The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-07

brought forth a proposition on paper
after several days of discussion. When
the witness first went down he asked
II the association could not make all
offer on the bonds. They said it would
be impossible for them to do so, and
they must have assistance from the
second bondholders. The noon recess
was taken at this point
In the afternoon the witness was re,
minded of the interview with Knee
land and Hale, and stated that Mr.
Hale was present during the entire
conversation
Tell all you remember of any offer
to purchase the bonds," said Judge
Belden.
Il think he wanted to know if we
would consider an offer of Is cents We
told him we only had his word for the
condition of things, and would want
to look it up for ourselves. 1 remem-
Der of nc talk Of so or 60 cents when
Mr.. Kneeland was there"
Speaking of the draft of the plan,
witness said that there were several
copies made, and he took one with him
to Minneapolis, where he explained the
whole plan to the executive committee
in detail going over the maps and the
copy with them. Examining the rec
ord Of the company for Dec. IL, the
witness recalled that there was a dis
cussion over plan to have the trust
company raise funds, and it was
agreed that the attempt should be
made by pledging collateral.
Judge Belden wished to show that
Judge Russell had these matters IN
charge in the court when Mr.. Jackson
objected, because the action of the
judge, as he thought, could take away
the responsibility of the trust company.
IF the court please said Judge Bel
den, 1.-The issue in this case is, did these
Minneapolis Trust company people sell
these bonds to themselves, by conspir-
acy and with tire intent to steal them.
The case has beer defended so far on
the theory that TIE proof should be to
show negligence and incompetency. We
have the right to show the good faith
of these people,
The court ruled against Mr. Jackson,
but after the ruling he still argued
with the court, but it was of no avail.
1.-THE best of good faith wouldn't ex-
cuse this act" cried Mr.. Jackson.
You charge US with stealing the
money" said Judge Belden.
The witness asserted that he had laid
all the maps and figures before Judge
Russell, who had charge of the case,
and acquainted him with the facts.
That was about Dec. 49, The whole
plan was laid before Judge Russell,
and he was told that 1t seemed advis-
able to borrow money and purchase
the first mortgage on the property.
About Dec. 20 witness went to Chicago
and there met Clarkson Lindley.
A letter from George D. Morgan to
the trust company was read. The
writer held the first mortgage, and
stated that he had twice extended the
mortgage, and that they must have the
money. The letter asked if the trust
company could not take the mortgage
up. 1t said that Pullman real estate
was dead, and would not revive for
some years. If the trust company did
not take 1T up, they would foreclose at
once. After that an attempt was made
to get a loan from the United States
Mortgage company. From Chicago he
went to Boston, but not by any in
structions from the trust company, al
though Mr.. Lindley advised him to go.
He had with him the copy of the plan
which had been submitted to the exec
utiVe committee. Judge Belden read
this rebonding plan to the Jury.
In Boston the witness had several conversa-
tlons with creditors, meeting Coombs King
ana roster first, and there was meeting
called OF the New England creditors. Wit
ness remained in Boston four or five days,
and there was a meeting of creditors-a fair
sized office nearly full-and the witness ex-
planned the situation and asked if they could
raise any money to relieve the first mort
gage, and also presented the rebonding plan
Inc witness spent several hours in describing
the condition Of West Pullman, and the debts
1t was under. The meeting appointed COM
mittee to go to Chicago and ascertain if the
report was correct one, and witness went
to Chicago with that committee JAM s 1885
witness came before a meeting of the eXecu-
1--WE committee of the Minneapolis Trust COM
pany and made a full and complete report
OF his trip, and told what he had done dur
Ing his absence. Two days later he made
written report, which he did not present to
the executive committee. Then Mr.. Bassett
and Mr.. Lndley went to Chicago, the witness
also going there. H. F. Brown was met there
and they all went to West Pullman and look
ed it over; also visited some of the associa-
ton officers. The West Pullman people made
a proposition, which was submitted to the
Boston people and the Minneapolis Trust
company.
The proposition, which had already been
read to the jury. was shown the witness and
it identified.
When vas it finally determined to submit
this rebonding plan to the court?" was
The witness stated that at some time in
February it was decided to present the plan
to the court The whole matter was talked
over considerably, and witness could not say
lust when 1T was decided upon. When in
Boston witness had been approached rs to
what the bonds could be bought for, but he
could give them no satisfaction at the time
AT the creditors meeting they had talked
of trying to purchase the bonds. Mr.. Coombs
was asked If he would propose plan where
by creditors could come in and participate
and he thought that was the proper thing
to do in an estate of that kind. All the
members of the executive committee thought
1t proper to present this plan to the court
but there was no regular meeting held. At
the time the offer was made to the court
Stephen Foster was in Minneapolis. The
application was shown-the same one which
Mr.. Jackson, earlier in the trial had limited
had been signed by Hamblin-and the wit
ness swore that the names were signed by
Mr. Foster, who also made some intelinea-
tons in the text
The certificate which hai been introduced
by the defense, signed by all the executive
committee, was shown and witness ex-
planned that 1t was suggested by Mr. Knee
land and was made on purpose to take
to Buffalo and secure an extension of the
first mortgage. At the time the hearing
came on before Judge Russell there were
a large number Of attorneys present rep
resenting creditors, but he could not tell
could secure a list Of attorneys represent
ing about 100000 Of the Menage Indebted
ness.
Witness stated that he had sent to the
cause, and plan Of the sale. This showed
the creditors their right to come in and
subscribe. He had also prepared and mailed
circular to all creditors before this one
bonds were taken to Chicago by the wit
ness and they were deposited with the
Equitable Trust company, trustee In the
new bond issue.
After the order Of the court there were
subscriptions sent in under the order, to
the Minneapolis Trust company and wit
ness made a certificate showing the amount
each was entitled to subscribe, and these
were sent to Mr., King. Regarding some
Pullman parties who wanted releases Of their
lots, witness stated that some of the parties
who had purchased lots had paid enough
On their lots to be entitled to releases, and