New-York tribune., 1873-09-06
MORE BROOKLYN FRAUDS.

MACHINE, BOGUS blAlE bONDSJ AMI fOhuhb
CHECKS AMONG THEM
For several days past, in certain narrow cir
xes OF BroOkyn chiefly among rich men who invest in
stocks and bonds heard among the larger class
Of poorer who depostors OF hardearned money
there have whispers that the Trust Company which
lately suspended under such unhappy circumstances
and which had resumed in such mysterious manner
bankrupt There has been time since It's suspen
judy that doubts of It's sovency have not Deeh
entertained by those most intimate with It's manage
ept and deeply interested In it's success AS soon
the reports reached THE TRIBUNE once carelu
reporter familiar the history OF It's supensoh was
directed TO investigate and when satsned OF
ths fsi:y or truth to publish the facts or
the information OF depOstOrs for II is this csss who
are really the interested and who are entirely I'M
represented in the management and consequently the
}east protected
Denials and demurrers were met on every hand. The
suspicious persons who had knowledge OF the facts con-
eealed them or at least declined communicating them,
ror they would be held accountable, ana In hope
company in which they held stock which could
b. sold any price might yet pull through. The
Of insolvency from the officials OF the DanB,
who interested n cOnceang the frauds which nave
been committed there Nevertheless, enough lnforma"
tion was obtained 10 Justify THE TRIBUNE in warning
depositors against placing funds in corporation so
mismanaged this has been. These reports grew so
thick and fast that the President was forced yesterday
obtain certificate Of the soundness OF the bank from
books. But II will be seen from what follows that the
accountant certi1es only TO the correctness OF the
accounts and in an interview with a TRIBUNE re-
porter dscamed any knowledge Of the character Of the
securities which 60 to make up the assets
Among suspicious facts discovered it was learned
that the meeting stockholders which held soon
after the resumption Of the bank failure. Some
those who voted pay per cent OF their stock have
declined 10 do and have put their stock on the
market at less than 50 per cent Of what it cost them
gentleman who paid t120 for ms stock offered If for
COS and a bidder found, but after inquiry he
declined 20 receive It, II then offered 70 him for
so5 and 1t was declined with the significant remark,
mot at any price"
There is hardly question that much OF the suspicion
attaching the bank arises from the manner in which
70 has been managed lately. The exposure OF the fact
that it's own counsel threw ii into the hands OF re-
eeIyer who was its actual President by colusion with
a Judge Of the Supreme Court caused much comment
The fact that after resumption noted politician.
who has been under favors the Ring and who is
treIy dependent on it for the further Advancement
which he seeks was made President, and has care
fully concealed from the public knowledge OF IT'S as
sets and liabilities, gave greater alarm STILL
Though little is known OF the nature OF the assets
that little the anxiety and doubts as TO the
sOivency OF the concern 1t ia well known, however,
that among there 100000 OF bogus Georgia
staSe bonds on which $4,000 loaned and which
securities well known TO be utterly worthless or
this amount not penny ever be collected,
though officers hope they will be- good III tiIne,
and the amount may well be put down as lost There
ere overdrafts of Mr. Mills for 4OO but his estate is
bankrupt securities have been obtained to satisfy
the came. aud 1t is known that the Ring dare
push the heirs lest one of them, who had
his fathers confidence aud the Rings Sc
crets viii reveal the in which they corruptly
used the late President This iis simply bad debt,
aud tue bank officers it down to profit aud loss
The bank counts among its assets $OOOOO OF the
mortgage bonds Of the New-Haven, MIddletOwn and
Wihmantic Railway There is very little doubt that
these bonds worth much less than their face 1t is
problem whether the road pay the interest on
the issue certainly they cannot be realized on ex-
oept at a heavy shave. The Trust Company was
induced to invest these bonds by part
ner OF McCue, Mills. sprague and Rodman
IN wildcat Sewing Machine Company, whose
embarrassment natural consequence OF the fahurc
OF the TrusdCOmpany and the stOppage of the City
Treasury supplies, is announced elsewhere There are
also among the assets t242lO9 81 Of bonds and port
xages on Brooklyn property None Of these can be
realized upon once, and probably each Will have u
wait the full time it has and then be foreclosed
IL is believed that neenths OF these bonds and mort
cages upon property belonging TO Mills II was also
reported n this that loans had been made on
tax certificates which nothing could be realized In
many years Other damaging reports relative 10 forged
check for $4,000 floating about but II was learned
that this had partly redeemed with $4,000 OF The
stock Of a Sewing Machine Company, which Judge
MeIue has pronounced "active company whose
stock however, not counted as worth anything"
The reason why he looked upon it worthless is ex
,5ained in another column. Among the demand loans
secured by colaterals there said To be immense
loans 20 the "Iathrop Combination Sewing Machine
Company" and the eolsterals the Companys bonds
This loan said be 500 OO half the total capital stock
OF the Company. OF this Company, Judge McCue.
Mills, sprague and ROdmsn-all the Trust Company
Ring in fact except Ropes and Chauncey-are directors,
1t is only just add. however that Judge McCue denies
the allegation
Thus II will be that among the assets are the
following doubtful aud worthless securities:
Georgia bogus ss2OOOOO Bonds and mortg s2a2OOo
Conn. railroad BIDS. 100000 Sewingmaehine ... -,
Mills oy erdraft ..... $4,000 stock. $4,000 W
Here are over million OF doubtful and worthless &C.
eurties Omitting tho merely doubtful ones, and 1t
will be found that the embrace over half mil
lion worthless securities which 10 he added some
loans and bills receivable from men who failed with
Mills.
twas also said that the bank had been made liable
for the defacatlon City Treasury VIM. {. Kings
ley il Of spragues bondsmen. and in order TO save
hmse he had Rodman arrested aud, In the meeting OF
bopdsmen raised the question Of the Trust Companys
inability for this sum. The point he made that on
July a. McCue its counsel had officially stated the de-
osits Of the city be $3.50 49, aud though 1t
,oon found that the actual deposit was only
s57 49, the bank Is responsible for what its books
sbow and ts counsel has admitted This question causes
~reat doubt of the safety OF the bank.
IL IL further said that the treasurer, TO he ap
anted next Monday, will OF course, Immediately draw
ost the city deposits sill in the bank. Public opinion
tl ,pss Oh this and it is believed 70 be doubtful IL
che hank can stand such demand at the moment
There have been many declarations TO the contrary but
tbese are from officials who are little credited with
49,.