The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-13
men got together for the purpose of

men got together for the purpose of
booming a town.
What effect would the solvency of the
West Pullman association have on the value
or the land?" asked Mr.. Flannery.
1t would have disastrous effect upon the
value of the property to have the association
bad financially, or become involved, was the
reply.
Witness swore that Judge Russell had said
that 1t was very doubtful if the court would
allow the company to borrow money on the
| bonds, but they might make effort and
bring 1t before the court. In regard to the
matter of using the trust fund hand,
Judge Russell had been appealed to and he
had told them that in his judgement, that
| fund could not be used for that purpose.
Witness had an indexed record of the at
torneys who appeared fer the various cred
itors In the trust matter, but Capt. Hart OBJ
Jected to its being used. Mr.. Flannery said
he would show that attorneys, representing
$50, 600, were in court, and that thirty or
forty of the attorneys. representing 5000 900 of
the trust, were in court when the matter was
heard before Judge Russell. Many of them
remained the attorneys until the dividend was
declared and the dividend was paid to them,
so that there was no question but what they
still appeared for the creditors The court
ruled out this evidence, however, from the
witness the stand.
1t shown that several of the banks had
come in under the plan, and subscribed: Mr.;
| Coombs, at Boston, represented about S700,GtO
of creditors and he attempting to form
an association of creditors, which was to be
done when he had 81, COCOON. The amount
was never reached, however, and the plan
failed. The trust company had taken counsel
regarding the first mortgage, and had ascer-
tanned that upon foreclosure the land could
be taken. The West Pullman association had
no income except from the sale of lots. All
the bills receivable and contracts were pledg
ed The only way it could get money was by
selling lots
The witness explained portion of his
former evidence. and said that in speaking
of the lots which were free from the first
mortgage he did not mean that they were free
from the special assessments. He also ex-
planned that the Minneapolis Trust company
itself never received any bonus of the new
issue. What 1t did receive was receiver
OF the Nor hwestern Guaranty Loan company,
and for the benefit of that estate. 1t was
also explained that there not S39 GOO
available for use in the trust fund as there
were expenses chargeable to that fund which
had not been paid. There no trustee
account kept in any bank, the funds from
that trust being deposited with the receiver
ship account Mr.. Coombs letter was brought
up again and Mr.. Fleming showed by 1t that
Messrs. Foster and Carpenter had been ap-
pointed committee to go to Chicago and for
muiate some plan out of the mortgage diff
fculty.
Then this was the first start out If which
the plan grew which was presented to the
court?"
Eyes, SIR
I'm regard to the mailing of the notices
to creditors letter shown to the witness
and after looking at it he thought the notices
were mailed a week before he Saturday pre-
vious to the day the hearing was to be heard
Another explanation was made of the plan
OF sale. which showed that s114000 was made
to purchase 1858, 100 of new bonds. This would
give thorough first mortgage in addition to
the loan security of $780, 600 of bills receiv-
able 1t was also shown that an unforeseen
happening, when the Pullman association
failed to put up the 5000, 900 coming after the
order OF the court, made the new bonds come
10 per cent higher than at first calcua. ed
upon"
Regarding the purchase by witness of $11. 600
OF the new bonds witness stated that he
paid A4OO, borrowing all the money but $500
10 pay LOT them The Minneapolis Trust
company had interest whatever in the
ponds he purchased. When the sale came on
before the court witness was examined by
several attorneys. and the matter was con-
might be looked over
ing. '---' ii01 L.