Evening journal., 1913-03-07
DEALINGS OF
4 LUMBER co.
government Hears More Wit
neSSeS Regarding the
Mexican PrOieCt
DEFENSE HAS A
PROFITABLE DAY

Seven witnesses. all of whom had
purchased contracts to buy stock in
he International Lumber and De
sclopment Company were examined
Yesterday by United States District
Auorney John C. Swartley in the
Governments suit against FIVE Of the
Iormer officers and promoters Of the
company. charged with conspiracy to
: use the United States mails 10 defraud
4 ln connection with the sale OF It's stock
f, IN a 2SS.000-acre plantation IN the
: State Of Campeche. Mexico
The testimony as a whole appeared
t 10 be favorable TO the defendants, in
asmuch as the witnesses stated that
they had had no reasons to be dis
satisfied with their Investments until
they had received a circular letter
f. from the United States Postal In
spectors, asking them TO turn over
+. all the correspondence and literature
in their possession received from the
international Company, and that they
( had not doubted that all the dividends
i guaranteed had been regularly paid
until knowledge that suit had been
instituted by the Government had
Z caused them to become somewhat
dubious.
One witness. Mrs LILY T. Stutler,
an omploye in the office Of the Secre-
tary OF the Treasury at Washington
who had contracted for three shares,
said that she had agreed to turn over
her papers and tell all that she knew,
because she conceived il to be her
duty 70 aid the Government and
should the defendants be acquitted.
At would place the company in a
stronger position than ever
All of the witnesses but two testified
lhat they had at times been In arrears
In the payment OF their instalments,
hut that the company had continued
10 send them their dividend checks
or scrip to apply on payment. while
,at the same time urging them TO
bring themselves up to full standing
financially on the company's books.
In one case the witness said that he
had paid all the money for which he
4 had subscribed, S2100 for seven
shares "as fast as they would allow
Il it," and in another the contract had
been allowed 20 lapse, extensions
having been granted when he had re-
quested them; but later he had ceas-
cd to ask for more time and permit
ted his contract to be cancelled.
The witnesses on the stand yester-
day we're. Robert l.. Gray. of VIM
chester. Va: Walter r. Tice. Will
Jamestown, n. j.; William E. Starr,
Crawford y. J.: Samuel G. Jones.
Bridgeport. Conn: John Yardlcy. Au-
|k~ dubon \. j.; Nathaniel Willauer, a
Mennonite from near Northport,
Montgomery county this state, and
AIRS. Stuter.
4. The greater portion OF the day was
ilkcn up with the submission TO the
Witnesses of the letters and litera
|N turc which they had given over TO the
|T Government and which they were ask
ed 10 Identity as having been receiv-
+ ed by them through the mails AS
- each pile was nearly two inches thick
and as the papers had TO be identi-
hed ono by one. this was necessarily
slow proceeding Each separate
y pile was offered in evidence by Mr.
Y Swartley after Identification. and this
y was regularly followed by a formal
p objection from James e. Markley. OF
= counsel for the defense and brother
OF John r. Markley. one OF the de-
PENDANTS, on the double ground that
81 there was nothing in any Of the pap
ers to show that any of the defend
ants had entered into unlawful COM
bination OF conspiracy. and that there
81 was nothing 10 any of them 20 indi-
= cate that they we're prepared or or
dered to be prepared or dictated by
any OF the defendants except c. M.
+ Mcmahon. the former secretary and
a treasurer Of the company.
Just before adjournment. the Dis
s frict Attorney read one OF the COM
a pany's pamphlets, entitled "A Life In
a come" in which the resources OF the
81 plantation were rected as totaling
Z $13,411,526 in gold and IN which il
Fl was estimated that 25 to 80 per cent
dividends would accure after the ex-
piration of the seven-year develop
ment period, which ended January J.
1912
Inasmuch as no dividends we're paid
the stockholders since shortly after
this date. it Is understood that the
Government will contend that this is
evidence Of fraud; but, on the other
hand, the contention OF the defense
is that the institution OF the present
suit is responsible for the failure OF
the company TO continue its dividends
and that, under normal conditions
II would now probably be paying a
least 20 per cent. The successive
revolutions in Mexico are also cite,
as having tied the hands OF the de
veloping company TO a certain extent
Il claiming that hundreds OF laborer
have been drawn away from the plan
tation TO follow one or another Of tn
banners i'm the field.
Mr. Markley who. with James Scar
let. ex-senator William f. Mason an
4 John McClintock. Jr., is conductin
y the defense, says that experts are nov
on their way to this city from Mexic
20 testify to the WONDERFUL possibili
ties of the plantation. AS 10 tn
contention OF the Government tina
the dividends paid to the contrac
holders were paid out OF the stoc
subscriptions. he asserts that by th
terms Of the contract five-sixths O
all such subscriptions were 10 go {
the contractors. John r. Markley an
Isaiah b Miller. who were 10 guaran
tee the dividends. and that thos'
we're paid whether the contractor
made any money or not.