The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-02-02
ALLEGED CONSPIRACY TO DEFRAUD.


Sharp Operation-The Pacific Railroad
Company Defrauded of S124,OOO.
A case came up before Justice Bowling yesterday
morning ut the T0mbs Police Court which promises
some curious developments as to the manner in
which sharp operations are conducted by street
brokers and their confederates Justice Bowling
having received Information few days ago that the
Pacific Railroad Company was defrauded OF first
mortgage bonds to q very large amount by gang OF
conspirators. several OF whom he remembered In
connection with former bond transactions, set de-
tective McDougall to work up the case, with view
Of bringing the parties to justice.
The detective made several arrests, and yesterday
morn ing at eleven O'Clock Frederick A. Goodal,
Wesley Lynn, Simon Wolf and James wilkinson alias
"whskcy Jim,r were brought up In charge OF the
officers TO answer the complaint OF Benjamin +.
Ham, auditor In the Office OF the Union Pacific Rail-
road Company. The prisoners applied to be admit
ted to ball. but Justice Bowling refused pending the
examination OF the case, which was adjourned until
one O'Clock to-day, to enable him, when District
Attorney Carvn will be present, prosecute on be-
half OF the people. The prisoners were remanded TO
prison In the custody OF the officers II is the opn
ion OF Justice Bowling that there are others con-
cerned in this transaction, and he Is therefore
anxious 10 have present in the Court OF Special Sea-
sons to-day, at one O'Clock all parties who may
have suffered from the operations OF these alleged
conspirators.
made, was read by the clerk
Benjamin +. Ham, or 20 Nassau street, being duly
sworn, deposes and says-That on or about the 18th
OF December, 1865, In the city OF New York, in the
county Of New York, Frederick A. Gooda came to
the deponent who Is the auditor in the ONCE OF the
Union Pacific Railroad Company, and stated TO him
that he (GoodaD knew OF responsible parties who
had money 10 loan, and that ne could obtain from
them loan for the Of the said railroad company
to the amount or one two three hundred thousand
dollars. This deponent having had authority, ty
reason OF his said once as auditor TO make
company. and believing said statements OF
the said Goodall, offered him the one.
OF any money he should procure as loan to the saa
company. That subsequently, and on the 10th day
Of December 1858, the said Goodall came again into
him a man whom he introduced TO deponentl as
Wesley Lynn, and whom he lGooda said was the
alD had previously spoken to deponent, and who
would loan the said company the sum OF 800, 900
and that e sa9 Gooda ana sed them
there that the name OF said party who desired TO
make the loan was SIMON Wolf, and that he was
chant. That In n few hours thereafter the
said Goodal again came 10 the Office OF the
make the loan. Deponent believing the statements
made by the SAID G0odal aud Lynn to be true a. TO
the said Won and that the transaction was In good
faith, caused $4,000 worth OF the first mortgage
bonds OF the said company to be taken by messen-
ger in the once Of the company, Henry NJ Lindell,
w III OtuCt Tue DuliuiHE NO. DO NhSStu stIett,
where the said Lndell delivered the said bonds TO
Lynn, from whom he received two papers, one being
a receipt OF said mortgage bonds and the other o
certificate OF deposit Of the sum OF 80 In cur
rency, PAYABLE to the order OF Simon Wolf, which
papers were brought to deponen That said certif-
cate OF deposit was deposited TO the credit OF
the said railroad company N the Fourth Ma
tional Bank. Deponent further says that the
agreement made between the deponent and said
Goodall and Lynn was that he lthe deponent) was
TO give the said Goodall half OF one per cent
commission for negotiating the said loan that the
said money was TO be loaned the said company who
was TO give the said Wolf pr0missory note OF the
said railway company for the sum OF 100000, like
wise $12o00o OF rst mortgage bonds OF the company,
"a collateral security for the payment OF the bald
note; that the said company through the deponent
as It's auditor, performed all the conditions OF the
said contract; but that the said GOodall and Lynn
and Wolf, instead OF Keeping the said mortgage
bonds In their possession az they agreed to do,
10 be delivered 10 the said company at the
maturity OF the said note, against the VIII and
without the consent OF the said company, sold
the said bonds on the same day that they received
them, at less than the market value thereof aud APP
proprated the proceeds 10 their uses and bene