New-York tribune., 1872-09-02
CONCERNING HENRY CLEWS.
HOW HE RAISED MONEY FOR THE BRUNSWICK
AND ALBANY RAILROAD.
From The Flaanoer Of Au0. 81.


From TIE Flaancter Of Aug g. -.
The leading fraud was in the manipulation
OF brunswick and Albany Road flity-uVo Pdges oi
testimony regarding this printed in the report ana
il seems clear that the very projection Of the aid enter
prise began IN fraud. BY the act OF the hRsidtue,
WIN tbe On CON secuye miles OF road we're completed
and i'm running order The Governor could place the
State Endorsement bonds az the rate OF sooW per
mile, and thereafter at the same rate On 1e ~ h
appointed by the Governor being required. inc uos-
ernor also authorized to take up the c0npanys sec
ond mortgage bonds amounting 10 s235OOOO anu give
ior them the state bonds at par at the rate OF $500 @ P
mile OF the State bonds for $1,000 per mile 0i @ tne
false assumption that the state was responslDle
federate Government during the Several witnesses
testified that the removal really no damage that
was acqueSced IN ~ the directors and tnat the agent
the road received therefor This does not con
Germ the present subject except as showing tht the au
bills OF TINS road we're designed 10 be robberles Inc
engineer aud superintendent OF another road testnes
that Bullock told him. pending the passage OF an ad Di
TO that road that he (3ullocA) might be counted In
there was anything to be made he on the make
one contractor testiAes that In August or september
1870 he remarked to agent OF Henry CLOVIS that they
were about up to the nnetleth mile post, and would
soon DC aOe 10 get some more bonds wherenpoh lhe
months before, in the hands Of Clews' who was
treasurer OF the road The engineer appointed by Bull
lock estiies that he measured the sections him
SELL but counted the mile posts, or TOOK the engineers
word t and that on several occasions he furnished
blank certificates OF completion with the understanding
Ihat they should not be filed up until the proper tme.
ne agent of Cews above referred TO testes that ne
knew bonds issued and indorsed IN advance, and
that he repeatedly told Clews this, and warned MN 10
be very careful IN his dealings with those parties"
BuocEs Endorsement of the bonds all without dates,
ana nearly two millions were signed by the fTesIue9
after his removal he having been succeeded oy H. l.
klmball. One Of the firm of j. +. Conant d Co.,
contractors for building the road, testiaes that'
Dy written memorandum bearing the Fig
nature OF both parues-which, however, was suDse-
queny destroyed-Clews to have onefourth OF the
pfOnts or building the road; the contractors were 10 re-
eelVe all the bonds $4,000 per mile Dut seVera OIhSI
contractors testify that tue road could have been but
Tor from $40 600 TO s2 600 per mile and several lnclud
ing BullOcks inspecting engineer say they would nave
undertaken it Tor $4,000 per mile one contractor test
hes that he unable get his second mortgage bonus
exchanged for the bonds OF the state because as he be-
eyes the latter had already been disposed OF 10 other
persons Others testify that the road was not nj 70 use
that the rails spiked down without baastlng or
hlling IN between the ties; that when ties became
OF the trains would bend the rails that stunps, logs ana
trash were pitched into the WORK and loosely covered
To allow the passage OF and with the sides dangerous
~ preclptae; that the plan was to push construction
tram over the sections and then call them IN running
Ofuef, ana Afterwards 70 PACK ana nnish uP thdi
nevertheless the Endorsement VI bonds kept miles ahead
OF the building, and that Cews treasurer and as part
with Conan cOnyersant with these facts all the
time he negotiating the bonds. The amount of
bonds ndOrsed $3OO000 there also issued 1850
per gold bonds of the state, of $1,000 each
under the act providing for an exchange OF them Tor the
second mortgage bonds OF the road. The hrm OF
Gead A. Smith Co. holds 300 OF the ndorsed bonds, as
collateral for loan to H. 1. Kimbau, at IS cents. The
Metropolitan Savings Bank holds 100 as collateral
for a loan TO Wilton. The Broadway Bank holds
1870 Of the State bonds collateral for loan of $3OOO
made TO hlmbal through broker the DanK Chen KNOW
Ing nothing about htmba No interest on TINS loan mas
been paid since October last The Marine Bank made
similar loan to km0al and has since sold tue collateral
Several firms of bankers hold 100000 between them as
collateral for loans Kimbal who appears never 70
have taken up any OF his bonds Bonds the amount OF
hundred and seven DOuds were reported To the commit
tee a. held by two different parties, aud Al bonds were
reported held by three different parties whence IL
pears that the frauds went TO the extent OF issuing
bonds in duplicate and triplcate