Daily capital journal. (Salem, Or.) 1896-1899, 1898-11-11
COLLECTOR OF CUSTOMS
MR. HoLMrs,s srArrMnNr.
Continued from First Page.

Mr.. HOLINESS STATEMENT.
fie showed that President M. l..
Chamberlain and Director G. Marsh
had not refused TO defend against
suit OF Hofer Bros. for wages, but
had asked that plaintiffs show a
merltorlous defense against that
claim, and being unable TO do 50, had
refused to defend.
He answered Mr.. Carson's charge
that pleadIngs admitted receiving
$4,000 from politicians.
The pleadIngs showed admission Of
receiving over $4,000 from advertising
aud subscriptions. II defendants had
misapproprlated funds 0f the corpoT-
alton TO their own use they must be
made 20 disgorge TO these stOckhOld-
ers. A corporation acting but few
times year could act under It's seal,
but corporation transactlng hun
dreds oil items OF business in the
course Of every day could only do busl-
ness through majority OF It's stock
holders. fit could not, then the
minority was In control OF the busl'
ness.
The original compensation Of s25 a
week TO be paid TO Hofer Bros. was
Voluntarily reduced during the panic
years to $500 and 1900 and $500 a
year. The books showed that THE
JOURNAL received patronage from all
political parties for advertising.
Even Bingham and Davis had run
bills for the Republican party which
they had not paid. IL was an Illus
tration OF the motive which actuated
these plaintiffs In obtaining stock.
Did they feel guilty because they had
not paid an honestly contracted bill 7
Hofer Bros. we're glad TO make a
full and fair statement OF every dollar
received by them In the due course Of
business. They courted the most
searching investigation. IL anything
was not right or business-like IL
could be shown up TO the court and
corrected. Ten Plaintiffs could gain
no information In this court that
they could not have gained direct
from the Hofer Bros.
CASE OF PLAINTIFFS
was begun by Mr.. Bingham going on
the stand. He testified that he was a
lawyer residing In Salem, a stock
holder In THE CAPITAL JOURNAL. He
stated efforts he had made 10 get @.
Marsh and M. l.. Chamberlain 10
make defense against the suit OF
Hofer Bros. Marsh and Chamberlain
declined TO interpose defense, or to
authorize Nr Bingham to defend. He
offered TO conduct the defense with
out expense to anyone but himself.
Chamberlalp said he had one corpor
ate litigation and wanted no more,
That was With BlnRham)
Cross.examlnation by Holmes; BE
fore meeting In July, when provision
was TO he maze for paying the debt,
he talked with Mr.. Chamberlain.
Before he purchased the stock OF Mr..
Breyman he was 'told there was no
debt. Got Byars stock early In
spring. The Waite stock he g,tI in
June. Meyer examined the books to
see II there was any debt. II was
reported that the paper had no debt
aud 1dscounted It's bills. He had
learr ed that HOfer Bros, agreed to
make no debts. Bingham directed
the stock 10 be put In pavls's name,
Paid 800 for Byars' stock. Paid
S225 cash for the Waite stock. Was
not attorney for the administrator.
Admitted making out the order for
the probate court. IL was endorsed by
him as attorney for the admlnlstra-
tor OF Waite estate by clerk In his
office, He drew up the paper with
out any charge. lie only paid one
half the money for the Waite stock,
Davis held one-half the stock, but l,
l.. Patterson paid for IL. Davis was
chairman OF the county central COM
mittee. But that had nothing To 60
with II. There was no politics ln this
matter. Had talked with Patterson
about buying stock Ia THE JOURNAL
early In the spring. They also bought
the Byars stosk. Daring one election
witness was at the head OF commit
tee and had shown feelings toward
Hofer Bros. In opposing the payment
OF their bill.
Witness claimed he had been grossly
mIsrepresented Ia the paper. He and
Patterson thought they could suffer
no loss on the stock. They had con-
cluded that IL was necessary TO pay
Hofer Bros. some money, thresh the
publishers or buy some stock. Was
never In the office but once when the
stock was transferred 10 him. lie was
treated cOurte0usly bY A. II. llofer,
Jr.
q. Hughes, late foreman In 1HE
JOURNAL otiice called. Worked for
Hofer Bros. four years, Az times
they took vacations. X, Hofer took
time OF 10 write book on the con-
duct of primary elections, lie Tiled
the bill as editor. Always got copy
TO hll up paper, Never examined
A