New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-18

has been for wears past partner of Mills, hodman'
and Judge McCue, in various enterprises, including
| n bogus sewing machine company, and u no" APP
| pears also in the building of the Wllhmanuc
Railroad White, representing himself to
be q large capitalist, agreed TO loan
the Directors OF the New-Haven, Middle
town, and Willimantic Railroad S20O,OOO on
their first mortgage bonds. He obtained the bonds
from the Company, brought them to Brooklyn, and
obtained the money from Mills, which was advanced
upon them. The railroad company had no reason to
doubt that White had himself advanced this money
and did not know for months afterward that 1t was
really the Trust COmpany's funds which they were
using In their last financial strait the directors of
the railroad applied second time TO White for
loans; and finally, the Company having no money
with which to finish the road and lay the IRON,
applied to White to take contract to lay the
rails. White, Mills, Rodman, James ID. Fish, and
it is believed Others of the Trust Company, were
induced to go into this and undertake the contract
under the following terms: They were to complete
the road by the building of one unfinished bridge
laying % miles of iron, and building the side tracks
or switches and the depots. For this service they
were to be paid $265 900 in first mortgage bonds and
to have all the remaining assets of the Company IN
the shape of stock unsold. But over and above all
this there was a special inducement held ont to
Conn., held 1904 900 of the second mortgage bonds for
advances previously made to the Company, and 80
desrous were the citizens of these towns to see the
road completed that they voted to give these
bonds as a bonus or premium to the contractors IL
they would finish the road. Mills and Rodman had
already been deeply involved in the Brooklyn frauds,
and seeing, OF believing they saw chance to save
themselves made the contract in the hope of secur-
ing the prize offered. For convenience sake the
contract was made in the name of BrittOn Richard
son. a silk dealer in Reade-st. in this city, and
resident of Brooklyn He mutual friend OF
Mills and one of the directors of the railroad COM
pany, and acted in this capacity Ito oblige both
Immediately upon the signing of the contract
Richardson assigned it to Rodman. it be-
ing well understood that Mills and White
were partners in the prospective profits. Subse-
quently small interests sold to other persons
Among others James +. Fielder and his and their
partner man named Spencer, who were small con-
tractors the road, were induced to pay NILS ana
Rodman first mortgage bonds, which they had re-
ceived in payment for their work. and take an inter-
est in the contract. Their first mortgage bonds were
Immediately turned into money; they were en-
ployed on the road as supervising agents to look
after the interests Of the contractors but from the
day they parted with their first mortgage bonds to
this they have never received one penny OF their
paw. In fact, tneSe small SUlils
ers and Spencers bonds, with the amount realized
from the S265OO first mortgage bonds, are all, and
really more than ALL that Mills White and Rodman
expended on the road. 1t is without depots or
switches which the contractors agreed to construct,
and no effort has ever been made to build them. In
this way Mills and his confederatesImade large
amounts of money out of the contract.
BUILDING THE ROAD on CREDIT.
In addition TO this they engaged in other sharp
practice As a condition of the contract Mills, Rod
man. White and Fish placed III the Board of
Directors and White and Mills were made the
Executive Committee. In that capacity they have
issued notes of the railroad to large amount III the
purchase of iron which they had agreed by contract
TO furnish out of their own funds. Mills and White
had also previously agreed that they would deposit
half million of dollars in cash i'll the Brooklyn
Trust Company to forward the work, which was to
be done Immediately They required certificate
from Mills as President of the Company, that this
amount of half a million was deposited with the
Company, and Mills gave it. But the issue of the
notes as the Executive Committee of the railroad,
and large purchases long credits very showed
that they were building the road, not out of their
own funds but on the COmpany's credit.
The SSO4,OOO bonds which were to be given as a
bonus on the completion of the road were brought
To New-York several times pending the negotiations
of the contract, ready to be deposited in trust.
Samuel S. Warner, the agent of the towns owning
them who is well known as prominent State
Senator of Connecticut, and lawyer doing large
business in Middletown, had the bonds in custody
previous TO their being deposited. He refused to
leave them on deposit until the completion of the
road was absolutely secured. While the negotia-
tions were pending Mills suggested that the Brook
lvn Trust Company should be made depository
of the bonds Which, according to the terms OF
the contract were not to be disturbed until
the road was finished Mr.. Warner consulted with
proulinent bankers Of New-York, who advised him
as TO the soundness of the Still not salts
fed. Mr. Warner examined the charter of the com
many and found that it was specially authorized to
receive bonds and securities on deposit for safe
keeping After ample consideration of the matter
he finally left large trunk containing the SS4OOO
of these bonds and over S1,O00,0OO stock with the
BROOKLYN Trust Company, and took the Companys
receipt for the same This receipt covers two pages
of leQal-cap paper and is very deliberately anu care
fulIy drawn Ii provides that the bonds are not TO
he disturbed until the road is completed to the salts
faction of the Commissioners of Railroads OF Con-
necticut. when they to become the property oi
the contractors
THE SEARCH FOR THE BONDS.
When Mills committed suicide, as it is now gen.
orally understood he did, knowing the exposures
which we're coming, the road was unfinished, ana
the contract had really expired by Limitation Six
months previously. The Company was anxious,
however to have it finished, and did not urge the
limitation clause. But when Mills was dead ana
the Company suspended the railroad directors saw
no chance of compelling the Trust Company 10 go
forward with the work, and at Ionce came 10 New-
in