The Portland daily press., 1900-03-02


Mr.. Woodbury. read the certificate OF
Mr.. Emerson that he did not own the
bonds and that he did not owe the firm
t7s.3
Q.-what entry appears on the credit
eide Of that scoountf
A,-The bonds were transferred back
to the nrm October 3ist. That is the
date here, but l believe It was done lat
or by the sssignees.
Q.-How would you account for that
Item In the trial balance Of November 1stf
Al believe 1t was done by order Of
the sssigness.
Q.-They didn't assume control until
November 81, did theyf
Al believe not.
Q.-Thers is no journal entry Of that
transactioni
A.-No.
Q.-was there q journal entry on Sep
tember 2oth when that transfer was made
to Mr.. EMERSON
Ayes.
Q-WhAt is It?
A.-Waltsr q. Emerson, Dr., to Crys-
tai water company. to $1,000 first hves,
amount s7s. SEQ.
Q.-The Journal and ledger would indi-
cate the firm sold him those bonds on
shat datef
Ayes.
Q.-was 1t q bonsflde salsi
Alt was sale under the advice Of
Mr.. Underwood to give the title to some
one elsa.
Q.-It was transfer without being q
sale, was 1t not?
A.-On our books 1t appeared as sale.
Q-But 1t was 70; sale. was 1t!
Al was away OF the time.
Q.-PIes S, answer my question:
Alt WIS not an actual sale. 1t was
merely book entry.
Q.-Bsfore this certificate was added
tho books didn't show that, did theyf
A.-No.
.O.-What was the agreement between
your firm and Mr.. Emersonf
Al don't know. l was away.
Mr.. Woodbury. explained this transse-
ton at great length.
Mr.. Pierce asked Mr.. Woodbury. II any
attorney had ever advised such tran
saction, and Mr.. Woodbury. said that MIR.
Underwood bad advised 1t by letter.
Mr.. freeman showed Mr.. Woodbury.
the letter from Mr.. Under wood to MIR.
Woodbury.. 1t was read. This letter, 1t
will be emembersd, referred to the
Ramapo deal In New York in which Mr..
Woodbury. was advised to get the Crystal
Water company bonds out OF his hands.
Mr.. York then telegraphed Mr.. Wood
bury concerning the proposed transfer TO
W. G. Emerson or Mr.. Higgins.
Q-What was the objsot Of this trans
fer?
Aust what l said tefore
Q.-Whst was It's purpose?
A.-To give title to the bonds to some
e=e-siss
Q.-whys
A.-Eecauss we were advised to do so.
Q.-what benefit would 1t be to you?
Ain case we should think 1t advis-
able to bring foreclosure proceedings on
the mortgage.
Git was q step in preparation of the
foreclosure.
A.-Yes The coupons were not paid
when they came due.
Odd 1t come as surprised
Ayes, 1t was a surprise. We expected
the coupons on the bonds would ne paid.
Q.-This letter Of Undsrwood's was the
fret Indication you had that you would
be troubled with these mortgage bondsY
Al don't know of any other indioa-
tion we had.
Q.-Was there any other Indications?
Ave were out of management Of this
company and we didn't know what the
other people would do. We had endorsed
Crystal Water company notes.
Q.-Were you reimbursed for the ex.
pense you were put to In the loan after
ward from the Chapman National bank
note. Did you have any difficulty In COL
lecting the expenses from the Crystal
Water company occasioned by this loan.
Al don't recall. Mr.. Woodbury.
went on to explain the negotiation of
notes for the accommodation OF the Crys-
tai Water company. MIR. freeman en-
dsavorisg TO show that the nrm had
knowledge of their insolvency pEior to
November LIST.
Odd you feel you would be reim-
bursed by the Crystal Water company?
Ayes.
Q.-Did you have confidence in the
Crystal Water company management?
Al don't know enough about them
to have confidence or lack of confidence
in the management. don't know to this
day who bought the Crystal Water COM
psny. knew rome o, the management
personally.
MIR. Woodbury. read letter written by
HIM to Mr.. Underw God dated October 81,
1889. in which he said he sh ould be guided
by his advice In the Crystal Water COM
psny matter. He had asked for interest
money fiom Newhall. but had obtained
no RESP onse. Mr.. Underuooi's letter to
Mr.. Woodbury. under the date OF October
20t5. In which Undsrwo o1 said he had
met Curtis and asked him II he was In
communication with Rosenfelt, was read.
Curfis aInO iumnad Hhau he sokad