The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-06

moTe Csimina. Prosecutions against Financial
Swtndiers-
We alluded the other day to the prospect
that criminal prosecutions were about to be in
stituted against several well known fnanciers,
Cd the ground of their alleged participation in
frauds connected with the Western railways.
We have reason to believe that several victims
OF the malpraotices of these and other fnanciers
of the late expansion are about to take steps
thoroughly to expose, and, If possible, to punish
the authors of their wrongs. There is deter
mination expressed in various quarters to sift to
the bottom some of the more notorious of the
frauds Of the late flush times, and to ascertain,
with view TO fresh legislation, whether or no
the contrivers Of those frauds can be made to
answer in criminal court of justice for the
mischief they have done.
We are not sorry to hear that one of the first
concerns which is likely to be subjected to the
legal furnace and crucibie is the late Ohio Life
and Trust Company. That concern was the
first to lead the race Of failure. 1t stood high,
and commanded public esteem People used it
as the medium. of exchange between this and
the West; it was also common receptacle for
savings It's credit was unaueetioned; its means
ought to have been very large. In one day
this concern fell so thoroughly to pieces that
the stock, which was worth nearly par
in the morning, could not be sold at ninety
five per cent discount at night. Nor has
anN recovery ever been even attempted. Its
creditors are still waiting for the first sign
OF a dividend on their claims. The wise among
them have written of--as bad debts-all sums
invested in Ohio Life and Trust Company's
stock, or due aud owing by the company. There
never was so complete breakdown.
When we inquire for the cause of a collapse
so sudden that no stakeholder was enabled to
escape and SO complete that FIVE cents on the
dollar would be eagerly taken by most of the
creditors We can get no answer. Nobody knows
Ahy the Ohio Life and Trust Company failed.
The officers of the concern, when asked their
opinion return cock and bull replies. The Of
fcials of Cincinnati accuse the officials Of New
York; the officials of New York throw the blame
| on the officials of Cincinnati. Each set is salts
| fed that the other was composed Of the most
| unmitigated rogues; there is no question but
| debts in the West. We hear of money lost by
individual officers of the company in stock
| gambling transactions in New York. We hear
| of insane speculations entered into by foolish
J officials on behalf of the company. But these
are, after ALL mere rumors; the fact is that the
public has no knowledge whatever either why
or how the Ohio Life and Trust Company fail
ID hat nf tbo fvuO Nil al
which il had
We repeat, therefore, we are neither sur
prised nor sorry that some of the parties who
have been the most severely injured by the
failure of the concern have resolvedt to make the
event the subject of thorough legal investi-
| CATION, by means of an indictment laid before
| the Grand Jury OF this county. This is the
| only course by which the truth can be usoer.
tanned 1t is the only one which the magnitude
of the affair warrants. The present Grand Jury
are q highly respectable and intelligent body
we'll fitted to grapple with the question; they
will get at the truth if it can be discovered
at all
If there has been any fraud in the manage
ment of the Ohio Life and Trust Company
/
| particular we cannot imagine how it could
have failed unless the concern had been fraudu.
lently managed-that fraud must have been Of
the most aggravated and scandaleus and enor-
nous character. 1t must have been perpetrated
by persons Of high standing and general public
esteem. II must have been perpetrated upon
the most descnceless and helpless part of the
COMMUNICATIONS, orphans, and country
farmers. II must have been carried on to Q
frightful extent-the sum fraudulently appro
priated exceeding two millions of dollars II
must be considered as the prime cause Of th'
revulsion Of last year, and thus ultimately a
the source of all the trouble aid disaster which
ensued in the months OF September and October
last
Here, then, evidently is proper case Il
test the efficacy of our commercial law; and
we hope and trust that, in view Of the IN
portance Of a high and signal example for tn,
| publication of our commercial community, and
indicating sound morals In the commercial
world, each and every person who lost money
last year by the failure Of the Ohio Life and
Trust Company, AS well at Cincinnati as here
will now come forward and lay the facts before
the Grand Jury, to the end that IL they cannot
recover at least aportion Of what they have
lost-a thing by no means certain, If proper
measures are taken-they may at all events have
the satisfaction of aiding to punish the rogue'
who defrauded them, aud to purify the tinan
cial atmosphere Of the country.
----
The PARAGUAY REsoLurroS.-It appears thai
the resolution introduced into the Senate from
the Committee on Foreign Relations, author
izing the President to bring the impudent gov
eminent Of Paraguay to a settlement for Ger
tain outrages against the people and govern