The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-06-26
CROSS BANK AFFAIRS.
Sensational Testimony Being
Developed at Emporia.

Emporia, June 26.-Sensational testi-
mony is being developed in the exami-
nation of witnesses in the suit of the
Fourth National bank of ST. Louis and
the First National bank of New York
against the defunct Cross bank (the
First National of Emporia), now on
trial.
Carl Nation, a cattle man testified
that he had formed partnership with
H. c. Cross in the cattle business in
early days, that this partnership had
been carried on for years and up to the
time that H. c. Cross was appointed
receiver of the NJ K. & T. railway. At
that time H c. Cross son. c. S. Cross,
had taken up the business where his
father had dropped it and carried it
on up to the time of the bank and the
suicide of c. S. Cross. Nation testified
that he had signed notes for the bank
any time that he was called on to do it,
sometimes making them out blank and
leaving them to be filled in. That the
business had been carried on exclusive
ly between himself and the Crosses, and
that he had been cautioned several
times to not let William Martindale
know about the signing of notes and to
keep the partnership to himself. He
testified that he had, with the Crosses
as partners, lost money in deals to the
amount of $42, 600
w men MI. NdClOn C6St1ned that he
was not to let Martindale know of the
partnership and dealings of himself and
Cross, notes were offered in evidence
which showed in Nations hand writing
that he had made them payable to
Martindale & Cross, and that they were
signed SO on the back. Mr.. Nation when
asked to state as near as possible the
amount that he had signed notes for
and given to the bank, replied that it
was impossible, that an employee of the
bank had told him that he had signed
notes enough to build the entire Mic
araguan canal When asked to make
the statement as nearly possible in
dollars he could not, saying that he on
ly knew that it ran into the hundreds
of thousands of dollars. His testimony
showed that on one day he had signed
notes which amounted to $40 900, the
notes being for $4,000 each. Two Of
them were legitimate and two were ac-
commOdatiOn notes.
To prove that a Cross-Martindale
partnership did not exist, Martindale's
attorneys put Mr.. Eskridge on the
stand and he swore that he had signed
notes at Mr. Cross request, and that
he paid no attention to the amounts on
the notes. He sWOre that Mr.. Martin
dale had no connection whatever with
the partnership, and that Martindale
never asked him to sign the notes. At
this it looked rather blue for the bank.
But Lambert, attorney for the bank.
took hold of Eskridge and afterwards
went into the ownership of the Republj-
can newspa per. Eskridge swore that
Martindale had no connection whatever
with it and that he could remember
nothing whatever of the connection OF
Mart1ndale with it, save a kind of a
hint that Cross once gave him that
Martindale might be in some remote
way interested in the matter. This he
swore to and stuck to it. Then Lam
bert sprang a sensation. 1t was a con-
tract drawn up in Eskridge's own
handwriting, which expressly formed
''co-portnership'' between Martindale,
NrnC LFGlyr .iS7 9
ownership of the 'Emporia Daily Re
publican" The agreement was signed
by each one of the above named par
ties. 1t expressly stipulated that the
agreement should be kept secret.
The contract of co-partnership show
ed on the back of it that over 49, 900
had been paid into the partnership to
start the paper, and Lambert asked
Eskridge if this wasn't the foundation
of the debt manifested by the Eskridge
notes. Eskridge said he did not know.
1t is claimed by Receiver Albaugh that
the bank books show that at the time
ESkrldge and SeVery and Martindale
and Cross put $32, 900 in the Republican
they borrowed that amount from the
bank, which was never paid nor any
part of it. Thus the debt, which after
ward amounted into $4,000, was found
ed and in sustaining the newspaper 1T
grew Lambert asked Eskridge just
how much he really owed the bank and
he said he didn't know, that he never
noticed Then Lambert asked Esk-
rideg to give guess at what he actual
ly owed in straight, bonafide transac-
lions and he replied that it was not
over $4,000. He said he didn't know
how the debt was formed. He said it
just grew up in a night. He didn't
know where the money went, nor could
he tell anywhere near what he owned
or if he ever got the S32, 900 paid in to
start the Republican. He wouldn't
swear that it was not paid in, but said
he could tell what became of it, if it
was paid in. He said the contract had
never been in force any more than the
charter under which it was organized
But he said it had never been officially
and legally dissolved to his recollection.