The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-04-26
BAILEY OF TEXAS
ALSO IS MENTIONED
Millionaire Details Transac-
tions by Means of Which
Two Associates, Now
Dead, Former United
States Senator and Son in
Law Alleged to Have
Trif1ed With His Sigma
ture, Effected Deals Which
Dragged Him Into Court

ST. LOUIS April 25.-Henry Clay
Pierce. chairman of the board of d.
rectors Of the waters-Pierce OIL COM
pany, met today the charge that he
had converted to his own use $4,000
shares in the Nashville Terminal COM
pany, which had been placed in the
National Bank Of Commerce Of ST.
Louis as security for a loan, with the
counter statement that he had been
the victim of misplaced confidence to
the extent of ss,soo,ooo.
The statement OF Pierce was made
during the taking of depositions In
the suit filed by the National Bank of
Commerce to recover the $1,000 shares
from Pierce, or their money equiva-
lent. s1.5oo.ooo.
FIERCE DETAILS LOSSES
Mr.. Pierce told OF the formation of
the syndicate to promote the Tennes-
see Central railway, a syndicate TO
which Pierce, William III. Thompson.
president Of the Bank OF Commerce.
and ]. C. Van Blarcom, vice president
and later president, were the principal
SuUSCTiOCTS DUH 1HOIHpSOA anu oil
Blarcom are dead.
Pierce detailed his losses through
misplaced confidence as follows:
Securities loaned by Pierce to Van
Blarcom, on which the latter made
loans, which Pierce had to pay. $780,
900.
Loan from the Mississippi Valley
Trust company of st. Louis, made by
Van Blarcom, but to which Pierce's
name was signed as guarantor by
Pierce's son In law Eben Richards.
100000 This loan, Pierce testified. he
had to pay.
Pierce's name signed by his son in
law. without Pierce's knowledge, to
guarantee to buy bonds of the Ten
nessee Central railroad to the extent
Of $500. 900.
ONLY S4,oO0,000 HERE
Advances by Pierce to pay the ex-
penses OF the railroad after the syn
dicate collapsed, $4,000. 900. These ad-
vances resulted from the signing of
Pierces name to a guarantee to buy
the bonds.
Mr.. Pierce further. testified that he
understood that the $4,000 Nashville
Terminal shares which the National
Bank Of Commerce now seeks to re-
cover, were turned over to former SEN
tor Joseph w. Bailey Of Texas, as as
signee Of the Tennessee Construction
company, after the loan for which 1t
had been pledged as security was paid.
The bank now claims that the loan
was not paid, and that the securities
were taken out of the bank by Van
company was the concern that pro-
NOTED the Tennessee Central railway
and the Nashville Terminal railway.
BAILEY SELLS PROPERTY
Senator Bailey sold more than $4.-
900, 900 OF the property Of the con-
struction company" said Mr.. Pierce.
"and 1t was my understanding that
from the sale of these properties, the
loan at the National Bank of Com
merce was paid, and that the stock
then went to Bailey as assignee for
the construction company The stock
later was pledged to the Standard
Trust company of New York by Sena-
tor Bailey and remained there for
three years. It finally was delivered
to Eben Richards, on my order after
the trust company had notified me that
it had no further claim to 1t.
1.-The stock is in my possession, or
in the possession OF my agents. al
though / have never seen it,
Little Light From Bailey
CHICAGO, April 25.-Former Senator
Bailey of Texas tonight declined to
throw any light on the transactions in
the $1,000 shares of Nashville
Terminal stock for which H. c. Pierce
Of the Waters-Pierce Oil company is
being sued In st. Louis.
THE Tennessee Construction COM
pany Is my client and / can't talk
about its affairs" he said. II will say
however, that the terminal stock was
not pledged as collateral. 1t was de-
posted In the bank under contract and
removed when the contract was full
dlled.'
Mr.. Bailey stopped in Chicago to-
night on his way to Galena, ILL.,, where
be will speak tomorrow at the u. 8.
Grant memorial exercises