Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1858-05-13

Alleged Enormous Railroad Frauds
Ens bezziemeni, Perjury, and FrmudIl-
!cni Issue of Stock 10 abe AnaOmnt of
Millions of Dollars
Under our Geographic head can be found a
brief account of the arrest, yesterday of a
Wall street broker for frauds upon the Chica
go, Alton, and ST. Louis Railroad, New York
merchants, and some New England banks, to
an enormous extent. AS the case is now
represented, it puts all other cases of swim
ding, even that of Schuyler, into the shade.
The Chicago, Alton, and st. Louis Railroad
has cost probably in the nelghborhood of ten
millions of dollars; and like our Vermont
railroads, has three classes of bonds, in add
ton to the stock, had considerable floating
debt. 1t has made no interest upon its first
mortgage bonds for several years, and tor
some time there has been contest between
the hrst mortgage bondholders and the man
ayers, as to the possession of the road, when
the liberal proposition was made to give them
possession OF the road, under certain ercum-
stances, in five years. We have been favored
with the following additional particulars OF
the financial explosion which has now occur
red, and which, it is to be hoped, when the
other side is heard, will not have quite so bad
look as at present:
For some weeks past some of the leading
bankers and merchants Of New York city,
aided by eminent counsel, have been probing
terrible charge of fraud in connection with
the Chicago, Alton, and St. Louis Railroad
Company, by which the stockholders, bond
holders, and creditors generally of that insti-
tuition, as well as several New England banks
and many merchants, are sufferers to the
amount of millions of dollars.
A short ting since afidavits were sworn
yesterday before Judge Russell, by Mr. Sam
uel M. Blatehford, Stewart Brown, Seabury
Brewster, and Charles Gould, charging Hem
~ Dwight, Henry Botchkiss, and Hamilton
Spencer, directors and chief managers of the
railroad company with swindling, embezzie-
ment and sundry other grave charges.
Six warrants were issued against Mr.
Dwight on two separate charges Of perjury,
one for fraudulent issue of coupons, one for
the fraudulent issue of cancelled bonds, an
other for embezzlement, another for conspira
cy. warrant was also issued for the ar
rest of Hotchkiss & Spencer, on charge Of
conspiracy TO defraud their creditors.
Mr.. Dwight was arrested Yesterday and
brought before Judge Russell, and is now in
custody awaiting examination.
lu regard to the losses OF New England
banks, but few of them at this late day would
keep possession of such kinds of securities
without other endorses.
In relation to Mr. Dwight, we are informed
that he was formerly banker Of New York.
in good standing, He undertook the project
of building theroad from Chicago to st. Lou
is, but broke down a number OF wears since.
in consequence Of the unfavorabe condition
| of financial matters. The road then passed
into the hands Ola Mr.. Spencer, who released
it to Ex-Governor Matteson of Illinois, man
whose political influence in that State is sec
ond only to that of Douglas. 1t is Mr.. Mat
teson who has been contesting the claims Of
the bondholders Tor the possession Of the road.
The friends of Mr.. Dwight are, as yet incred-
ulous of his being concerned in any such
frauds as the one alleged.--Boston Traveller.