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Show THE OLD TELEGRAPH- Tha Cross-Examination Proceeds. On Friday, tbe bearing on the mo tion for an injunction and receiver in the case of Ford et al. vs. Holdtn tt al. was resumed. Mr. Holden was examined exten-sively exten-sively as to tbe direction of the tunnel and why it was driven in the manner it was, going as it did from the direc tion of the old works. It was intended to prove it his purpose to run it eo as to reduce tho value of the properly so that be could buy it out, but witness disclaimed aoy such intentiop; he had not the charge of driving the tunnel. Witness communicated to Cleveland how much ore was being taken out and the progress being made in the development of the mine, and all that he knew of the changing of the 310 foot level, and explained everything in connection with (he mine and its working when he went back to Cleveland; did so without thinking anything about it bei;ig bis duty to do so. While in Cleveland bad communication nearly every week with Doane and Brown, who were at tbe mine, and bondholders had access to tho correspondence there then, in a general way. There was a time when he stopped showing tho letters from Doane and Brown. Why was that Bomewhat abrupt stoppage of that information made? It was because negotiations were pending for the purchase of the stock of Cow tea, and Ford and others. Showed Ford tbe telegram reading, "struck ledge, must have $1,000 immediately," but none alter that, neither to him nor any of the others of the company, because witneas considered con-sidered the telegrams his own private property, and it was optional with him as to showing any even the first. Knew at the time of buying Ford's and Hickox's Btook that he was concealing information relating to tbe condition of the mine; had given Ford all the information stated; but had not given Hickox such information. in-formation. Were you conscious, when purchasing Hickox's stock, that you were cheating him? Witness was willing to have ordinary conclusions drawn. Did notknow that he showed Ford the letter of January 26, about "striking as fine a hody of ore as I (Doane) have seen in Bingham." He thought he bargained for tbe stock on a fair valuation; it was his business to get the stock as cheap as he could. Did not show any subsequent subse-quent letters or telegrams. He put the price on the mine at $25,000 then, and considered it a full valuation ; it was not worth more than that then. Did not know, it 1,000 tonB ot ore wns in sight, bow much more valuable the niue would have been, 'as tho bodies of ore in Bingham were in pockets and chimneys chim-neys and their size was never known I until developed, and it was a regular transaction to buy only what was in Bight; the indications went no further, than they were opened by the pick; nothing but continued working could determine the value. On the 24 ih or 25 lb, of March connection was made with the Montreal mine. When the application for injunction was made, it wag a bard matter to know what the. property was worth; but it increased in-creased in value and depended on the continuity of the lode. Bought two-thirds two-thirds ol the Montreal in March with the proceeds of the mine, and bought the Montana in the same way. When witness took poineesion of the mine he did not think it was worth $500,000. Mr. Holden was next questioned as to bis receipts during 1875. He received re-ceived $3,000 from' Woodbury; the $y,500 note; as to tho note for $2,500 on the 10th of January, 1875, ho said be never received it, as he had no entry of it; on the 11th of March got $3,000 note, payable in ninsty duys. How muob did you receive in notes and money, in the aggregate, for the sale of the $100,000 of bonds? . CaBh from Coitor.ius $:2,5O0.0O Ford and Cowles' nolo. 3,1)00.00 Cash from Sill 726.21 Tra&k and Oortonius' note 1,074. 48 Ford's note 700 00 Cash, Hickox & Co 62R.0Q Taylor1 note - 087 82 Cah, Kendall 600.00 Noto of Corteuiua and others 999.G7 Cash, Kendall 200 00 Fair and LegKOtl 75.00 , Bonds of L. JC. Holden 6,710.60 On the ISth of July, a promissory note for $5,000; on October 20, got money on $1,000; October 21, got note for $5,000 from Kalamazoo, which was canceled and not used; 47 :i and nnmn ndd rfinls from Hickox &. Co; made no account of the money received from Dunning. Witness' aweramcnl, he did not remember how much that amounted to, but it was 3 per cent, on the Old Telegraph Btock; he never credited it up to the company. Here followed lengthy questioning as to what became ol the ore taken out in November and December, De-cember, 1874; but witness kne nothing no-thing about it, iid others were in charge of the mine and ore at that time, but supposed the money was expended on tho mine, on deadwork, in January and February. Febru-ary. To the question what became of tho money $4,000 Irom the sale of ore taken out in December, 1875, he didn't know, us Woodbury and others had charge of the property. As to the $4,000 note by Randall fe Winsor and Hinmnn & Wineor, payable pay-able to witness, 50,000 of the Old Ner Perces stock was placed with it as collateral security; this note and stock were turned over to Trunk, as trustee, as collateral for a $-3,000 note; Sill afterward obtaintd possesion of it and turned it over to Holden Hol-den amoug collaterals lor bonds. Witness got tho note in a stork traoe action; paid $1,600 for it. Did not hold that note hy virtu re nf the mret itigs held ou February 1 and April 14; but the note und Btock wvru iu his possession. A trausfer was made to Sill previous to the meetings of February let and April J4th. Witness Wit-ness bought of Sill and other in May. In the Ht.al settlement gave two acceptances. ac-ceptances. Denied having said ho naid $1,600 to Sill for the Hinman 4 Winsor note. Mr. Holden tht-n read from ft transcript mad from his hooks a lengthy list of expenses paid by him from December. 1874, in which there were items not in the bxik aud omissions oil others, in which it appeared that the! $'.500 note had been entered four dihVrent limes, witnfss explaining why it wns so entered and charged to 1 tho company. He received no money ! on any bond till in July, tubfequot , to the payment of the note. Did not ! know when the bonds were delivered to him. In i he afternoon the examination urocedM. Counsel tked witns il any note charged as having been paid, mi tho memorandum, was charged to tho company or stockholders? There was a $:;,0i0 note. It was paid by wiintW individual check. The note ot Ford and Cowles was Rjen June 11th; the other was given to oo pi.l June 11. There w-re some items m the now nnt not on the book pri r f buving t id out; there was a $1,000 entry aa having been paid to Doant, February 4th, Counsel then read a list of dtbil uid ciedita of Uoiop with the company, showing by them I thut wunfcEs' basnet due to the com poy was $3,75y. A committee was appointed to examine the books in December. Here au explanation was again made of toe entry, &s a charge to itee company, of ttie $y,50U, the eame with ictcrest, the $y,5A) again, and finally in a detailed form, with but two credits. Witness bad not made up tbe accounts with the express ex-press purpose of defrauding the com pany. Mr. Holden came to Utah in December, De-cember, lt)74, and stayed some twenty dijs; after that time Woodbury, Goes and Doane had looked after the mine, until December, 1875; during that lime wilne&s knew about the workings at tbe mine only by correspondence; corres-pondence; kept sending money to tbe buperintendents. Acted as manager until tbe mine was soid, the 30lh of ! November. Gsuld not tell how long I be operated for the Nez Perces company; com-pany; thought it was until he passed in his report. Suppostd be acted after that, but waB acting for the Old Telt graph company; might have acUrd for tbe Nti PerceB company. Testimony at a previous trial, as to the Is'ta PerceB company being in jposaession ol the mines on tbe Net Percte hill in March and April, 1876, wai read; witness thought it must have been incorrectly reported; must I have been 1875. He had aot testified i as to transactions between Hickox land h oiaelf; uo arrangements had I been made as to why he did not. Had I the letters and dispatches (before I mentioned in connection with traus-j traus-j actions with Foid) in hie possession when be bougut stock from Hickox, but did not show them to Hickox. V hen he made the trade with Hickox, Hick-ox, witness had a horse aud buggy, and gave them with $100 for the stock. Witness collected assessments because he was instructed to do bo. Ford's assessment was 3J per cent ; toe assessment was levied about the first ot February, not by witness' procurement pro-curement any more than that of others ol the company. Holden urged Hickox and Ford to Bell their stock aud otlered to pay them what it had C0Btthem;represenled to them that be had purchased the stock of others; offered them property and money for their Block and paid it to them; did not represent that the mine was unprofitable; did not talk much on the subject; showed all tbe parties the first diMpalch " have struck ledge, must have $1,000 immediately;" immedi-ately;" but iutenlinually concealed the tubatqueut telegrams aud letters concerning tho g oil condition ol the mine, because he wanted to buy their stock. Mr. Holden subscribed for 24,000 of the original stock, und when he got his bunds had 74,850, paying money and interest ou money for tbe additional 5U.U00. Bought from Hinman and Chase und paid 1,500 aeres ot Texas land to Hinman; did not know what it was worth. Got Chase's st about eight cents on the dollar. He had bo much gutock that be wanted a controlling mterest in the proper. y; the improved condition of tbo property also induced him to buy more. When trying to get Ford's Btock, be urged him to pay his pro portion of a certain note, knowing he was not possessed o( much money; insisted on the payment of the note and otlered to buy his stock; Cowles was present during several interviews in-terviews between Holden and Ford in the lalter's otfico. Ford asked for a renewal ot the note ; witnesa told him the bank would not renew it. Mr. Holden went to Kalamazoo Kala-mazoo on tbe 1st of Februury and had a note executed for $5,000 aud signed by several oi the stockholders, butdid not present it to Ford for bis name. The note was giveu witness to use at his discretion and not for the benefit of Ford; it wasn't the understanding to get Ford's signature. The idea was Holden endeavored to get Ford's stock and get it as cheap as be could. With reference to the using of tho money of the company, witness said he bad a controlling interest in the affaire of tbe organization; he deposited depos-ited the money in the bank for tbe Old Telegraph Mining company, and .was accountable for all money as i managing director. By what author-lily author-lily did witness appropriate the uudi vided funds of the company? It was I not binding on him to bold the money in any particular placo, and he was only required to send money not needed in the current expenses of the mine. In regard to. sending money home,' Mr. Holden said he was good for all he appropriated, and had an account in the books of money appiopriatcd and Bent to Cleveland ; his account contained con-tained every draft so Bent from the 3d of March up to the 16th of June; the entries of the checks were made since the suit began ; the account ac-count contained a detailed statement of every check he drew and was entered Irom the checks; swore that the books appeared now precisely as when the experts examined them. Alter getting through at Cleveland, witness went to Kalamazoo, got up a deed and sent it to the company for them to execute from the Nez Perces to the Old Telegraph company a trausfer of the mining property, etc. Tho deed was executed on the 2d of February and signed by Co r ten i us & president and Trask as secretary, and was acknowledged on the 5th. It was stated that Mr. Holden, at ono meeting of the company, bad voted stock by proxy. This Mr. H. uwoie was false. He did not bo vote. The record was deni-.d. The book was not the origiual record of the company so far as that meeting was concerned.. Court adjourned until Saturday moruing at 9.30 o'clock. |