The record-union., 1899-10-11


and they were destroyed because they
were no longer of any value
Mr.. Capen explained his method Of
rating business firms, but was not al
lowed to give his rating of the firm of
Gregory Brothers Company, and was
excused.
Walter Bassett was called and testi-
fed that in 1898 he cashed State war
rants for Eugene ]. Gregory to the
amount of $500 or $400 Gregory told
witness he needed the none. very
badly.
w. F. Jackson said he had several
conversations with Eugene Gregory
with reference to the payment of Mrs.
Lees note. Gregory claimed that the
money was loaned to the firm, and not
to him, and declined to settle unless
Mrs. Lee would sign a paper exhoner-
ating him from statements published
in the San Francisco Call" alleged to
have come from her. Witness said he
went between Mr.. Gregory and Mrs.
Lee as a mutual friend, but dropped
the matter after it got into court.
Gregory he said, gave no reason for
declining to settle, except that Mrs.
Lee would not sign the paper he had
written.
On motion of the attorneys for the
defense, the testimony of the witness
was stricken out, on the ground that
it had nothing whatever to do with
Frank Gregory, and on the further
ground that the alleged letter was
written by a partner, and not as an
offer of the firm.
w. S. Kendall testified concerning a
mortgage held by Gregory Brothers
Company against the Pike ranch. Wit
ness thought the holders of the mort
gage transferred the mortgage imrne-
diately after It's reception, to the Cali
fornia State Bank Pike contended
that if an accounting could be hadshe
would owe the Gregorys nothing. Wit
ness said he did not press his claim
against the firm, because Mr.. Abbott
of the California State Bank informed
him that he would lose money, as he
could not collect anything. Witness
said he made an examination, and
found that the firm was heavily IN
debt to the bank in question. Witness
consulted with Eugene Gregory and
agreed to a compromise for the pay
ment of the mortgage, but it fell
through because Mr.. Abbott objected.
Then, before an adjournment for the
evening, an inquiry was set on foot by
the attorneys for the defense as to
what had been done by Mr.. SCHNEIDER
with the financial statement prepared
by him for use at the former trial, and
which showed the condition of the
firm, financially, in August, 1894. The
defense proposed to prepare such
statement from the ledgers held by
Mr.. SCHNEIDER, who earlier in the day
failed to remember what had been
done with the statement prepared by
him.
While the attorneys were engaged in
attempting to recall what had become
of the statement, Mrs. Lee rose to her
feet, and addressing the court told
what she remembered concerning the
document in question.
Mrs. Lee said that when the attor.
neys for the defense asked for the
statement SCHNEIDER put it behind him
and refused to give it up; that Attor-
ney Bruner said to him: That's your
property" and that Eugene Gregory
said to him: Destroy it, and that
the court adjourned and SCHNEIDER re-
tanned possession of the statement.
Attorney Bruner said he had no rec
objection of the matter.
Judge Hinkson informed the court
that Mrs. Lee some time ago repeated
to him the exact statement of the af
4
Judge Prewett suggested to the at
torneys for the plaintiff that they pre-
pare a statement from the books held
by Mr. SCHNEIDER, and a recess was
taken until 10 o'clock this morning.