HomeMy WebLinkAboutThe Herald, 1906-11-23, Page 241110181.1,11,10..anamposposma
MANAGER VS.
ME DIRECTORS.
Defence Tries to Involve Ontario
Bank Directors.
Mr. Langton Tells of Losses Sus-
tained by the Bank.
President Cockburn Had Several
Questions to Ask.
Toronto depodt: The cross-examina-
tion of air. J. G. Langton, for years chief
accountant of the Ontario Bank, lasted
throughout almost an entire Police Court
day, and incidentally disclosed the out-
lines of the case for the defence of Chas.
McGill, ex -Manager of the Ontario Bank.
The efforts of Mr. R. E. McKay, who
is repreesnting Mr. McGill in these
Police Court proceedings, were plainly
directed towards proving the connivance
of the President and the directors in
the series of marginal stock specula-
tions and in the manipulation of ac-
counts. The purpose appeared to be
to establish that the acts of Mx. Mc-
Gill were the result of a certain pol-
icy, and that he did. nothing unknown
to at least some of the directors. This
line of defence would! appear to be in
the direction of absolving Mr. Mikan
from a charge of theft by possibly ad-
mitting the charge that improper state-
ments were issued.
Mr. Langton was on the stand
throughout the day for cross-examina-
tion, and in several instances Mr. Mc-
Kay succeeded in securing statements
which indicated that the bank's invest-
ments in speculative securities and its
accounts with New York stock brokers
must have been known to some of the
directors. Before Mr. McGill came
from Peterboro' to be General Man-
ager of the bank the directors were
engaged in an effort to maintain the
quotations of the bank shares on the
market, and according to the evidence
of Mr. Langton, Mr. A. E. Ames as-
sisted, in these operations so mater-
ially as to breed the suspicion in the
mind of President Cockburn that Mr.
Ames was endeavoring to secure a place
upon the board.
Early Ventures Successful.
It was also established be the testi-
mony of Mr. Langton that the condi-
tion of the bank when Mr. McGill took
hold was anything but enviable, that
it had sustained large losses, ani. that
-up to 1001 his policy of looking to the
stock market for a relief for the bank's
difficulties had been successful in add-
ing $200,000 to the banka asets. This
appeared to be the maximum of pro-
fits attained under the system of deal-
ing in speculative escurities'and af-
terwards the losses came heava And
'fast.
e President Cockburn, through his coun-
sel, Mr. Frank Arnoldi, K. C., submit-
ted to the Crown Attorney a series
of questions intending to explain the
impression regarding the purchase by
Mr. Cockburn of Ontario Bank shares
and the subsequent sale at a profit.
of some $4,000 to the officers' guaran-
tee fund of the bank. With the per-
mission of the Magistrate these ques-
tions were pet to Mr. Langton, and
it was stated that he had not secured
a loan Iran the bank to purchase the
stock, but that- the loan was given
upon a demand note for other purposes.
The main fats concerning the transac-
tion however, remained unchanged.
MT. Charles Holland, the predecessor
of Mr. McGill as General Manager of
the bank, was a witness, and he sturd-
ily maintained that the bank was in
sound financial condition when Mr.
Cockburn and Mr. McGill came into
power. He said that there was no
reason for the subsequent reduction of
capital, and that there had never been
any deals in margins or any "selling
short" in the market while he was Gen-
eral Manager. Mr. McKat went over
a long list of losses which the bank
is said te Piave sustained just after
Mr. Holland's resignation. intending to
prove that Mir. McGill had been left
legacy of bad debts extending through
every branch of the bank from Montreal
to Port Arthur. Mr. Holland ex-
pressed great surprise that accounts
whieh he had regarded as first-class had
turned out so badly.
Mr. McGill's bail was renewed until
Friday morning, when the investigation
will be resume&
Mr. Cockburn left his stock with Mr.
(Langton to sell at $140 per share if the
stock went that high. The shares were
finally sold to the bank at a profit of
over $4,000.
Payments to brokers by the bank for
the purpose of purchasing bank stock
in the market were concealed in tbe
bank books as payments for Long Is-
land Railway bonds.
HAAKON KNIGHT OF THE GARTER.
His Majesty Invested at Windsor Castle
by King Edward.
London, Nov. 19,—King Edward to-
night invested King Haakon of Norway
with the Order of the Garter at a spe-
cial charter held in the throne room of
Windsor Castle. The investure was
attended with great pomp and ceremony.
Although knights of the order are elected
• from time to time as vacancies occur,
there has not been an investure like the
one of to -day since 1855, when the late
Queen Victoria conferred the honor upon
Napoleon TIL and Victor Emmanuel, then
Meg of Sardinia.
King Edward is the only surviving
member of the royal hotiee of Great
British) who participated in that historis
kite. Queen Alexandra as "The Lady of
the Order," whose predecessor lived two
centuries ago, was present to -night. The.
brilliant colors of the gorgeous robes of
the knights and knight commanders of
the order, as well as the richness of the
decorations of the historic chamber where
the investiture took place, made the
scene one of most 'arilliant and impres-
sive of the present' reign.
The ceremony was followed by a
state banquet.
BOGUS LORD DREADS DEATH.
Thinks Jury Which Convicted Him Was
Prejudiced.
Washington, Nov. 19.—The appeal of
"Lord" Frederick Sumo= ltd. 13er-
rington from the sentence of death for
the murder of James P. McCann, a
wealthy St. Louis turfman near Bonfits,
Mo., in June, 1903. was filed in the Su-
preme Court to -day. The case has at-
tracted widespread attention owing to
the fact that Barrington claimed to be
a member of the British nobility, and
shortly before the murder had been
sent to the workhouse for marrying
Grace Cochrane, of Kansas City, under
the pretension, found fraudulent, that
he was "Lord" Barrington.
McCann took up Barrington, put him
up at his hotel, the Leland, and supplied
him with money. McCann disappeared in
June, 1903, and his nude body was
found several weeks later in a quarry
pool, 15 miles from St. Louis. Barring-
ton was arrested, McCann's watch and
diamonds were found on him, and he
was convicted on strong circumstantial
evidence.
That judgment .was affirmed bY the
Missouri Supreme Court, and Barrington
now appeals to the Supreme Collet of
the United. Faates, alleging, among other
error, that some of the Jurors were in-
eligible to determine the ease, because
they had read newspaper accounts of it,
and had formed judgments as to his
guilt or innocence.
- -
A NEW POLITICAL PARTY.
Federation of Labor Approves of Betty
Into Politics.
Minneapolis, Minn., Nov. 19.—At to-
day's session of the American Federa-
tion of Labor President Gompers' plan
of creating a political party out of the
combined union strength was endorsed
by the convention, who approved the
report of First Vice -President James
Duncan, in which he sanctioned the
policy of Mr. Gompers. Mr. Duncan's
report showed that the federation's cam-
paign fund amounted to KOK A re-
commendation to adjourn Saturday noon
till Monday was carried.
To -night witnessed the largest in-
formal gathering incident to the conven-
tion. The auditorium, which seats near-
ly 3,000 persons, was filled with friends
of labor, who had gathered to listen to
addresses by Samuel Gomners, President
of the American F'ederation; John Mit-
chell, President of the United Mine
Workers of America, and John Duncan,
First Vice -President of the American
Federation.
EXIT THE SIDE SADDLE.
Custom of Women Riding Horseback
' Astride Quite Common.
London, Nov. 19.—The custom of
fashionable women riding horseback
astride is so growing in England that
it can be predictecl that it will be the
rule insteacl of the exception in a very
few years, and that it will attract no
more remark than the custom of women
lauding. The practice is already often
followed by society women in Rotten
Row, the fashionable riding place in
Hyde Park. Among the prominent wo-
men who ride in this fashion are Vis-
countess Castlereagh, the Duchess of
Westminster, and the young daughter of
the Duchess of Sutherland.
Their riding habits are so contrived as
to present the neatest appearance. Seen
from some points of view, it can hardly
be realized that they are not using a
side saddle. The chief opposition to
the custom comes from the teachers of
horsemanship, who find the new style
much easier taught. The course of les-
sons is much curtailed; indeed, girls
learn to ride astride as quickly as their
brothers.
* e
WITHDREW REQUEST FOR LOAN.
Woodstock Company Threaten to Move
From City.
Woodstock, Ont., report: Some time
ago the local braneh of the Canadian
Manufacturers' Company, Limited,
sent an application to the Council ask-
ing for a loan of $100,000, without in-
terest. So much opposition against the
proposition was aroused that the com-
pany to -day sent a letter to the Coun-
cil, withdrawing their proposition, and
now they say they will remove their
ease goods department from Wood-
stock, which will mean the removal from
this city of over 100 men.
A good deal of feeling has been
aroused in the city over the matter, and
both the company and the Council are
being freely critimzed.
RIDICULOUS NIGHTMARE.
Is Fear of Yellow Peril Based on Re-
moulding of Chinese Army.
Loodon, Nov. 14.—The Tokio corre-
spondent of the Daily Telegrapi . says
that the Japanese authorities and news-
papers ridicule the theory fostered in
Europe that China is awakening to such
an extent a -s to become a menace. The
admiration some foreign critics display-
ed at the recent manoeuvres of the Chin-
ese army are regarded as ludicrous and
superficial. It is certainly not shared
in by the Japanese officers Who were
present. Any increased feaf abroad of
the 'yellow peril based on the remould-
ing of the Chinese, army on Western
lines is a ridicaloue nightmare.
•TYPHOID OUTBREAK.
CONDITIONS AT SAULT STE. MARIE
ANP OTHER TOWNS.
Drs Hodgetts and Bell, of the Provin-
-
cial Board of Health, Return From
a our of Inspection— Cases of
Typhoid in Northern Municipalities.
Toronto, isrov, 19.—Dr. C. A. Hodgetts, the
Secretary, and Dr. 11. W. Bell, the inspector
of the Provincial Beard of Health, have re-
turned from a trip to the north made to
Investigate the causes of the typhoid out-
break. They Visited all the towns from North
Bar west tap Gault Ste Marie. Thence DT,
Hodgetts went oa to Port William and Port
Arthur. At the Soo and Steelton, and ad -
Joining municipality, they found that from
August 1 to October 22 there were 236 cases
of typhoid, of 'which 46 came from lumber
camps. 16 from outside municipalities, and
the remaining 122 were residents of the Soo,
In the hospital at the time of the visit of
the doctors on November 3 there were 36
cases. Dr. Ben visited 126 homes in which
there had been a total of 155 cases of the
disease.
Dr. Hodgetts found that since July 159
residents and 42 non-residents of Fort Wil-
liam have had typhoid, and there have been
20 deaths from the disease. At Port Arthur
in the same period there have • been 95
cases and 15 deaths. In both places active
steps are being taken to improve the water
supply At Thessalon Dr. Bell Lound 12
cases of typhoid in the Victoria Hospital
and 11 in a temporary hospital, at Blind
River eight in a private hospital, at Sudbury
45 cases at the General Hospital, 23 in a pri-
vatehospital, and 12 in a temporary hos-
pital erected by the town. Many of the
cases in these last named places are from
the camps.
IN A COLLISION.
H. M. S. SIIEARWATER'S CREW
• MEET WITH BAD LUCK.
One Man Killed and Six Seriously In-
jured—The Second Section of the
Atlantic Express Runs Into Their
Train Near Kamloops, B. C.
Dead—J. A. Rowe, Vancouver, third.
cook in commissary car.
Injured—Wating, chief stoker of II.
M. S. Sheareater, burned. feet and legs.
Logan, seller, Shearwater, burned
face, feet, has.
•Joe Allen, -econd cook, euts and
bruises.
Louis Cha chief cook, cut face.
inspector dining and
sicelephainrgless
a$ -red. rib and pleases.
S. W. 1M. potter, contusions.
Nine atelo liginly. hurt.
Vancouver, NOV.. 19.—This is the re-
cord eor tee elms collision us passen-
ger traiwi that ever occurred on the
tescific .division of the Canadian Pacific.
It was: a rear -end. collision, and took
place at Tramline siding, sevea miles
west of Kamloops and 240 miks from
Vancouver. The eastbound overland
left here yesterday aftexnoon in two
sections, the first carrying time expired
men from the Shearwater, who, as they
left 'the city, joyfully sang "Rolling
Home, Rolling Home Aeross the Sea,"
and who announced they were going
home to spend Christmas in England.
"Oh, What a Happy Land is Engrand,"
they chorused.
The westboed train was late, so the
sailors' section of the Atlantic Express
was kept waiting at Tranquille siding
for it to pass. The second section
dashed into it, telescoping the sleeper
Loraine, in which was the officer com-
manding the men and overturning the
commissary car and the • sailors' car.
The three cars caught fire, the acetylene
gas tank exploding. Marines and blue-
jackets scrambled out of the wreck
with the agility of cats, and set to
work extinguishing' the flames and ex-
tricating the wounded.
The uninjured performed heroic work
in digging their injured comrades from
the burning cars. Many were in bunks
and only half clad when they scrambled
from the burning cars. All were taken to
Kamloops, where the six seriously injur-
ed were put in the hospital. The others
were found to have onlly minor injuries
and bruises.
Responsibility for the wreck is de-
clared to rest entirely on the crew of
the first and second sections of the ast-
bound train. It is thought by the of-
floads that the crew of the first sec-
tion did not set proper signals for the
oncoming section. However, it is ex-
pected the responsibility will be fully
placed by the Coroner's inquest.
LAWYER DROWNED.
mill noticedthe empty boaaands after
watching it for some time, lin Pettit
borrowed a boat and went out. He tow-
ed, the craft, and he says on his way in
he saw the body floating. After be
brought the boa ashore he etrebed out
to find the body, but could not locate it.
The eoat and hat were soon identified,
and the sad tidings spread over the eiy.
LORDS HAVE GONE TOO FAR.
Education Bill as Reconstructed a Sheer
Impossibility. •
Bristol, Eng., Nov. 19.—In a speech
delivered here to -night, Augustine leix-
rell, President of the Board of Educe -
time said the .education bill ea recon-
structed in the House of Lords was a
her impossibility. .As the measure
• earne • from the House of Comanons it
MIS linden:emanational, but the Lords
• lisid fostered and bolstered up the de-
nominationalisan. Mr. Birrell said he
hoped the Lords would recognize dur-
• ing the committee stage of the bill
that they had gone too fax, and that a
Liberal Government could not be car-
ried ou with advantage and sincerity if
measures prepared in accordance with
its pledges were mutilated and destroy-
ed by an unrepresentative assembly.
Landon; Nov. 13.—The Liberal papers
this morning comment upon the speech
of Augustine Birrell, President of the
Board of Education, at Bristol last
night as an ultimatum on behalf of the
Government to the House of Lords. The
Tribune declares the education bill is the
•last effort that will be made to reconcile
popular control with religions educations
and avers that if the present bill is de-
stroyed it will be to substitute not a
denominational but a secular system of
religious eduerstion.
WELL-KNOWN KINGSTON CITIZEN
AND AUTHOR.
Went Out in a Skiff and Probably Fell
Overboard—Empty Boat Was Picked.
Up and Body Was Afterwards Seen
Floating.
Kingston despatch: Mr. Joseph 13aw-
clean a well lawyer and Writer,
was drowned this afternoon. He had
been on the lookout for two rowboats to
sena to Fort William. • Two ;weeks ago
he bought on•e, and he was !trying an-,
other when the lamentable accident oc-
eurred. After lunch Mr. Bawden went
to ]flack's boat livery and talked with
the caretaker about a boat, He said he
would go for a now. He started off row-
ing at a good stroke. He went west-
ward. Fielsvised Ferrie notieo a man
towing, ana e. minute later when he look
-
ca the boat was empty.
Employes at the Kingston hosiery
SENT AROUND BY MANITOBA.
An Immigrant Family Destined for Nia-
gara Falls Misdirected.
Niagara Palls, Nov. 19.—Owing to a
mistake of the Immigration and railway
officials in New York a Russian woman
and three small children are taking a
long journey to Victoria Park, Mani-
toba, when they should have been landed
at the Victoria Park station of the
Michigan Central in this city, three or
four days ago. The women and children
are the family of a Russian tailor named
Pasternak, who works in this city. He
sent to Russia for them to come out.
They were held up at Ellis Island when
they arrived in New York, but on in-
structions from here were started on the
last stage of their journey. How the
railway officials got things so mixed as
to send them to Manitoba instead of
Niagara Falls is a mystery.
The railway will have to stand the
expense of their transportation and keep
while in transit.
• IS OVER INDIAN WORK.
Rev. T. Ferrier Appointed by Methodist
Mission Board.
Toronto report: Rev. T. Ferrier, of
Brandon, Man., was appointed by the
Methodist Mission Executive Board yes-
terday as superintendent of Indian
schools and institutes throughout the
connection. Dr. Carman and Dr. Suth-
erland were appointed. a deputation to
go to Japan next • spring in con-
nection with the union movement. Dr.
Carman and Dr. Sutherland are being
sent to represent the Canadian Method-
ists in this work of competing the basis
of union and inaugurating the new or-
der of things in Japan.
The question of a deputation to West
China was deferred until these commis-
sioners return from Japan.
't
HORSE STEALING AND ARSON.
Peter Hansen Sentenced to Fourteen
Years bit the Penitentiary.
Morden, Mans, Nov. 19.—Peter Han-
sen was to -day convicted on shams of
horse -stealing and arson and sentenced
to fourteen years in tlie penitentiary.
The crime was committed at Goodlands,
Man., last spring, where he stole four
valuable horses belonging to a farmer
named Charles Rasmussen, and in the
effort to cover the crime he set fire to
the barns, destroying sixteen head of
cattle, ten other hones, and a number
of pigs and poultry, besicla fodder and
farm equipment. He is an all-round
bad man of the boxder.
MINERS' STRIKE OVER.
Ferule Fight Suddenly Came to an End
Last Night.
Fernie, 33. C.,. Nov. 19.—The coal strike
that has been in force for the past seven
weeks eaene to an expeoted end last
evening, when Mr. T. Burke, representa-
tive of the National Board of the U. M.
W. of A., called upon General Manager
Lindsey and conceded all that the com-
pant hed all along demanded. The Agree-
ment which follows vindicates the\ com-
pany completely. Mr. Burke was
forced to surrender by the unmis-
takable attitude of the bulk of the min-
ers, who opposed the strike from the
first.
0'�'
ANOTHER WOODSTOCK SUSPECT.
James C11177*S Face Shows Marks of
&retches.
Woodstock despatch: James Curry,
the second man who, with Charles
O'l3rien, is suspected -of being implicated
in the assault and robbery of Mrs. J. D.
Casler last Wednesday night, was arrest-
ed at hishome near New Durham this
morning. His face is scratched, and
bean marks such as might have been
sustained in a struggle. Chief Zeats got
a Up last night that Curry might be
found in the vicinity of New Durham,
and Constable Hill was immediately clee-
patched to the neighborhood. Hill ar-
rived bit the city with his man about
10,45 this welling.
POLICYHOLDERS'
V[V S PRESENTED
Want a Voice in the Management of
• the funds.
insurance Department to Hold the
• Securities.
Officers' Association Approves of,
State Insurance.
Ottawa report: The Insurance Com-
mission to -day listeued to the views o1.
the representatives of the Policyholders'
Association, and gave heed to the fur-
ther representations of the Life 'emirs
some Officers' Association. • Both theso
bodies unite in opposition to restric-
tions to the power of investment. The
policyholders demand a voice in the man-
agement of the funds, the great bulk of
which they contend belong to them and
not to the stockholders. They also
ask for drastic measures against rebates
and tae custody by the Insurance De-
partment of securities held. by insurance
companies as a guarantee of safety and
a check upon. speculation in unauthoriz-
ed securities. A standard policy, the
elimination of the distracting features of
modern policies and the adherence to
principles of straight life insurance were
among the demands submitted by the
policyholders. The Officers' Association
approved of the principle of State as•
surance as likely to prove beneficial to
the regular companies.
Mr. Robbins explained that he wee
presenting his own views, there not hav-
ing been sufficient opportunity for the
association to arrive at a definite con-
clusion upon the various points. Upon
several broad points, however, all were
agreed, such as the necessity for the
more thorough safeguarding of the in-
terests of the policy holders frorn a repe-
tition of the abuses in the mana.gemei t
of insurance companies, which have been
revealed by the investigation. One of
the most important things for the pol-
icy -holders was that they be given pro-
per representation in the management of
the companies, so'far as the investment
of the funds are concerned. It had
been demonstrated that the great bulk
of these funds were the moneys of the
policyholders, the moneys belonging to
the stockholders being a mere bagatelle
in comparison. It was highly anomalous
that under these conditions the sole con-
trol of these very large sums of money
should be in the hands of the parties
who owned only a very small percent-
age. At the end of 1904 the capital of
the stockholders was less than 5 per
cent. of the insurance funds managed by
the representatives of the stockholders.
Mr. Macauley on Investments.
Mr, T. B. Macauley, in supplementing
Mr. Bradshaw's utterance, said, speak-
ing for the Sun Life Co., he would.' be
perfectly satisfied with the existing pro-
visions respecting investments with the!
one single exception: • That Canadian
companies be allowed to invest the pro-
ceeds of Canadian business in the same
class of investments, but that they be
not confined to Canadian securities.' The
amendment suggested was restrictive te-
ther than widening, and in the interests
of safety and justice to the companies.
Mr. Macauley, speaking for the associa-
tion, denied that the life insurance flints
were "trust" funds in the ordinary saps
of the term. "Safety" and "profit" were
the essentials which any Board of Di-
rectors were bound to observe. If "safety"'
was the only consideration, and tee
earnings were only 4 or 41a per cent. the
policy holders would be the first to com-
plain.
Commissioner Langmuir contended,
that insurance funds were pre-eminent-
ly trust funds, and that they were not
trust funds in any earrow sense.
Mr. Macauley contende.cl, in reply to.
Commissioner Kent, that he was speak-
ing for the association, but Mr. Richter.
an11. Mr, McDougall did not consent to!
Mr. Macauley's construction of the term.
"trust funds," so far as they were car
eer!mn
i.(1.Langmuir. pointed out that the.
average rate of interest received last,
year by the Toronto General :trusts,
Company, which complied strietly with
the Ontario trust act, was 4.82 1-2, while -
the average rate received by the insur-
ance companies, with their larger scope:
of investment, was 4.86. Mr. Macauley
insisted that the insutance compan-
ies' funds were no more "trust"
funds than were the deposits made In,
banks, and that the insurance colt-
pauies should be given the same free-
dom as the banks.
' Mr. Langmuir pointed. out that the -
commission should not make any recoils--
mendetion to widen the scope for in-
vestment unless they had some logicalreas,
recointgall differed entirely from.
ivforlep
Mr. Macauley, and urged that the ques-
tion of expense should be dealt with.
Upon the question of .,prohibiting bene-
ficial dealings betWeent officers and di-
rectors with their companies, none of
the managers present expressed any obs
jection to the proposal. Mr. Macauley
said the association was agreed that,
officers and directors should not be per-
mitted to borrow from their companies,.
except 'in connection with, the reserves!.
upon their policies.
The commission a,djourned until to-
morrow morning.
The Russian court elitism is agitating;
to have the Czar •abrogate all constitu-
tional privileges.