The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-04
WITNESSES FOR DEFENSE
CALLED TO THE STAND TO TIES
THY AS TO THE VALUE OF
PULLMAN BONDS.
MosHrK TRIES TO BREAK JAIL.
Makes n Desperate Assault on His
Guard-Neyvs of Minne-
apo1is.

Il. 1askell, manager Of the Times, was
again taken up for trial before Judge
Elliott and jury in the criminal
branch Of the district court Yesterday
morning. The proceedings opened with
the reading to the jury Of the affidavit
OF John M. Hamilton, Of Chicago. rel
ative to his knowledge of the West
pullman second mortgage bonds. a
deposition which has already been
given IN full in these columns.
Inc deposition told of several con-
Versations had with the directors Of
the Minneapolis Trust company at Min
neapolis, relative to bids for the bonds
and a portion of it related to CONVEX
salloHs between members Of another
company In Chicago. To this, the state
objected, because when rebuttal came.
the state might be precluded from COM
batting that point. The court allowed
the portion read. The deposition said
that the West Pullman association had
practically agreed to purchase the
bonds, for anything they could get
them for-25, 40 or even so cents ON
the dollar.
eraI favorable rulings against which
Mr.. jackson and Capt. Hart both made
long arguments
Ii the court please said Judge Bel
don, Il don't know what this means.
we are expected to defend ourselves
and then defend the court when it
makes a ruling. L would like to see
some little decorum here and the de-
tense abide by the ruling of the court
when it is made"
With the Deposition the defense In.
troduced a proposition, made by the
west Pullman Land association to the
Minneapolis Trust company, in which
the association wanted to make a re-
bonding, without any cash payment,
but embodying a scheme whereby the
association agreed to place the lands
In trust, as guarantee, with the North
ern Trust company. Another PROPOSE
ton was also read, which was the one
finally accepted, after it had been
somewhat modified. After the reading
of the deposition, Judge Belden read
the cross examination, which occupied
the time until the noon hour.
AFTERNOON SESSION.
In the afternoon Mr.. Hatch read the
redirect examination, in the same de-
position, to the jury, in which was en-
bodied the deed in which 1876 lots were
transferred to Stephen A. Foster. Of
Boston.
w. E. Hale, attorney at-law, was
sworn on the part of the defense He
was attorney for the Minneapolis Trust
and receiver of the Northwest
ern Guaranty Loan company in 1893 and
until August, 1895. He knew of the
holding of the West Pullman bonds by
the company, and knew that the bonds
came into possession of the COMPANY
when 1t was appointed receiver. He
had brought an action for the purpose
of securing a receiver for those same
bonds and for ascertaining their status.
There had been a distribution of these
bonds by Menage among various
creditors, and the attorney thought the
distribution Illegal, belief in which
the court bore him out The complaint
In that evidence was offered in evil
dence, when the state stipulated that
the facts therein were true
The witness recollected that while
the Minneapolis Trust company held
the bonds the interest was paid upon
them. In fact, the state again came in
with stipulation to that effect. Mr..
Hale remembered q visit by Mr. Knee
land. to Minneapolis, for the purpose
of looking up the West Pullman bonds.
but he could remember of no other time
when there was any business up of
that kind Mr.. Kneeland had told him
that he had come to look up the bonds
and dwelt particularly upon the fact
that there was a first mortgage upon
the property, which was to be fore
closed, when receiver would at once
take possession. He wanted to know
If the Security bank would advance
$4,000 to take up the first mortgage.
Kneeland wanted to know what kind
of an order the court would approve
of for a sale. and Hale told him If he
would give 70 cents cash he would
it. He had told Mr. Knee
land that he had always considered the
bonds worth par, and had Informed
creditors that If he succeeded in the
suit the creditors would get rs cents
on the dollar.
The witness had sent for Mr.. Hamblin
at that time, but what was said was
privileged between attorney and client
and he could not give it.
Judge Belden released the witness "a
far as the case at hand was concerned.
but he was not the general counsel Of
the trust company Mr.. Jackson lost
his temper at this point and wanted to
know if the trust company wanted the
truth to come out or not.
''The trust company Is tired OF
falsehood," cried Judge Belden. I'VE
have had enough Of it. 1 don't mean
by that, that Mr.. Hale will not tell the
truth. He will and SO far as I can. I
release him"
Mr.. Hale said that Mr.. Hamblfn had
refused to part with the bonds at anv-
thlng below par, but said he would try
to make loan to the Pullman com
pany in the East somewhere.
MT Hale was allowed to testify that
he had understood that the converse
ton amounted to an offer of so ar an
cents on the dollar for the bonds. Cross
examined, the witness was shown a
certified copy Of the first mortgage.
but could not remember that he had
ever seen 1t. Mr.. Hale had had some
correspondence about the matter be-
fore seeing Mr.. Kneeland.
when you spoke with Mr.. Kneeland
you assumed those bonds to be worth
par?" asked Judge Belden, land do YOU
know that up to that time no member
Of the Minneapolis Trust company had
fully inquired into the West Pullman
matter with reference to it's values?"
The witness thought it was after
that time that the investigation was
made into values of the land.
The deposition of Theophilus King
was next read by Attorney Hatch, with
the cross examination following.
Following the reading of the King
deposition, that of w. B. Coombs of
Boston, was read by Mr.. Hatch. This
gave a considerable outline of Mr..
Coombs dealings in the Pullman mat
ter. Mr.. Coombs asserted that he was
always suspicious of land securities
where the securities had to be parted
with to pay interest, and he therefore
thought that at no time the Pullman
land was too heavily bonded.
The reading of this affidavit occupied
the time until the adjournment.