
of the property for sale. and had no con-
nection with the corporation under con-
sideration.
Trustee D. S. Dorm was called and said