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NEW SENSATIONS IN THE FREEMAN CASE.
Peculiar Incidents Described
to the Federal Grand
MASVIN IS STILL FREE.
He. Avoided the Scylla of Contempt
and the Charybdis of
DAMAGE SUITS IN PROSPECT.
They Are Threatened Against the
Westinghouse Company by Its
During the entire afternoon session yes
terday the Federal Grand Jury was en
paged' in probing into the. charges of
perjury, subornation of perjury, bribery,
criminal conspiracy and intimidation
COMMISSIONER EEACOCK, IN WHOSE COURT A GREAT DEAL OF
IMPORTANT TESTIMONY IS TAKEN.
[Sketched from life by a "Call" ari ' I 'ny.]
of witnesses brought against Attorney !
11. S. Mackaye, Warren P. Freeman !
and Wallace E. Freeman, but from
the trend of the investigation it is believed
that if any indictments at all are returned j
they will be against H. S. Mackaye and ;
"VVarren P. Freeman for intimidating
Walter K. Freeman, the plaintiff in the
Freeman-Westinghouse patent case, who
brought the alleged corruption to the
notice of the Federal authorities, was the
lirst witness summoned to appear before
the secret investigating body, which since
its last slttin? has lost the valuable ser
vices of H. J. feummerhayes, the electrical
expert of the Grand Jury, because, like the
parrot which attempted to toke a fall out
of the Tammany tiger, he talked too much.
The witness reviewed his past work in
the electrical field and gave the general
situation in electrical matters to show the
importance of t lie issue involved and the
temptation to use every possible means to
win. Under the guise of showing the gen
eral reputation of Warren P. Freeman he
went into the career of the alleged con
spirator and brought to light some new
and startling testimony. Among other
things he charged that Warren P. Free
man was one of the principals in the
notorious and fraudulent electric sugar re
fining deal, the center of whose operations
was Philadelphia, and for participation in
which his co-conspirator Friend is now
serving a sentence of nine years and six
months in Sing Sing Prison.
Warren P. Freeman takes pride in being
addressed as "Doc" and having the gen
eral reputation of being a regularly ac
credited healer of the sick, but Walter, in
his testimony yesterday, stated that the
professional title was acquired at short
notice and without the slightest right to
it. The first the witness knew of the new
dignity assumed by his brother was
through a letter, dated April 21, 18S1, in
which Warren requested to be addressed
as Dr. Warren P. Freeman.
Then Walter K. told of forgeries he al
leged Warren P. had committed while in
the employ of the Wheeler it Wilson Ma
chine Company ;it Albany, N. V., and
which, he claimed, were prevented from
becoming a public scandal by the father,
who sacrificed a competence to pay various
forged notes altered by Warren.
Witness also went over the present asso
ciation of Warren I', and Baid the latter
had urged him to join the Westinghouse
Company against the Fort Wayne Kioctri
cal Corporation, asserting there was sso,ooo
in it for witness.
Alexander 11. Freeman was also a wit
.(.•fore the Grand J my. He detailed
the manner in which be was, as he aliened,
fraudulently induce, 1 to come to this City
by means of the "fate" rubber company
scheme used by H. S. Mackaye, alias Wil
The general purport of their whole ar
rangement, he said, was to cause him
such great mental distress as to conhnc
him to bed with an attack of nervous
prostration, lit- stated that he knew
Warren P. Freeman, bis brother, was quite
capable of concocting the necessary scheme '
to make it appear that he had voluntarily
or through offers of money, agreed to
change hi 3 former testimony," but that ho
had not done so and aid not intend to do
so. He also averred that since he came to
Ban Francisco at the requast of Warren,
presumably on a pleasure trip, he had
been by trick and device subjected to all
kinds of humiliations.
He further testified that for a long time
nfter he arrived i:i San Francisco 11. s.
Mackaye masqueraded as William Bteele
and pretended to bo a capitalist and able
to invest $100,000 in the rubber company.
As the re>ult of his association with
Warren P. Freeman, Wallace E. Freeman
::!:ii J!. s. Mackaye «inoe his arrival in this
City be asserted that he had come to the
conch. --:')!i that Warren P. Freeman was
unworthy of belief; thnt .Wallace E. Free
man consented to commit perjury for the
money he was to be paid for doing so, nmi
that he is merely a tool acting under the
instructions of both Warren P. Freeman
and 11. B. Mackaye, and that H. S. Mackaye
is unworthy of belief. He added that he
believed that none of the three persons
named by him had ever told the truth in
connection with anything that has trans
pired here. He also charged Warren F.
Freeman with having forged his name to
an alleged affidavit which purports to con
tradict a deposition made Dy witness pre
viously in Los Angeles.
MARVIN STILL FREE.
Declines to Testily on the Ground
That He Would Criminate
Marvin L. Freeman refused to answer
questions put to him yesterday morning
before Commissioner Heacock in the
Freeman-W< stinghouse case, despite the
ruling of United States Circuit Judge
McKenna that he must do so, yet he is,
and is likely to continue, a free man, as
far as any punishment for contempt of
court is concerned. But in order to escape
the penalty for disobeying the order of the
court, the witness was compelled to con
fes9»that he would criminate himself if he
answered certain questions. While the
proceedings had no direful results, they
were intensely interesting. Among the
attentive auditors was United States Mar
shal Baldwin, who was evidently present
in expectation of having the task assigned
him of serving a writ of attachment on
Marvin L. Freeman.
Attorney Mackaye, counsel for the
Westinghougp Company, began by asking
Marvin L. Freeman to answer the question
he had previously declined^, o answer. It
was as to whether or not he had seen
ndnction coiis or a cons - erter in Brooklyn
in th<' : n of Walter K. Freeman,
the plaintiff, as he had previously testified
After a long period during which the
witness w ( as evidently meditating as to
how to best frame his reply ha said, much
to the surprise of all except the few who
were aware of the course he intended to
I refuse to answer the question on the
ground that if I answer cither yes or no it
would tend to criminate me.
Mackaye— ln what way would it incriminate
| J. L. Boone, counsel for witness— Will you
ATTORNEY J. B. CHURCH.
[Sketched by a " Call" artist.]
allow the witness to consult with me before he
is compelled 10 answer the question?
Maekayc — if you a!lo\v your re
marks to go on the record.
Boone — As counsel for the witness I will
slati? the ground on which the witness now de-'
clines to answer the <;nestion, viz.: that an
answer either yes or no would tend to incrimi
nate him. In April, IS9j, he gave his deposi
tion in this ceso am! Mated the facts at that
time as they appear on the record. This depo
tion was taken in n certain district of the
I'nited State?. Subsequently by means of
throats and offers of rjoney he was induced to
come to thig aletrlct, where by means of
undue Influence. threats and trickery,
he was induced to sign an affidavit
in which it was s--tat«'d that the tes
timony he had heretofore given was
not true. He has now been placed upon the
stand in this district, where tlie affidavit whs
obtained, to.be re-examined upon the same
matter, regarding which he has twice deposed.
If he sboold confirm his testimony as hereto
fore given in this case be would undoubtedly
be subject to • criminal prosecution upon the
part of the parties who are now endeavoring
t *L* a ke his deposition for having made an
ailiaavif contrary to his • former deposition,
and if lie should answer contrary he would be
'ri ° criminal proceedings on the other
Horace Platt, associate coVmsel with Jlack
aye—Counsel ior the AVestinchouse Com
pany desires to state in reply to counsel for
witness that in the proceedings before the-
United States Circuit Court Judge McKenna
btates there was nothing in the statement of
THE SAN FRANCISCO CALL, WEDNESDAY, NOVEMBER 13, 1895.
the witness to show that he had been lured
into this district, and further that counsel for
witness has no authority ior attempting to
state what proceedings might, would or
should be taken by the Westinghouse Company.
Attorney Mackaye then asked witness
■whether cr not he had seen Walter K.
Freeman experiment with or use induction
coils prior to 1887 and whether he had seen
such apparatus or invention at various
specified places. To all such questions
witness refused to answer on the same
j ground that he had refused to answer the
first question. Then counsel for defend
j ant tried another tack. He asked witness
to what he knew about the reputa
tion of Walter K. Freeman for veracity.
Witness— As I understand that question
I cannot say that I know anything about
it. It has always been hearsay with me.
After a repetition of the "question in
another form and an objection by Attorney
Church, Mr. Piatt took "up the examination
on the Fame line and finally elicited the
following reply :
! "It has always been had, as I have heard
j it discuss3d only by H. S. Mackaye, War
i reii P. and Y\'allace E. Freeman.""
j Then came the following interrogatory
by Attorney Mackaye:
"State whether or not from your own
experience you would believe his statement
Witness— l never had cause not to be
lieve him until coming to San Francisco.
This closed the direct examination of
witness, and Attorney Church begun his
cross-examination, taking prompt and full
j advantage of going into the history of the
I events with which Marvin J,. Freeman has
i been connected during the past month.
Thia was accomplished by the opening
i made by the defense when it attempted to
attack the reputation of Walter K. Free
man. In this connection all the facts and
incidents detained in Marvin L. Freeman's
affidavit, published in yesterday's Call,
were brought out, and thus directly incor- I
porated in the patent case record, making j
a stroinr point for plaintiff.
As the plea made by the witness that J
by answering certain questions he would i
incriminate "himself is a constitutional
right, it exempts him from the charge of
contempt. In view of the facts no further
steps will be taken by the counsel for the j
Westinghouse Company to force him to j
testify for them or to legally punish him |
lor refusing to do so.
Marvin's cross-examination will close !
to-day, and then Alexander H. Freeman ■
will be called to the stand by the counsel
for the defendant. It is understood that
he will also refuse to testify in behalf of
defendant and will, in ail probability, fol- ;
Jow the course pursued by Marvin. Mean- i
while both witnesses are drawing a per j
diem from the Westinghouse Company.
, He Denies That He Evar Attempted
to Interfere With a
Attorney Horace Piatt feels considerably
! aggrieved over the liberty he claims was
i taken with his name in the affidavit of
Marvin L. Freeman, in which it was al
leged that Platt had told Wallace E. that
lie had fixed the Federal Grand Jury so
that no indictment would bs returned
against 11. S. llackaye, "Warren P. or Wal
j lace E. Freeman. In an interview yester
day Mr. Platt said :
In reference to the second-hand statement
in Msrvin 1.. Freemen's-affidavit that Wniliice
I K. Freeman said to him that I liml arraiig'-d
Ihe Grand Jury I simply desire to state I have
| not been near any member of the Grand Jury
j since they began to take testimony in the mat
| ter. I would not speak to any member of any
jnry ynile he is talcing testimony in a matter,
and in no way, shape or form have i de
sired or attempted to manage this matter be-
I fore the Grand Jury. I rely entirely upon
the testimony ns given by the witnesses In be
i half of Messrs. Mackaye," Warren P. and Wal
lace E. Freeman.
Wallace E. Freeman denies having
made any such statement to Marvin L.
Freemanor to any one, and states he will
pro before the Grand Jury and make such
HEAVY DAMAGE SUITS.
Attorney Boone May Bring Them
Against tha Westinghouso
Even with the hearing before Commis
| sioner Heacock at an end and the final
i disposition of the charges now pending
i before the Federal Grand Jury there is to
i be no cessation of the legal warfare in con
; nection with the Freeman brothers, ac
cording to the statement of John L.
, Eoone, the legal adviser of Marvin L. and
i Alexander H. Freeman.
As soon as the taking of depositions
j before Commissioner Heacock is con
' eluded, Mr. Boone says he intends to
| begin damage suits on behalf of his two
; client?, against the Wostinirhouse Com
pany, Attorney H £. Mackaye, Warren
IP. and Wallace E. Freeman. He will ask
for $100,000 in each case. It will be
claimed that both brothers were made to
suffer intense mental anguish by reason of
the alleged frauds and misrepresentations
practiced upon them by the parties who
are to be made defendants to the suit, in
the efforts to induce them to change their
testimony so as to favor the Westinghouse
A LOVER OF THE DOG.
The Secretary of the American Kennel
Club Is Among Western Sportsmen.
Last evening Clarence Haight and H.
Bier, the president of the Pacific Kennel
Club, left this City for the purpose of
meeting A. Viedenburg, the secretary of
the American Kennel Club, at the Six
teenth-street station, Oakland. Mr. Vied
enburg has contemplated a Western trip
for several months, with the object in
view of straightening out kennel matters
on this coast and meeting the sportsmen
who are interested in kennel affairs. The
Pacific Kennel Club has called a meeting
of all the prominent sportsmen's clubs of
this City and State to convene at the Occi
dental Hotel in the near future and ex
change ideas on questions regarding thor
oughbiei dogs and kemiel matters in gen
THE GOVERNOR EMPHATIC
I Says $250,000 Is the Ultimate
Limit for the Affiliated
AT A MEETING OF REGENTS.
Some Doubt as to Whether the Legis
lature Contemplated One or
The regents of the University of Califor
nia held a meeting yesterday afternoon at
the Mark Hopkins Institute of Art, and in
j addition to the transaction of a large
I amount of routine business, discussed the
number of buildings for the proposed
Affiliated Colleges to be erected on the site
given by Mayor Sutro.
Governor Budd made his appearance and
took his seat among the regents. Califor
■ nia's chief executive was bundled up in a
[ heavy naval overcoat, and his sallow face
? ami disheveled hair added to the general
i effect of a weakness which has lingered
since his severe illness.
All other business was suspended for im
mediate consideration of the prospective
j building or buildings for the Affiliated
J. B. Reinstein, the new member of the
board, expressed his opinion that the dis
cussion of expenditures upon the recently
accepted site ought properl}' to be deferred
until the title to the property had been
more thoroughly investigated.
Judge Wallace declared : "There is not a
I piece of land in San Francisco with a
I rleaner title than that, and there are abso
| lutely no claimants. It was derived by
Mexican grant, that has been passed upon
! by the United States, and there is no doubt
■ about it whatever."
As to the ultimate erection of the Sutro
1 library building near the site for the col
; leges, Governor Budd thought it would be
I a good idea to get an expression in writing
i from Mayor Sutro of his intention to build
tiie library, and then in the event of his
death the Sutro heirs would not he able to
avoid the Mayor's present purpose. The
Governor added that he has the utmost
I confidence in the sincerity of Mr. Sutro's
intentions, but he said there is no telling
what heirs may do. It is his impression
that an agreement on the part of the uni
j versity to erect buildings to the value of
$250,000 on the site, with the understand
| ing that Mr. Sutro is to build a library on
' an adjoining lot, would in itself form an
agreement' that could be enforced.
"Mayor Sutro told me," said Judge
; Slack, ''that he was willing that he should
} be enjoined from putting his library some
The regents turned their attention to I
the interpretation of the legislative act
] providing for buildings grouped together
1 for the Affiliated Colleges. The point
I raised by Judge Wallace was that, if the
' wording of the act were not conformed to,
the appropriation might not be paid. To
this. Governor Budd said: "Couldn't we,
Judge, have one great big building, with a I
: little building on one side for a dissecting i
room, and on the other side another little i
building for a tooth-pulling room? Then
we would have buildings grouped to
Thf attorney of the board was very em
■ phatic in his opinion that the Legislature j
. intended that there should be one building !
: for each of the colleges, or else what did
j they mean by saying "buildings for the
! Affiliated Colleges, to wit," and then enu
! meriting them. Such an interpretation
would necessitate seven buildings, but
nearly all the regents were agreed that, |
that would be too many with the $250,000 |
at their disposal.
Governor liudd was on his feet again
and made the surprising announcement
that in accordance with a sort of hurry-up
act of the Legislature matters must not be
! allowed to drng. "1 want to call the at
tention of this board," he said, 'to the
fact that the statute says that half of the
$250,000 must be expended during the
I forty-seventh fiscal year or before January
1 1, 1896, and the other half before January
I 1, 1897. The granite for the building cah
I be obtained from the quarry at Foisom at
! cost and the brick from the State Asylum's
I brickyard at Napa, so we would tret practi
! cally a $350,000 building for $250,000.
"I will say now that I will never sign a
; bill to expend a cent more than thes2so,ooo
' on the Affiliated College buildings."
"Well. Dr. Cole," jocularly remarked
j Judge Wallace when the accustomed calm
had settled upon the staid regents after
the Governor's stirring little speech, "you
would like to lave your building as close
to the law building as possible, wouldn't
"No, sir," replied the head of the medi
cal college, "I would not. I would want
it as far from it as possible. The less we
doctors have to do with lawyers the better."
Then the man who would avoid lawyers
I held a chummy, whispered conversation
I with Judge Havens, after which he an
' pounced that the law college and the mcd
■ ical college favored the erection of three
But further discussion was stopped by a
j motion to request the Attorney-General
to send as soon as possible his intepreta
tion of the act.
A deputation from the Mechanics' In
stitute and from the Merchants' Associ
ation was informed that the board would
be too busy. So the attempt to urge the
acceptance of the Wilmerding School of
one of the sites offered by Mayor Sutro
was not made.
President Kellogg informed the board
that J. H. Rosewald had left the university
$300 a year for the assistance of worthy
Dr. Charles A. yon Hoffman, formerly
adjunct in the medical department, has
been made assistant professor of gyne
Director Holden of the Lick Observatory
has been given a leave of absence for one
month without loss of pay. He is at Santa
I Barbara under medical care.
Mrs. Walter Magee, wife of the physical
director at Berkeley, has been made in
structor in the woman's gymnasium, with
pay at $3£5 a year, her services being re
quired three days in the week.
The financial committee of the board
offered some little time ago the sum of
$350,000 for the Johnson property on Sut
ter street, between Kearny and Mont
gomery, and the executors of the estate
accepted the offer, subject to the approval
of the Probate Judge. The regents sanc
tioned their action yesterday. If the cur
chase is consummated the income from the
I building will be added to the fund for the
1 Wilmerding school.
j Proiessor Harold Whiting, who met his
death with all his family in the Colima
disaster, has by the terms of his will left
$20,000 to the university, to be used in the
physics and science department.with which
he was connected.
Professor Corey, head of the electrical
department of Berkeley, in a communica
tion to the board informed them that the
college buildings on the campus could all
be connected for electrical lighting from
the plant now in use and at a cost of only
$500. The board accordingly decided to
appropriate that amount.
Arthur Rodgers, President Kellogg and
Columbus Bartlett were appointed a com
mittee to draft resolutions upon the death
of George J. Ainsworth, formerly a mem
ber of the present board.
A long discussion ui>on the advisability
of exchanging a piece of land in the Lick
Observatory domain remote from the ob
servatory for a similar amount of land
very near the buildings on the west slope
of Mount Hamilton came to no head. It
was argued by Judge Wallace and others
that the exchange would remove the line
of private property a half mile from the
buildings and make provision against tire
The following regents were present:
Governor James H. Budd, John C. Lynch,
Martin Kellosg. J. B. llcinstein, Columbus
Bartlett. A. S. Hallidie, J. F. Houghton. J.
West Martin, G. T. Marye Jr., Albert Mil
ler, T. G. Phelns. Arthur Rodgers, Chester
Rowell, C. W. Slack, W. T. Wallace.
LARSEN'S FATAL RAZOR.
Suicide of a People's Home Savings
Bank Depositor Under Curious
Frederick Larsen, a former employe of
Fair's ranch, was found in his room, in the
rear of 279 Jessie street, yesterday after
noon with his throat cut from ear to ear.
He had locked himself in, and it was nec
essary for Policemen Fraher to break open
Larsen had used a razor, and the head
was almost severed from his body. For
some time he had been out of work, and
he had hired a room for $1 per week. At
one time he was a laborer at the Pacific
A singular thing about Larsen's self-de
struction is that he had considerable
money and was not in any fear of im
mediate want. There was found on him a
certificate of deposit on Wells, Fargo &
Co.'s bank for $120. Besides this there
was a receipt from Attorney W. W. Allen
for two accounts with the People's Home
Savings Bank. Larsen had turned these
People's bank claims over to Mr. Allen
just the day before. It is thought that his
fear that he would never realize anything
on his deposits in the insolvent bank made
him despondent. He was about 45 years
The 31nriposa Leaves To-Morrow Loaded
With Products of This State.
• The steamer Mariposa will sail for Syd
nej-, N. S. W., via Honolulu, Apia and
Auckland, to-morrow, with an un
usually heavy cargo and a full passenger
list. There is nothing unusual in this,
however, were it not for the fact that
nearly the entire cargo is the product of
California. There is not a hundred tons of
Eastern goods in the entire ship, and this
is all the more remarkable, as great quan
tities of stuff from New York and Chicago
go monthly to Australia, New Zealand and
Samoa. On this occasion, however, all the
places mentioned have ordered their goods
of California manufacturers.
Among the cargo there are over 200 bales
of hops and an immense quantity of
broom corn and broom handles. There
are also .5500 doors, manufactured in Cali
fornia mills, and GOO tons of canned goods,
principally fruits grown and packed by
A peculiar feature of the shipments is
over 500 cases of green apples, which the
shippers expect to be ripe and in good
condition by the time they reach Auck
land and Sydney. Then there is lumber
for Samoa, onions for every port on the
route, California wines- for Sydney and
Melbourne and a large quantity of fruits
ami vegetables for Honolulu.
A foolish story was started last Saturday
and published in some of the papers to t lie
effect that the Mariposa was going to take
1000 tons of wheat to Australia. In the
first place there was not room on the
steamer last Saturday for lifty tons of any
kind of merchandise, and in the second
Australia is shipping wheat to England
herself in large quantities. Purser Smith
of the steamer laughed when he heard the
story and said some one had been having
a joke with the boys. "The Marioosa i 3 a
full ship," said he, "and we cannot take
all the freight that is offering. California
is in the lead and 1 hope and trust she will
stay there. Our goods aro gaining in pop
ularity in Australia every day, and f think
the time is not far distant when the Oceanic
steamers will be carrrying nothing but
Dr. Milan Soule will go out as surgeon on
the Mariposa. He was for years on the
Alameda and latterly was on the Australia
running to Honolulu. His place on the
Australia was taken by Dr. W. A. Grover.
NEW TO-DAY CLOTHING.
OUR WHOLESALE THE RETAILER'S THE SAVING IT
COST PRICES. PROFIT PRICES. MEANS TO YOU.
t 4 o $2.00 $3.50 $1.50
14 yrs. 3.00 5.00 2.00
$3.00 1 $5.00 $2.00
Ipyrs. 4.50 1 8.00 3.50
JUST A FEW PRICES ON BOYS' AND CHILDREN'S
SUITS THAT WE SELL AT MAKER'S COST TO YOU.
WHY AT COST?
We sell our Boys' and Children's Clothing at Cost as an advertisement of the entire
enormous stock. If mother finds out what she can buy the children's clothino- for
she'll send the father and the brothers to the Great Wholesale Makers— we're "sure
Wholesale Manufacturers of Fine Clothing,
Proprietors of the Oregon City Woolen Mills'
121-123 SANSOME STREET.
AGAINST AGENT STATELER.
Special Trustee Chetwood Asks
the Federal Courts to
USE MADE OF THOMAS' STOCK
Grave Charges Against the Ex-Presi
dent of the California Na
Injunction proceedings have been com
menced in the United States Circuit Court '
' by the California National Bank and its
! special trustee, John Chetwood Jr., against
j Thomas K. Stateler, general passenger j
j agent of the North Pacific Coast Railroad
Company, to prevent him from acting in
the capacity of agent for the st jobholders, j
In support of the comnlaint Chetwood ;
filed an affidavit yesterday, through his j
attorney, A. W. Thompson, which charged ;
i Stateler and It. P. Thomas, ex-president of \
the bank, with conspiring to prevent the
collection of a judgment against Thomas
for about $200,000 on his stock.
According to Chetwood Stateler was i
elected agent at a meeting of stockholders
in July, 1894, by the vote of President, i
! Thomas' delinquent stock, which amounted j
i to 1020 shares out of a total of 1X)00 shares.
! The judgment against Thomas was ren
dered last November and Chetwood avers j
that "to evade the collection" Thomas '
filed a petition in insolvency in December '>
in the Alameda County Superior Court '
and that at a meeting of Thomas' creditors i
subsequently he was chosen as Thomas' j
The judgment was for about $140,000 j
principal and $(30,000 interest on unpaid
The startling allegation is made by
| Chetwood that in the list of Thomas'
; assets the 1020 shares of the bank stock did I
I not appear, and that he discovered on in- |
vestigation that the stock had been trans
ferred after the July meeting to D. E.
Dowhng, an employe of Thomas — a trans
: fer held to be void because made without
In his efforts to obtain possession of this '
stock and to have Dowhng punished for ;
contempt, Chetwood represents that he
has been hampered and thwarted by State
ler's pretensions of being the agent and |
trustee of the stockholders. With the fol- i
1 lowing paragraph the list of offenses i
| charged against Stateler is given in the !
And your affiant respectfully avers that the
following acts and proceedings of T. K. State- j
: ler clearly show and evince open, palpable, j
j deliberate and scandalous opposition to his
alleged and assumed trust and to the interest
and welfare of the bank and stockholders whose '
agent he claims to be.
Then he proceeds to charge that Stateler j
and Thomas were found to be concealing :
valuable property in January, the month
Stateler qualified as agent; that Stateler j
j only began to act as agent when he could '
1 be of service to Thomas; that Stateler l
j went into the insolvency court and tried
; to have a petition substituted for that of '
Chetwood, and that Stateler was ruled out |
by the court.
It was learned, Chetwood alleges, that
| Dowling had conveyed Thomas' stock to '
! another employe named Parker, and when !
i affiant tried to trace up this transaction |
| Stateler again appeared in court in an at
i tempt to prevent him by filing a claim
against Thomas on an unsigned prom is- ;
sory note to a third person and appealing I
to the State Supreme -"Court. Stateler's '
I appeal put a stop to all further proceed- )
J ings for the time being. On a certiorari
hearing Chetwood was ordered by the Su
preme Court to desist from further in
solvency proceedings against Thomas.
Subsequently Stateler had an order is
sued by the San Francisco Superior Court
requiring Chetwood to show cause why
Stateler should not have all the money of
the bank turned over to him as acent for
the stockholders. The Superior Court of
this county, however, decided adversely
to Stateler and he promptly appealed again
to the Supreme Court, the last appeal be
ing still pending.
in his charge of conspiracy Chetwood
recalls a voluntary visit once made by
Thomas to his office, Chetwood'a attorney
being present, and also Thomas' conversa
tion at the time. According to Chetwood
Thoma3 expressed his belief that Chet
wood would recover judgment, but that it
would be collected out of the other de
fendants — two other officials .of the bank—
and that he would be execution-proof him
self in case judgment was entered against
him. Thomas added, Chetwood avers, that
he owned about one-half the stock of the
bank and would divide it with Chet
wood provided he was dismissed from
the action. The proposition was that
Chetwood and Thomas were to profit
equally by any judgment obtained out of
the other defendants. This proposition
Chetwood says he refused to entertain and
thereupon Thomas threatened that it
would be impossible to collect anything
from him as "he was execution-proof,"
and "as a stockholder would control
matters and dispose of all his stocu," so
that nothing would be recovered from him,
and, besides, he would get or.e-half the
benefit of any judgment collected, from the
other defendants nnywav.
The charge that Stateler was elected by
the vote of Thomas' stock is supported by
the affidavits of Receiver S. P. Young and
Stockholder W. K. Vanderslice, who were
present at a meeting of stockholders in
May, 1893, when Thomas and his friends
first voted the delinquent stock in faror of
Thomas' choice despite the protests of
Chetwood ami others.
The part in the bank's affairs finally
taken by Attorney 11. B. Mitchell, on be
half of Thomas, Stateler and Dowling, is
also referred to by Chetwood.
A RAILROAD MAN'S FALL.
E. SI. Railton, Agent at East Oakland,
Loses His Position.
Edward M. Railton, agent of the South
crn Pacific Company at East Oakland, has
been dismissed from the company's em
ploy on account of a shortage in his ac
counts. Last April there was found a
shortage of $SOO, but he then told the Na
tional Surety Company, which had given
bonds for him, that he had lost the money
out of a pocket just after he had cashed a
check for that amount. He made the
amount good at that time and retained his
position. About the Ist of last month it
was found that he was again short, this
time for $520. The eecond shortage, the
surety people say, tney suppose was caused
by his being pushed for the money ad
vanced him to make up the first. The
money has been paid up by Raiiton. but the
railroad officials refused to retain him, >»nd
his place was declared vacant on the sth of
! Railton was one of the oldest and best
known officials in the railroad's employ.
i Fifteen years ago he was a train dispatcher
i on the Oakland mole under Superintend
ent Fellows, and while there acted as a
j mentor to Fred and George Crocker, who
| were given positions in the office on the
• mole to learn the business. At that time
1 he was a favored employe and finally was
I appointed master of transportation under
; Superintendent Fillmore.
i A few years ago, however, when Presi
dent Iluntington gained control of the
road and began to inaugurate his econom-
i cal methods of railroad management he
discovered that the road could well afford
i to do without the services of Mr. Railton
■■ in the capacity of master of transporta
: tion, and he accordingly abolished the
After engaging for a time in other busi
ness Railton returned to the employ of the
\ company as agent at East Oakland".