New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-18
misunderstanding satisfactory assurances that the
bonds were safe and untouched.


sroLEN BONDS IN sPRAGUE's HANDS
Several weeks ago it discovered that Sl5oo"
of these bonds had been hypothecated in Wallst by
White. OF course, being stolen bonds they are
valueess to those who have loaned money on them
The Attorney of the towns at once informed MI
Ropes of the Trust Company of this discovery that
bonds supposed TO be in its safe keeping had been
sold on the street. and demanded an examination OF
the trunk which had been carefully sealed when
first put for safe keeping In the bank But no exam
NATION was made. Later, several other small iols
were found in New-York the numbers taken down,
and found to correspond with those of the bonds
supposed still to be In the bank This representa-
ton did not induce President Ropes who insists that
all the robberes have been made public to examine
the trunk. But finally on Tuesday last THE
TRIBUNE published list Of securities turned over
by Sprague to Controller Schroeder to make good
his defalcatiOns, and among them were $4,000 OF
the stolen bonds. How they had iato Spragues
hands remains to be learned. This information was
sooner published than the Trust Company was
told that Mr.. Warner had proof of 5000 of the
bonds having been stolen from therskeeping and at
last Daniel Chauncey, Alexander McCue, and Henry
Sanger were set to work to count the bonds.
The trunk had been moved to the Office OF the
Brooklyn Safe Deposit Company and here the COM
results of their examination are still concealed but
Daniel Chauncey yesterday admitted that one half
the total deposit had disappeared and the counting
was not yet finished.
HALF MILLION GONE.
Ii was subsequently, learned that over half a mil
lion of the bonds were gone and it is believed by
those who have been insisting Oh an examination
that less than quarter of the original deposit re-
mains. The responsibility of the Company IN tins
matter is probably question which the law VIII
have TO settle. Mr.. Ropes has not denied the
responsibility of the Trust Company yet but
has said to Mr. Warner that he thinks
Mr.. Mills exceeded his authority But Mr.. Warner
had previously examined the charter, and holds
that tho authority of the President of the Trust
Company was ample, provision Of the Charter
having been obtained for this especial purpose
Originally the capital Of the Company was S25O,OOO
but it was doubled to increase the business Mr.
Lyman, of A. A. Low & Co., gave his individual
check for the stock to enable Mills, as the
latter once boosted to go into court and swear that
the stock was subscribed and paid for, and the
check was then returned and the stock sold else
where. At this time the charter was amended
to make the Company bank of special
deposit of trust funds. The liability Of the Com
pany therefore cannot be very seriously disputed.
lue lIubI COMPANY ID dloo W HaN0 O'Sh
party to the contract The truth is, however, that
only Fish. McCue, and Mills OF the Trust Company
knew of the contract. James ID. Fish certainly did,
and admitted as late as June last that the Trust
Company was building the road McCues connec-
ton with White in the Lathrop Sewing Machine
Company indicates his intimacy with this reckless
speculator, and indicates that he was a partner
in the swindling operations by which the Will
mantle road was robbed and made bankrupt.
In Controller Schroeders statement of the securi-
ties returned by Sprague of which the stolen $4,000
of bonds is part there is also an item OF 5000 of
coupons of interest due on railroad bonds for May
and November These coupons are supposed to be
for 1872 and were long since returned to the Com
pany as Cancelled, though il would now seem they
have not BEEN OF the $40 600 Of stolen bonds
are worthless.
Heretofore President Ropes Of the Trust Company
has claimed that the town orders held by the Com
pany were a fair security for Rodmans thefts. But
as the towns to which they directed have abso-
utely refused and will not indorse any bonds,
this $4,000 of Rodman's "overdrafts' may he con-
sidered to have disappeared.
THE OBLIGATION OF THE DIRECTORS.
At the time the Brooklyn Trust Company sus-
pended and an effort was making to revive 1t,
statement was published that the directors had en-
tered into an obligation" to make good any def
cheney to the extent of $4,000 question has been
raised as 10 the nature Of this obligation, and
whether it has any legal binding effect. Inquiries
at the office of the Company yesterday elected the
information that the obligation" consisted
merely in the directors giving their in
dividual notes i'll Of about $4,000
each to the Company. If there was any certainty
that these notes would be paid, could be collected
at maturity, they would add to the safety and re-
sponsbiity of the Company; but il is claimed that
if a suit were begun to enforce payment Of these
notes the drawers could plead in bar of such action
that no consideration given.