MAIN EIO3- MAIN 2IO4-
CANADA LIFE BUILDING, 44- WEST KING ST.
Feb. 26th, 19 17.
G. E. Muirhead, Esq., Osgoode Hall, Toronto
I beg to advise you that last Friday we made some
progress in Mr. Dinnick's examination, at least, I have got production from the Snist & Guarantee Company not of the Minute books, but of letters and correspondence and things of that sort, and I find at the very outset half a dozen letters from Dinnick directing the issue of the shares to the contractor in very large blocks running up immediately after the by-law was passed approving of the issue, to $400.000 or f 500. 000. worth of bonds, and thereafter in a steady stream, although Mr. Dinnick admits it was far in excess of the amount for which work was done.
I have also got his admission on oath that the directors got some bonds, but he says they got them as members of the Syndicate, not as directors and he thinks they had advanced some moneys. I am looking into that further, and I am having the Trust Company look out the old books of account to trace that up.
I have also got from Mr. Dinnick the admission that at the time the directors approved of the bond issue and approved of the contract with Drill they had turned over the control of the Company to Terner who had introduced Drill to them, and the shares on which they qualified really belonged to Verner, I think this is, at least, getting us on the track, and that perhaps in/Spite of the loss of the Minute book, we may get enough disclosed to put them in difficulty. I have adjourned the examination a week, until the Trust Company look up the papers I have a&ked them for, particularly the stock certificate books and the bond register and the books of account etc.
I have obtained a copy of the Drill contract, sworn to by the President of the Company, and the impress of the Company's seal is upon it, although it is only a copy.
Now, I wish you would speak to Mr. Owens, formerly of the Bank of Ottawa, a member of the Committee, and see how that fund over there stands, as I want to get say, 1250.00 on account of expenses. This case is get down for trial, and these examinations costing money, and that will be a reasonable amount to ask for. Will you please arrange it for me,
DICTATED but not read over by Mr. McMaster