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Show THE OLD TKLEGRAPH. The Dcferse Get TbxougH w.ih Kr. Holden. And Hand Him Over for Cross-examination. Cross-examination. At the opening ol the proceedings in tlit Ford et al. ts. Holden tt al. cue on Thursday, the defendant: bUted lhat they wanted to tetupsome amendments to the answer, which were deferred until M mday next. Mr. Holden's examination by the defence was continued. With refer ence to a dispatci wLich stated thai Wells, Frgo it C. weie opponent towitn&i, Mr. Holden explained that Mr. WaoUwortb was backing him in the Montreal businees. Curteniue, Sill and Trask CAue to Utah ob the evening of the 21st of April, 187G, they went to Bingham on the 22d, but did not then visit the mine. Cur tea iUB was then president, Truk secretary secre-tary aud Sill a director of the Nei Perce company. McCornick was banker of the company. Witneas introduced in-troduced the three gentlemen to Mr. McCornick and told them all moneys received from sale of ores were deposited de-posited with him. Mr. G. Y. Wallace, Wal-lace, of the Utah Forwarding company com-pany received, handled and sampled all the ores, and to him the three gents were introduced as officers of the company. The purpose of the visit of those gentlemen to Bingham was to talk over the tusineso, outs.de work, ore house, arrangements lor shipping ore, etc. On the 25lh they went into the mine,' and Mr. Holden referred to the map and showed the exact condition of the mines at that time, and explained tbe explorations then nude w-th tbe gentlemen, entering attbe shop at the mouth of the Montreal mine, and what they saw. Told of tbe body of ore at what is known as tbe black slope, also in what is known as the "picture gallery." fit was explained wby the chamber of ore was so named: it was because of iU grandeur; grand-eur; it gliBtened with the candle lights, and was really a picture gallery, gal-lery, j The gentlemen would not go up Hie black slope, but were shown tbe body of ore as it appeared, also every place where ore appeared. Ore existed nearly everywhere on what it recognized &s the 360-foot level, butof low grade; tbere was no shipping ore from the mouth of the Montreal to where the Old Telegraph broke into it McQueen went up tbe black stope with a light and showed the gentlemen, gentle-men, as well as be could, the ore in sight. Some miners were at work not far away, in the drift. No ore was ! exposed till they came to the " pioture gallery. " The three gents saw all tbe j ore there to be seen; Hotden pointed : it out to them. They didn't go up the grey slope; -ihey were abkecHo go i up; didn't know their roasoaa, except their own disinclination. McQueen 'piloted them through the mine. WaB ot asked as to the amount of ore exposed ex-posed on that day. Did not say the value of ore in the mine was $5,000; said there was about $5,000 worth on the dump and in the ore . houses. The gents went out from the mine to the ore bouses near tbe mouth of the 310-foot 310-foot level. They went slowly through tbe mine, and had samples of ore put into tbeir hands as they went along. Witness told them he considered con-sidered the "picture gallery" one of the finest bodies of ore that had ever been struck. They had every opportunity oppor-tunity to see the mine and outside improvements; im-provements; no obstacles were placed to hinder them from so doing. That was the only visit with those gentle mon. He was asked to Bhow tbe accounts of the company, but as Doane kept the books they wero in bis possession &o request was made to examine the bank account. . The gentlemen were present in court on two ocoasions during the previous litigation, liti-gation, bstween April 25 and May 1, 1870. They were introduced to the counsel for the company and the business of the company was fully talked over in their presence. The gentlemen examined the surface claims of the company, com-pany, and the relations of Ibe u V,. Tlnnt Nm Pfi-rnn Chief. the Western Extension, Montreal, Roman Empire and Montana mines were shown them by witness. Holden made them a proposition to purchase their Block; explained the condition of the suits, prospects of the mine, aud told them he would like all the stock, as he wanted to put the mine in a good shape, as that he could sell it. They said they would consider his proposition and they returned home. Witneaswgate out an informal infor-mal report. Did not make a good showing in Marob on account of the low grade ot the ore and bad roads. Thought the estimate of the pay roll would be between $7,000 and $3,000. Wallace bad the accounts of the ores. Doane was east for the purpose pur-pose of getting married, and was expected to return about the 1st of May. Trior" to coming to Utah, Mr. Holden conducted a real estate buainebs in Cleveland, worth to him $-10,000 lo $45,000 a year. His businees in coming here in February, 1S76, was in the interest of the Telegraph Tele-graph company; he owned a majority of stock; was vice president, managing manag-ing director and attorney for the company; com-pany; found the lawsuits pending, and tbe press of tusiueas was heavy; went often to the mine; worJced daily with the survey for patents, and looked after tbe general, business of the company. He had no daily reports re-ports of the ore mined or shipped and had none n ade to him unlil some l; me in June. Did not come to Bait L-kecity odIv when conferring with couuael. The books were not thoroughly kept during Doane'a ab-1 seuco, but when be returned they were written up. Witness was indebted in-debted to the Loan and Trust company com-pany in Cleveland; bad collaterals amounting to $120,000 to $130,000 in hank, and a larce mareiu beside. In J miary and February, 1S76, he ennmderad he was worth $'2o0,U,00 over r.nd above all encumbrances. Hud rc ad the statement that bin encumbrances en-cumbrances were $155,000, but said ilmi use not true; yet it. was impos-sihU' impos-sihU' tn state how much they were, .uid, besides, they iucluded debts that lud existed for years be lore. He had a Urgcamoiim in no tea and nuift-nut;" nuift-nut;" p, 'covered by real esUte about il 10, COO; also $3,000 of iron stock, Tnero were no bodies of ore in ihn M nr. 1 real proper in Fe' ruary, 1S76; subsequent to that, development was mare pf the "black stope," on the 1 3S0 loot level, and when McQncen look charge Qt the mine, about the 10;b ul June, a large body of ore wu struck, whwb dipped uudr the tracing inoliue. This body was not known when he bought stock in Kalamazoo. He Was asked whether or not it was possible from the then dovelopweut of tbe mine for anybody to know of the existence ol ore bo.iii'? ll as impossible for anyone to tell, blivwed Ford the teUram reading, "bavostruck li-dge. Must have $1,000 immediately;" also ihowed tt to others. Sent to Diaoe, aexiog him if il were safe to buy then, anJ re ceived reply, "Yes, buy at uiJ ngur.-e; think it a good investment." D:d not show that telrgram to anyone, u he considered that nis own. Tue "old figures" was explained to meau as he had sold Doane one twenty-filth for $1,000 to buy al the rate ol $25,000 for the property. From ore Boid up to May 9, '76, about $00,000 was realized. Witness was asked if be could give the items ot mining expenses, ex-penses, etc He replied that he had tabulated statement taken from the books; Here recess was taken until afternoon. after-noon. The examination was continued at 2 o'clock. Mr. Ho'dn te.tifyed that in February, '76, ho claimed to own something over naif of the Old Tele graph Mining company's siock. Tue expenses for February were $4,225 85, fir March, $7,907,75, and for April $9,616.97. He purchased two thirds of the Montana in March, '76, nod paid $10,000 for it. He brought with, him to Utah in February, '70, between be-tween $3,000 and $1,000. A portion Of the $2,000 draft was paid w.lh hid own money. Witness was here Bhown the minute book of tbe Old Telegraph Mining eompany, and asked to examine it us to some leaves torn out and erasures made. He did so but did not know why th e book was so muliliated, except with regard to the twelfth leaf, which he cut out himself, as -he had made a wrong entry of a meeting on it. When being questioned as to the tabulated statements, plaintiff objected object-ed aod wanted the books to be ex hibited or a confession made that they Here insufficiently kept. At the time tbe $5,000 noie, or the two $2,500 notes felldde there was no money to pay them. Witness never received a dolUr from the Old Tele graph csmpany up to January 2 2d, 1876. Took with bim to Kalamazoo, down to November 30;b, 1875, a full report, together with vouchers, and delivered them to the secretary of the company. Tbe ore body under the stead of June, 1876, as stated above. THE CR0S3 EXAMINATION. J.idge Critchlow, for the ptaiu'.ifld, commenced the cross examination of Mr. Holden. He began by questioning question-ing tbe witness as to when hu first removed from the east to reside in Utah, and as to whether he .came to reside permanently, to which answer was made that be intended to remain here. Mr. Holden in answer to coun sel, said he went to Oluvelaud in 186 1 ; knew Ford eiht or ten years before that; was an intimate neighbor ol bin; knew Cowles, Taylor, Hicitox & Cj. , from August, lS71.had conversions with thoii) gentlemen about mining interests; bad lived in Tiffin, Ohio, and Kalamazoo be lore going to CI eve land; was a professor in a college iu Kalamazoo; knew Kendall, Tra&k, Curlenius, Sill, Smldon and several others and told their probable ages; saw Randall the tiret time in the summer sum-mer of 1874; Hinman and Winsor were introduced to bim by Dr. Sill; in January, 1874, before the organization of the Nez Penrea company, the Bub-ject Bub-ject of the Detroit Utah mines was presented; a subscription was started and circulated for the purchase of stock; he subscribed; was first on tbe list; a committee was appointed to goto Ulan and examine the mines; the committee weal and returned; a proiiiion wasmade, making mak-ing it optional with subscribers to bray when tbe commutes reported; me', with tbe committee and heard their report. Ford was one of the committee, com-mittee, and when he went out Holden agreed to pay halt bis expenses if be would go to Utah. When the committee com-mittee returned he learned they had not agreed to buy the Detroit-Utah mines, but had visited another group called the Nez Peroes. Was not present when the Nez Percea company com-pany was organized, which was done in Kalamazoo, He was elected an officer at the first meeting; met with (hem after and received a dividend; became managing director just prior to coming out to Utah. Some time in October the dividend of . $10,000 was paid; waa preseut when the div'dend of $7,500 was made, and received a portion of it. It was stated in the answer that the dividend was not a result of the mine. If the debts ot the mine had been paid for August and September, the dividend could not have been made. Tbe dividend was made for those mODtbs. Counsel asked, why did witnest swear in Ford's case that the money was borrowed to pay the dividend? and when filiuc other answers this clauBe about borrowing being stricken out? and wby say Hie mouey was borrowed again? He was told so. Was it true the dividends were real? Didn't know; that por lion of the answer was uutru.e; believed the answer true. The Block ot the Nez Perced company was unassessable. unassess-able. Did not know tbe company had no money when he was appointed director. When he came to Utah in December, 1874, he wasn't certain that be did the best he could for the company, but acted honestly and in good faith. When he came, about two or lilteen tons of ore a day were being taken out .ot the mines. When h.e went home acaio he was generally asked about Ibe property and gavo all a true statement. state-ment. Said he paid bis own expenses tint trip and charged it up in tbe account of the Nez Percea company; paid hia expenses out of his own pocket; but afterward admitted be used $300 of $3,000 in money received j from tbe east, and out of lhat his expenses were paid. Witness stated ho paid $1,000 to Michael ManBfield, and when interrogated as to whether that was not relunded out of the $9,500 note, said he never received any of the $9,500 note. Counsel plied witness with queries to show that all money paid to Mansfield and others was realised ou cf the pro-ceedaof pro-ceedaof the $U,500 note. In the spring ol 1875, ho reported to the efldct that the mine was in debt $15,000. A proposition was made to' issue bonds, but did not know that it originated origi-nated with him. The original stock was unassessable and it was difficult lo raise money only by issuing bonds. The priority was given stockholders stock-holders for taking up the bonds, and nobody but stockholders took ibenj nobody else had confidence in the concern. Trie $15,00, debt was explained. ex-plained. A p'o &0.000 fell through, as it hsd beau illegally started; this merged tnio the plan of April Hth. The Kalamazoo money waVpaid there, brought to Cleveland and received by wituess. In issuing the bunds he h.ul personal intsrooursp with some as mars; fir for the company. com-pany. All the noitj rauea wa not paid to him. Oi ditfd himself up with what money he had raised. .As managing director he was directed by the company to go to Utah, io N'o-vs.nbcr, N'o-vs.nbcr, and see to the company's int tereta. Oaniehere and bad a power ol attornf-v, sold ti e propertv. whioa was bidden in by Geo. . Wallace. V it r.es assisted in the sale. Tne colieeuon of bonds could not be made unleas the mine was sold. The saie was made for each of the bondholders who ugned the power of alterney '.ty.000 and some cdd. Altar Ibe sale witness made a urvry of the Revare, Y oa-nine ai d Jordan mines and the Areueral ontcrorpings, and cnangeJ the wnrfe .in the nnae. For the ex pensei of the trip he recsived a $i,0w aolej gave credit for the avaiia ol that , note, which be had. Before witness lei t for the east, did not hear the noise from tae Montreal mine. After the fesie, he look charge of the mine I as an owner, acd tne work done was j for the beuent of ail; he assumed the ; authority; tiad no authority from tnt ! company lo do work or collect money. ' He preoumed the bondholders ex-1 ex-1 peeled him to go to tbe mine and do the work he had done. Here court adjourned until Friday morning at 9.30 o'clock, I |