The San Francisco call., 1895-11-17
Allege a Conspiracy on the Part
!: of Senator AndrouS and.
Others.
TEXT OF THE AFFIDAvITs.
Rival Factions Accuse Each Other of
Attempting to Defraud the
-. State.

.
have prepared an answer to the charges
preferred against them by Lewis Thorne,
ex-secretary of the board, in which they
claim the sums of money which they are
alleged to have misappropriated, were IN
reality received for personal services rem
@dered in tending gates and grand stands
during the fairs, and that their actions had
met with the full appreciation of: the
former Governor, Hon. II. IL. Markham.
They deny that they had ever suppressed
in any report to the State Board Of Ex-
.4miners any sum of money expended.
Replying 10 the allegation that the di-
rectors entered into a secret agreement
with Monroe Salisbury whereby they were
to receive individual profits for the use of
the. grounds of the association, they deny
that they entered into any private agree
ment whereby they and the complainant
were to. receive to their individual use
-;3}3l5 per cent of the gross proceeds, nor
did the complainant ever pay them $50 as
their pro rata by such agreement. They
allege that during the Salisbury exhibi-
tion and races, they. performed as directors
Unusual and extraordinary services. For
these. services they voted themselves $40
per day compensation, and if the books
and accounts were not kept as they should
have been with reference to this transac-
ton itwas the fault of the secretary.
= In accordance with resolution passed
bv the board of directors, the following
allowances were made for work and labor
actually performed: J. G. Newton, George
Hurd, D. G.. Stevens, w. II. Wiley, r. r.
Brown and G. T. Wright, eight days. each,
$50; A. w. Barrett, four days, $40. Direc-
tor Androus being absent and performing
no labor, received no compensation.
The directors allege that no sums OF
money received for these services were
from funds appropriated by this State, but
were from funds accumulated by the sue
cessful management of the trust estate
conveyed to them by deed, and that their
action was in perfect good faith and with
the honest belief that they were legally
entitled to the money value of their work.
In addition to the answer the attorneys
for the board OF directors have filed a
series of sensational counter charges.
They state that when Agricultural District
No. 6 was formed fifteen years ago they.
received perpetual trust deed to piece
of property, the stipulation in the deed
being that the property was to be used for
the purpose of agriculture and stock dis
plays. AT the time the deed was given the
property conveyed was worth about $751; 900.
Since that time it has greatly increased in
value and is now worth $175,000 This
property since the time it was conveyed
has been under the direction of the State
and the members of the board OF directors
have been appointed by the Governor.
j: Some time prior to January "a, 1895,
they claim, a conspiracy was entered into
between E. T. Wright, J. G. Lynch, Lewis
Thorne, w. c. Pendleton, s.. n. Androus
and other persons unknown to these di--
:rectors, with the intention OF diverting the
title and possession of these grounds from
the trustees and appropriating the income
to private use; that for this purpose the
said parties and their agents had procured
or attempted to procure a majority of the
certificates of stock, which they obtained
at the nominal value OF 500 per share, and
that they had conspired together to pro-
cure the passage of a bill through the last
Legislature which provided that all hold
ers of original membership certificates in
district agricultural societies be empow-
cred to form stock company, with the
right to elect board of directors and all
other rights and privileges which are en-
joyed by corporations.
= The present board of directors claims
that this bill was railroaded through the
Legislature, and that its purpose was to
get possession of the property for private.
gain. In support of this, the directors
set forth number of affidavits, the most
important of which is that of Director
Stephens, which is as follows:
D. g. Stephens, being first duly sworn, de-
poses and says that on or about the 1st day of
April, 1895, this aiIisnt, being at the time one
OF the directors OF District Agricultural Asso-
citation No g. in conversation held in the
city of Los Angeles with John C. Lynch of
San Bernardino County, affiant demanded
to = know the reason why he, the
said Lynch. introduced and advocated
the passage OF the act of the Legislature now
described as chapter VIII of the general laws OF
the State of California passed at the thirty-
first session OF the Legislature Of the State OF
California, 1895, and he, the said Lynch, re-
piled "r saw chance to make thirty or forty
thousand dollars and did not propose to let
the opportunity slip"
The other affidavits are as follows:
". H. Wiley being first duly sworn, deposes
and says that prior TO the Introduction OF the
resolution allowing the directors of the Sixth
District Agricultural Association s. per diem
for certain services as set forth in the minutes
of said association, he consulted Governor
II: 81. Markham TO the proprietv
of said directors voting themselves and receiv-
ing reasonable compensation for their actual
services, and after the said resolution was
passed, affiant notified Governor Markham of
said action, and the same was approved by
him. That Oh the 18th day OF October, 1895,
in conversation between af1iant and Lewis
Thorn, the said Thorn proposed to atfant that
"if the present board OF directors (meaning Dis
trict Agricultural Association No. 81 viii re-
sign and allow the Governor to appoint other
directors, 1 will withdraw the charges filed
against the directors aud that viii end the
matter"
J. C. Newton, being first duly sworn, deposes
and says that some time in the month of
February, 1895, the following conversation
occurred between affiant and Lewis Thorne in
the city of Los Angeles: Said Thorn to az
fant: Z" You got share of stock / replied:
4 have never owned share of stock Then
Thorn said: If you do not get share of stock
we will see that you have a share. We want
you eor president Of the new organization I
replied. How can You say who will he Dresi-