The Montgomery advertiser., 1903-10-28
WILL SUE ELLIOTT
OUTCOME OF CAR COMPANY
 CASE.
Violation of the Bankrupt Law is
 Alleged--L. G. Woods of Pitts
 burg Gives Some Sensat- ional Testimony.

Chattanooga, Tenn, Oct. 27.-The cred itors of the Southern Car and Foundry Company to-day took up the business for which they were called together at the point where 1t was interrupted by yes. I terday's adjournment.
 Mr. l.. c. Woods of Pittsburg, Pa. WAS introduced as a witness. He is treasurer Of the Standard Steel Car Company, and | a director of the same corporation, as 1 well as member of the executive com- | mittee.
 The examination of Mir. Woods was opened by George T. Hildebrand a law yer from Pittsburg.
 | The witness testified that his company endorsed for the Southern Car and Foun- | dry Company, to the amount of S2O0, 900, | and advanced to the company $325, 900 for which notes were taken.
 These were discounted and the Stand ard Steel Company has paid s15O,OOO of the amount. and will pay $25,000 more l outstanding. and in various banks, and will fall due during this month and Mo- vember. The notes will be taken up as they fall due. rt'"i 7
 Mir. Woods stated that he negotiated these transactions before he became an officer of the Standard Company. He was asked about a certain $500. 900 transaction referred to by MT. Brock way in his testimony at the former meet ing some weeks since. and answered that he never heard of 1t until MT. Brockway gave his testimony.
 In reply to a question of Attorney Lan- caster the witness stated the notes for $20O00O were made payable to the Stand ard Steel Car Company and endorsed by that corporation, while the notes for $S25000 were made payable to the In- d,N~N f.I ed by the Standard Car Company. No individual names appeared upon them.
 As a probable outcome of these trans actions the Standard Steel Car Company acquired controlling interest in the stock of the Southern Car and Foundry Company. the amount being 51 per cent MT. Woods stated that he knows noth- ing about the Industrial Securities Com pany nor the history of it's organization and some of the stockholders had large interests in the Standard Steel Car Com pany.
 MT. Jacquette, the president of the Southern Car and Foundry Company. was at one time sales agent for the Stand | ard Company. but was never an of l ficer.
 The officers of the Southern Car andf | Foundry Company especially Mir. Brock | way continually tried to get more money from the Standard Steel Corporation | Company and stated several times that | they would be drive ntof allure if they did not succeed. Witness, however. re- | fused to advance any more money. He | always thought the Southern Car and
 Foundry Company mo good" and after | one of Captain Eliott's visits to the North on a money mission, the witness and some of his friends came to the con- clusion that they had never seen or heard of anything quite so rotten" as some of the business methods of the
 Southern Car and Foundry Company people.
 The Mellen National Bank discounted
 the notes given by the Standard Steel Corporation Company. and the vice pres
 ident of the bank. one of the Mellens.
 was largely interested in the Standard
 Steel Corporation Company.
 Mr., Woods expressed it as his belief that
 the salaries of some officials who were
 sent South to superlntend the affairs of
 the bankrupt corporation were paid by
 the Standard Steel Car Company. He never knew of Jacquette's salary being
 paid by his company and felt positive
 that nothing of the sort had been done. | He personally paid the industrial se- 1 curities company the &25. .000. dscounting
 their notes at the Mellen National Bank.
 He does not know why the endorsements
 were made The matter was passed upon
 by the oard of directors, Mir. MeIIen.
 vice president of the Mellen National
 Rank is a member of the executive com
 mittee of the Standard Company.
 The creditors adjourned after instruct
 ing the receiver to bring sult against FL Iliott former president of the Southern Car and Foundry Company for all mon ave he Is alleged to have received by way of preferences in violation of the honl,rnntrv laws. An adjournment was
 taken nntil December 15. to allow tes-
 timonv to be taken in New York