The Galveston Daily News. (Galveston, Tex.), Vol. 50, No. 98, Ed. 1 Tuesday, June 30, 1891 Page: 1 of 8
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168 TO 196 COLUMNS
Each Week for 62 Weeks for $2 50
The GalTe«ston Sunday News end The Gal-
"ton n eekly Newu to one address for $2 50
*e&r; ^ six months, $1 35; three months, 75
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readers, while The Weekly News contains con-
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bubscribe through local agents or direct to
A. H. BELO tc CO.. Publishers,
GALVESTON, TEX.
CONCERT
em hotel i
Erery Nlrht Except Wednesday.
-TO-
HEW ORLEANS AND RETURN
Given by the
OLEANDER EXCURSION CLUB
JULY 12, 1791.
Trains leave Galveston via Gulf, Colorado and
Banta Fe at 8 a. m. sharp. Leave New Orleans
July 17,1891, at 8 a. in. sharp.
TICKETS. ROUND TRIP, ONLY $10.
Uiift (Mrestiw pdiln
VOL. L—NO. 98.
GALVESTON, TEXAS, TUESDAY, JUNE 30, 1891.
0^,842.
I. & 6. N. INQUIRY.
Proceedings in Full of Mon-
day's Session.
JUDGE M'CORD FINISHES.
Judge Duncan, Mr. De GrafFenreid and Other
Witnesses on the Stand and
Questioned.
Tickets for sale by Thomas Goggan, J03. E.
mason. Victor Phillies, C. W. Preston, or from
the following committee: James Prendergast,
Keinicke 3c Snook, Gus Amundson, Charles Sheele,
vjub rtuiuiiimuu, v. iianrs oueeie,
James E. Moore, Charles Ritter, W. J. Houlahan,
1). A. Smith, Fred Wimhnrst and P. S. Wren,
Train will leave Houston at 10 a. m. sharp.
Tickets can be procured from the following com-
mittee at $8 50 Bound Trip: Chas. Dumbler, John
Boesler, Robert Adair, Gus Sautes.
OUR
COTTON DEPARTMENT
Is perhaps the most thoroughly
organized and best equipped
of any factorage business in
the South.
We solicit your shipments,
whether large or small, and
will give your Cotton close
and careful attention.
Will send quotations sfnd sten-
cils free on application, and
solicit rjon*^y><«ndeEC' ..
WILL GOV. HOGG BE SUMMONED ?
A Controversy Ovsr Other Testimony
Bought to Be Introduced—Who
la Responsible P
HOUSTON.
CIGARS.
They are Our Pride and Smokers' Delight
See Samples in the hands of
our salesmen and send us a trial
order.
Moore, McKinney & Co
A. & E. F. McGowen
IRON AND BRASS WORKS,
Houston. - - Texas
Arrested for Inciting a Riot.
Louisvtlub, Ky., June 29.—Walter A. Free-
man, wanted at Forest, Texa«, for inciting the
riot in which seven men were killed, was ar-
rested near Louisville this morning. Free-
man was arrested while bathing at Haddox
ferry, near Princeton, Kentucky, by Police-
man Wilson. He will be taken back to Rusk,
Texas, ior murder and as an accessory to
murder. He was at one time guard at the
eastern penitentiary of Texas for several
months, out through negligence lost his posi-
tion. He began to incite the convicts to re-
bellion, and made plans for their escape. At
Forest, Texas, in June, 1890, while the con-
victs were at work outside of the prison. Free-
man furnished arms to the most desperate,
and at the signal they made a break for liber-
ty, overpowering the guards and intimidating
the citizens. In the melee seven guards and
cizens were killed, and twenty-one convicts
escaped. Freeman was charged with murder-
ing the guard named Williamson. He fled,
hut was captured shortly afterward at Little
Hock, Arkansas, and taken back to Texas,
where he gave bond, which he forfeited, and
has been at large ever since. Freeman was a
native of Marshall county, Kentucky.
A Regular Scorcher.
San Francisco, Cal., June 29.—The signal
service reports yesterday as the hottest day in
8an Franc.sco since 1877, the thermometer
registering 92 degress at a little after mid-
day, or an equivalent of 107 degrees on the
streets.
At 2 o'clock this afternoon the signal service
reports the highest point reached by the ther-
mometer here during the day was 100 degrees.
This is 8 degrees higher than on yesterday.
Points in the state indicate the temperature
ranging from 92 to 104 degrees.
Chioago Longshoremen Strike.
Chicago, I1L, June 29.—The strike of long-
shoremen is spreading. The only line not in-
volved is the Leopold <fc Austria, who granted
the demands of the men.
Forty large vessels arrive to-day and to-mor-
row and the Western line also has 500 cars
loaded. The strikers demand a raise from 20
to 25 cents.
The International and Great Northern re-
ceivership investigation halted yesterday
at the opening. Half an hour was lost by
counsel in getting ready.
Mr. Finley announced ho would not con-
sume any more time than was necessary to
cover points which had not been fully testified
to by previous witnesses.
After some preliminary talk Judge McCord
again took the witness stand, being under
cross examination.
Judge Robertson: WTien did you have your
first conversation about appointing a receiver
in place of ColonelEddy ?Answer :W7hen Messrs.
Duncan, Bonner and others came up to Gil-
mer where I was holding court just after Col-
onel Eddy' death.
Q. When did you first tell that you had ap-
pointed Mr. Campbell? A. When he was ap-
pointed.
Q. Where? A. At Tyler.
Q. Where, at Tyler? A. In a conversa-
tion at the livery stable, in front of it.
Q. Where did Mr. Campbell go then? A.
Home.
Q. WTien did he come back. A. He came
back and qualities' on Monday following.
Q. In your testimony I understood you to
say that when Mr. Chas. Bonner presented
you the account of Bonner «fc Whitaker for
$3000 you tolil him that you would submit it
to Master Campbell, and that no matter what
he might say about it you would not allow the
claim? A. Yes, sir. Not only that but Mr.
Campbell told me he told him that he would
not allow it.
Q. How long was that after your conference
with him? A. I can't say.
CJ. At the time you referred it to the master
you knew the master would report. Uf »p-it
adversely and you knew you would not allow
it? A. Yes, sir, I considered it an unjust
claim.
Q. Why did you consider it unjust? A.
didn't see what Jay Gould and the Inter-
national and Great Northern had to do with
the suit. I didn't see what interest Jay
Gould had in the fight at Palestine.
Q. Were they not parties to the litigation?
A. Yes, sir.
Q. Was not the International and Great
Northern necessarily a party to the suit? A.
Yes, sir.
Q. Was it not necessary the parties should
have counsel in the case? A. Yes, sir.
Q. Was not your statement to Mr. Charles
Bonner a pre-judgment of the claim? A. Yes,
but I didn't think that the International and
Great Northern should pay Jay Gould's coun
eel.
Q. In the ease at Palestine whom did Whit-
aker <fc Bonner represent? A. I don't know.
Q. Didn't they represent the International
and Great Northern? A. I don't know.
Q. Was not the claim for services as attor-
neys of the International and Great Northern?
A. It was so stated, but it struck me that they
were attorneys for Jay Gould.
Q. Was Mr. Gould a party to the Palestine
suit? A. No, sir.
Q. Could he not be represented there by at-
torney? A. I think ho was.
Q. It has been testified that in a conversa-
tion bet Teen Mr. Duncan and you in which ho
was opposing the appointment of Mr. Camp
bell as receiver, and in which you were repre-
sented as telling Mr. Duncan if he was ap-
pointed it would cost the road $1,000,000. Did
you have any such conversation? A. No, sir.
<4. What did you tell Mr. Duncan? A. When
Mr. Campbell and Mr. Duncan came to Gil-
mer after Mr. Eddy's death both were apply-
ing for the place of receiver. I was holding
court at the time, and when I came out they
were sitting in my room. Both said, we are
friends and friends to the court, and submit
our claims. I laughingly remarked: "Gentle-
men, I don't think you are tit for the place."
I said: ''Mr. Campbell, the railroad is against
you on account of the judgment on the re-
bates." He said to me: "If you appoint me I
will comply with the law if it costs the road
$1,000,000."
Q. You said nothing about Campbell costing
the road $1,000,000?. A. No, sir.
Mr. Crane: Who did Whitaker & Bonner
represent at Palestine. There was another re-
ceivership at Palestine and the fight was be-
tween that and the Tyler receivership. Did
they represent the International and Great
Northern? A. The same party.
Mr. Crane: And for services to the Inter-
national and Great Northern in that suit they
brought their claim to you for approval? A.
Yes, sir.
Mr. Crane: The receivers at Tyler were
parties defendant? A. Yes.
Mr. Finley: You, in your cross-examina-
that on Saturday, stated in substance that it
was not yet certain whether the receivers
would have to finally refund the amount paid
on rebates and the $1200 to the News. What
idea did you mean to convey? A. The order
to refund was an interlocutory order under
the rule adopted that when the master's re-
port came in without exceptions in thirty
days the report became the judgment of the
court. The matter had not been before me
for investigation. I don't know anything
about the justice or injustice of it, and I
would consider it if the matter was brought
to my attention; and upon being tried I didn't
know but what I would reconsider the order.
Mr. Gresham: That idea was made up from
the testimony on the subject? A. It has been
in uiv mind all the while. I considered it an
interlocutory order subject to review. I felt
that it could be investigated, and I felt that if
the money had been paid for the good of the
road, without strictly having the right to pay
it or not, if it were honestly paid for the good
of the road, the order might be reconsidered.
Mr. Finley: It has never undergone judicial
inquiry? A. No, sir; under the rules adopted
it became the judgment of the court without
investigation as to its merits.
Q. In the matter of the appointment of M r.
Campbell as receiver you testified Bonner did
not want to t>e heard further on that subject? A/
Yes, sir. Mr. Bonner brought the papers to
me. I asked him what they were. He said
they were papers from Mr. Gould and other
parties protesting against the appointment of
a co-reeeiver. I asked if any of the parties
were there. He said no. I asked: "Have you
anything else?" He answered no. I then
asked: "Do you want to be heard on it?" He
said: "No sir."
Q. W hen was that? A. At 9 o'clock Satur-
day morning.
Q. When did you make the announce-
ment appointing Mr. Campbell? A. Late that
afternoon.
Q. And the order was entered on Monday?
A. Yes, sir.
General Robertson: It has been stated in
the testimony that you made an order of
your court fixing the hour at 10 o'clock and
the place the court house to hear that matter.
Was there any hearing? A. No, sir, because
of the remark of Mr. Bonner. I went off and
considered the matter with myself and consid
ered that a co-receiver was necessary and
appointed Mr. Campbell one when every man
in Tyler didn't want him.
Q. You didn't appoint him Tfe a practical
railroad man? A. No. sir.
Q. Col. Bonner had been sick? A. Yes, sir,
Bonner and Eddy were both sick, Col. Bon
ner's health was bad for some time. He bad
not been in a physical condition before and
has not been since to attend to the business.
He has just been unable to attend to the
business.
Mr. Garwood: At the time of Mr. Gould's
judgment was the statement made in court
about the investigation of his claim? A. Yes,
sir.
Mr. Garwood: Who made it? A. Colonel
Herndon and I think Mr. Chilton both said the
claim had been investigated and found to be a
valid claim.
Mr. Garwood: Did they state the extent of
the investigation? A. I don't think they did
only that it had been investigated and founc
the charges against the International and Great
Northern.
Mr. Breitz: When Colonel Eddy was ap-
pointed receiver of this road was that done by
you for the reason all the parties consented to
him? A. Yes, sir, there was no other applica-
tion ; all agreed to it, so I appointed him.
Mr. Crane: You answered General Rob-
ertson that the records show the hearing
was set for 10 o'clock, the hearing about
whether a co-receiver wouid be appointed.
Was that conversation with Mr. Charles Bon
ner before or after the order for the hearing'
was made? A. The order was made several
days before the conversation. The conversa-
tion was at 9 o'clock of the same day the order
of appointment was made.
Mr. Garwood: Mr. Charles Bonner stated
to you, he did not wish to argue the matter be-
fore you? A. Yes sir; and he did not care to
argue it. I recollect distinctly that was said,
Mr. Finley: You spoke of Colonel Bon-
ner's physical inability to attend to the re-
ceivership business. Has he not been able to
operate in part the road and give his attention
to the financial business of the receivership?
A. Yes. sir. to some extent; but he was in bed
and not able to go to Palestine and look after
fihe physical <s»nditiou and operation of the
road.
Q. Has it not required the constant atten-
tion of Mr. Campbell? A. Yes, sir; he stays
right at Palestine except when he has been
here in this investigation. He stays there
from Monday morning until Saturday night.
Mr. Breitz: How much was paid for his
services the last year as master—his regular
salary? A. Forty-eight hundred dollars.
There were a great many suits and other mat-
ters: the first year 1700 cases, a great many
stock cases for small amounts that he liad to
handle. I took that into consideration, and
we thought we would change the rule. For
instance, the cases for stock altogether in a
year amount to $00,000, $70,000 or $100,000 a
year. These parties were proceeding in the
prosecution of their claims before the mas-
ter. and in order to save costs of litigation the
order referring all claims to the master, made
in February, 1889, was changed to give the
claim department the right to compromise
stock cases and some other cases, the same to
be subject to the approval of the master, and
I believe it saved not less than $25,000 the sec-
ond year.
Mr. Breitz: The work was greater the first
year? A. Yes; three times as much. I know
Mr. Campbell's practice was worth $10,000 a
year, and you can't get a man to take charge
of a railroad and quit his business and lose his
practice for the ordinary fees he would get. In
this case one of the receivers was dead and the
other in bad health, and it required his whole
attention. You can't get such a man without
giving a large salary. He is not willing to
take the heavy responsibility for a small sum.
Mr. Finley: Is it not a fact which attracted
your attention that during the continued ill-
ness of Colonel Eddy and the inability of
Colonel Bonner to discharge the duties of re-
ceiver there had grown up more or less abuses
auu didn't you start Mr. Campbell ofl the lino
of reforming them? A. Yes, sir. the first
thing I did was to start him on tnat line. I
told nilii I wanted those abuses remedied.
Mr. Garwood: What abuses? A. Careless-
ness along the line. Thp officers and road-
masters were careless. The receipts looked
like they were not what they ought to be. He
went to work and changed officers, agents and
roadmasters.
Mr. Finley: You testified you were guided
in making the extra allowance to Mr. Camp-
bell by an inspection of other receiverships,
and by conversation with persons familiar
with such masters' pay, including Master Reed
of the Cotton Belt, and Mr. Kruttschnitt. I
will ask you if you can state accurately the
salaries as given in those cases, or if you can
not, just state your impression? A. I never
stated accurately what the salaries were.
These ideas 1 gathered from general conver-
sation with persons, and I never saw the
printed reports of a receivership except one,
and that is the Texas and Pacific. The News
report says I examined the printed reports of
the Cotton Belt. I never saw that report. I
believe the allowance to Mr. Campbell is less
than what is right. It is, if anything, too low.
He didn't want the position, but it was a mat-
ter I could not trust to everybody. I didn't
allow him anything for his expenses. The
Texas Pacific master did have an allowance
for expenses. Another mistake in The News
report: Thornton has me reported as saying
the Bonner A Bonner bank lending $25,000 to
the bank at Mineola. It was ony $2500.
This closed Judge McCord's testimony.
Mr. Woidert made a statement to correct a
wrong impression from his testimony as pub-
lished in the Fort Worth Gazette.
•Judge Duncan.
Judge J. M. Duncan was sworn.
Mr. Finley: I don't desire to occupy any
time in taking the testimony than is neces-
sary, considering that the parties have detailed
all matters relating to the origin of the re-
ceivership, and the general occurrences in the
court have been given fully enough. I shall
ask Mr. Duncan to take up other matters. I
want to ask him about these things if the com-
mittee will allow me, and they can, if they
desire, ask him about other matters. Pur-
suant to the course I have indicated to the
committee, I shall not ask you to begin and
give a detailed statement of matters
at the origin and the different steps
in the receivership, but will call
your attention to different matters
with reference to Special points allow
ing to the committee and counsel to propound
additional questions a^ desired. I will first
direct your attention to the conversation be
tween the receivers, yourself, Mr. Chilton, Mr.
Herndon and myself at your law office Satur-
day night afu r the appo intment of the receiv-
ers, and ask you to etat what occurred on
that occasion? A. Weli. I don't know that I
can give the details just as they occurred. I
don't know the origin «• the conference. I
don't know who asked t to come there. The
purposes of the confers es have been told by
Mr. Chilton, Mr. Herndon, yourself and
Colonel Bonner. We Were all present, I think,
I know Judge McCord Was not present. [ Wit-
ness complained of a severe headache.] Is
there any particulars >ou want to inquire
about?
Mr. Finley: Nothing except the relation of
counsel and fixing the salaries, and if the
statement of those matters as made by Mr.
Chilton, Colonel Henulon, Colonel Bonner
nnd myself are comet? A. Tla>se state-
ments, according to my memory, are correct.
I will state further my first knowledge of the
Gould suit. I had souv cases against the In-
ternational and («rea< Northern. I don't
recollect how many, haps three or four,
and in one of them in particular had had a
great deal of trouble, A\e tried it, got a ver-
dict for a large amount, it was appealed and
reversed on the charge of the court, and not
on the amount of damages, and I was of
course much interest* I in procuring judg
ments in the cases. I didn't Know anything
about Mr. Gould's suit until Mr. Chilton tolc
me. He came out of the court house at noon,
of the Monday when he had in the morning
raised the objection to the judgment by con-
fession in the Gould esse. He met me at the
corner of the court hou-« and rapidly related
to me what he conceited to be the intention of
the plaintiff and the part ies to the suit, that is,
that parties having unsecured claims would bp
in great jeopardy of'losing everything. His
idea was that the rokd would be put in the
federal court, and on such claims we had the
idea we could not collect them. He then gave
me his ideas of what jre ought to do, and said
he was going to interven*. and wanted to know
if I would do so. I don't think I did so until
the next day.
Mr. Finley: I wish you to state all you
know with reference to my resignation, the
entry of the Gould judgment and the allow-
ance made to me. A. All that I know con-
cerning that matter is what came to my
knowledge in the conversation you spoke of
at Colonel Herndon's office. I was engaged
in looking up authorities as to whether the
case could be removed. I don't know how I
knew about the removal, probably from Colo-
nel Herndon. I know nothing of those oc-
currences as taking place on Sunday. I had
no personal knowledge until Mr. Finley
handed in his resignation. I know that Mr*
Chilton and myself were opposed to Mr. Fin-
ley's resignation and Mr. Chilton was anxious
to make a fight. I don't know where the first
suggestion came from. What occurred in the
court is as has been deiailed substantially. I
suppose the material question is whether the
$10,000 was allowed. I know it was not dis-
guised ; it was well kn< wn to me; the allow
anco was $10,000 and ii was mentioned in the
court. That is my recollection of it. I don't
know how the court made the order and when
it was entered up.
Mr. Finley: Did you know any demands
preceding my resignation in the interest or
Mr. Gould, such as m> resignation, the ap-
pointment of Colonel Kddy, tho rendition of
the Gould judgment and the withdrawal of the
counter claims of the Missouri, Kansas and
Texas? A. I knew nothing whatever &s to the
course these matters would take. I knew
nothing of the course of the counter claims
until withdrawn or wei > being withdrawn. My
first knowledge was flu* morning. 1 knew,
but don't know from where I got it, that re-
moval of the case was mentioned. I don't
know whether I really knew whether tho par-
ties would be satisfied if they could get repre-
sentation. We were inquiring into the ques-
tion of removal.
Mr. Finley: I will direct your attention to
the question of the allowance of $5000 to Mr.
Campbell in addition to the previous allow-
ance of $4800 for his services in 1SW) and ask
you to state what you know about it in the
light of the testimony offered by others about
that matter? A. I will state what the facts
were as they cams to my knowledge. I don't
remember the datp of the allowance to Mr.
Campbell of $5000 extra, but a little before
that I learned that Mr. Campbell had filed an
application for an allowance of $5000 extra.
Naturally I didn't know whether tho court
would {grant it or not. I thought he ought not
to receive a greator allowance than had been
allowed to the general attorneys. I will tell
what I said. I went to see Judgo McCord and
told him I understood Mr. Campell had mado
application for $5000 allowance, and whether
—I didn't—he had any knowledge of
that fact or not that it had been
filed. I don't know who suggested
it was in. I told him that it was too much;
that I didn't think a master should have a
greater salary than a general attorney; sug-
gested the idea that it would provoke unfa-
vorable comment and criticism. I believe
Judge McCord don't remember that I had a
talk with him about it. I don't know what
Judge McCord said about it, but the impres-
sion he left on my mind was, that he had se-
rious doubts about it. I afterwards talked
around about it in order to prevent the allow-
ance. I talked with Colonel Bonner about it. I
didn't know but we ourselves might get a
raise. We were, I thought, doing more work
than the master. I afterwards saw Mr. Chil-
ton about it, but he doesn't remember it. I re-
member distinctly I told him about the pro-
posed allowance. I didn't like it because
it was more than we were getting.
He didn't say much about it. I went
to Colonel Bonner and spoke about it. I
don't remember what he said. Mr. Campbell
came to Tyler and the order had probably
been mado and was held up until he could
see Judge McCord. Campbell came to me
and said: "What are you raising such ruction
about my allowance for?" I said, "I don't
think you are entitled to as much as the gen-
eral attorney." He said, "Judge McCord,
before I accepted the master's place, said he
would make my allowance"—I think $10,000,
or I think he said a liberal allowance; and
went on to remark about what his practice
was, and said that when he was appointed he
was making $10,000 a year, and I said, "I have
nothing to say." After that I was with him
on the square and he called Judge McCord to
him and asked him to instruct Colonel Bonner
to forward the voucher so the allowance
might be paid. As I understood I had no
further kick about it. I don't detail the lan-
guage of what occurred, the language of other
persons, because I have no storage battery of
memory for everything. I only give the im-
pression of things that have occurred.
Mr. Breitz: Was it your impression you
were not getting more than others? A. Well,
I was not acquainted with the scope of the
work that he actually did. I didn't know he
went over even- voucher filed at Palestine.
My main ground of objection was that he was
allowed more than the general attorneys and
that his was an inferior office.
Mr. Garwood: Did you receive finally infor-
mation as general attorney of Mr. Campbell's
application for the increased allowance? A.
No, sir. I knew from the language of his
original allowance that there must be some
other allowance made him. There have been
some conversations between Mr. Charles Bon-
ner and Mr. Whitaker mentioned. I can't
recollect at this time exactly, but I think the
main inaccuracy in their testimony as to what
I have said consists of anachronisms. I had
perhaps better detail the circumstances of my
application for the appointment of receiver.
When Colonel Eddy died it occurred to me
that probably as there had been two receivers
the court would appoint one in his stead, and
I thought Mr. Golden was a good railroad
man and a good man, had been on the Inter-
national and Great Northern a long while be-
fore in various capacities and was general
manager at that time. So Mr. Jones and my-
self wired Mr. Golden to come to Tyler, and
probably Colonel Bonner, too. Judge
McCord was holding court at Gil-
mer. , Mr. Golden came, and that
night we four went to Gilmer. Colonel Bon-
ner when it came up contended there ought
not to l*e any receiver appointed. He dis-
cussed the matter at considerable length with
Mr. Jones nnd myself. I don't think either
one of us gave in to that idea. We saw Judg?
Met onl and I laid before him the name of Mr.
Golden. Judge McCord told us he would
take no -action then> nor until he had ex-
am ined further would he give any answer
about it.
Mr. Breitz: You Put in Mr. Gulden's ap-
plication? A. Yes, sir*
Q. And yours at she same time? A. No, sir;
not at that time. 1 don't think I a; plied for
it then. We came bacL to Tyler without satis-
faction from Juffgc McCord. We just went
there to get the matter before him.. I don't
remember how long afterwards, some
days. I dpnft kjtyow whether Judge
McCord ha<| come, back to Tyler,
hot my impression* is that he had.
I knew that for some reason, I did not know
exactly why, but I did not thmk that if there
was an appointment made that Mr. Golden
would get it, but that was merely anothef
opinion of mine. I do not know at what time,
but I conceived the idea that I woulcf apply
myself to be receiver. One of the first things
I did wa^o send a telegram to Mf. Campbell
at Lougview asking him to indorse my appli-
cation to the judge for receiver. Mr. Chilton
indorsed it, but I did not get any telegram
from Mr. Campbell, and he mhde au applica-
tion for it himself. We went over the ground
together and he wanted me to resign, and I
would not, and I wanted him to resign and he
would not, so we concluded to go over in a
brace to Gilmer and see Judge McCord. We
went, and Mr. Do Graffenreid went with us,
but I do not know what he wanted.
Mr. Crane: Did*.you think that he wanted
something? A. No; 1 will do him the justice
to say that I do not think that he did. Wo
•aw Judge McCord and had a conversation
with him and argued our respective fitness
for the position and all that sort of tiling. Wo
got the judge inte/a good deal of trouble, and
I saw it. He did not give us any satisfaction
and asked us to wait until he came back to
Tyler, I think. *1 do not think that he indi-
cated in any way which one of us ho would
appoint, or that ho would appoint either of us.
I know that I told him on that trinto Gilmer
that I had originally presented Mr Golden's
name, and I thought that if lie was going to
appoint a receiver that Mr. Golden would fill
the place better than Mr. Campbell or I; but
that if it was between Mr. Campbell and my-
self that I thought that I would make as good
a receiver as hi*would. Mr. Golden was never
persisting and "lie did not originate the idea,
do no$ t-lurik that he fver spoke to Judgo
McCord about it* He did not seem to want it
very bad, and#I found out after the reason
why. We otmi»back to Tyler and the matter
went on until the Saturday that the appoint-
ment was made. Mr. Campbell told me sev-
eral times that he tas guiftg to appointed
receiver, and I told hi in several times that I
was going to be, but that was done in a spirit
of bravado. Wo were mends. That after-
noon we urged Judge McCord to make the ap-
poininent because each wished to know what
the result would be. I left Mr. Campbell with
the judge after he had indicated that he
would do nothing that? afternoon. I went on
home and after supper I went down town and
learned that Colonel Bonner, Judge McCord,
Mr. Campbell and Mr. Stafford were in tho
receiver's office. I went there and when I got
there I found that the decision had been mado
and that Mr. Campbell had been ap-
pointed receiver. I became very indignaut
nnd said a good many sharp things then and
at other times and places about hiin, because
I felt considerably humiliated because I was
not appointed. 1 had talked to M r. Whitakc?
and Mr. Bonner during the week about it. I
do not know what day they received the pa-
pers protesting about the appointment of an-
other receiver. I asked Mr. Bonner whether
he thought that my appointment would be
agreeable to him, his firm and his clients. He
answered for himself and Mr. Whitaker they
would have not a word to say, but that he
could not speak what his clients would do
about it. As a matter of course, during my
application for the receivership I wanted to
have the influence of all parties at interest if
possible. I did not want to have any disagree-
ment caused to the parties interested in the
Sroperty by my appointment. Mr. Bonner or
Ir. Whitaker has testified that I said that
there should not be another receiver appointed
after the protest from the parties at interest.
I do not know whether he gathered that from
the fact that I was acquiescent to him, but
after I had knowledge of that pro-
test I importuned Judge McCord to
appoint me one of the receivers. I may have
said after the appointment, in my wrath, it is
very likely that I did, that I thought that an-
other receiver should be appointed. I believe
Whitaker and Bonner have said that I told
them that I told Judge McCord before ho had
made that extra allowance that if he did so it
would ruin him. That is one of the inaccura-
cies. That Sunday I told Judge McCord that
that order had not been placed on record. He
did not know, or seemed not to know it, and I
said that they would use it for the purpose of
injuring him. for I was doing all I could to
get him to withdraw tho appointment of Mr.
Campbell. That was on that Sunday morn-
ing, and I had not said a word to him about it
before then for it had not come into my mind.
thought the order excessive and nothing
more. 1 told him that the order was not on
record, and I can not remember all the con-
versation.
Mr. Finley: What did he say to you? Did
you tell him about the temper of Whitaker &
Bonner? A. I told him all about it; I can
not remember everything. I told him about
their threats. 1 had gotten scared for him
and wanted him to withdraw the appoint-
ment.
Q. Wrhat was his reply? A. Well, he told
me to tell them that if anybody reflected on
his honor he would take a gun and blow the
tops of their heads off; and he told me, I do
not know whether he meant to convey it to
me or for me to convey it to Whitaker & Bon-
ner, that Whitaker & Bonner nnd all Wall
street could go to hell as far as he was con-
cerned ; he was going to do what he thought
right. I delivered the message.
Q. I believe that Colonel Herndon has testi-
fied about a conversation you had with him
about the allowance? A. I do not remember
Colonel Herndon's test imony or any conversa-
tion that 1 had with him on that subject. I
may have talked about it. He was opposed to
the second receiver and particularly opposed
to Mr. Campbell getting it, and so was I.
Q. You say, however, that wliatever you
might have said in your wrath in respect to
the conversation you had with Judge McCord
before the allowance to Mr. Campbell about
it, that your only objection to it was that you
thought it excessive, larger than that of the
general attorney's? A. I thought the amount
excessive, as he held an inferior office to ours
and considering the work we had done and the
tight we had had. If he had raised our salary
to $12,500 I would never have said a word
about Mr. Campbell's.
Q. Did you say anything in reference to its
ruininfhim? A. I never said it. It is merely
a mistake that Mr. Herndon said it. I want
to say that I have only given the substance of
the conversations.
Mr. Garwood: Did you as the general at-
torney make a personal examination as to the
alidity of Gould's claim against the railroad?
A. I did not. I was not charged with that
duty.
Mr. Breitz: Was it agreed on between you
that the general solicitor should make that ex-
amination? A. That is my recollection.
Q. Do you know whether he made that ex-
amination? A. Not to my own knowledge,
can not say that he made it.
The chairman: How long was it after the
order for the extra allowance had been made
that you knew about it? A. I knew about it
at the time—before it was made.
Mr. Finley: When you spoke of the matter
not being on record, you refer to the conversa-
tion you had with Judge McCord on Sunday?
A. Yes; Judge McCord sent for me some time
subsequent to the appointment of Campbell.
I had not had much to do with him, and a sort
of frigidity had arisen between us. He sent
for me to cortie to Judge Gaine's rooui, in
which lie was holding his office. He told me
that he had found that order among some okl
papers iu a valise while he was holding court
in \ an Zandt. He exhibited the order^md
gave it to me to read, lait I do not know that
I rend the letter. I did not say he had the
valise. He told me that he found it in a
valise, but he did not have tho valise as a
witness. He found the papers there.
Mr. Breitz: Did he call the clerk and give
him the order while you were there? A. No.
Mr. Gresham: Speaking from your own
knowledge, do you think that the work done
by the general attorneys was worth $15,000 a
year.^ Was that a reasonable compensation?
A. Well, you can scarcely expen-t any ottier
answer from me than is was reasonable. That
is, of course, for the comipittee to decide on.
I do not thmk it exorbitant.
You know bet^r tho amount of work
you did? A. I haver nwtr-liad auy experience
except from nij* oV*£ objections. I know
the work was very laborious and I have the
statistics to show the amount of work that wo
dul and I will prodqee it at the proper,time.
We had calls on an average*.onco a day aud
sometimes four or ttte times for business on
various parts of the toad. We had to give
written opinions, and the claim agent never
settled a case for more^lian $ 100 without con-
sulting the general attorneys and having their
opinion on the matter.
Q. What |»ortion of your time did the busi-,
ness of the receivership take, do you supp<jse?
A. I can not tell. It did not requiae both of
us to be there all the time, but as it is now it
is necessary that the general attorney should
be*iu tho office in order to keep up with the
business.
Mr. Gresham : Can the work of general at-
torney be accomplished by one man with the
assistance of the general solicitor? A. I think
so. With a competent ti^?tant in the office.
W e have a very able assistant there now with
a salary of $125 a month.
Q. W ho has transacted the business of gen-
eral attorney since Mr. -Chilton resigned?
A. I have.
Q. Anyone else except tho assistant? A.
No.
Q. At an increased compensation? A. No,
not that I have heard of.
Mr. Finley: What is the feeling of Whit-
aker & Bonner and Johnson & Woidert to-
ward Judge McCord? A. I do not think that
any additional evidence is needed on that
point. I know that Whitaker «fe Bonner were
very bitter. I can not say how Johnson «fc
W oldert stood, but from general report they
were "ferninst" hiin.
MrNjlrcitz: In the management of your
business as general attorneys? A. Yes.
Q. And that took up a great deal of your
time? A. Yes; I think I only helped try one
suit for the receivers.
CllOSS-EXAMINEU. , '
Judge Robertson: I will ask you as a mat-
ter of fact if you did not know At tho time
they came into court nndtof>k these ordors in
the case of Jay Gould that they could not re-
move it to the fedafa^eourt? A. That is a
question of law.
Q. Well, I will get you to answer my ques-
tion? A. I suppose so; I supposed they would
not.
Q. In the intervention you filed in the origi-
nal suit of Jay Gould against\he International
nnd Great Northern did you not file an affida-
vit that it was fictitious? A. No, I think not.
I think you can find the petition of Brazeel.
Q. Does he not swear to it? A. It speaks for
itself.
Q. Db you not remember? A. I think it
does.
Q. You were ii eourt, that morning as the
genci-al attorneys lor th« receivers and as'ihe
attorney for Brassed? A. There was no order
taken in Brazeel's intervention. I suppose I
was there as the attorney for both.
Q. Did the court ignore tho affidavit of Bra-
zeel? A. I supi>osc not.
Q. It was not withdrawn? A. No.
Q. Did the court hear any testimony?. A.
No; it went the same way as the others.
Q. Did Judge McCord tell you that he had
promised Campbell tho extra allowance of
$5000? A. No, sir. I told Whitaker A Bonner
that Campbell told me that Judge McCord had
promised it to him.
Q. After the death of Eddy was it your opin-
ion that another receiver was necessary? A.
I have no such information as would enable
me to express an opinion.
Q. Did you not express an opinion before
the appointment of Campbell? A. I think not.
I may nave expressed some opinion about it.
Q. Did Mr. Chas. Bonner write the protest
objecting to the manner of appointing Camp-
bell? A. I think so.
Q. Was that protest a correct statement? A.
I so understood it at the time.
Q. In the interview you had with Judge
McCord at Gilmer, at which Mr. Campbell
was present, did the judge tell Mr. Campbell
that if he was appointed receiver it would cost
the road $1,000,000 a year? A. I think he said
it wouid cost the road $500,000 in six months.
Q. Tell that conversation? A. I cannot do
so unlesstfhere is some particular point that
you can suggest, to me. Mr. Campbell and
myself were both arguing our merits for the
appointment, and the judge was replying to us
both.
Q. That Saturday Judge McCord appointed
Campbell did he tell you whether he was going
to appoint another receiver? A. 1 think he
said he was going to ap(K>int another man.
Q. When did you first learn of this fact? A.
I cannot say.
Q. Did not he tell you at Gilmer? A. I
think not ; we made two trips to Gilmer. Mr.
Campbell was there at one time.
Q. Did he tell you the t ime that Campbell
was there? A. 1 do not know whether he did
or not. I think I gathered it, but 1 can not
tell whether he told me. There is another
thing that I want to say. Whitaker «fc Bon-
ner, or one of them, said that I said that Judge
McCord told me that his principal reason for
appointing another receiver was that he had a
telegram from Galbraith and Mr. Clark, vice
president of the Missouri Pacific road, that
the parties at interest although they had signed
the protest did not want a single receiver, and
wanted Campbell. That is inaccurate. I
didn't tell Whitaker A Bonner that I had been
informed by Judge McCord, because I never
was. I can not say from whom I got that in-
formation, but Mr. Campbell says he is the
man that told me. I told Whitaker «fc Bon-
ner that I believed Judge McCord got notice
of it and that was why he made the appoint-
ment. 1 really do not know whether Judge
McCord got that word.
Q. Upon what did you base that belief? A.
It was a great deal based on *he way I felt.
y. Was not some part based on something
else? A. As I said, 1 never did know whether
that reached the ear of Judge McCord, aud 1
told Whitaker S: Bonner just as I said. I
aiso said I would like to know what became of
that $5000, and a great many hard things that
I told Judge McCord that I was sorry for.
Q. Did Judge McCord tell you anything
al»out getting a telegram from Shaw? A. No.
I learned from another source that Shaw and
Miles Crowley had telegraphed that Camp-
bell was the choice of the laboring men of
Texas, and I tackled Campbell about it and
accused him of getting it up. He swore by all
that was good and bad that he had never heard
of it before.
Q. When did you first hear that the order
for the extra allowance was placed on the
record? A. Since this inquiry. I did not ex-
amine the records.
Q. You testified that Mr. Guinard is an as-
sistant in your office. Has he been there
since the receivers have been appointed? A.
Yes.
Q. Was the salary the same? A. Now it has
been increased. We first had Mr. Cooley
there, and he went to Colonel Bonner, and
then Mr. Guinard had to do all the work, and
we increased his salary. I think it was $100
at first, or perhaps less.
Q. You say you have prepared a statement
—have you got it? A. It is up stairs. I can
get it at any time that 1 want it.
Q. You state that you know the feelings of
[EitabLiAhftd 1S47.1
J, n, MORRIS' SONS,
hardware.
ELECTRICAL supplies,
qi'ICE MEAL (iASOLINE stoves,
ALASKA REFRIGERATORS.
47,49 and 51 Main St., Honston, Tex.
Whitaker & Bor.ner were bitter toward
Judge McCord? A. Yes, I think they were.
Q. Do you know the cause? Yes, I» thins
so. I am not prepared to give the detail*.
Q. Did not their bitter feelings arise outjpf
the irrcguInr manner in which Mr* Campbells
was appointed? A. I am not competent to
tell wliat their feelings grew out of.
CJ. I am asking on a question of time? A.
I never heard it until after Campbell was apr
pointed.
Mr. Finley: Did you seo the editorial or
what purported to be the editorial in the Texas
Farmer just after tho passage of tho resolu-
tion in the Texas legislature? A. Yes. '
Did you read the letter that has been put
in evidence from Mr. Whitaker to Judge
Gerald? A. Yes.
W- What difference is there betweeu this
purported editorial in the Texas Farmer and
Mr. Whitaker's letter? A. I read the letter
shortly after horgot it back from his partner.
I think in the main it is "the same, except, in
the introduction, perhaps.
Q. The language is the same? A. Yes, I
think so.
Mr. Gerald: Did I understand you to say
that you read it after I had got a copy from .
my partner? A. Yes.
Mr. Gerald: I have got no partner. My
sop-in-law sent the copy of the letter.
The chairman: You say you have some
statements? A. I have some state-
ments and I think I can have them all here by «
Wednesday.
Judge McCord: I think from the question
Mr. Robertson asked that he misunderstood
my testimony. He asKed whether I consider-
ed a co-receiver necessary before I made the
appointment.
Mr. Robertson: Yes, I asked that, but I
did not consider your testimony at alL
This concluded the examination of the wit-
ness.
Senator Klrby.
Senator J. G. Kirby was then sworn:
Mr. Finley: What is your profession? A.
A lawyer.
Q. You live in the Seventh judicial dis-
trict? A. Yes.
<3. The district over which Judge McCord
presides as district judge? A. Yes.
Q. How long have you been practicing law
in his court? A. Since ho has been judge;
since 1870 or 1871.
Q. You have become familiar with the
methods and practice of the court? A. I think
so; especially in my county.
Q. What lias been Judg« McGord's rule in
reference to the rendition of judgments by
confession? A. Sorn^four or five yeare ago
my attention was specially directed to a rule
tha't ho had adopted itcjfc permitting judgment
by agreement until default daj^ There were
several suits brought against a local merchant
there* who had failed, by t|ie local bank. I
represented quite a numbec of creditors. I
desired attachment proceedings on the ground t
of a conspiracy by the bank, between them-
selves, Lammers A Flint and the defendants.
But before default I was satisfied that there
was going to tye judgment securud by agree-
ment, and I called the attention of the court
to tho case and Said fhat I desired to file
pleadings of intervention for Leon & H. Blum «
and several other creditors. TITo court said it
was the rule not to permit judgment by agree-
ment until default day, and that I may take
my order of intervention ffubject to exception.
I can nc-. call to mind auj; other particular
case, but I understood that was the rule.
Q. You say you have known Judge McCord
since you have been practicing in his court?
Do you know his custom about talking with
litigants and attorneys about pending litiga-
tion? A. I have been boarding with Judgo
McCord while he htvs been holding court iu
our county for quite a number of years, and I
can not call to mind one instance where ho
was ever approached. I think he is as digni-
fied in that respect as any judge that I have
ever known. I have always found him digm
tied on the bench and his general deportment
will compare favorably with that of any judge
in the state.
Q. Do you occupy any official position now?
A. Yes; I am a member of the Texas senate.
Q. Were you present about the time or lie-
fore the introduction into the senate of tho
resolution creating this committee for tho
purpose of investigating the International and
Great Northern receivership? A. Yes.
Q. You have heard read since you have been
here the letter of Mr. H. M. Whitaker of T^'ler
to Judge Gerald? A. I am not certain; I
have heard it referred to.
Q. Have you read it in the public prints of
the proceedings of this committee. A. I am
not quite sure.
Q. Here is the letter, please look at it (hands
witness a copy of Mr. Whitaker's letter).
Witness (after glancing over the letter): Yes,
I think that is a correct copy of a letter I saw.
Q. Where did you see that letter? A. I saw
what purported to be the original letter. It
was handed to me while in my seat in the sen-
ate chamber at Austin.
Q. At what time in reference to the passage
of the resolution? A. I think about a week be-
fore.
Q. How did you come to see that letter? A.
A gentleman walked up to me and said: "I have
something that pcrhai»s will be interesting to
you. It affects one of the leading men of your
district, your district judge," and he handed
me nil envelope containing the original letter.
He asked ine to read it and I proceeded to
do so.
Q. Who handed you that document. A. Mr.
John Bacon.
Q. Where did he live? A. His residence is
at Denton, but I believe his business head-
quarters is at Dallas.
Q. What is his business? A. I think he is
the head man under Major Abrams of the
Texas and Pacific railroad.
Q. How loug have you known Mr. Abrams?
A. Six or seven year's. I have known Major
Bacon twenty or twenty-five years.
Q. He is around Austin considerably at the
session of the legislature? A. He was there a
good portion of the time of the last session.
Ui. Do you know what was his business
there? A. No.
Q. What sort of an envelope was the letter
contained in? A. In an official envelope.
Q. Was it addressed? A. Yes, to Judge
Clark.
Vi. Judge George Clark? A. Yes; that is
what directed my attention. I noticed the
letter was directed to Judge Gerald and that
was different to the address on the envelpoe.
cross examined.
Mr. Robertson: Do you know for a fact
that Mr. Bacon is in the employ of the Mis-
souri, Kansas and Texas now? A. I knew two
years ago he was in the employ of the Texas
nnd Pacific. I had some business transac-
tions with him then, but I have had none
since. I understand he is still with the Texas
and Pacific.
Judge Gerald: I want to say, and you can
put me under oath, that I received that letter
addressed to me from Mr. Whitaker, and I
sent it in an official envelope to Judge Clark.
I received the letter regularly through the
mails. I also gave it to the senator, and it
was shown to a good many.
Witness: When I said official envelope I
simply meant a longenvelope.
Mr. Robertson: Did you communicate the
contents of that letter to Judge McCord? A«
No. I think 1 did not.
Q. Did you communicate it to what Mr.
Finley calls the Tyler court. A. No, not the
Tyler crowd. I might have told Mr. Finley
or J udge Duncan.
Mr. Finley: A little while afterward? A«
after the ceaolution was intcoduesd. t
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The Galveston Daily News. (Galveston, Tex.), Vol. 50, No. 98, Ed. 1 Tuesday, June 30, 1891, newspaper, June 30, 1891; Galveston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth466321/m1/1/: accessed May 8, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Abilene Library Consortium.