Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-12-16
TANG|ERS CASE
BRINGS A CLASH
tse~tanusd frsm FIRST rass.s

Terminus whetfief he really was
Justice g4esabaupa explained that
the basis f6f Ills ,faishs Hsrg The AM
daSlts Submitted By tSilliE AID his
process server I'd kAe effeef that
l q3,a.llnasby BAD ihaeeai beeh served Sat-
fin P tai ghqn kesas; Andsgson p.
Hgssss ho' ,' WIZ tnsslifgs H. ana Senator
hess.
As. q preliminary to examining
Herd ellis called On Miller to pfo-
fiuee d copy Of tbs AGREEMENT made
between the three bf6inotsfs ifisf to
1910. Miller found an AGREEMENT
dated April "a, lbf6, and be said that
wac the only ail6 Senator Hughes
had klveh him
Herd looked ii over ana said that
THERE had been one before thai. stib-
ulAtihe how the stock was Je be d.
Vided, lie admitted that he had had
egnFl Slice the AGREEMENT had been
lhads IN tflglleata, bat HIS copy, So
be sAad, YVES if1issiiiR.
After aii afg1iiltsfit he was allowed
70 tell What the Agsastfaaht was, rs
be remembered IL.
flashes 10 DIET ss0oeoo.
"Ths company was to be lnaur-
porated,p said Herd "by us three,
Senator Hughes, Qulmby and myself,
with D capital stock of $4,000, 900. We
were to issiie that amount Of second
| mortgage bonds, y1,pDo,100 20 be held
~ treasury stock and the remaining
ss,o0O,o00 to be used for the purposes
OF promotion and Tor paying for the
land.
After paying s2oo. 900 for promotion.
the $4,000 900 was to be equally divided
between senator Hughes, Quimby and
myself, 100000 70 eapi OF liz.
| THE understanding was that Hena-
tor Hughes WAS to hold ali the bonds
~ trustee and that when the dsysi-
opment OF the land company was
completed they were to be turned
over"
Then Herd told OF deal whereby
100000 OF the bonds were assigned
| to James Longworth, trustee OF the
New York and Middletown Realty
Company, a Connecticut corporation.
Herd said he had obtained M. NJ.
Robertson, OF Cincinnati. as a buyer
for land near Prospect Park, Brook
lyn, owned by Longworth's realty
company. Robertson wanted TO pay
for the land in stock which he owned
OF the Union Gas and Coal Company,
OF Anderson, Ind.
Congressman Made Inquiry.
Senator Hughes, who was then a
congressman, went to the trouble, SO
Herd asserted, of having a congress-
man from Indiana investigate the
Union Gas and Coal Company This
congressman. Herd said, reported that
the stock was selling at $S5 and was
considered good In Indiana.
Longworth did not seem convinced.
SO Herd agreed to guarantee the pur-
chase price with 100000 OF Tangiers
bonds. He drew an order 20 that eff
Hughes, as trustee, accepted the order.
Knew Of Agreement.
On cross-examination Herd adj
mitted that he knew there was an
agreement between himself, Quimby
and Hughes that the bonds were to
be held by Hughes as trustee until
November 10, 1915, and that no bonds
were to be issued before that time.
How is that relevant to this
case7" asked Justice Greenbaum,
who allowed counsel wide latitude in
the bringing out of evidence.
III IT am going to prove" said Mr.
bonds were issued and that other
persons to whom Herd assigned
stock were taken care of by
Hughes"
Herd before leaving the witness
stand testified that he had assigned
| $4,000 worth of the Tangiers Manor
Corporation bonds out of the 5000. 900
that had been his share OF the pro-
motion scheme.
stand by Mr. Gillig, who told of a
conversation he had with Senator
Hughes In the iatter's office In Sep
TENDER, 1911, At that time Hughes
claimed. so Gillig asserted, that Herd
had assigned all his bonds In the
Tangiers Corporation TO Quimby. II
asked Senator Hughes" said Mr..
Giilig, "if any of the bonds had been
issued and he told me there had been
some. / asked him how many had
been issued and he said, you can look
for YOURSELF at the same time pro-
duoing a book filled with blank bond
certificates. There were about twenty
of the bond certificates, should say,
gone from that book"
Mr.. Gillis said he had other inter
Views with Hughes In connection with
the claims of L.ongworth and the
other Middietown Conn.,, men and
that he had always understood from
Hughes that some OF the bond nerttn-
Gates had been Issued.
Mr.. Giilig then proceeded 10 put
witness on the stand who told of
obtaining bonds TO the value of $685.
900 from Hughes on an assignment
made by Herd, the transaction, 1T
being claimed, being along identically
the same lines as the deal whereby
Herd gave Longworth an order on
Hughes for 100000 of the Tangier's
bonds.
Payment from Hughes.
This witness was Robert Il. Farley,
a New York lawyer, who lives at
the course OF a real estate deal in
which he was Involved with Herd
obtained an order or assignment on
Hughes for $4,000 Of the bonds be-
longing to Herd Farley said he had
written Hughes on March 81, 1910,
about the order and that later he had
received 1000 in bonds from Hughes
in payment of the amount owed him
by Herd. Mr.. Farley said he did not
know what bonds these were except
they were those OF the Tangiers cor
poration. This was brought out in
response to q question from Mr., Mill
Ter, who attempted to show that the
bonds might have been Rome other
than those specified In the agreement
between the three men--Hughes, Herd
and Quimy--which were not to be Is
sued until 1916. Farley said he had
received these bonds from Hughes
some time In the summer of 1910.
Harry s, Stewart, another New
York attorney, told of getting $4,000
In bonds from Hughes In December,
1910, these bonds also having been as
signed by Herd In connection with
real estate deal.
Mr. Gillig, after a few more wit
nesses had testified along similar
lines, announced that he rested his
case.