New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-27
RrMoRED RAILROAD DETALCATIONs.

RUMORFD RAILROAD DEL ALCAllO-'S'
1RRFGUI ARITIEs IN TOLEDO, WABASH AND WESTERN
Another scandal in circulation for the past
few DAYS has been to the effect that heavy frauds hau
been discovered ia the administration OF the Toledo
wabash and western Railroad These frauds ~ wac
alleged had grown ont OF the stock operations OF MA
rab B1ody the late President OF the road. IL was al
lgd mat an invest CATION by the new administration
resulted In she discovery Of frauds exceeding sew
fral hundred thousand d0lars W. J.. scott
a director Of the road when apPheu To
for the facts stated that many years ago Mr. Body was
n menber OF the firm OF Kidd, Peirce 4 Co. OF No 10
Broad-st THIS firm had done stock business for MI
Roody and he had become accustomed TO keep
norton Of the money Of the road IN then
custody lie withdrew from the firm, and suose'
oueutIy the nrm became C. II. Pcircc Co.. and
continued 10 act as Mr. Boodys banker. About the
time Of the failure Of PIERCE & Co. o change had been
made i'm the direction OF the Toledo Wabash and West
rrn Railroad 1t was discovered that portion OF the
Compan, IS funds ana securities st with Peirce.
Al but sum not exceeding $4,000 had been recovered
rs had nearly all the securities. This sum Mr. Body
was abuudantly able TO pay, and ne did not the Com
pauy would make him that there very little need
of apprehension. The Toledo. Wabash aud Western
Railroad was doing as well as could be desired
DENIAIs BY TIE LAKE SHORE OFFICIALS.
The Lake Shore officials still deny the truth
OF the allegations against their Executive Committee
the Union Trust Company. Receiver T. b. Welsey
would give little information about the affairs
Of the Union Trust Company, which, he urged,
was certainly not likely to throw the Lake
Shore Railroad into bankruptcy while it was
able 10 get anything out OF il in any other way
Popular opinion ia Wall-st. is now ranged upon two
sdes Some put confidence in the integrity OF CommO-
dore Vanderbilt and his associates, while others are
convinced that George b. GrnDe are merely the
tcapegoats for the Vanderbilt party and deserve the
sympathy and not the censure OF the community. The
second faction remember that Grinnell AYERS in the
schedule that Commodore Vanderbilt agreed TO take
1000 Of the 5000 shares Of Lake Shore IN the pool at 49,
aud when the stock weht down withdrew from the con-
tract on the preext that schen and Banker had failed
to take the stock allotted to them. Had those men
adhered TO their contract the firm OF George Bird
Grnnell & Co. would not have failed and the com
pHCatous which have burst upon the would have
been avoided
Considerable uncertainty exists 10 the actual con
dton OF the Lake Shore Railroad Officials in New York
say that the road is doing much better than it has
done before, the receipts showing comparative in
crease Of 100000 Ia the West. however Amasa Stone
the managing director says that the road has
reduced the wages Of ats employees, who
work by the day, because OF the falling of
o. traffic and the clOseness Of the money market"
The mystery attending the $2250000 Of bonds still
tnues perpex the street. W. l.. Scott who IL also
OF inc Lake SHORE hdluOdu, hdlu lnhl these
bonds did the Lake Shore Company in the
least. They had been bought and paid for and there
nothing heirTelation Lake Shore Company
or the Union Trust Company which warranted the
criticism and suspicion directed against them he
would have recommended the publication OF an official
statement by the officers OF the Company,
which would have set at rest all the idle
stories in circulation. Referring 10 COmmo-
d0Ie Vanderbilts settlement with the Union
he said that Ia had
than be morally technically bound to per
form. Mr. Scout, when questioned In relation to the
conversation in which Commodore Vanderbilt agreed to
assume 20OO0 shares u the Lake Shore pool and his
subsequent refusal said he could talk that subject
UNION TRUST COMPANY ovERDRAFTS.
II is asserted with what truth, however it is difficult
10 learn from the officers Of the Trust Company that at
the time the Union Trust Company failed there were
numerous overdrafts by trustees and fsyores Of the in
eitutiOD Among those whose account was said
20 be Overdrawn was that Of per
prominent from his connection with the Wander
bt party. trustee who is putting matters into shape
preparatory 10 resumption Of business had over