Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-09-07
A BAD TRUST.
The Directars Of q DOubie Baek-Ae-
tfOn, NO-nOIse seWiHg-Maehine
In the Trust Business.
The City Of Brooklyn Supplies the
Capital for Two CoBeerns, and
Both $50 Up"

NEW YORK, September 6.-The
Tribune furnishes the following; "Tht
mystery as to where the money ol
the Brooklyn trust company il, and also
the money out of the city treasury, ID
being rapidly solved. 1t viii be remem-
bered that among the men who in
duced +. T. Mills to invest the
money in the New Haven, Middletown
and Willimantie railway was one Jona-
! than A. White, of No. 80 Broad street,
whose character was none OF the best,
but who did various and apparently
prosperous businesses, and who passed
FOR a wealthy man, although it Is now
suspected that he was desperate
! specuiator only, and he has been de-
nounced as such. lt is stated that
| White received $35, GOO in bonds of the
| road above named, as a bonus for loan
! ing the company Sl50,OOO on its
/ stock to the amount of 500, coo, when
IL appears in fact that 1t was money Oi
the trust company which White had
advanced. Subsequently il appears that
he raised the loan from some trust
I company ON bonds he had obtained for
making loan to the railroad company.
/ It now appears that while he had also q
sewing-machine company, with capi-
tai of five hundred thousand dollars, or
at least protesting to have such eapi-
tai, he selected for and has published on
cards OF the company the follow
! ing list of directors: Hon. Alex. Nc
Cue, Brooklyn; e. r. Mills, president
Brooklyn trust company; c. A. Sprague,
of Mnlford I& SpFague; NJ. I. Rodman,
secretary Brooklyn trust company:
Jonathan White, No. SO Broad street,
J New York. 1t will be seeu that here is
the old gang of the trust company come
again. The factory Of the company
was located at Frankfort, suburb OF
Philadelphia, where about forty or fifty
hands have been and are still
employed, but they have not been pcid
! for four weeks past. The trust
company had no sooner failed than the
sewing-machine company stopped pay
ment of its hands. Information has
been obtained from trustworthy source
! that the concern was ring affair, and
that il was total failure. The whole
of its capital, it is believed has been ia
ken from the trust company, with only
the bonds of the labOrers of the combi-
nation sewiDg-machine company as col
| lateral, and sunk. Information from
Philadelphia puts the loss at two hun
dred thousand dollars. The following
statements may throw some light upon
! this new ring swiDdle, and reveal TO the
trust company and the people of Brook
/ lyn where a portion of their money has
gone. A Tribune reporter called
last night at MIR. Sprague's residence to
inquire of him whether he was a direc-
tor Of the Lathrop combination sewing
! machine company, and what the histo-
ry of that enterprise was. Mr.. Sprsgue
said that he had been a director in the
company and supposed that he was
now, but be took no interest in the
matter. 1t was scheme gotten up by
Mills d Rodman, and now that one was
dead and the other under cloud he
thought that was sufficient to make the
| funds short and perhaps might account
/ for the fact that the wOrkmen were IN
paid. He knew nothing of the fiDan-
cial condition of the company, in fact
he took no interest In its affairs what
ever. He would prefer not to give the
| full history of his connection with the
enterprise just now, except to say in
I general terms that it was Mills & Rod
mans affair. In reference to repeated
I inquiries he stated that he had not in
vested to any extent in the enterprise
but that his name was used to assist
others in their efforts to make the conf
I pany a success.