The record-union., 1898-12-21
UNION B. AND |. SECURITIES
THOSE HYPOTHECATED FOR A
$4,000 LOAN.
Frank Miller OF the d. o. Mills
National Bank on the stand
ALI Day Yesterday.

The case of T. w. O'Neil, receiver Oh
the Union Building and Loan Assocla-
ton, against the National Bank OF u.
o. Mills & Co was resumed before Su-
perior Judge Buckles yesterday morn
ing.
Most of the morning session was de-
voted to the taking of testimony ot ex-
perts respecting the value of the prop
erty in Yolo, Tehama and Alameda
Counties held by the association.
Frank Miller. cashier of the National
Bank of D. O. Mills & Co., was the hrst
witness called, and he was asked to ex-
plain how a number of warrants on
the association came to be deposited III
the bank He explained that the war
rants were drawn payable to the BANK
for notes due. They were deposited by
E. K Alsip for the Building and Loan
Association, and went through the
usual process of cancellation.
J. D. Lawson a Woodland real estate
agent, testified that the value OF the
property near Woodland, known as the
| Briggs orchard, is about S1I, 900. lie
| claimed that land values are the same
now as they were in February, 1896,
| but that sales were fewer.
stated that in fixing his estimate he
| had not considered the cost of piping
| for irrigation purposes, nor had he con-
| sidered the vineyard, as vineyards IN
that section had received a black eye.
He could sell very little land planted
| to vineyards He had only estimated
| the value of the land and the improve
ments, aside from the vineyard-had
/ 20 70 cln a
| The witness. while he did not claim to
| be an expert, thought 1t would COST
| about as much to plant and tend a
vineyard up to the time OF bearing as
the bare land was worth.
| r. I. Blowers, a vineyardist who re-
sides near Woodland, testified that the
bare land comprising the Briggs or
| chard was worth in 1896 about S1OO
per acre. He considered the vineyard
! to have been of no value whatever. The
witness said the piping in the orchard
was of little value, as the pipes had
been filled with roots Of the vines. He
| judged such to be the case from a vine
yard belonging to him, which had been
| similarly piped, the piping OF which
had been rendered useless by being
| filed with vine roots. He had not
| taken buildings into consideration in
estimating the value of the property.
| G.. Kraft. a farmer living near Red
Bluff testified that the value of the
| HALEY ranch in Tehama County was
in 1896 81, 500, or about $2.1S per acre
| if used for a sheep range.
| c. r. Mayhem, a real estate man OF
| Red Bluff, testified that in February,
| 1896, the HALEY ranch was worth about
So per acre, including improvements;
| it had value only as range land, though
! there were a few spots Of good farm
| ing land.
It was agreed and stipulated that the
| testimony of the four expert witnesses
should be used in the case of the Farm
ers' and Mechanics Bank, and Receiver
| O'Neil hereafter to be called, subject
| to the usual objection and motion of
the defendant to strike out.
| John Scott, receiver of the Union
| Building and Loan Association, ap-
pointed by Mr. O'Neil, was called and
questioned as to whether or not in
February, 1896 there was mortgage
of $4,000 on the Haley ranch in Te-
| hama County. In the face of an OBJ
! lection by the attorneys for the de-
| fense, the witness was withdrawn, and
| Albert NJ Johnson, one of the attor-
neys for the plaintiff, took the stand
| and testified that in 1896 a mortgage
| of $4,000 did run against the property
| in question.
| Hugh NJ. Cameron, real estate agent
| of Oakland, testified that in 1896 the
value of the Thirty second street prop
erty in Oakland was about $4,000. The
! rental value was about S27 per month.
The w. O. Brown property in Peralta
Park, near Berkeley, consisting Of
thirty-seven lots, he considered to be
worth 5000 per lot.
A. J. Samuel, a real estate agent Of
Oakland. estimated the value of the
Thirty-second street property at about
$50 a front foot and the improvements
at about $1,000.
| The stockbOok of the Union Building
and Loan Association, showing the
| names of persons who hold stock in the
sixth series, was offered in evidence,
| but was rejected on the ground that
| the certificates of stock were the best
evidence Receiver Scott was instructed
! to bring such certificates into court.
In the afternoon the certificates of
| stock of the sixth series, all of which
had been cancelled, We're offered in evil
dence by the attorneys for the plaintiff
and admitted
| Frank Miller was again called to the
stand and asked to state when the
| words Secured by certain notes as
per memorandum attached" were writ
ten on each Of the two So, 1000 notes
given to the bank by Messrs. AIsip and
Steinman, Secretary and President Of
the Union Building and Loan Associa-
tion. The witness could not remember
| whether the words We're written before
or Immediately after the notes We're
signed. The memoranda mentioned in
! the footnote referred to its Sc
curities. The witness said he
thought it had been taken for
granted that Alsip should collect
! the interest on the securities and turn
it over to the bank. IF Alsip paid the
/ interest on the notes promptly the bank
would have taken it for granted that
the collateral was all right. Had he
| been lax in payment of interest or prin-
| cipal the bank would have investigated.
! Alsip, however, had made frequent
payments on the principal. which he
supposed had been collected from coll
| lateral securities. Alsip paid in money
| and the witness assumed that the
money so paid had accrued from the Sc
curities held on which the notes were
based. AS the payments were made
from February, 1896. to December.
1897 number of notes given by Alsip
for the association We're withdrawn.
After Mr. Miller's direct testimony
| was in, the attorneys fer the plaintiff
rested, and a recess of five minutes
| was taken 20 ALLOW time for a consulta :