Show SMITH AGAiNST JONE Some Interesting Developments i the Trial Yesterday I I THE PLAINTIFFS STORY I fiE IS PUT THROUGH A RIGID EXAMINATION EX-AMINATION His Statement of His Dealings with Elmer Jones Some Inside Facts About the Ainslie Immber Com R D panys Affairs Given by Jones of San Francisco Provo April 24This is the third day f the important case of W H Smith vs Elmer B Jones et al and the plaintiff was on the stand the greater portion of the day and subjected sub-jected to a most terrific crossexamin ation at the hands of Judge Henderson and Sam Thurman Plaintiff W H Smith was the first witness called and he concluded his I direct examination as follows Mr the state I Green said he would send stte ment of account by Mr Elmer Jones to me at Sal Lake The statement was given to Mr Jones together with and little account book at a receipts a ltte 8 later date Jones saying he was going to Provo to get all the money due me I told him I was very glad I kept a copy of the statement Do not know what has become of the original I and my boolkeeper checked the account ac-count carefully to see that i was correct cor-rect Three thousand dollars has been in paid me on the collections placed the bank The account gave me credit for 3200 Green told me that Jones kept this 200 while Jones said Green had kept it Neither of them gave a reason for the other having kept it Green by the way said Jones was a G liar if he says I have kept the amount Nothing has been paid since to me although I have made several demands for it I remember you Mr Loofbourow demanding all the money due W H Smith from Mr Martin who was acting as cashier Martin at that time denied that there was anything due and that they had an account with W H Smith He afterwards af-terwards stated that he would meeet I state with the directors which he did and wit they decided they had no statement to make Mr Brererton the president said he wanted to deal rightly and would give us access to the books On our third trip Martin said when we demanded any paper they had of ours for collection that all our paper had been collected and they had nothing to turn over This statement spoken 01 contains a correct list of the paper I put in the hands of the bank for collection col-lection When I went into Jones office next morning for my money his partner part-ner Mr Schroeder gave me the horselaugh horse-laugh and toid rae Jones was on his way to the Worlds Fair I have demanded de-manded the money due me three or four times a month ever since November Novem-ber 1S92 51700 has been returned to me of the paper I left the bank for collection col-lection I accompanied you Mr Loof I bourow > to Mr Jones office in Salt I Lake and you told Mr Jones that we had come for a settlement Mr Jones refused to settle with us or to have anything to do with us Finally he I said he would give us a statement tomorrow to-morrow But he did not At this point witness was turned over to the defence and crossexamined by Mr Thurman I am in the lumber business in Salt Lake have been there I for about four years and in 1S92 sold a great deal of lumber Keep a ful set of books and a bookkeeper I came i here from Red Cloud Nebraska I was then traveling salesman of the Nebraska Lumber company This com pan 1a now gone out of business I wjxs a corporation I was afterwards I connected with the Red Cloud Milling company When I came to Salt Lake 1 i commenced business for myself and in 1S90 I was associated with the Am I lie Lumber company I worked for 150 per month and received most of my I money every month My relations kept up with this company until about July I 1892 I also had the local management of six yards in Utah all established by the Ainslie company They were i situated at Provo Springville Park City Ogden Salt Lake and two in Pocatello I i tello I got onethird of the onetird profits for conducting these various yards The I S Ainslie Lumber company owned all I these yards and when this company ftied all of these small yards failed and losed In the year and a half I duririg which these small yards run the profits amounted to about 27000 Mr R D Jones was associated with the Ainslie company at Portland He Ainsle cmpny Portand was one of the directors and dirtors was one of the managers I really do not know who the manager was A Mr Wall was also thereand much t do with the business Did not the business at Red Cloud fallYes Yes sir ed And the company at Portland fail edYe sir And every companyyou were associated asso-ciated with failed Yes sir And Mr R D Jones was with you Il at Red Cloud I worked for him And he w with the Alnslie company com-pany when it failed Yes sir Your wife was a stockholder in the f1 Ainslie company was she not I think so I did not keep many books of my transactions with the Ains t lie company I made daily reports to f the company And now havent books t show the transactions I think the Ainslie company books will show all i thene transactions al Where did you get these drafts I got them for lumber I sold on my i S own account after I severed my connection fS con-nection with the Ainslie company I bought this lumber and paid cash for t and sold it on sixty and ninety days i time and these drafts I placed In the F National Bank of Commerce at Provo Povo r for collection I ha at his time a bank account in Salt Lake with McCor Icor nick I knew nearly all the companies I had drafts on and they were good but I I brought these drafts t Provo because most of them were on parties in the territory Isnt Salt Lake in Utah Yes sir I Why didnt you place them in your bank in Salt Lake You are doing business there doing S Oh I had no preference I brought t the first paper to Provo myself I was on the Provo City Lumber company com-pany and I wanted Mr Jones to attach at-tach the company I told him to at Inch it and when he got the money to keep his feet and send me the balance I told him to draw the 1 papers in my name and not in the name of the Shasta Lumber company J never mentioned the Shasta Lumber company that day Mr Jones told S X King t make out the papers I I ame backafter Moore and Jones advised ad-vised me not to attach but to turn i the paper over to the bank and that I could get my money C Dont you know that the Provo City Lumber company failed that day and before noon i No sir I dont I believe I failed that night I first knew about the assignment as-signment about 5 oclock that evening even-Ing i How did you receive the pay for this paper He did not pay me He paid Mrs Smith and mostly currency I believer believe-r Didnt you have an understanding with Mr Jones that there was not to be any checks or writing in this transaction trans-action because you might have trouble with the assignee of the Ainslie Lum 6 r company j r i I j < No sir nothing of the sort Did you keep a record of this paper you left with Mr Jones Yes sir a small book But not in the regular books of the company No sir When you were with the Ainslie company they kept the books Yes sir And when doing business with Mr Jones he kept the books Not exactly I kept a small book I and Jones borrowed this book to come to Provo to settle with the bank and I never have seen i since I made I life a burden for Jones and Mr Greene I the cashier all during the winter of 1892 and 1893 and until July of 1S93 about this money Why dont you know that Mr Greene left that bank and this city in April of 1893 No sir I dont Judge Henderson continued the examination of Mr Smith in behalf of the bank The arrangements for collecting the paper were the same with the bank and Jones only on the first amount I desired to have it attached I brought the first amount to Provo myself the balance Mrs Smith brought down or sent down Why did you sue Jones for all this paper I thought they were all in the deal together Did you give all the paper to Mr Jones No sir Why then did you sue Mr Jones for the whole amount I I thought he was the bank Didnt vou send Jones to Omaha No sir S Didnt he have some business for you there No sir Nor your wife No sir Nor Mr R D Jones Yes I believe R D Jones had some business there and that Elmer B Jones went there for him but not for me This had no connection with the Nebraska Lumber company which had failed I made my first arrangements with the Ainilie Lumber company through Mr R D Jones and the Ainslies Mr R D Jones came down Ainsles lIr from Portland immediately after the failure Mrs Smith had been to Portland > Port-land just before the failure and brought back with her some paper which she got from the company in her settlement settle-ment with the company Mr R D Jones followed her down immediately Did not R D Jones bring this paper on the Provo Lumber company from Portland with him and carry it to Provo in his pocket and turn it over to Elmer B Jones No sir he did not Now then your wife brought all this paper home S Yes sir and she got home about July L II Judge Henderson showing him several exhibits drafts Now these are the ones your wife brought home I Yes But these drafts are dated and accepted July 7 How is this I Oh this is some paper which was always dated ahead Well it is dated Salt Lake July 7 Yes Well now for your wife to have brought this home with her i must have been sent to Portland after July 7 and then turned over to her Yes But she got home before July o and this is dated the 7th Oh this paper must have been dated ahead of time This was often < 3one The witness denied that R D Jones had any connection with him in this transaction Didnt you send Elmer B Jones to Nebraska Xo sir it was R D Jones who sent him At this point witness was shown several sev-eral letters in which mention was made of the Nebraska matter and a check was enclosed to pay Elmer B Jones expenses on the trip I spoke of our business do what you can for us and we will be satisfied These letters let-ters were signed by Mr Smith himself or else by his wife and no mention was made of R D Jones These letters were too much for the witness but he attempted to explain his conduct by saying that he was simply attending t some business of Mr R D Jones but he had no connection with i 1 appeared throughout the examination of the plaintiff that he and R D Jones have been connected in many deals but I witness denied that they had any real business together Continuing after the noon recess witness was shown a statement of his account and he stated it was a copy of the account of his collections furnished fur-nished him by Mr Greene former c shier sh-ier of the bank The original statement witness claimed had been taken away by Elmer B Jones and he just happened hap-pened to have this copy I will be remembered that witness claimed he did not have any book accounts ac-counts of all these bank transactions from which the statement could have sttement been taken and this purported statement state-ment if true would goa long way towards go wards holding the bank liable for the demand made As to where witness obtained ob-tained this statement and the demands he had made on the bank in pursuance to it witness was given an extremely rigid examination Witness stated he had never talked to any member of the bank but Greene and Jones and a this time both these men were not associated as-sociated with the bank but he had never talked to any other officers because be-cause his dealing had been with these two men and he thought they were the I bank bourow Redirect examination by Judge Loof Mr Hagel mentioned in the cross examination was a trustee of the Ains lie Lumber company before a receiver was appointed for that company I got from the Ainslee Lumber company com-pany between eight and nine thousand dollars The fifty dollars referred to was arranged to be sent to Elmer B Jones by R D Jones The Nebraska notes referred to at that time I know nothing about The next witness called was R D Jones who testified I live at San Francisco Fran-cisco Have known plaintiff since 1S78 then he was living in Nebraska I came from Salt Lake to Provo with plaintiff plain-tiff in July 1892 Smith went to Elmer Jones office and I accompanied him but had no personal business there Smith wanted Jones to get out attachment attach-ment papers against the Provo City Lumber company Jones said he would get them out and for Mr Smith to come back in a short time and he would have the papers ready We returned re-turned a short time later and Mr lIr Jones then said he did not think it advisable visable to attach as the bank held a mortgage on the Lumber company he thought he could get it all without trouble Mr Smith agreed to this and the paper was then turned over to Greene the bank cashier Some time after his transaction I was present at a meeting of plaintiff and Mr Jones and Mr Greene Mr Smith wanted the money collected and turned over to him but they would not do i because be-cause they expected some trouble over the Adams Sons collection from the Ainslee Lumber company Mr Smith finally agreed to send down about two thousand dollars more collections and Mr Greene was t forward Mr Smith 2000 in cash At another time I accompanied ac-companied Mrs Smith to the bank and she turned over some drafts to Elmer Jones and he was to hand them to Mr Greene who was then out for lunch Crossexamined by Judge Henderson 1 have lived at San Francisco a year and a half before that at Portland and before coming to Portland I lived for twelve years at Red Cloud Nebraska I was in the lumber business in Ne braska and knew Mr Smith there When the business failed at Nebraska I went to Portland and helped organize the Ainslee Lumber company I appointed ap-pointed Mr Smith for the Utah division I was for a time associated as-sociated with the Shasta company I was a Portland when the Ainslie company failed and Mrs Smith va there about that time She came to Utah a day or two before the company failed and I followed her to Salt Lake I came with Ir Hazel J the trustee of the Ainslie Lumber company and our purpose was to settle up the affairs of < b the Ainslie company in Utah I had a talk with Elmer B Jones on my first visit to Provo about some collections I wanted made in Red Cloud Neb amounting to about 8000 and I wanted some one to attend to it I understood that Mr Jones was going to Nebraska and I wanted him to attend to the business busi-ness for me I wanted the case brought on the notes in the federal court at Omaha Mr McNerry my former attorney at-torney had advised me to do this because be-cause he understood the parties who owed me were going to dispose of their property and he thought i was best to turn them over to some one in Nebraska and have this person sue at Omaha I had left these notes with Mr and Mrs Smith and they sent them to Mr Jones and they also sent the 50 to Mr Jones for me I dont know when or where I paid them this money back Were you not indicted for embezzle ing funds from the Ainslie Lumber company com-pany No sir I was not Were you not arrested Yes sir What for For obtaining money under false pretenses pre-tenses S Were you in jail Yes sir for three weeks But I was afterwards fully exonerated Was Mr Smith indicted for the same thing I believe hid name was mentioned inthis connection but I think he was not arrested What were the liabilities of the Ainslie Lumber company About 500000 Did not you bring these drafts from Portland No sir Did you see them turned over to Mrs Smith at Portland No sir I had nothing to do with the funds of the company Have you ever had any dealings with Smith in Utah Yes we jiav had some lumber deals together sine 92 i knew in June 92 that the Ainslie Lumber company com-pany was hard pressed for money At this point Mr hUman tojk the witness and examined Kim for deicnd ant Jones but few additionl pJnts were brought out The court adjourned at 4 p m to I accommodate Judge Henderson and W H King these gentlemen having to j I leave for Salt Lake city Attorney A T Schroeder was down from Salt Lake today Lieutenant Richards paid us a brief visit last evening and returned home this morning |