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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.