New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-28
RAILROAD IRREGULARITIES.
THE RUMoRs IN REGARD TO LAKE SHORE AND TOLEDO.
WABASH AND WESTERN.

THE RUMORS IN REGARD TO LAKE SHORE AND TOLEDO
WABASH AND WESTERN.
In consequence of the renewal and reitcra-
ton OF charges OF fraud knavery In the admins
tration OF the affairs OF the Union Trust Company,
the Lake shore Toledo Wabash and Western and other
railroads. there revival OF the feverisbness which
depressed the stock markets for the past few days
Despite the assertions of the officers Of the Union Trust
Company and the Lake Shore Rairoad, there IL an a-
prehension that investigation OF the affairs OF both
corporations Will reveal much that is at variance
with correct management and official integrity.
Notwithstanding they declare that there is nothing
wrong in the relations of the $22O0oO bonds To tho
Union Trust Lake Shore Railroad Companies, an int
preston has gained credence that there Is trouble
some where. and that the loss. II any, must fau
upon some lt Ia asserted by those WHO
profess TO know. that the loan Of sl.scoool
made by the Union Trust Company 10 the Lake Shore
Railroad was secured blythe s22ooOO OF Lake Shore
bonds which were alleged % hive been removed from
the custody of the Trust Company TO the office OF George
r. Grnne K Co, aud used margin In the operations
OF the Lake Shore pool" Gu the other hand, 1t -
alleged that the loan made by the Trust Company
70 the Lake Shore Company without any security, and
that these bonds could therefore have been identified
with the loan Fears Of revelations concerning heavy
ovcrdrals also expressed, and malignant rumors
were also circulated
J. C. Williams OF the firm OF Geo. Bird Grinncll co.
stated yesterday 20 TRIBUNE reporter that was not
true that s2JOOO had Ost in the failure OF that
firm by the Lake Shore Company. Mcssrs. sehell aud
Banker had taken only portion Of the Lake Shore
stock allotted them refusing TO take the whole amount,
and had thus precipited the disaster OF the firm AS 70
the runored heavy defalc ons he could say nothing
but he understood that had settled
fully and did not believe that any defalcauon could
have relation O. the Lake Shore matter There had been
no question as the payment Of the Lake Shore indeD
edness and no reclamation to his knowledge had ever
been made by the railroad company account OF The
s. worth bonds SAID have been held by the
Trust Company at the time Of its suspension.
The statement made In The TRIBUNE yesterday OF
stock operations Oh the part Of Mr. Body late Pres-
dent OF the Toledo Wab. sh and Western Railroad by
which the Company had been defrauded out or several
hundred thousand dollars. was the subject OF further
INJURY Yesterday G.. r. PIERCE, the broker with whom
MI BOody business said the st,temehl OF
H. scott director OF read, substantially eorL
rect When Mr. Body President OF the road, inc
firm of G. H. Perce Co. had had an account Win the
road and gcod deal of the money or the concern was
depoi wi them. They paid the coupons OF the road
and in other ways had transactions with the Company
Sometimes the firm owed the Company, ana sometime
the Company owed the firm. The former happened 10 be
the case when tho of G.. ii. PIERCE & Co. was com
PEELED suspend account oT the shrlnkage ia value
of securities It's possession. The hrm then owed
the CompaUy 100000 which IL would certainly nave
maid. had IL been compelled by the pressure
10 suspend. As Il was, the Company, as iHtmated,
might mold Mr. Body responsible. lie was President
of the Company the time. AS 10 the AFFINITY OF the
arm TO pay II, that was impossible just now, and
whether would be able ~ do 20 was question 10
DC decided their resumption.