The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-08

ties in the way Of making the loan of
$780, 900. He only took the step to see
If the loan could be made.
IF we could have raised the s8S,000,'
said the witness. II never would have
gone to Boston"
The witness was again asked to go
over that Boston meeting of creditors,
much the same as in his direct evil
dence, but stated in addition that he
had no definite plan at that time but
only wanted to get their good will in
the matter of assistance. He really
wanted a loan, but he made no such
proposition at that time.
Weren't you there to get their con-
sent to allow the trust company to put
up this money, as you intended to do
and as you wrote Mr.. Kneeland?''
No, sir; that is not he fact. I
thought hat among so many creditors
they might devise some plan which
would be acceptable to the trustee
But you never mentioned the fact
that you had $40, 900 on hand?"
1--WE had the idea that it would not
be policy to send this money after the
bonds. We were afraid we might lose
on the bonds. l don't understand any
procedure wherein you take one mans
money to pay for another mans prop
erty''
81 wish you would explain this mat
on this jury said Mr.. Jackson.
well, Mr.. Jackson said the wit
ness, laughing. "To me 1t is very plain.
If we kept the $40, 900 we had that sure.
We couldn't lose it and it couldn't be
taken for debt. If we borrowed the
whole amount on the land, all we stood
to lose was the land, at the worst, and
we still had the money. It's very
simple"
A book was brought in to show what money
was on hand belonging to the trust, and
where it was, and the witness showed de-
post in bank of about s37 900 available, some
In the Ncollet National and some In the
Northwestern National. They kept separate
accounts for the trust funds, but not separate
banks.
who had authority to draw checks against
that fund.-
"Tse officers of the company and myself.
check would require two signatures, how
1t shown that when witness was in
Boston he wired Mr.. Lindley asking If he
should not stay there longer, to interest peo-
pie in taking some of the risk. Regarding
the failure of the United States Mortgage
Loan company to advance money the wit
ness could not give the reason, except that
they had disparaged the security The Bos-
ton creditors talked some about purchasing
the bonds, and McCoombs had several plans,
but the witness could not remember what
those plans were
Witness asked to show by copy of
the first mortgage that there was only 500 coo
due the fall of 1894 and another s10O, 900 the
fall OF 1885. The witness knew there was an
extension of time for the payment until Feb
ruary. and that the West Pullman people had
paid off $4,000 of It.
Don't you know that even in strict fore
closure the court always allows time for re-
demption?"
mo, sir. I do not. 1 can't say what the
law Of strict foreclosure Isl
The witness asked Mr.. Kneeland If they
could not pay off a portion of the mortgage
and let the balance run, and he said they
could not. The mortgage wanted the money
to put into large building In Buffalo.
Aren't you straining your recollection a
little on that?" asked Mr.. Jackson
That is what he told me-" was the reply.
-, The witness made computation, showing
that Pullman lands to the contract price Of
SIS, 5000 had been released from the first
mortgage, but still were held to the second
mortgage: This amount Of land had actually
been sold under contract. If the association
continued prosperous that would be paid and
II not, the second mortgage would take the
land. The witness again explained In refer
ence to his letter to Mr.. Kneeland, that there
were several parties who had paid the West
Pullman association for releases and the as
ISOLATION had not the money to make 1t good.
NJ. Jackson didn't think the letter read that
way, and read 1t again, and the witness still
insisted Jpn his explanation.
How much money was there which they
owed you in this way?"
About s., 600. There were sixteen lots and
1t took about seven lots to make 81 000.'
Mr.. Jackson went over the letter, line by
line, and questioned the witness in regard
to 1t, to get his meaning, at the same time
trying to construe the letter his own way
Now, will you give me the precise date
at which selling these bonds at 10 cents on
the dollar ever entered your mind?'
LAS far back as when l was in Boston. Mr..
King made remark to plan which would
have in it the sale of the bonds at what
might appear to be low figure. 1 think he
said at that time: .Whatl you take for them?
Ten cents?''
isn't it true that the first time the trust
company proposed selling those bonds at 10
cents on the dollar when you and Mr.
King and Mr.. Kneeland and Mr.. Foster were
in Buffalo, at the end Of January. 1882"
The witness swore that he had thought
of 1t before, but at that time he did
not have any idea that the bonds would sell
for 10 cents.
Court then adjourned until 10 a. NJ. Mon
daY.