New-York tribune., 1918-05-25

any subsequent conversation with tht
defendant Matches as to his negotia
tions with the district attorneys office
at Boston?"
Subsequently" returned Mahoney
Mr.. Matches told me he had found a
new way to stop the District Attorneys
investigation, which was to go to q
friend of the District Attorneys and
dangle bunch of money before him on
a pair of shears so that the money
would fall into their laps"
And was that the last conversation
you had with Mr.. Matches on this SUBJ
iect?" persisted Mr.. Osborne.
No" the witness replied. "On Octo-
Der or 6. during the same week. which
| knew was the time the matter was
scheduled to come up before the grand
jury, | spoke to Mr.. Matches about it,
and he said that it didn't matter now,
that everything was fixed up
Later the witness declared that on
another occasion Matches had said to
him that if the Emerson motors propo-
sitioT should come to be investigated
l.et short and clean up several million
dcllars.
Subscribers Testify.
After Manoney left the stand the
government called several of the sub
scribers who had put money into the
scheme-~-folk of small means from
New Hampshire, Massachusetts, Geor-
gia, Ohio. All of them testified To hav-
ing read advertisements of the Emer-
son stock and having been subse-
Cuently bombarded with circular iet-
ters and appeals to buy, until ulti-
mateiy they did buy.
In the cross-eXamiration of these
witnesses the defending attorneys gave
pretty clear indications as to what one
of their main lines of defence would
be, as they put one question after an
other seeking to show what has become
of these stocks.
The contention was that the stock in
question Eas been taken over by a new
firm, known as the Campbell Company
which firm is held to be going con-
Germ at the present time. At every
effort to pursue this line of question
irg, however, Mr. Osborne was on his
feet with strenuous objections.
''If you're going to allow such testi-
mony, your honor" he protested. "you
might as we'll go into the whole history
and finances of the Campbell company
In fact, it would be necessary to-
That is what this is opening the door
to; and | submit that the Campbell
company is not on trial. in this case"
"But | submit, your honor" broke in
George Gordon Battle, counsel for the
defendant Wilson, "that it is relevant
to the question of whether or not these
defendants are guilty of fraud-which
is the question that we are here to de-
cide-to show what disposition has
been made of the securities they sold
these people ] submit if we can prove
they have made provision. since the
bankruptcy of the Emerson company
for these securitieI, and that these Sc
curities are to-day worth something-I
submit that that has very direct bear
ing on the general motives and inten-
tions of the defendants in this matter
May Offer Direct Testimony
Several of the other defending at
torneys rose to voice the same view,
and an argument, in which fhe judge
took part, developed, lasting nearly half
an hour. In the end Judge Manton
ruled that if such evidence could later
be shown to have direct bearing on the
case it might be introduced in direct
testimony.
But for the present he held that any
efforts the defendants might have made
to extricate themselves from their diff
culties after the collapse of the Emer-
son company had no bearing on their
ruled against this line of questioning,
to which ruling the defence filed objec-
tons.
Another incident yesterday was the
mention by Mr.. Mahoney of $4,000
check he swore to having seen on NJ
Matches's desk in proposed payment
for 100000 shares of Emerson stock
At this time, Mahoney said, the stock
was selling for Sc a share. With sc
large an order in view. however. Mr.
Matches. he testified, got Mr.. Wilson
in New York, on the long distance tel
ephone to see if the latter would sane
tion the sale. Mr.. Wilson, however
the witness declared, ruled against it
For whom the stock was intended Mr.
Mahoney did not pretend to know, but
the banking firm of Hornblower
Weeks.
1t was held, however, that the firm OF
trial than was the Campbell Motor Com
pany, so that line of exploration had tc
he abruptly abandoned.
Visit to Investigate
Aside from this and the story re-
ported of Matches & Co.'s dealings
with the District Attorneys office ir
Boston, chief interest yesterday cen.
tired around Mr.. Mahoreys visit of in.
vestigation to the Emerson Motors of
fee in this city.
Arriving here on October /, 1916
Mahoney said that he afterward saw
both George Campbell and Nicholas F
Wilson, said to be the chief promoter
OF the whole scheme, at the offices OF