The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1898-02-04

This is to certify that / have entered
into an agreement with F. c. Cradle
for the erection at Edgemont, S. D., of
snlelter fully equipped with modern
appliances, the same to be erected COM
plete and ready for operation within
four months from this date payment
for same having been fully provided
for without further charge against your
company Yours truly
JOHN E. SEARLES."
Mr.. Searles' position as the executive
head of the sugar trust added great
weight to the standing of the company.
1t was at this time that the prominent
citizens who had lent their names so
freely to float the enterprise began to
realize the position in which they would
be placed in the event of it's collapse. AT
meeting of the Philadelphia capital
lists, who, like cashier Quinlan, had
been led into a bad thing, it was decid-
ed to take heroic measures. Cradle
was turned out of the management of
the company. The sale of stock was
stopped, SO far as the Philadelphia peo-
pie could prevent it. An Executive
Committee of five members was chosen
~ iooh aIlC1 1Ldil . W. w iAuL q
was deposed as Secretary.
To prevent the appointment of a re-
ceiver and a wiping out of the inter-
ests of the thousand or more stock
holders, it was determined to float a
bond issue for 5000, 900, and the prop
osition was brought before the annual
meeting of the stockholders in Jersey
City, January 18th Up to last Sat
md only ha1 hoe h
scribed, but it is believed that the bond
subscription will be successful and the
property saved to the stockholders, in
which case considerable money will be
expended in further development work.
The new people in control of the COM
pany, ii is said, will take legal steps to
compel Mr.. Searles to build the smeter.
Thus, in the end. there may be some re-
turns.
1t is said that Cradle has not been
able to sell all of the $500, GOO stock
and that a considerable part of it is
pledged for loans
CRADLES INDEBTEDNESS TO
THE CHEMICAL BANK.
NEW YORK. Feb. 3.-John S. Sill
Yer, one of the men whose borrowing
from the Chemical National Bank led
to the resignation of Director and Cash
Ter Quinlan, said to-day that he did
not owe as much as he had been said
to owe, but whatever the sum was, he
would pay it.
The officers of the Chemical National
Bank were in communication by tele-
| graph with banks in various parts Of
the country to trace the course of the
certified checks given by Cashier Quin-
| Ian to MeSsrs. Silver and Cradle, and
| to ascertain whether financial insti-
tutionS elsewhere had advanced money
on drafts such as We're accepted as Sc
curity at the Chemical National.
The Directors of the bank were in
session all to-day, discussing means of
recovering as much as may be possible
of the money. loaned by Mr.. Quinlan.
| President Williams of the Chemical
! National Bank. admitted the truth of
a statement that on Thursday last the
Chemical National Bank had accept
ed a demand note of S201 800 from
| Cradle, agreeing at the same time not
to press Cradle for the money.
William II. KurtZ, who is said to
! have been associated with Cradle in
many of his deals, said to-day: Mr.
| Graf dealings with the Chemical
National Bank have extended over
considerable period. AS l understand
from him. he was we'll known to all
the banks officials To my knowledge
! he owed the bank $4,000 at one time,
and liquidated the debt until only S19,-
600 was left. Thus he has gone on
contracting obligations and discharg-
| ing them At the beginning of last
week the total amount of Cradles in
debtedness to the bank was S201, 800"
Judge F. NJ. Hamer of Kearney, Neb.,
who was said TO be Mr.. Cradles coun-
sci, said he supposed CRADLES property
/ if realized on, would bring 81 .0o0, 600
! over and above Mr.. CRADLES total in
debtedness.