Los Angeles herald., 1909-10-27
News OF the Courts
HOSTLERS TELL OF
SIGNING BIG NOTES
TESTIFY AT TRIAL OF BANKER
CAmLS0N
Foreman of Livery Stable Says He
Thought He Was Attaching His
Name to Incorporation
Papers

George E. Grayson, foreman in a
livery stable, told in Judge Davis,
court yesterday during the trial OF
William H. Carlson on a charge of en-
bezzlement. how he and other employees
of the Empire stables had placed their
names on two checks for large sums,
believeing they were signing articles
of incorporation of Carlson's Redondo,
Hermosa & Belvidere railroad.
H J. Wilson, employed with Gray
son at the stables, and whose name
also appears on one of the notes, gave
similar testimony.
The reason given by Carlson, accord
ing to Grayson, why he wanted these
names affixed to his articles of incor-
poration was to prevent the Hunting
tons from learning the identity of the
directors of the road, fearing the
project might be Knocked in the
head"
Signed Several Times
Grayson added that he would be
running yet" if he knew that he had
signed notes for more than $4,000.
Grayson was among the last wit
nesses of the session yesterday, his
appearance marking the point at which
the first trial of Carlson was inter-
rupted by the illness of a juror more
than a month ago.
Il was introduced to Carlson, who
asked me to sign articles of incorpora-
tion of the Redondo, Hermosa & Bel
videre Railroad company, and I did
so as an accommodation" said Gray
son. "I signed my name more than
cnce and these papers must have been
among them" indicating the notes"
Did you know you were signing
notes at the time?" asked Deputy Dis
trict Attorney Blair
II don't look like a mutt, do II" re-
sponded Grayson.
The first note was for $500, Grayson's
name appearing as secretary, and that
of Henry Hakens, another employe
of the stable, as president Of the road.
The second note was for $4,000, dated
April g. 1908, with Grayson as president
and H J. Wilson as secretary.
Grayson said he asked Hakens and
Wilson to sign the papers, joking them
on their good fortune in becoming di-
rectors of railroad.
Never Received Stock
There was something said about my
receiving one share of stock, but I
never got it," continued Grayson.
Carlson told me he was going to con-
struct a railroad twenty miles long,
establish a hotel and a summer resort
at Redondo, and that the signing of
the articles was a mere matter of form
and to prevent Huntington from learn
ing the identity of the persons behind
the project. fearing he would knock it
in the head. If I knew the papers
signed We're promissory notes 1 would
be running yet"
H. J. Wilson also testified he signed
the papers placed before him by Carl
son in the belief that they were incor-
poration papers.
Hakens, whose name also appears on
a $4,000 note cannot be found
Henry Sherer, a bank commissioner,
was witness for the prosecution yes
terday testifying concerning a draft
of $4,000 on William Graves of South
Orange, N. J., drawn by the Los An
geles Securities company in May, 1908
He stated his belief, based on investi-
cation, was that Carlson never intend
ed the draft should be paid by Graves
and that it was held in the Consoli-
dated bank simply to give Carlson a
chance to get hold of the banks fun s.
The draft was sent through the Broad
way Bank and Trust company in June
last year for collection, but was re-
turned from South Orange unpaid.