Evening journal., 1913-03-05
SURPRISES in
LUMBER TRIAL
Cashier Of international Com
pany Says Nearly All Money
Went to Development
TESTIMONY BORDERS
ON THE SENSATIONAL

ngs OF the Government against the
promoters and officers Of the Inter-
national Lumber and Development
Company for alleged floating Of stocks
Of that company, were eclipsed yester-
day by United States District Attor
ney John c. swartley. in Philadelphia,
when he read copy Of the certificate
Of stock sent out TO shareholders Of
tho company by these promoters and
officers.
Mr. Swartley had repeatedly de-
clsred that the trial in the Federal
Court would develop into one of tho
most startling that has been witness
ed IN a long time and the present
ING OF the stock certificate is look
ed upon as the foundation for the full
hlment OF the declaration. The men
named in the charge are John X. Mark
ley. Isaiah q. Miller, Alfred c.
Stewart William II. Armstrong. Jr.
and Charles r.. Mcmahon.
4 copy OF the stock certificate,
,laborately decorated and beautifully
engraved i'm green. edged with dividend
coupons, which thousands of un-
fortunate shareholders are alleged to
have bccn told would soon be cut at
a biz prodt was held up before Judge
Wilmer by Mr. Swartlcy who read OF
Tie copious aud prOfusc promises and
representations. which he declared
were never meant to be kept. and as a
result of which "tho dupcs' were
sWindlcd out of upward of S6,5O0,00
Cashiers Startling Testimony.
The startling testimony OF the day,
however WAS presented by Miss Cor
nclia pforschng. head bookkoepcr and
cashier of the Lumber Company since
March 1905. who resides at 1905
Cayugs street
She told OF the number of rooms
used by the company in the Office
building who're lt had it's hcadquar-
ters. There were two rooms, she
said. used i'm the display of the vari-
Gus samples of lumber, log and dye
woods. cotton. etc, which were repre-
sentcd to- purchasers as products of
the company's planiatian. The Wit
moss said that she never understood
that these exhibits We're raised on the
plantation. although she was told that
they came from Mexico
Miss piorsching stated that Nc
Mahon. one oi the defendants, was
the only person besides herself who
had charge of employing the clerks
and Office help in the city. There we're
AS many as scventy-two girls, she said,
employed at one time TO handle the
office work Sometimes. when the
amount OF business was small. there
we're only three girls employed. There
we're four or Eve bookkepers working
under the witness supervision al all
lines. She said that the stock OF
he company was sold through the
mails and by agents.
When questioned by MT Swartley.
the witness said that the books Of
the company showed the disposition of
about FIVE million dollars which had
been paid i'm by subscribers About
Sl.5O00 600 according TO the witness, has
been paid in dividends since 1905.
She said that Mcmahon instructed her
as TO the amount of the dividends
that should be paid Dividends were
paid al the rate OF from eight TO
twelve per cent
SAYS Promoters Got Nearly All.
Aiarkley and Miller. the witness
said. eoi $3.50 of the $500 par value
received by the company for each
share of stock. which they collected
as the installmcnts came in. The
balance OF the $500 was turned into
The treasury of the company.
Al another point Ia her testimony
the bookkeencr declared that Mnrkley
and Miller took fve-siyths of the
money receive for stock subscrp-
ions According TO the witness, II
subscribers failed TO respond to no.
Ices sent ont when their payments
we're overdue their contracts lapsod
,nd The company sold the shares C
)ther purchasers
Miss pfcrsohme testified that When
syor 2 stockholder WIS in arrears. n,
received notice and had thirty days
IN which TO pay his arrearages Th'
books o. the company showed n'
profits until January J. 1912 whiel
was lllc end OF the development
period. but after that time profits hal
been entered into the hooks from
figures which were given to her b
McNahon Armstrong and McMahO
we're tho fiscal agents. and they al
tended 10 the payment Of expenses {
he company
How Dividends We're CalncuIaied.
The dividends OF the company wei
calculated I'm It's Office in this city fro
Tho moneys received McMahon gal
her tho bnllclin showing profits moul
by month which she cntered on n
books by his direction after Janua'
I. 1912 This WAS after Mr. Stewa
had been sent 10 MeNiVo by the col
pany to make an inspection and repo
conditions OF the plantation
Only eighty-hve full-paee certi
Gates of the capital stock. comprisi
twenty thousand shares az $500 ca,
were issued by the company at 1
start, and OF these. certificates {
thirty-fve shares each we're issued
Messrs. Marklcy and Miller, and I
balance in equal proportions OF thT
shares each to the officers OF the CO.
pany.
After these agreements had be
read to the jury William +. Coates, {
president of the United Security l.
and Trust Company. Of Pennsylvan
Of 605 Chestnut street. was called a
identified a CODY of the title deed
the San Pablo estate. which was &C
veyed to his company as trustee
the lumber company. The consid'
alton named for this conveyance. "
Si25.000, but President Coates said
company had not paid any consid,
alton and he could not give an
PLANTATION OF the transaction as he
not personally attended TO the matt
To the best of his recollection
former vice-presiident Of his compal
Mr.. Austin, had conducted the nego
ations
CHENEY-DEyER.
On Tuesday. March i'm old Chr