New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-02
ALLEGED EXTENSIVE SPINDLE.

THE UNION PACIFIC RAILROAD COMPANY VIC
TIMIZED--ARREsT OF FIVE rEHsONs-PRo-
CEEDINGs IN COURT.
An investigation was commenced yesterday,
at the Tonbs Police Court before Justice DOw into
what is alleged TO have been extensive swndle the
! Union Pacific Railroad Company. II IS alleged that
several we'll known operators In Wallst concerned
in the case The details OF the affair fully set forth In
the following affidavit made January q. before JUS
tice Bowling: benjamin +. Ham, Of No. 20 Nussaust,
testified that the 18th Of November last,
FREDERICK A. GOodnll came To depOnen who is the Au.
that lie tGOodaD knew Of responsible parties who had
money 20 loan and that he could obi IN fun them loan
for tie OF the said railroad company to the amount
Of 100000, 100000 800 600 This depnnent having
had authority by reason Of his office as Auditor 10 make
and negotiate loans behalf Of the Company and be.
leVng the statement OF GO0dA offered him the sum OF
one-half OF per the amount Of any money he
should procure as q loan the said Company that
10Th day Of December 1862 Gooda came again into
the Office OF the Company bringing with Inn man whom
he introduced deonent Wesley Lyon, and whom ho
GoOdal said The agent aud attorney OF the person
he (GOodal) bad previously spoken OF 10 depOheht
and who would loan the said Company the SUN
Of 100000 on the fl,s!l,MoTtgage bonds OF me
and there that the name al the party who desired to
AXE the loan was simon Won aud hat ne was man OF
sble and retired merchant That IN few hours there
and stated that they were ready 10 make the loan De
pOnen believing tho statements made by doodall and
ton was i'm good faith caused zone hundred and twenty
thousand dollars worth OF the FirsAOgsge Bonds Of
named Henry 81 Endei 70 an ofcs in the building No
SO Nassaust where Bndel delivered tho bonds to Lyon
for the mortgage bonds and The other certificate OF do
post Of the OF $685. 80 In currency to the
order OF Simon NO winch papers were brought 10 de-
ponent That certificate Of deposit deposited TO the
freG OIL 'F9 sPp s ha ,o bo made h
him and GO0dal aud Lyon was that no (depOnenO
commission for negotiating the loan; that tho money
was be loaned to the Company, which was to gave
Wolf promissOry note OF the Company for the sum Q
100000 likewise $4,000 worth Of first mortgage bonds
OF the Company as collateral security Tor the pay
this doponent as iis auditor performed ali
tho conditions OF the contract, but that
gage bonds their possession they agreed 20 do be
delivered TO the Company at the maturity OF the note
sold the bonds the day that they received them.
at less than the market value thereof and appropriated
the proceeds 70 their own uses and benefit that dponent
has asCertaIned and believes that the representa-
tlons made relative to Wolff to deponen, by Go0da and
they knew the same to DO false When uttered by .hem
Deponent therefore charges Goodan and Lyon with
making such representations for the purpose Of inducing
him. tho OF the Company 20 take the loan and part
sold and the proceeds appropriated to their own use
Deponent also charges Simon Wolf, Voney Wright and
James Wilkinson with conspirng with Goodal and Lyon
for the purpose Of deraudnR the Company OF the bonds
inasmuch as Wolff Wright and Wilkinson were 70 receive
portion Of the proceeds from the sale Of the bonds and
parties 10 the arrangements to obtain possession OF
9 bonds from s shS S%PG Al s9ys res ey may
Mr.. Ham alleges that he gave promssory note paya.
Bile the expiration OF four months, for the amount
the 100 bonds valued at Sl90O were given as collateral
security for the loan with the understanding that they
To be retaned by the holder such security until
the expiration OF the time for which the loan made.
This loan made and the bonds delivered Jan.
49, On tho following day. Mr.. Ham received Information
that large qanty OF the bonds OF tho Union Pacific
Railroad was being thrown on the market AZ price be-
low tho rate at which they were sold by tho Company.
surprised at this statement Mr.. Ham wont into the
ket and bought up 100000 worth OF these bonds On
aiming them Mr.. Ham found that they were portion
OF the bonds given by him 20 GOOdall and Lyon the
DAY previous BY this means u Is believed that from
t25OO0 TO t2S00O realized by the parties, Satisfied
that tnty had violated their agreement Mr. Ham called
upon capt John s. Young, commanding the Detective
force At Police Headquarers and laid the case before
him Assoclang with him Detective officer McDougal,
Capt Young made investigation OF the case. and
certahed mat other persODs are concerned In IT, among
whom were James Wilkinson alias Whisky who Is
said To have been with VOney Wright aud Simon Wolf,
the projectors OF the Transaction and that GoOdal and
Lyon were merely used by these men 20 negotiate the loan
On the aoayt given above Justice Dowlng issued hrs
WARRANT o the arrest OF the persons concerned ana one
by one as they were found they were taken into custody
ana locked up AZ Police Headquarters Yesterday, ms
stated above tho prisoners aragned before Justice
DogiiIg ana when tho AFFIDAVIT OF Mr.. Ham was
read 70 mem they all pleaded not guilty
aud demanded examination. This was