The record-union., 1898-12-24
B. AND |. TESTS MEMORIES
a DAY IN TRYING TO SOLVE
OLD SECRETS.
Probing the Question Of Merging
Two Societies Into
One.

Inc trial of the important ca20
Receiver O'Neil against the Natohal
Bank of D. o. Mills & Co. was on al
day yesterday in the Superior Coui =
though counsel agreed that 1t dragged
Court adjourned at p. m until l ues-
day forenoon.
Plaintiff admitted at the outset that
the stockholders of the old Building
and Loan Association did not receive
notice that a new corporation had peeh
formed in February 1881.
The first witness Of the day was D.
L. Steinman, who testified that
meeting was held in January, 1870 at
which it was decided to borrow money
for payment of the sixth series Oh
stock. AT the meeting notice was
given that some $40 shares Oh stoch
were maturing, and it was agreed TO
borrow money for the purpose oI ian
ing up the shares that were maturing
Both my wife and myself were VIII
ing to take stock rather than money
said witness, "as We were not in need
of cash. 1t was found that we would
have to borrow 100000 to pay the
stockholders. and of this sum So0,oUO
We're borrowed from the Mills Bank.
for which our securities were pledged.
l had fifty shares Of stock in the sixth
SERIES
w. E. Norris was called, and his
testimony, like that of many witnesses
called on Thursday was that he kne"
nothing whatever about the merging
of the corporation of 1874 into that or
1891 Though he had signed the by
laws, he could not say what they con-
tanned, or that he had in any manner
assented to the transfer of his stock
to the books of the new corporation
There was no explanation Of the by
laws of any of the officers.
On ross-examination, he said he
had thirty shares of stock, worth some
$1,000, and that he transferred them
for stock in the seventh series.
Fred Shepherd, a former director in
the association, testified to about the
same effect. Il voted for the resOlu-
tion," he said, "and did not object to
the redemption of the sixth series. L
do not remember what was said about
the loan and securities
Philip Douglas, another director.
testified along the same line. He could
not remember just what talk was had
about the securities.
The other witnesses of the morning
We're NJ. Hirsch, c. p. Massey and Rob
ert H. Hawley. All testified that they
had no knowledge that a new corpora
ton had been formed. Court then ad-
journed for noon recess.
At the afternoon session the first wit
ness was Robert II. Hawley, who con-
tinued his story of the morning on
cross-examination. He said he was
once Secretary of the association, and
that he often acted for Alsip in his
absence. He said: Il often decided
controversies in Alsip's absence, acting
for him. 1 never heard the bylaws
explained to signers."
Wasn't it bunco game" asked
Grove L. Johnson, 'by which people
signed things which they did not un-
derstand?"
The word "bunco" was stricken out,
after which witness answered that he
never heard anybody explain to stock
holders what they were signing.
Isador Cohen was the next witness
He testified that he was a stockholder
in the Union Building and Loan Asso-
citation many years ago. He never re-
ceived any notice to the effect that the
stock of the early association was ever
transferred to the new company.
The defense then offered in evidence
the due" book of the association,
showing the names of all the stock
holders of the association, and the
amounts due.
Bookkeeper Scott explained how the
books We're kept and the meaning Of
all the entries. Defendant offered to
prove that the third. fourth and fifth
series We're paid off without previous
meeting of stockholders. The plaintiff
objected, and the objection was sus-
tanned. Offerings of similar matter
were not allowed; neither We're the
defendants allowed to show that by
the common consent of stockholders
directors had power to act in the way
they did. Defendants were not per
mitted to prove how series previous to
the sixth We're redeemed.
Robert II. Hawley was recalled by
defendants. He testified that he was
acquainted with the methods of book
keeping pursued by the Building and
Loan Association, and he was one of
a committee appointed in 1897 to check
up the books of the association. He
could explain how books were kept,
and how surrendered stock was en-
tered in the books He explained vari-
Gus entries of December 20, 1893, con-
corning surrendered stock for a mo-
ment, but was not allowed to go far,