The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-14
ISSUES LOST SIGHT OF,
WHILE INTERMINABLE QUESTIONS
ARE ASKED REGARDING THE
TRUST COMPANY.
EVIDENCE IN MUM CASE ALL IN.
Num- Disbarment Proceedings Are
Again POstpOned-News of
the Northwest.

| Paul to argue a case before the SUI
preme court yesterday, and Mr.>Hamb-
| lin was taken from the stand In the
Times libel case this morning until
the attorney should return In the
meantime, to keep things going, Mr..
Hatch read the deposition of Lyman
A. Walton, portion Of which was
read Jan. 5, the whole Of which ap-
| peared in The Tribune at that time.
The deposition was In relation to the
deposit Of old bonds and the agree
ment with the Eastern Trust company
that held the bonds in trust, and threw
little light upon the case, as the de-
poser apparently knew little about the
| matter. The deposition, however,
showed that Mr.. Hatch was attorney
for the Equitable Trust company.
which handled the bonds in the deal,
which accounted for his being retained
by the defense.
Following the deposition, Mr.. Hatch
had copy of the trust deed a very
lengthy document, which he wanted
to read, but Mr.. FIannery objected.
Much of this has already been
read" said Judge Elliott. Let us
avoid reading so or 60 pages of print
| If we can at this time
Mr.. Hatch wanted very much to read
the portion relative to the powers and
| duties of the bondhOlders' committee
The court allowed this portion read.
being four pages of closely printed
matter couched in legal terms The
committee named was Coombs, King
! and Hamblin, only the chairman being
allowed salary. This committee was
given power, which made all the bond
holders bound by their acts, but these
acts were limited to the protection of
! the bonds.
A portion of a deposition OF W. R. Kerr
was offered and objected to.
The idea is this" said Mr.. Hatch. I'VE
| had him the stand and took part OF the
deposition when took a continuance and
when Mr.. Kerr came back he refused to
! testify any more
~ We certainly object" said Mr.. Flannery.
They want TO put in a portion Of the tes.i-
mony-the part they want when We had
no opportunity to cross examine"
Judge Elliott took the hour to look
! over the deposition.
In the afternoon, Mr.. Hamblin was pres
ent, and so was Mr. Jackson, and the re-
suit was that the many quips and pleas
were resumed. Mr.. Flannery asked the wit
ness for list of the attorneys who repre-
scented clients at the hearing before Judge
argued at length against answer to- the
| question, but the court allowed it. Witness
could only remember the name of Judge
Koon, who asked him some questions re-
garding the sale
But judge. Koon represented Mr.. Lowry
| in the sale of the building" said Mr.. Jack
| son. He was very much interested in that,
but not in the sale of the bonds
'koon, Whelan & Bennett represented quite
large number of creditors, replied Mr..
Flanneryy; Their names appear in the judg-
ment roll in the decree"
Passing from this point, the witness ex-
| pialned the Difficulty with the Northern Trust
company. The latter, as trustee had a con-
tract ira with A. the West Pullman association,
| each lot released. When a new trustee was
selected, the company claimed the full mount,
and 1t was finally made matter of compro-
mise Referring TO the bonds sent to the
Minneapolis Trust company from the Chicago
| Trust company. the witness swore that $50 6 %
of them We re for the Minneapolis Trust com
| pany as sceiver of the Northwestern Guar
Security bank.
Did the Minneapolis Trust company re-
celve any of those bonds?"
Not as the trust company was the re-
| ply; only as receiver
That is AL" said Mr.. Flannery
Mr. Jackson took the witness again. and
tried to show that the court had been de-
ce1ved. because the petition read that The
%hole Szso ooO OF bonds so We're to be sold, when
with Mr.. King, and the other $50 900 the Min
neapois trust company as receiver never
| intended to sell.
"They sold them and bought them hack Of
! the same figure said the witness
| Mr.. Jackson for illustration, took the claim
NJ man VINO held a claim of $1,000 n the
Menage collateral. The witness figured that
1882 would have to be subscribed under the
hrst rebonding scheme, and his interest would
pc DE $9sz worth of the new bonds. and he would
| nave surrendered his interest in the collateral
onuer the plan that went through he paid
$3.50 and secured $3.50 of new bonds
| Mr.. jackson wanted to get the opinion of the
witness on certain matters, but the cues
| tons were ruled out.
| We have been over these things over and
| over again" said the court
jackson
minneapolis Trust company received $500
| more value In bonds than appeared to he due
OF the company, and the witness explained
| that there was interest due for which Tho
| new bonds given. W
49, mat reminds me- said Mr. Jackson
Instead UnS Of receiving $3.50 worth of bonds
klng receives $672, with the interest added
You threw in the interest as a chromo?''
There were new bonds given for IT."
said the witness again.
Didn't the West Pullman association nov
| cash for that interest?'' P"'
II think not"
Mr., Mr. Jackson asked how the Minneapolis
| ana paid for them. The witness answered
that they were paid for by a cross-entrv on
me 1n Dook; The attorney claimed that the
bought the bonds fer 10 cents on the dollar
and sold them for 60 cents on the dollar
thus causing the collateral trust to lose and
tne general receivership to gain. 1t was also
SHOWN that the special assessments against
the West Pullman property were not maid
before the mortgage was placed
Coming to the talk with Judge Russell tho
witness was asked If he ever understood that
Judge Russell advised that 1t would be i'm
proper for the trust company to use the
0,OO0 in the purchase of the first mortgage
He certainly did understand the fudge In
that way. He had several talks with the
court about 1t, and had advised the court
that they had money on hand that couid
be used. Witness had asked Judge RusseII
about many things.
do you mean to say that Judge Russell
| gave you legal advice as to the best Way
| for the trust company to act In these mat.
tiers, without hearing the other side?'
Il asked for information and advised with
| him very often,' was the reply.
Mr.. Jackson tried to get in some evidence
! as to other trusts, and there was an OBJ
lection; then the usual wrangle followed
| Are you afraid to have the Witness
answer" cried Mr.. Jackson
do you charge that there is anything
wrong IN any other trust?" cried Mr. Elan
merry. 1--WE are willing to probe this mat
ter to the bottom, so far this publication
this libel. is concerned, which everybody
is false, but 1 don't want a bit of outside
| stuff in here to smother the main issue
That's all. This IS all to obscure the real
issue. and throw dust in the eyes of every
| body"
I'VE are not getting along very well this
| afternoon" said the court.
| 81 think 1 am getting along very nicely"
| said Mr.. Jackson.
Not in anything pertinent to this case"
| said the court
Mr.. Hamblin was excused and the de-
| Tense was resumed with z. G. Cook on the
| stand Mr.. Cook is an attorney at law and
| hopar Tod ryifh