The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-11-26

Financial Frauds I'm Europe.
BY the mails which arrived yesterday we learn
that the Northern Railroad Of England has just
been defrauded somewhat in the same manner as
the New York and New Haven Company was by
Robert Schuyler. The transfer agent Of the
property belonging to the directors and share
holders to an amount not less than $4,000,
and to have made good his escape with the same.
We have frequently had occasion to indicate
the strong probability existing that several trus-
tees and persons in authority in the larger fnan-
cial institutions of Europe would, if the truth
were known, be found heavily in debt to the in
stitutions whose funds they have in charge.
When a man holds large amounts of other
peoples money in his hands, he can only be re-
strained from appropriating it either by principle
or by precautions taken by the owners, or by
want of temptation to steal. None Of these
hindrances can be at present relied upon in
Europe. The men who fill responsible stations
connected with moneyed Institutions are too often
creatures Of such fnanciers as De Morny and
Hudson, much more remarkable for fidelity to
their private patrons than for honesty. As to
precautions, there are absolutely none. Amy
President, transfer agent of railroad COM
pany here, in Great Britain or on the European
continent can steal if he chooses, and can keep
for long period of time. The best of all safe
guards-the removal of temptations wanting
like the others. In ordinary times, a man who
is paid adequately, and who has prospect Of
permanent position, is not likely, unless he be
great fool, to throw away his chances Of a calm
and quiet old age by pilfering; but when times
alter, when speculation begins, when beggars go
out Of a morning and return men Of fortune at
night, when few dollars or pounds staked on
the right color may make millionaire of
petty clerk, then, indeed, does it become hard
for fduciary Of small means and large trust
to remain true to his employers and his honor.
This is the present condition of France and Of
England. Speculation is rife, and fortunes are
constantly made and lost of morning What
terrible temptation for those who, having money
under their control, and being unfettered by
restraints, see that perhaps, with the use Of
few thousands that will never be missed, and are
sure to be restored they may secure compe-
tency for life!
The defalcation in the London Crystal Palace
Company, the fraud in the Northern Railway,
the robbery in the Chemin du Nord OF France
and the late entertainments in Denmark are all
induces Of state Of things which must some
day come to light and shake the spheres.
Frauds, defalcations, robberies abound. For
every one that is discovered a hundred escape,
some in one way, some in another, but not one
to be permanently covered up When the great
crash in France comes the world will be as
tonished by the magnitude Of the frauds that
will come to light.
The lesson is not without moral for our use.
Deeply as France and England are immersed in
speculations they are not more deeply involved
than we are. The United States have to refer TO
the single article Of railways, more miles in ope-
ration than all the rest of the world together.
All this has been done on credit, and the bulk OF
these railways have never paid any adequate re-
turn on the outlay. Their stocks like all other
stocks, put on the market at high price, have
slowly fallen downwards, downwards till but
few Of them are within thirty or forty per cent
or their prime cost. Yet Notwithstanding the
enormous losses this depreciation must have in
volved we hear Of no failures aud no stoppages.
How have the directors and managers of our
great railroads contrived to stand the damage