The Seward gateway., 1915-10-26

attended only two meetings and was not an active member of the board of directors. Ballaine stated that Heinze was an extremely busy man with his own affairs.
 Sale of Stock
 West then cross examined Ballaine on the sale of the stock of the AL aska Central Railroad. On March 15,1902, Ballaine got a contract to sell the stock on basis of twenty five per cent commission. Ballaine paid for all advertisement, circulars and prospectuses. He appointed sub agents throughout the country for the sale of the stock and limited their commission to twenty per cent. Ballaine received his twenty-five per cent commission in addition to that received by the sub agents which in the instance of Voak the total com mission paid was forty-fve per cent of the purchase price. Mir. West then asked Mir. Ballaine if it ever occurred to him to reduce his own commission while holding the sub agent to the lowest possible figure. Ballaine replied he made no money selling stock.
 Concerning the meeting held by the directors of which no minutes are of record testimony went to the effect that Cain, Dickenson and Me Graw, three of the directors, are now dead, McGraw, Cain and Goodwin re- ceived ten lots. It was at this time that Ballaine referred to the sale of the bonds with bonus of ten lots to each of his purchases. Ballaine stat ed that in Godwin's case he disre- membered whether Goodwin received one valuable lot on Fourth avenue or ten lots in less valuable locality. It was at this time that West asked him why he allowed Goodwin to testi- fy to the consideration of one hun dred dollars for these lots without 'endeavoring to correct him, accord ing to his (Ballaine) testimony. The Washington Trust Company also re- ceived ten lots as a bonus when w. J. Clice, manager, purchased two bonds. Ballaine stated Clice was a trustee of the said company.
 It appeared from Ballaine's testi- mony that Heinze was the largest stockholder in the company. West brought out the fact that Bailaine started suit against the Alaska Gen. tral Railroad and the Tanana Con- struction Company, from which the receivership followed. Wickersham, who is now delegate, acted as attor- ney for Ballaine and made up his complaint from information supplied by Ballaine by telegraph to Fair banks at which place Wickersham resided at that time. West then read from paragraph four of Ballaine1 complaint wherein it was stated tha. Ballaine had three hundred and fifty thousand dollars of the preferred stock and an interest in four million dollars of the common stock of the Alaska Central. Ballaine replied that this statement was not fact ano that his attorney Wickersham, must have misinterpreted the telegram which stated the facts in the cause of action.
 An agreement between Labaree Turner, Haight, Osborne and Johr Ballaine was next referred to by West, wherein they all agreed to hold all the townsites along the railroad with the exception of the Seward townsite.
 Dowdle's settlement for thirty-five hundred dollars was gone into by the counsel for the plaintiff. west asKeo Ballaine why he paid thirty-fve hun dred dollars in settlement, when Bal laine testified previously that Dowdle's original investment was only three thousand dollars. Ballaine replied that he allowed him interest on the use of his money and that tho settlement was the best evidence Ballaine referred to machinery furn ished by Dowdle as scrap iron anc said that Donkey engine was the onl! piece of machinery of any worth