The Portland daily press., 1900-03-05
Another Chapter In Investigation Of
Affairs Of Bankrupts.
Attempt to Learn About
Omaha Water Co.
Discussion of Assignees' Agree.
ment With Banks.

The bearing In the bankruptcy pro.
eeedings of Woodbury. s. Moulton were
contin usd all day Saturday and were ad.
3ourned finally about five O'Clock. For
eight days Mr.. freeman has exam ined
Messrs. York and Woodbury. Of the bank
rupt firm. Thsse hearings have not
been held on consecutive days but
month has elapsed since the first one was
held. Mr.. Freeman with great persist
sncy has gone into every transaction oil
the firm and has brought forth to the
public every dealing they have had for
the past year at any rate. The nswspap-
ers have printed columns OF this matter
but the end of the Gaze 10 not yet In
sight. 1t Is probable that there will be
many more columns printed regarding
It before the final settlement. No one
seemed TO know on Saturday just what
the next step would be and the public
will await results with interest.
Mr.. Pierce. the referee, has been obliged
to devote NAVY days to this matter and
his compensation for the time he has S,v-
en- to 1t seems sbsurdly small. He is al
lowed by law $40 when the case 10 fn-
jahed and one per cent Of the dividend
declared, which will not bs an enormous
amount.
Mr.. Freeman opened the ball by saying
that he had tslephoned Mr.. Vsrrill to
bring In the agreements between the as
signees Of Woodbury. 81 Moulton and
the several banks whose claims against
the firm were settled before the estate
was forced into bankruptcy.
MIR. VerriIl said That Mr.. Coombs. the
trustee, did not feel that the agreements
with the banks should be made public.
MIR. Freshman said that he had tried sew
eral times to get chance to see these
agreements and he thought it was very
funny that he couldn't see them.
Mr.. Verrlll said he would be very much
pleased to show ..these agreements to MIR.
Freeman at any time that he called to
see them.
MIR. Freeman said he didn't want to
see them In Mr.. Verriifs Office. he
wanted to see them in court. and he re
marked again that he thought it very
strange that be couldn't see them, and
said he would like to know what there
was about these agreements that the as
signees did not want to show them TO the
creditors.
Mr. Verrill said that as far az he was
concerned he was willing to show these
agreements to Mr.. fireman, but the
trustees and the assignees did not believe
that ID would promote the interests OF
the creditors Of the estate to bring into
court these agreements be said that TO
do this would violate their agreement
with the banks.
MIR. Freeman asked Mr.. Veriill what he
N
a look at thess agreements.
Mr.. VeYrill said that the only thing be
could suggest was for MIR. Freeman to
20 over toshis office and look at them.
This MIR. Freeman did no seem inclined
TO do. He insisted on the agreements
being brought into court. He asked Mr..
Verrill whether these agreements were
believed by him to be the property OF the
estate or Of the assigness. Mr.. Vsrrili
remarked that they were the property OF
the estate. but that ths Assignees had
given their words when these agreements
were made with the banks that they
should not be made public, and he In
tended to keep his word.
Mr.. Freshman asked the referee II he
considered these agre smsnts the property
of the estate or of the assignees.
Mr.. Pierce said that the assignees when
they made these agreements with the
banks disposed of property at their own
risk which they had no right to dispose
of. Until the assignees made their re-
ports the agreements remained a. their
property, and the only way to get ut the
agreements was TO summon into court
the assignees.
MIR. VerriIl said that the OBJECT the
banks had In making these agreements
was TO avoid their names being made
public in connection with the failure and
to bring THESE agreements into court
would be to give the banks an excuse for
withdrawing thess agreements and max
ing claim to tneir share of the estate.
Mr.. freeman pressed the matter and
began to sharply question Mr.. Verril,
whose answers were ali similar TO those
he thought MIR. Freeman had best begin
his examination.
Mr., freeman then sked where the trial
balances Of the firm Of Woodbury. q
Moulton were Mr.. Freeman said that
only ons of them had been found and he
wanted to see the others. Mr.. Verrlll
said that more than one had been found
and would be shown TO Mr.. freeman
later.
Mr.. Freeman then began to exsmine
Mr.. Theodore G. Woodbury., the senior
member of the tim Of Woodbury. &
Moulton. In answer to questions Mir.
Woodbury. said that his salary as prSsi-
dent OF the Omaha Water company was
81 0C0 year, VIII oh wss payable In
monthly installnlents. On Oct. 2lst, be-
fore the failure of Woodbury. q Moulton
he had received s33S.S3 his salary for the
month. He said he had paid this TO
Mrs. Woodbury. for household expenses.
and since then he had besn turning his
salary as president of this company over
to Mrs. Woodbury..
Mr.. freeman then started to ask MIR.
Woodbury. some questions regarding the
Omaha Water Co. or his connection with
Ii. Mr.. Woodbury. seemed reluctant to an
swer them and appealed to the referee.
He said, "Mr. Referee. i object to going
into the affairs Of the Omaha Water COM
papy."
MI. Frsman-"You will let your coun-
sci do the objscting for you"
Mr.. VerFill-'' object TO this line OF
questions"
ssMr. Pisrce-"The questions are exelud-