The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1923-04-20
WAREHOUSE
SCORES POINT
Shows Deal Bene-
fit to Company,
Not Him

Frank waterhouse scored n deci-
slve point Friday in the suit which
has been brought against him by
William T. Laube. as trustee In
bankruptcy for Frank waterhouse
q Co.. to recover 5000. o0o-odd, which
Warehouse Is alleged 70 have abb
stracted from corporate funds to
pay personal losses incurred In
building the steamer FL Aquario.
r. II. Rodolf, formerly accountant
for the Waterhouse company. and
originally one Of the principal wit
nesses for the plaintiff. testified
that the company. and not Water
house personally. had derived bene.
fits in the way OF insurance COM
misslona as an outgrowth OF Water.
houses action In signing as indem-
nitor for construction OF the FL
Aquario.
This Is ono Of the fundamental
contentious made by the defense.
lnasmuch an the plaintiff has
maintained turnout that Water.
house was acting personally when
he became indemnitor for the Nc
Ateer Shipbuilding Co, and that he
made II a company matter only
when no saw that a heavy loss was
likely to result.
Another telling point was gained
by the defense during the morning.
when Rodolf identified checks for
huge sums to be expended on the El
Aquario and signed by Neal II. Beg.
ley. former vice president Of the
company. II Is the defense's con.
tention that this impeaches the evil
dence OF BcgIey. who testified that
he did not know anything about the
deal until after he had left the COM
pany.
SESSION MORE
TEDIOUS THAN USUAL
Outside OF these two high. lights.
the entire morning session was even
moro tedious than usual. Rodolf
WIS on the stand continuously until
recess was taken. and all OF his tes-
timony was on bookkeeping mat
ters. In spite OF this. there were
numerous arguments between oppos-
ing counsel, neither side being will
ing TO concede anything.
Clarence l.. Reames, chief coun-
sci for waternouse, protested at one
point that he was simply trying to
shorten a trial which otherwise
would last Unfortunately" but mel.
Their John B. Hart nor Robert p.
Oldham. attorneys for the trustee,
would give way.
There will be no session Saturday,
Judge Calvin s. Hall having agreed
to adjourn until Monday morning.
with efforts on both sides CEN
tered on the impeachment OF their
opponents star witnesses. trial OF
the suit has resolved itself into the
question OF who's liar?"
Neal II. Begley. former vice presl-
dent and financial man OF the com.
pany, contends that Waterhouse
was acting az an individual when
he went on John McAteer's bond to
insure completion OF the steamer Ell
Auuario. and that Waterhouse was
outside his rights when company
funds were used TO pay resultant
losses.
w. II. Boyle. former trustee and
counsel for the company, takts an
exactly opposite stand. declaring
that the I'll Aqunrio transaction was
at oil times company business, and
that Laube. MS trustee In bankrupt.
cy, is not entitled to recover any Of
the funds expended.
BOGLE is PUT $3.50
OVER HOT FIRE
All OF Thursdays session Of the
trial was devoted to attempted I'm.
parchment of these two witnesses.
The plaintiff had its inning first,
subjecting Judge Boyle to a mercl.
less discrimination. In the course
OF which John q. Hart. chief coun.
eel for Laubo, eough. to trip him on
aliagedly contradictory statements
Which he medn year ago. when
t,.stifying on the same matter sa.
fore the trustee In bankruptcy.
Dcgle, however, scemi to be too
sT trt a lawye, himself and refused
TO change his story In any way.
There wers numerous exchanges
between Hart and Bop'c, ,he former
declaring that the witness wasn't
tea, flying, but was making speech
Turn In Para 70. Column a