The record-union., 1898-12-28
The EVIDENCE NOW ALL IN.
UNION b. AND L. CASE GOES
TO ARGUMENT.
Arguments VIII be Commenced
This Morning, Before Judge
Buckles.

The case of Receiver O'Neil Of the
Union Building and Loan Association
against the National Bank Of D. o.
Mills & Co. was on trial all day yes
terday in Department 2 Of the Superior
Court, and by ) o'clock the evidence
was either all in Or stipulated. Argu-
ments will begin to-day.
DR.. T. w. Huntington was the first
witness for the defense. His evidence
was largely like that of the other Di-
rectors, who testified last week. Il
was present at the meeting in Decem-
ber, 1895, when the fact that the sixth
series was about payable was dis
cussed It was decided not to pay ii
then, because the assets had depreciat-
ed. was also present at the meeting
in February, 1896, when it was decided
TO borrow money. I thought the af-
fairs of the association were all right
having been assured by the reports OF
Mr. Fields"
Witness did not remember just what
Fields report contained, and did not
think he would know the document il
he saw it. ct did not know how Mr.
Fields was employed, but I thought Re
Examiners, said witness, "and ]
never compared his reports with the
reports of the Secretary of our board
I owned fifteen shares in the eighth
series at the time I was a director. ]
bought this about 1888. I had a pass
book, but never read any bylaws in
1t. I suppose that am still a direc-
tor, but do not know whether I have
been removed or not.
Il was at the February, 1896, meet
ing, but do not know what time I got
there. 1 remember very little that took
place at the meeting, especially very lit
tie Of the routine. I think we had re-
ports of some sort at every meeting,
but did not read them and investigate
them. I took the word of Mr.. AIsip as
to the truth of the reports. I think
Mr.. Jones made a motion that money
should be borrowed at the Mills or
Steinman bank. I learned soon after
the money was borrowed that the loan
had been made"
Dr. Huntington was excused until af-
ternoon, to enable him to meet profes-
sional engagements.
1t was admitted by plaintiff that the
holders of the sixth series were not
counted as shareholders at the meet
1ngs of December, 1896, and December
1897. Defendants offer of complaints
IN other cases, to show that Receiver
ONeiIs many suits show an inconsist-
ent course, was overruled
Bookkeeper Scott was called by the
defense and asked what was the gross
value Of the products of the Briggs
ranch this year, which he said was
$500 He further testified that he
was paying $50 month to the man
who has charge of the Briggs ranch.
On rebuttal Grove L. Johnson was
called as witness. He swore that he
had shares of stock in the ninth series
and that he knew nothing about the
borrowing of money until after the
loan
IT then protested against the borrow
ang," he said, "and served written no.
tices on everybody. I never at any
time acquiesced in the loan"
On cross-eXamination witness said
I attended no stockholders meetings
an December, 1895, or in December,
uo9o, as 1 was in Washington; but ]
inquired often as to the affairs of the
association, for 7 wanted money that
was maturing on my stock I did not
ask what the association owned. did not
ask about mortgages or specific prices
OF property, though I was told that IT
was hard to sell real estate. I exam
1ned the books of the association in
1897 as far as was permitted to do So
believed what A1sip and Steinman
told me-"
In the afternoon Charles Heisen was
the first witness. He testified that he
owned stock, which he bought of S. S.
Nathan for the sum of 81, 900. He said
in part:
Sometimes I got annual statements
and I attended some of the meetings
of the stockholders. knew that Alsir
had charge of the affairs of the asso-
citation. did not know that the sixth
series was maturing"
Chief H. A Guthrie of the Fire De-
'partment, swore that he owned stock in
the ninth series and he knew nothing OF
the maturing of the sixth series. He
never consented to paying off the sixth
series or making any loans.
On cross-examination he said he got
Alsip's report in 1895, by which he saw
that the sixth series had matured. He
had asked for information CONCERNING
the affairs of the association, and Mr.
Hawley gave him very little satisfac.
tion He never knew that the associ-
alton had been in the habit of borrow
ing money. though he had never beer
IN the habit Of attending the meetings
or stockholders. He desired to repudi-
ate the transaction with the D. o. Mills
bank He found that there was trouble
toward the last in getting information
about the affairs of the association
The less we asked" said the witness
the better they liked us. When
asked when the ninth series would ma.
ture they turned their backs and went
away. gave proxy. as I understood
1t, authorizing them to vote for me in
the election Of Directors. I did not un.
derstand that I was appointing Alsir
my proxy for everything. I don't
think my proxy gave anybody genera
powers"
Frank Bergman swore that he was
stockholder in the association and that
as such stockholder he never knew OF
the borrowing of money and that he
never assented to any payment Of tht