The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-07
IT'S A LONG STORY
MIR. HAMBLIN ON THE WITNESS
STAND GIVES DETAILS OF THE
WEST PULLMAN DEAL.
THOROUGH INQUIRY MADE
BEFORE THE COURT FINALLY
ORDERED THE SALE OF
THOSE BONDS.
MAYOR HAS THE NEW CHARTER.
Document Signed and Delivered
General News of Min
neap0IiS.
THOROUGH INQUIRY MADE
MANOR HAS THE NEW CHARTER.

In the case of the state against w. E.
Haskell, manager of the Times, an &C
ton for libel, Charles N. Hamblin was
allowed TO be called out of order by the
state, in rebuttal. The witness was for
me1ly assistant secretary of the Mime
apolis Trust company and office attor-
ney, bookkeeper by profession. and
an expert in that line. He now lives
at Stockton, Cal, and was formerly q
resident of Boston, Mass, before COM
ing to Minneapolis, fifteen years ago.
At the time the trust company was
made receiver of the Northwestern
Guaranty Loan company the witness
had been in the employ of the COM
pany for a year. Then he was given
charge of the affairs of the Northwest
ern Guaranty Loan company exclu-
sively, and put in all his time looking
up the securities etc. The witness
gave a list from memory of the securi-
ties which came into the hands Of the
trust company. The witness had spe-
cial charge of all these securities, which
were kept in the vaults of the compa-
ny. Within a week or two after the
appointment of the receiver he became
aware of the different interests of cred
itors in the securities. He then learned
that the $311 900 of West Pullman Sc
curities belonged to a special class of
creditors. An action was begun to dis
tribute these Menage collaterals to the
general creditors, but it did not mate
rialiZe, and the court finally determin-
ed the special character Of these assets.
The claim register Of the estate was
put in evidence, and the witness gave
the total claims of the creditors at $4,-
S42, 42268. Of this, $3.50, 900 had been fl
ed in the Menage collateral trust, but
the same parties had other claims
against the balance of the estate, of
81 500, 600. The balance of the claims
amounted to $1,300,000. Nearly all the
creditors were national banks. In Au-
gust, 1893, the witness went to Chicago
to obtain information relative to the
West Pullman bond and Chicago Dock
& Improvement company bond matters.
He went to the Office of F. B. Hill, Chi
cago, to see if he knew anything about
West Pullman, then to the offices of
the West Pullman association, where
he talked with two of the officials, then
to West Pullman and looked over the
81 ound for two hours. This completed
this investigation. Things were boom
ing in Chicago, the worlds fair being
there. When he returned, he prepared
a circular dated Aug. Z, 1893, which was
sent to creditors.
The company was constantly receiV-
ing letters of inquiry regarding the
bonds, and the circular was sent out
in answer to those letters. The ac-
ton in court relating to the MSaage
collateral had been begun at that time.
The witness stated that the Menage
collateral creditors to large extent
had legal representatives in this city,
just what proportion he could not say.
OF the $311, 900 of West Pullman bonds,
SIG 500 were paid before the rebonding
plan went into effect. The witness was
shown a copy of a report to the court,
showing the payment of Is bonds, at
81 900 each. The interest had been paid
with the exception of the last pay
ment before rebonding, which was not
paid when due. The last bond was
paid Jan. u, 1885
In the latter part of November, Mr..
Kneeland came to MINNEAPOLIS and
fully informed the witness of the status
of the West Pullman matter. Messrs.
Hamilton and Kerr came to Mime
apolis in the early part of 1894, the
former for the purpose of changing the
releasing clauses in the bonds, so that
less than ten-acre tracts could be re-
leased. The witness met the men at
held, Mr. Hamblin doing most of the
talking. They decided to change the
releasing clause.
The same men came to Minneapolis
again later. The matter was pres nted
to the court and the releasing clause
was changed. The witness did not re-
member that they came again. At the
discussion held. Hamilton asked if the
trust company would put price on the
bonds, and they were told that the mat
ter was in such shape that no action
could be taken. They asked if an offer
of 60 cents or less would be entertained
and the same answer was given.
In November, 1894. MIR. Kneeland
came to Minneapolis and explained the
general condition of the West Pullman
association, saying that they had pledg-
ed everything, as the first mortgage
was over due and interest on the sec
ond bonds could not be paid. He said
that unless they were assisted they
would have to assign and fail. He
wanted the Minneapolis Trust company
to allow an addition to the first mort
gage, having precedence over the sec
ond to help them. If they could Sc
cure such assistance they would pay
the interest.
The letter from Hamblin tG Kneeland
was again read in which the former
wanted to know about the first mort
company wanted to protect it. Judge
Belden introduced the answer to the
same, which showed plainly that the
trust company wanted to take care of
the mortgage, because foreclosure was
imminent The state also introduced
a letter written by Mr.. Hamblin Nov.
26, 1894, to Mr.. Kneeland, which showed
that the court had appointed the Min
neapolis Trust company as trustee for
the Menage collateral. 1t also showed
that the trust company had Investigate
ed the West Pullman matter, and was
of the opinion that the whole was in
bad shape, but that the company would
try to have the creditors agree to an
extension Of the second mortgage and
an increase of the first. This was one
of the propositions made.
A letter from MI. Kneeland to Mr.
Hamblin was read. which claimed that
the West Pullman association was
striving to carry out the proposed plan.
Witness stated that the first letter
was written while Mr.. Kneeland was
in Minneapolis, and was given to show
that the Minneapolis Trust company
would not foreclose. but was willing
to assist the association. Another let
ter from Hamblin to Kneeland was
read, showing that some coupons had
been paid and promising a trip to Chi