Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-10-01
Continuation of the Senate Committee
Investigation.
Mr.. HAWKS STILL TESTlFYING
Prospectus and Stock Organiza-
ton of the Company.
MANY LETTERS READ

mttee on military affairs consisting OF
Senators Hawley, chairman; Proctor, Bur-
rows, Cockren and Harris was resumed this
morning at 10 o'clock. Some minutes were
consumed in reading the record of yester-
days proceeding. The accusing witness,
Erastus l.. Hawks, continued his testimony
commenced yesterday afternoon. Prefac-
ing his evidence, Mr.. Hawks stated that he
wished to make a statement. He said he
had not intended to bring any ladies' names
into the controversy, but inasmuch as Colo
mel Heistand had reflected upon witness
regarding his alleged bringing of Mrs.
Heistands name into the case he believed
it to be incumbent upon him to read letters
which had passed between them on the
subject
Mr.. Charles W. Needham, counsel for
Colonel Heistand, objected to the introduc-
ton of such letters. After some discus
sion the suggestion of Senator Burrows
that the letters be read by the committee
before being admitted as part of the pro-
ceedings was adopted.
In reply to Mr.. Hawks statement that he
had been reflected upon and that the letters
had important bearing upon the case, Sem
ator Cockrell stated that the committee
was not sitting to consider reflections upon
Mr.. Hawks, but to ascertain facts, and If
the letters were vital to such inquiry they
would be considered.
Division of the Stock.
This episode being settled, Mr.. Hawks
said he had failed yesterday to relate an
incident of an agreement alleged to have
been entered into between Col. Heistand
and himself regarding a division of the
stock of the rope company. One hundred
and fifty thousand dollars worth was set
aside to be divided between witness, Col.
Heistand Gen. Corbin, Mr. Meiklejohn, Mr..
Boyd and Dudley & Michener, the share Of
the latter firm to be in payment for their
services. his agreement, he declared, was
made in Col. Heistands office. He believed
the latter's share was to be $4,000 worth of
the stock. Continuing witness said that
to raise sufficient capital to put the COM
pany on a sound financial basis, and saw
members of the firm Of Flint, Eddy & Co.
He related his conversations with them
and declared that he told them that
his alleged official associates in the COM
pany would be influential In favor Of the
company.
The negotiations with Flint, Eddy & Co.
We're at first very favorable. They con-
tinued for six weeks. An agent of Flint,
Eddy & Co, came from Manila, but went
Immediately to England. On his return
negotiations were continued until witness
WdS taken SICK. lie came TO w washington,
where he was confined. to bed for four
weeks. In the fifth week Colonel Heistand
called on witness at the Y. 1. Hotel on
18th street, and after talking few min
utes said:
Major, Assistant Secretary of the Navy
Allen and General H. C. Corbin have with
drawn. Mr.. .Meiklejohn wants the to
whom 1t may concern letter returned to
him. He gave no reasons, but said Mr..
Allen had been called up by telephone from
New York, and asked if he was in this
combination, whereupon Mr.. Allen had gone
to General Corbin and informed him"
Witness stated that this conversation oc-
Cured about week before Colonel Heis-
tand sailed for Paris. No one was resent
at this conversation. Witness said he at
once told Colonel Heistand that Meikle John
could have the letter, and got his nurse to
get his papers out of a drawer and gave
Colonel Heistand the letter. Witness then
declared that as Colonel Heistand was
leaving his room he looked back and said:
Decided to Burn Up Nothing.
Major, 1 think you had better burn up
the rest of that correspondence" II then
DETERMINED said witness, ito burn up
nothing"
Witness further stated that he told Col
Heistand when 1t was announced that Gen
Corbin and Mr.. Allen would withdraw that
he felt that such Withdrawals would break
up the company.
expected that the gentlemen named in con-
nection with the company were expected
to use any influence other than that Of
stockholders in its behalf.
'~rhey were not to pay anything for
their stock?'
Did they know this?'
II desire to say that never had any
conversation with any of the gentlemen
named except with Mr.. Boyd" was the re-
ply. II took Col. Heistand's word for it."
did any of the gentlemen ever sign any
subscriptions to stock?" inquired Sena-
tor Hawley.
'"rhe only paper any of them ever signed
was the to whom 1t may concern letter.
WAS there anything in your converse
ton with Mr.. Boyd regarding the matter
of tnfluence?'
II do not recollect"
Did you ask Mr.. Boyd to sign the to
whom it may concern letter."
II gave him the letter, and he signed it."
Witness reiterated that he had never had
any conversation with Mr.. Boyd about the
amount Of stock he was to have. 1t had
never been fully decided what the amount
Of stock Of the proposed company would
be. 1t was first intended to be 81, 600, 600
Of which the promoters were to get 10 per
cent, or 200, of which witness and Col.
Heistand were to get $40, 600 each, the rest to
be divided up, as formerly stated between
the other alleged promoters and Attorneys
Dudley and Michener. No prospectus Of
the company was ever published. Witness
handed the committee a typewriter copy
OF prospectus, WQlCn ne SAID had been
drawn by Dudley and Michener. Another
he said, was drawn. but simply increased
the capital stock to 81. GOO, ,O00 The prospec-
tus was then read by Senator Burrows. It
was the outline Of company which 1t was
proposed to form to deal in Manila hemp,
and erect and establish factories near Ma
Mia to manufacture rope. cordage, ETC. 1t
gave glowing description of the advantages
of such an enterprise, and declared there
was no doubt the United States government
would look favorably upon 1t. 1t was stated
that there were associated in the company
men of large means, and that stock would
be disposed OF only to men Of enterprise
and of influence.
Subscription to Stock.
The subscription to stock agreement was
also read. 1t provided that $3.50 600 worth
should be sold and made e. L. Hawks pro-
moter, and provided that he should have
1900 shares OF stock in full payment for all
his services and expenses. The document
was not signed.
Witness Hawks handed the committee
copies of letters written by Messrs Watson
and Hendrick, hemp experts, on the SUBJ
ject of the proposed enterprise, negotiations
having been entered into with them for
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