Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-03-12

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with him, and thatthe valve was found to nave
been torn out when the balloon was found. be
sscended few minutes before IL O'Clock IN the {
forenoon. and his watch, found with the frag-
mepts of his remains, stopped at ll:4O a NJ
so that he must have retained helpless and pre-
carious hold upon the ballOn for three quarters
of an hour, and probably fell from nlgn' 0i
over two miles
TOLEDO GARRorERs-Two rufianly tel-
lows named Finn and Brown have been arrest
ed for the recent robbery at Toledo, and COM
mitted for trial in default of $1,000.
&P.R. r. Co. & o. L. Ins. & Trust Co.
By the report of the Treasury 1nvestiga-
ting Committee it appears that Ludlow the |
manager of the New York Agency OF the onio
Life and Trust Company, was an extensive
stock operator-that he dabbled in Cleveland
and Pittsburgh, Illinois Central, Ohio and MIS-
sissippi, Florida Land Bonds, Trust Company
Stock. State Loans, and loans to officials, ana In
coal lands, town lots, and nearly every variety
of schemes. Some ls, 900 shares of the CleVe-
land and Pittsburgh Railroad Stock, and a mil
lion of its bonds, seemed to have passed
through the hands of the Agency. The STOCK
was about 60 at the beginning of the year 1857
on the Saturday preceding the failure OF the
Life and Trust it was dropping at 2os, and on
the Oath of August, the day of the suspension
it went down to lat.
Charles Stetson, President of the Ohio Lille
Insurance and Trust Company, in his affidavit
contained in the report of the Investigating
Committee, explains the connection of the
New York Agency with the Cleveland and
Pittsburgh Railroad Company. He says 1t
arose in this wise;
| Gilbert d johnson owed at the New York
Agency a balance of some $40, or S45Oo
while, in the opinion of the Trustees IN New
York, Mr. Ludlow and ourselves, was not tul
" secured. The security was S50,OOO OF Cen
tral Ohio Railroad bonds. The balance arose
from former heavy indebtedness OF the hrm
of Gilbert, Coe & johnson, which had failed IN
business in 1854. The Company had waived
the liability against Coe, and Gilbert d johnson
were held for the balance due. Gilbert had OBJ
tanned contract from the Cleveland and Pitts
burgh Railroad Company to furnish it six thon-
sand tons of Railroad iron, upon winch 1t was
supposed he would make prott OF sixty
thousand dollars He then proposed to our
f COMPANY to place in its hands S6O,OOO OF the
Bonds of the Cleveland and Pittsburgh Rail
road, as collateral, value to be worth at least
fifty cents on the dollar, and to do this with the
consent of the Railroad Company, on condition
of our advancing the needful credit, to an ex-
e tent of S34O, 600, to enable him to make the
= purchase and carry out his contract
: We were to receive p per cent. commission
e sc OOO-apd l suppose interest on our ad-
vances. The money woull not be needed al
once, only monthly instalments OF S2I,5OO--
From the profit of this contract Mr.. Gilbert ex
pected to pay the balance due as above. This
y proposition, when first presented to our Board
:, was rejected, 1t was again presented by lettel
from Ludlow and the New York Trustees, cop
i les of which are furnished you, and then re
e consideration being moved, it was passed sublec
- to the supervision and ratification OF the New
York Trustees.
The proceedings had are hereby shown to you
n The transaction as to its mode of payment wa
: afterwards presented to US in more acceptable
shane. set forth in letter of Mr.. Ludlow to mi
D dated April 10, 1856, by which the Railroad
Il Company would sell her securities gradually 10
4, cash, and thus render it unnecessary TOT US .
n make any advances, and we here believed II U
! |
snoken of in that letter, and the semi MONTH.
D. statements exhibited to US such state of things
l. On this transaction no loss was sustained b
n the Trust Company; but it led, as we suppos
actions, which have proved so disastrous, AM
which produced the heavy Indebtedness of tha
Railroad Company to us.
q The item in the semi-monthly statements Ol
al the debit side, called Cleveland and Pittsburgl
t, Railroad Bond account, we took to be the on
e that related to this transaction. The true ma
z ture of the Cleveland and Pittsburgh Railroad
d stock account was entirely unknown to me unit
: after suspension. l saw the account on tn
e credit side, and supposed it to be deposit o
d money from the sale of stocks, with which WI
IS did not suspect Ludlow to be in any wise con
v nected, nor did we ever dream that any part o
l. this matter was being done with money from
e our Company.
e The highest debt reported to US as due from
e that Railroad Company, is S4S, ,379 As, and il
: the statement, August l, 1857, it was reported
e to us at Sll ,943 "a, and in the statement made
s up to August "a, after suspension, it was S20l,
900 81, and the real balance after the account
l. had been fully adjusted was SSll, ,255 25.
There was, besides Coupon account, be
ing interest paid for the Railroad, of which We
e knew nothing, and which showed, in the state
d ments, only as a small account, but which ex
8 ceeded 500, 900 when finally adjusted.
We ascertained, after the suspension, thai
Ludlow arted as agent for the Railroad Com
+ pany in selling its stock, thing entirely un
t known TO US, and the Company now claims o
US pay for some 1000 shares of its stocks, saiC
to have been sold by Ludlow, and as they CLAIM
about 5000 or 5000 shares were never account
ed for.
After the suspension / ascertained that Lud
! low had paid for that company many loans,-
e for instance, q loan, made in November, 1856
of VIM. Hoge d Co., for Sl75, 900; again to NJ
Morgan d Son, $50 000-the very amount he
had reported to US as a loan to NJ. Morgan 4
: Son,-and thus the account is a mixture oi
loans, sales, and purchases of the bonds and
stocks of the Company, and advances on the
iron contract which astounded me, when it was
, at last worked up into shape, as we at home
! had not the remotest suspicion of anything Of
the kind going on. Mr.. Ludlow kept the
main items of his accounts about the railroad
company in separate papers, and the book-keeP-
ers could give me but little information. Lud-
low had directed some entries to be made g
few DAYS previous to the failure, and afterwards
he furnished dates from which the accounts
have now been prepared.
Lulow's dealings with the Cleveland q
i Pittsburg Railroad Company, especially his be-
ing stock agent, was totally unknown to me-
MURDER OF AN EI-CoNvIcT.-lt will be re-
membered By many of our citizens that short
time since man named Oliver B. Stone visit
ed this city and delivered a series Of lectures
n