The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-05-13

decided to cancel $500, 900 worth, and that Dwight
subsequently, re-issued this $4,000 worth of bonds
of number below $500, and appropriated the
money to his own use. The next act of Dwght's
board of directors to sell the franchise and all
the properties of the company (subect to Spencers
lease) to a firm called Fullerton, Brown Heating,
of New York, they contracting to pay all the debts
of the company, giving the preference to the claims
of Hotchkiss' bank, Dwight and his brother, and
other friends.
The charter of the company only extended to two
years longer than the term of Spencers lease. The
laws of New York, the deponent states being an
obstacle to the designs of Dwight and his confeder-
ates meeting of the board was suddenly called and
it was resolved, by majority of Dwight's friends,
that the board should meet in future in Bloomington,
Illinois. Three of the directors Hotchkiss, Wright
and Quintard then resigned and Mr.. Alexander, the
Sec'y, creature of Dwight's, Mr.. Henry A. Gardner
of Joliet, ILL.,, and DR.. Spencer brother of Hamil-
ton Spencer, were elected in their places Mr..
Blatchford, who was then treasurer, seeing that a
fraud was meditated, seized the books and papers,
and got out injunction from Judge Roosevelt re-
straining the Secretary (Alexanderl from touching
them. The board, however, went to Illinois, re-
moved, by resolution, Mr.. Blatchford from his post
as treasurer, and Mr.. Brewster from his office of
President, creating Gov. Joel A. Matteson of Hi
nos, President in his stead Meantime Judge Roose-
welt, on complaint of Mr.. Litchfield of the North
ern Indiana Company, and others, granted an in
junction restraining Dwight, Spencer Il Hotchkiss
and Brown Bros. Co., assignees of the lease and
Fullerton Co., from assigning putting it in use,
on the ground that it was made to hinder, delay
and defraud the creditors of the company and car
rying out fraudulent intent.
An arrangement was subsequently, made between
Mr.. Matteson and Mr.. LitchheId, by which they
guaranteed to pay the claim of Brown, Brothers l.
Co., that they would devote themselves for three
years to the interests of the road and of Spencers
lease as long as it lasted, or of any new company
which might be formed, and that they would de-
tend all suits against Spencer account of his
lease, and endeavor to procure the discontinuance
of all suits commenced against Dwight or Spencer,
with sundry other agreements, with the provision
that when they were fulfilled Spencer should sur
render his lease to new company.
1t was further provided that all legal and Just
debts against the company should be met, and all
bona fde stock should be provided for except such
as Was held as collateral for the payment of Henry
Dwights debts, thus sweeping out of existence all
the shares hypothecated by Dwight for his private
debts. Spencer accordingly surrendered possession
of his lease to Matteson and Litchfied but though
for eleven months previous he had received all the
earnings of the road, amounting to q million dol
lars, he never made any return of the same to the
company, nor did he pay Brown, Brothers & Co.
the $3.50, 900 borrowed of them.
Fullerton 4 Co. then advertised the road its pro-
perty and franchises for sale at public auction sub
Ject to the lease assigned to MattesOn Litch-
held-the whole property being worth at least
eight millions The sale took place at the depot in
bloomington, on the 18th December, 1856. There
were present. as deponent ALLEGES, Matteson. Spen-
Ger, Hotchkiss and Brown, one of Fullerton's firm
besides few engineers, aborers and clerks One
bid only was offered of 5000 by Matteson and the
road, with all its property, in depots, engines,
cars, franchises, &c, was knocked down to him.
A bill was obbied through the Illinois Legislature
confirming the sale, and creating Matteson Litch-
field and their associates new company, with full
power to run the line The deponent, Charles
Gould, concludes by praying that a warrant of ar
rest may issue against the said Henry Dwight and
such other persons who have been concerned and
confederated with him as aforesaid and that they
may be dealt with as the law directs, upon those
matters of conspiracy to detraud the said railway
corporation, and of false pretences and oforgeres
and of perjures and of embellishments, and of false
issues of stock and Of bonds, and of fraudulenty
making of and putting into use instruments to him
der, delay and defraud the creditors of the said rail
way corporation, which have been hereinbefore set
forth at length.
This is the history of this extensive case of alleged
fraud, involving charges of perjury, embezzlement
and conspiracy against several parties prominent in
commercial and financial affairs. The further in
vestigation will doubt bring forth many details
of a startling character, which will throw much
light on the mode in which the public are defrauded
by the managers of large corporations