however, that a large class
of his readers might be interested in the exact particulars,
he herewith gives a sketch of the transactions.

It will be remembered that at the time--1878--Orde first
came in need of money for the purpose of buying the
California timber, the firm, Newmark and Orde, owned in the
northern peninsula 300,000,000 feet of pine. On this they
had paid $150,000, and owed still a like amount. They
borrowed $75,000 on it, giving a note secured by mortgage
due in 1883. Orde took this, giving in return his note
secured by the Boom Company's stock. In 1879 and 1880 they
made the two final payments on the timber; so that by the
latter date they owned the land free of encumbrance save for
the mortgage of $75,000. Since Newmark's plan had always
contemplated the eventual foreclosure of this mortgage, it
now became necessary further to encumber the property.
Otherwise, since a property worth considerably above
$300,000 carried only a $75,000 mortgage, it would be
possible, when the latter came due, to borrow a further sum
on a second mortgage with which to meet the obligations of
the first. Therefore Newmark, in 1881, approached Orde with
the request that the firm raise $70,000 by means of a second
mortgage on the timber. This $70,000 he proposed to borrow
personally, giving his note due in 1885 and putting up the
same collateral as Orde had--that is to say, his stock in
the Boom Company. To this Orde could hardly in reason oppose
an objection, as it nearly duplicated his own transaction of
1878. Newmark therefore, through Heinzman, lent this sum to
himself.

It may now be permitted to forecast events in the line of
Newmark's reasoning.

If his plans should work out, this is what would happen: in
1883 the firm's note for $75,000 would come due. Orde would
be unable to pay it. Therefore at once his stock in the Boom
Company would become the property of Newmark and Orde.
Newmark would profess himself unable to raise enough from
the firm to pay the mortgage. The second mortgage from which
he had drawn his personal loan would render it impossible
for the firm to raise more money on the land. A foreclosure
would follow. Through Heinzman, Newmark would buy in. As he
had himself loaned the money to himself--again