The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-04-20

= o41HGLs
Financial Frauds-shossd they be Punisssd +:
The indictment Of Thomas Al!ibone aud
another director OF tho Bank Of Pennsylvania
on . charge Of defraudirg tbs bark and its
stockholders Will, IL the suit be carried through
with skill and vigor, provo q wholesome
example to the rogues Of that State, The re-
port Of the State Commissioners left no doubt
Of the fact that the affairs Of the bank were
grossly mismanaged under the presidency Of
Mr.. Allibone, and that On certain occasions the
negligence displayed BY the President was
closely allied to fraud. Still, there is nc reason
to believe that his conduct in his Official capa-
city was unprecedented; aud in view Of the
iorge number of persons who-to say no more
have II in their power TO defrsud in the manner
charged upon Mr.. Aliiboae, his trial will be
matter of general congrstulation.
In England, il is found necessary 70 try some
of the most prominent commercial rogues every
few years Within tho past ten years. the air
of London has been purified three or four times
10y the trial Of managing directors of railways,
banks and other corporate bodies; and in
England juriee have way Of finding rascals
guilty. The iaet instances Of the kind which
have occurred have been the trial Of the direc-
tors of the British Bank. and that Of Strahan,
Paul. and Bates, the bankers who were trans
ported: in both cases the prosecution which
WAS based en- ample ground, wss sue
Oesfal, and the guilty were punished.
All accounts concur In stating that these
trials had most beneficial effect; as indeed the
spectacle Of a man of education, refinement and
high social position like Sir John Dean Paul,
reduced to mess and bed with houscbreakers and
pickpockets, en- board convict ship, could
hardly fail to prove.
The inquiry naturally suggests itself on read
ing Of these correctves to fraud why is nothing
of the kind ever attempted here. 1t is not in
rising country towns like Philadelphia that the
great swindles Of the day are oontrived- They
are Matched and executed here. In the heart and
focus of the commercial, financial and intellec-
tual movement Of this country. Nineteen
twentieths Of the great enterprises of the day
see the light here. All the great banks arc
here; most Of the railways have their head
quarters here; this the great centre from which
radlate all the schemes which serve to dcvelope
the country or to svindle its inhabitants. II
there be spot in the United States where the
law should occasionally assert Its power to re.
press fraud, this Is surely the place. Yet here,
in contrast to every other financial aud COM
mercisl centre, tie law never does interfere,
and tho air Is never purified by the detection,
exposure and punishment of s stray rogue
among the numbers that infest the place
Perhaps the phenomenon is explained by
the general failure Of justice in New York
When We cannot convict forsers, incendisries,
housebreakers and murderers, it is perhaps
too much to expect that We should be able 10
send slippery financiers to Jail. 1t might prove
however that the 6nancier had fewer friends on
jury duty than the murderer.
One thing is certain frauds abound. TO
pass over the subject Of bank frauds, upon which
we have repeatedly animadvcrted, the frauds
which have been committed in this city in con-
nection with railways at the West and else
where, within the past four or Ave years, hare
been enormous, and scandalouA Ever since
Schuyler was detected in his over-issue of New
Haven railway stock, disclosures Of as deep y
moral hue have been coming TO light every few
months in the affairs Of other railway com
panies. Last year there WAS an unauthorized
issue Of Southern Michigan and Northern In
diana Railroad stock. Two or three years ago
there was an "error" Of over million In the
accounts Of the Erie Railroad Frauds of a
most glazing character have from time 70 time
been developed in tho management Of several
Of the Western railroads, especially some of the
latest built and leas. known in our stock mar
ket. Why should not an effort DC made TO try
whether our laws cannot be brought TO bear on
those who con,rived these frauds and those who
| profted by themr
II II evident that such 1nanclering as We
have witnessed only too often in Our railway
experience works gricvous injury. II has
proved almost ruinous to every one who
held railway stock last year, and it has
unduly and most seriously injured our railway
credit abroad. Why should the knaves who did
all this mischief escape! With wha. appear
ance Of consistency can We punish the pick
pocket who steals handkerchief, or the Peter
Funk who commits o swindle for FIVE dollars
| II we suffer these magnificent railway rogues,
who rob by the million, and ruin public and
private credit together, TO escape scot free?
There are frauds which the law cannot reach.
The finger of scorn is pointed at two or three
notorious individuals, who become directors In
railway companies for the purpose Of acquiring
q knowledge Of secrets which they retail in
order to deprcclato the stock, while they sell IL
for a fall The Law has presumed tha. 70 man
who could in any way mako an honest living
would stoop to such paltry baseness, and has
provided no punishment for it But the case OF
individuals who, In position Of prominence
and respectability, uses that position for the
purpose Of defrarding their associates or the
1 ooroo~r xy;th vbich fhcy arc connccied ~