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Show THE OLD TELEGRAPH. Another Bitch of TestimoEy in this Interesting huiL On Thursday morninc iu the Tiiird district court, Mr. M .isbnll Wgan the proceeding by nmiinuing the objections to the testimony c f Co wit, which had been taken by a short hand reporter, read over by Judge BurLe ef counsel for defeuae and sworn to as correct; it was nut contemplated con-templated by the laws of evidence. The court said the only question that could arise was whether the relation of Cow lea to the suit was ucu as would allow his declaration Aid statement aa evidence. There I was evidence to show that he was1 interested in the caae. The investigation investi-gation was not strictly confined to the' rules of evidence; only for the take' of getting at the truth and facts; con-' jsiderug this, his honor thought it competent to be admitted. The motion to strike out certain evidence already in was withdrawn I by Mr. Marshall for the present. Mr. Burke then proceeded to read j the evidence of J. G. W. Cowles,takeo in Cleveland, Witntss owned original origi-nal stock of the Ntz Percei company; bought it not over thirty days alter the Kalamazoo parties bought theirs; got it from Hinman and Win-sor Win-sor ; was acquainted with Cor-tenius. Cor-tenius. Sill and Kendall, not with TrAsk; made the acquaintance some time in July, 1874; had received correspondence Irom Corlenius an 1 Kendall, but had not preserved the letters. Went to Kalamazoo to see those parties, to see what evidence he could nod to use against Mr. Holden; Bolton went with him; went repre-j senting Ford; Burner went with him ! once; it was requested by one of the' Kalamazoo parties that he should go. Made certain arrangements with the Kalamazoo parties with regard to tbe prosecution of claims against Holdun; could not give the date; gave them no bonds to save them from costs. He would not have half in case a recovery re-covery was had. Ha had not possession posses-sion of the contracts; did not know where they were, nor to whom they were delivered. Two duplicates of the contract were made, one for each of the contracting parties. Had no idea where the original was. Doubted if it was lost; it was lost to him; be couldn't control or demand it. Could not state tbe contents in detail; it was three months since he saw it, and did j not read it then; hud drawo it up in part, otherBdrewuptbe rest, Could not' give any of the special terms of that I contract; the general object ol it was1 to gain assistance in prosecuting these cases. Thought he was to get half the proceeds of the results of the Buit. The contract provided that tbe Kalamazoo Kala-mazoo parties might call on witness for money to use in the prosecution. He agreed to see that money was furnished for carrying on the caaeJ Went to Kalamazoo for the purpose' of collecting testimony; on this and other business had been to K a la mo zoo two or three times; didn't remember whether the contract was made the second or third time he went there. He had taken no pains to find it; it was useless te look for it in his own office; it was out of bis control. He had made arrangements to have it removed re-moved from his control, so as to have it in a safe place. He took it to Judge Tyler's office. Didn't know that he put it in a safe place himself. Had it at the Commercial National bank. On being an Iced again 'f he knew where it was, he replied lhat he had told that be didn't know where it was and didn't want to be interrogated further on the subject. Thought it was probable it had been left in the bank; it was taken there in an euvel- ( ope sealed by him. Didn't know in whose possession he left it ; did not have it when be It ft tho bant.l Eels and Caldwell, the oaehier, and other persons were in the bank. Had no recollection as to what he did with it as, not expecting to be examined, he did not charge his memory. Had not been to the bank since the commencement com-mencement of the suit to Bee about the contract, because it was subject to the control of Eels, Harris, Bolton .and himself jointly. Didn't take it to the bank for safe keeping; it was taken from bis office for safe keeping. Was satisfied as to its safety, aa be bad confidence in Eels and the officers offi-cers of the bank. When be left it at the bank, he did not give any instructions in-structions as to the safe kerpinn. It was in an ordinary envelopu and if marked at all, he didn't remember how. Didn't recollect whether he gave it to Eels or Caldwell or left it on the couDter. Didn't remember if he signed any other bond of indemnity against costs. He employed Burner at one time; but made no arrangement arrange-ment to get Holden's private letters and telegrams. Burner called his attention at-tention to some letters in March, 1876, to some since. Didn't know where they were. Did not think he could produce any letter of Mr. Bolton, in Utah, to Kalamazoo parties. par-ties. Didn't preserve letters generally. The letters be had received from Bolton or parties in Kalftmszoo were of no importance. Mr. Johnson moved to strikeout the foregoiog testimony as there were no facts material or im -nalerial ta this bearing in it, and bec-tuae the attempt to force the production and contents of tbe contract by parole evidence had failed. I Mr. Burke explained the importance impor-tance of the contract, in that Cowlea had gone to Kalamazoo aud made a contract with parties whereby tbe prosecution of these suits might be carried on; these prosecutions were the result of a conspiracy between Cowlea, Ford, Bolton, Eels and Harris. The suits had been Btirred up after the Kalamazoo parties had sold their e took and bad made four dollars for every dollar tbey bad put in. Parties . had been brought into this suit who had evinced their satisfaction in tbeir transactions wild the defendant, Holden, on account of this conspiracy. It was a case of champerty and maintenance, and there was a law in equity for that, it there was no statute against it. Mr. Critch field took up a decision of Judge Cardozo, offered by defendants defend-ants as a decision ot the supreme court and showed that it was tbe decision de-cision of a single judge of a special court in New York, and considering the complications of said judge with Jay Gould ei al., was not of much weight as affecting this cause. Mr C. argued that the plaintills in these suits wore equally interested in its prosecution, by rr-son ol an agreement agree-ment among thuiiaelves, by which money was raised to carry them on, and by which a division of what w recovered would result to each of them. He proceeded to show that the parties bad the right to hypothecate hypo-thecate parts of their recovery to fight defendant, Holden, who had fCOO.tXX) and was using it iu the suits. What was there morally wrong about thai? This evidence was wnolly exlmueous to the facts involved in the motion lor a receiver. He could not see how it could be uted, aa it was sensational and did not beAr upon the merits ol tbe case. The court overruled the motion tc Itrike out CofflN1 vidsoos. Mr. Burke then read the testimony of Mr. Eels, aleo taken in Cleveland. The wit now bad known Cow lee about en or seven years Did oot know irnbk, Cortemue and sill ot Kalamazoo. Kalama-zoo. Witness had made an agreement agree-ment whereby he was to furnish rmaus for prosecuting suits aeainel 1 Liberty E Holden. Toe contract was a pnvAie one and declined to furnish j it to he copied. Between 14.000 and I $5,000 was the amount be liirniahed. Paid no draft of $3,500 which came J through the Second National bank, j Harris had furnished money; between 1 tbem, about $9,000 was furniBbed. I Witness had al first agreed to furnish I but $2,500. A pecuniary considera-; considera-; tion bad induced him to furnish more. It seemed to bim that a fraud had been perpetrated 00 Furd and he paid it to aid him. Toere were three parties par-ties to the conlract; another was C. E. Bolton, who furmsned no money; he (.Bolton) was to aaaifcl in furnishing testimony in the cases. Tbe three were to receive one lourth it the caaea were successful, and were not to have back the money advanced it they were lost. There was not more than one I conlract. Did not think tbe Kalama-1 Kalama-1 zoo parties were parties to the contract. con-tract. Is the contract within your control, and will you produce it? j Witness wanted time to consider the question and whether he'd produce it. He signed a bond of indemnity, because be-cause he was asked to do bo. He induced in-duced Harria to become a party to the contraot. The purpose ol the money advanced not more than $8,000 wa fur paying the expenses of the suit. Was acquainted with C. E. Bolton wnen be went to Utah; did not give him unlimited authority to act for him; did not say that be was worth $9,000,000 of money and that he might draw on him for any amount in the interests of the suit. Witness being cross examined by Judge Tyler, explained the reasons way he had advanced money, etc He had, respect for tbe parties and tbeir families, and as it had been represented re-presented lhat a fraud bad been per petrated on them, he advanced it from a motive of benevolence. He bad a great respect for Mr. Cowles, lor various reasons, as he bad been acquainted with bim from boyhood. Hud refused to produce tbe contract because he bad a repugnance towards having private papers brought in'for tbe purpose he believed they were wanted in this case. If he was able to furnish money on account of the fraud, he was perfectly willing to do so. Mr. Johnson ohj -xted to this testimony testi-mony alio. Mr. Bennett here presented the joint affidavit of W. S. McCornick, George M. Scott, T. K. Jones, R. C. Chambers, Geo. Gosa, J. R. Walker and H. C. Good speed, setting forth that they bad known L. E. Holden and that the mines under his direction had been well managed. Mr. Bennett also read a letter from Trask, saying that he would get all tbe stack together and forward it to Holden. Also the affidavit of William P. James, who was acquainted with tti Old Telegraph mines, and that he considered them wortb but $25,000 in April, 1876; and that the mines h id been worked by Mr. Holden in a miner-like manner. 1 A letter of J. G. W. Cowles to Mr. ! Holden, October, 1875, concerning being unable to get a note discounted., Recess was here taken till 2 o'clock. In the afternoon, Mr. Benneti oflered in evidence a voluminous maas of documents, composed of pleadings, recoids, judgments of court, motions, affidavits, etc., in the several cases in I which the Old Telegraph company was a parly, tried in the district court and appealed to the supreme conrt. It was thought thutan abridgement of this evidence could be agreed upon by the counsel. George Y. Wallace was sworn for the defense, He was a forwarding agent, and had been one for five years. In the summer and fall of 1875 he had received and handled ores, from the Nez Percea mines. The lota I of ore were sold as George Doane's. He knew the Old Telegraph mines, j and had told every pound of ore that! came' from them; the ores were; shipped to him at Sandy, and he sold them and collected tbe money and deposited it in McCornick'e bank, lie read from a sheet, giving the amount of ore handled by him from February 1st, 1876, to the 10th ol January, 1877, showing the total receipts each mouth, which amounted to about 38,000 tons, the total amouut received lor which had been $935,-082 $935,-082 53, $775,842 of which wns the market value. Witness had met Cortcnius, Trask and Sill in Salt Lake city; they had been introduced to him by Mr. Holden as officers of the Old Telegraph company. He bad no orders as to exhibiting to them the ore account. There were some ores shipped and not marketed. The amount received by the mine for ores in May, June, September and October, Oc-tober, 1878, was $45,386,85. f Being croes-examintd by Mr. Johnson, John-son, Mr. Wallace Bftid the total amount shipped from February 1st to May 9th, 1876, was $61,280 23 net. In February there was shipped 676,-340 676,-340 pounds in actual weight, 1,673,-299 1,673,-299 pounds in March, in April 1,681,-771, 1,681,-771, and in May 2,504,572 pounds. The amounts differed from those in tbe railroad company's books, and the difference was explained by the wilneis that the figures he gave were of the ore sold, not the amount received. re-ceived. Shipments began to the Old Telegraph smelting worka in March or February, 1877. He was introduced intro-duced to Cortenius, Tiaik audi Sill on the street, as having charge of the salu of all the orea of the company. Did not talk with tbem about the books, but did as to the ore, llmt is, in a general conversation; was not in tbe bank with tbem. Was no relative of Holden's, Hol-den's, nor was he in business with Holden. Had been interested in the smelting business since he had been handling ore. Was trustee of the property when tbe sale was made, tie had no charge of the management manage-ment or direction; merely took possession posses-sion as trustee. At whose request 'did you buy in the property? Holden's. Hol-den's. I George Goes was next placed on tbe Istand. He knew the Nez Perces group, now known as the Old Telegraph Tele-graph mines. Had been general superintendent and manager. Had also been superintendent ot the Bing-iham Bing-iham Canon railroad in 187G. Saw Trask while in that position. Trask ! told him that he thought the minen would yield 100 tonB a day or more for a year. I On ins cross-examination, Mr. Goes stated that as superintendent of the jBinfciiHm Canon railroad he had ex-: ex-: tcn:ied it up to the mints, some tirno 'atxut the middle ol March, 1876, I Mr. Uoidrn had made the statement to witness that the mines would yield 100 urns a day or more for a year. 1 Mr. Goss went to tbe mines and examined ex-amined them and was so satisfied that they wtuld furnish tbatamountof ere that he extended the road to the1 , nv-nes. The result of the shipmenL-bud shipmenL-bud (ulfiilfd his expectations, j Mr. McCornick was next put on the stand. He saw Cortenius, Trask land Sill in either April or May, 1S7, ' in his hanking bouae. He was introduced intro-duced to them bi the banker of the 1 company, and Holden told them the acoQuol of t company was kpt I there; they did not ask fcr any tbo-ing; tbo-ing; if tbey had asked li r one there waa no ot1 ruction i:i H-e w.-y ol their seeing it. Later iu the -ummer c t' '7'j, be had a correspondence with Sih on the 6ii' j-'tt of some hotd" ltf't in eecrjw wiin i.pii. Two leinrs on tp mibjpct wer i'ttrodll'fid and read. i he cross ex-iu oa'-ion ot this wit-new wit-new aliow d hp wasn't ure wbetber it Wis 111 April r May, 1S76, wnen I the gt nts were in hie bank. They mr Holden mentioned' any remit tances sent by Holden to pay Lis debts. No obat ructions were placed in the way of their seeing the account, Hs thought he would nl show h'w books to tvery stockholder wuo came along. M r. Bennett bare red letters direi. t it'g droits to ba made i.n Trask, aud ht-artiiy giving credit for turning ovtr tLe bunds to Holden. Mr. B. G. Raybould, one of the exprrts who examined the books of tbe Old Telegraph company, testified that he made a computation cn the Output of tli e mine al that time, which showed tha; 53 per cent, was the net proceed out of the ore alter expeneea were paiu. Being cross examined, Mr. Ray-bould Ray-bould said thut the entries might havn been more explicit and lhat he would have made tbem differently. He uotaintd bin information from the books alone. Du you remember what entries were made of what became of I the 53 per cuit. profit?- Had a gon- 1 leral idea; part w.s for purchase of; property, p;iit incidental, legal ex-1 pensea, and a large personal service I account; this last account represented 1 ! Holden and Doane. There was $160,000 or $165,000 to Holden alone. This was oot entered into the expenses ex-penses of the mine account. Took no note of thia personal service account. ac-count. Il was taken from the net. Did not know that it would have been charged in the gross. Had not seen the books since he made the examination, examin-ation, and did not know if anything had been mbsequently entered in them. Juue 17, 1876, waa the open ing date of the personal service ao- I couut. Mr. McQieen testifi d thU there were about 14 or 16 cubic feet of ore in a ton; galena oru would tutu 9 or II feel; 70 per cent. 8 or 8J feet. Mr. Bennett had affidavits of Cleveland Cleve-land parties, touching Mr. Holden's financial standing in Cleveland back to 1874, but did not wish to offer them in evidence. He expected others to arrive 00 Saturday night, and asked counsel on (the other side to grant them a continuance until Monday. This whs done and tbe caae was consequently continued until Munday morning at 9 30 o'clock. |