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Show THE OLD TELEURAPD. Defendant Holdun Continues His! Testimony. 1 The hearing in the suit of O. D. Ford et at. vs. L. E. Holden et al., on the motion for an injunction and receiver, re-ceiver, was resumed in the Third district court on Wednesday, before bis honor, Chief Justice SchaeSer. j As on the previous days, the court room wus well filled throughout the entire day, and as the case progresses the in erett in the details appears to increase. The court convened at 9.30 o'clock, when hie honor, Judge Schaefler, returned re-turned the affidavits taken by him on Tuesday for consideration, with the parte stricken out, which he considered con-sidered irrelevant testimony. Prof. L. E. Holden was then put upon the stand and bis examination by the defense was continued. He testified as (o how the $9,500 note, mentioned in Tuesday's proceedings, was paid. He individually paid oat for the company's, busineis, lrom the 30th of June, 1875, to the middle of February, 1876, estimating $500 per month as his own Balary, the sum of $14,689.91, or $9,689.91, deducting $5,000 for ten months' services; from the time he became managing director to February, 1876, he paid out $27,863.44. Ford and Cowles' note for $3,000 was paid August 12, 1875, by Holden. They gave for that note another note for $2,000 and a note for $700, and Cowles paid $300; when the $2,000 note tell due they could not pay, and witness had to lilt it. The $700 note went to pretest and a new note was issued, and a note for the balance wub given. Ford and Cowles did not pay cash for their bonds. A note, dated October 26th, for $1,000 was made. Ford, for the benefit of the company, paid, after the saleol the mortgage and prior to his alo of stock, $2,700; there was $1,300 unpaid un-paid when witness bought hie stock. A note for $5,000, made by the parties who were purchasers of the second installment of bonds, on the 10th of July, 1875, was renewed in October, and not being paid then was renewed again, some time about the 2d of February, Feb-ruary, 1876, and was paid by Holden when it matured, about the 4th ot May, 1876. Witness left Utah for Kalamazoo in December, 1874, and waB next in Utah iu December, 1375, when he came as an attorney for the Nez Perces company, and had a power of attorney, signed by the members of the company then in Kalamazoo, empowering him to collect col-lect their bonds. The power of attorney at-torney was produced. He caused the sale of the mine to be made under thoie bonds; advertising had previously previ-ously been done; the deed was made to George Y. Wallace. Went to the mine the day after the sale and delivered possession of it. to Mr. Wallace. Did nothing more under .that power of at-torney at-torney in Utah; stayed in Utah about twenty days on that occasion, and left about the 20th of December. Mr. Holden once more examined the maps exhibited on Tuesday, to show bow far the SlO-foot level of ths Old Telegraph mine had been run at the date he left. The driving of the tunnel tun-nel was done in his absence. He explained ex-plained why the course of the drift was changed: He bud been through the Revere, Yoseniite, Jordan and Spanish mines, and had '"examined the general dip of the country and croppings.and thought that as they ap peared to run north, it was more reasonable to maie the drift in the direction it a Iter wards went, to tap the vein. Alter the change was made, the course was directed to the centre of the old workings of the Nez Perces and No You Dont. Did not know where the lode whs; it was impossible for anybody to know 'it. Was at tho Montreal ruins about the 1st of De cember, 1875, oq the 3S0 foot level. A small amount ol ore was bein taken out at that time The pitch of the vein waa about forty two degrees; if that pitch had continued it would have come out at the 3 10 -foot level of the Old Telegraph. Work wab discontinued dis-continued iu the old workings. Had 2, 200-100, OOOlhs at the time of the sale of the property. Sold to George Doaneoue tweuty fifth of the property and to Waller 8. Brown one twenty-fifth, twenty-fifth, for $1,0J0 each; they eaoh paid $700 down and were to pay $300 apiece, provided it came out of the mine. The sales were bona fide. Considered it a 1 full piiae. He directed the work and left workmen engaged on the tunnel. Directed it for himself. Witness re turned to Kalamazoo, arriving there on the 25th of December, 1875; met the bondholders that morning all that wore in Kalamazoo. A meeting was then called of the directors or tue Nez Perces compauy, at which Mr. Holden gave the details of what ho: had done, of the sale of the property, i of the surveys he had made, and of i the position of the Montreal. After the meeting, he explained, the best way he could by cutting and punctur-! iog a turnip, the hill and tho positions of the workings, and showed them the, -reason he bad directed the cutting of j the tunnel as be did; stated all he' knew as to the hill; ahout the Mon- treal, having been in it, and explained its relation to their mine," but which i relation could not be determined except by working It. He also presented pre-sented to that meeting the balanced books, handing them to Mr. Traak, secretary of the Nez ferces company. Tho organization of a new company was then talked over; ho had no soheme in this; but advocated it because bo believed it to be to tho best interest of all. The matter wn discussed. After arriving in CUvi-land CUvi-land bo saw Ford and Cowles and alt the Cleveland bondholders; talked with them and gave them ttie same information and descriptions as he had rsciled to the Kalamazoo p vrties, and the consequence was, the calling of a meetiug in the latter part ot the month, at which the new company was organized and called the Old Telegraph mining enmpauy; a paper was signed by all present requesting that all the proprrty be deeded to the new company. This was on the 31t of December, 1875. Mr. Hokieu became be-came vice president and director of , the Old Telegraph mining company an the day of its organization. He 1 paid for work from the 30ih of Novomber, 1875, to the middle ol February. 1876, with his personal funds. Prior to January, 1376, no scheme was formed for buyiag out the company's bondholders. He did nothing to retard the work of the development of the mine. Received nothing personally a the proceedf of the nnue. Tliree or four small lo'e ol ore had been takeu out during hi-absence, hi-absence, and when he Waited the mine on his roturn in 1S75, he round i men screening trie ore taken from a small pocket. .The output ws not lutlicicut to pay, as it was thon worked. Two men in Ui nM workings might have citvvml their expense". no ni.-.re; Hip ore waa not in iht tn par lr doing dead work, eto. Mr. Holden 'veu explained how the property got into the new" organization, nd read lmm the minute book the proposition he made to the new company and the terms of sale. The first due al tached lo tne articles of -so--i.uiou was the 31a! of December, 1875. He wai appointed manikin director of the Old Telegraph Mining Com pan; on the Bame day as the oramzitiou was effected. No agreement existed between him and Ford, alter the organization of the company, touching a trusteeship or agency, nor between him and any other bondholder. Did not agree with Kendall or any other bondholder to look after his or their especial interests for any consideration nor without consideration. Ford had been in Utah and had been all through the properly. The contract between Ford and Holden, seliiog the first-named first-named 's stock and interest to the lat ter was then read; it waa made on the 2nd of February, 1876, in Ford's office in Cleveland. Hart had several interviews with Ford in regard to the purchase of the properly; told him whs, had been done with the pro perty; talked the matter over very fully; told him he was doubtful about striking the Montreal tunnel; wanted Ford to pay his pro rata of the $5,000 note; urged him to py it; Ford did not want to sell out, and promised to try and raise the money; tailed to get the money and asked Holden to renew the note, which he (H.) declined. This finally resulted in the agreement agree-ment signed on the 2nd of February, 1876. During the negotiation, Ford asked lor no information Holden did not give. Ford knew we bad atruckja ledge. When the sale was made, witness wit-ness did pot have the knowledge, only through a telegram; had not the information in-formation at the liuid the contract was made. Showed Ford no tele gram, except the one reading "have struck the ledge must have $1,000 immediately." Showed him letters in reference to the mine. Prior to the time be bought out Furd, witness sent the letters received from the mine to the company in Kalamazoo. On the 2d ol February he thought theproperty wai not worth more than he paid for it. No obstruction was put io Ford's way to hinder him from examining the property, and no instructions or directions were given by witness preventing pre-venting anyouc from going into the mine, and no regulations existed for witoholdiog information from ford or anyone else; neither was there auy arrangement fur misrepresenting; no ciphers passed betwden Holden aud the managers at the mine. Purchased Pur-chased Cowles' stock about the 24th of January, 1870 Showed Cowles a letter frum Duauoa lew days after the making of the contract. Co ivies Ire quently soiight Holden lor the latter to purchase his stock, and took the first offer made. Assessments were levied, 2 per ceut. oj lit of February Feb-ruary and 3 per cent, on the Hth, for the purpose of surveying, developing, devel-oping, etc. Had no recollection of a meeting of the Nez Perces company on the 1st of February, 1876. Did not vote by proxy auy stock owned by Ford. He first communicated to other parties on the 5th of February, 1876, his purohase of Ford's stock. Witness came to Utah on the 16th of February, 1876. He showed on the map again the exact condition of the mine on his arrival; the work that had been done on the 310-foot level; near the face of the tracing incline an ore chamber had been opened about 20 by 20 by fi feet; the air in the mine was foul and he procured a fan. Here court took a recesi until 2 o'clock. In the afternoon Mr. Hold en's ex animation wa aain continued. He explained that he had bought Cowles' itock before ho received the January dispatch the same one he gave Ford. Described on the map the working up ! to the point of connecting with the Nez Peroes shaft; the order of work following that connection, about the 24th of March. Stated that no ores were extracted except what were taken out in the progress of drifting. As soon as they broke into the Mon treal a restraining order was obtained Against further working on the Montreal, Mon-treal, which started a suit against the Old Telegraph Mining company. Witness reported to the company as fully as time and business would permit per-mit him to do. Here began the read ing of a lot of letters and telegrams, 0 dillerent dates from July 15th, 1875, to the 8th ol April, 1877, some of which were originals and some copies. Sixty dillerent ones were read and after the reading of the sixtieth, Court adjourned until Thursday moruing at 9.30 o'clock. - |