The record-union., 1895-11-19
NUMBER SIX UNDER INVESTIGATION.
Agricultural Directors Who Voted
Themselves Pay
They Explain to the Governor Why.
and Their Attorney and Former
Secretary Mix Things.

The investigation of the charges made
against the Directors of Agricultural
District No. 6 was commenced yester-
day morning before Governor Budd-
The Governor made a statement of
the charges and the circumstances un-
der which the matter had been post
pCned. He said that a private lnVeStl-
cation had been asked for. Mr.. Mitchell,
counsel for the directors questioned this,
and the reporters notes were appealed
to-
Mr.. Mitchell then said if such re-
quest had been made it was done when
he was not present, and he had not
known it. The Governor had stated that
the matter had not been given to the
press from his office, and said that the
reporters were present, and that II he
(MitchelD wished to make statement
of his side of the case he could do So
He had asked for delay because he had
not familiariZed himself with the facts
The Governor asked under what law
he found any authority for the directors
to vote themselves so a day for serv-
ices. Mr. Mitchell said he did not
know of anything in the law prohlblt-
ing them from doing SO. The Governor
rejoined that the law was silent in this
case, but in that of other institutions
OF the State salary was fixed Tor Ger
tain occasions for services. With the
Agricultural Districts, however, it was
the intention to provide machinery by
which the people could be benefited as
much as possible, and the law had,
whether Intentionally or otherwise, made
no provision for salaries. He asked why
the original trust deed had not been put
y
Mitchell said it was because it had been
set aside by the Superior Court Of Los
Angeles County. He then entered into
q long explanation of the situation of
the district and said that, it having
become burdened with a heavy debt,
public-spirited citizens subscribed to
set it on its feet again.
Speaker Lynch said that there was a
$1,000 mortgage on the property, which
was foreclosed, and the money sub
scribed was placed in the hands of trus-
tees for the purpose Of buying the prop
erty in.
Governor Budd asked if the parties
who thus subscribed were not the par
ties who now hold the stock and against
whom conspiracy is charged.
Mr.. Mitchell said those who have OBJ
tanned control of the stock were not the
original stockholders.
The Governor asked if they had not
obtained the stock in order to run it in
the interest of the people and get it
from under control of the directors who
voted themselves 50 a day. So for as the
charge that they were trying to make
immense sums out of it was concerned,
he did not see how, under the trust deed,
they could do so or could sell an acre of
it. An Act of the Legislature could not
disturb vested rights under trust deed.
He asked for the resolution giving the
n H. n Ia n
pointed a new Board of Directors, he
said, he would appiont one that would
stand so high that no one would ques-
tion their character or integrity
Mr. Mitchell said they could not stand
higher than the present board. The res
olution was passed in accordance with
the opinion of the former Executive. In
regard to the report not showing that
the money had been paid to the direct
ors he stated that it simply showed
what money had been paid out, because
by rule of the State Board of Exam
iners ii was necessary for them to show
that they had actually expended as
they could draw it. The money was
actually expended by them before it was
drawn, and they had to become per-
sOnally responsible for its payment.
In regard to the delegation of power
to Monroe Salisbury to give a race meet
ing. J. c. Newton stated that the di-
sectors had every confidence in the Sec
retary, and did not know anything of
omissions in the minutes. 1t had been
agreed that Mr.. Salisbury should pay
the directors so for their services in
Judging the races. Salisbury had been
giving exhibitions of his world-beaters,
and. the people being anxious to see
them the directors therefore cOmmuni-
Gated with Salisbury and made the best
bargain possible with him. He was to
have 66 % per cent. of the receipts and
the district the remainder. The dis
tricts portion of the receipts are now in
the hands of the Secretary. The minutes
o. the proceedings were kept on slips Of