New-York tribune., 1874-05-08

IL, 81 . 5000 O2O Oct q........... s3toOoO
Sent ssgs o.: e.. $1,000 $1,000 Ofita75' '''' ooo ono
00ss ..... .. 10000 10000 F'' '''''''''' -''''''
To secure the amounts borrowed, the Company de-
positod with said George b. Grunen Co., iIoul ume
70 tme securities as foiIoWs;
sepi 90 10 600 shares Of Lake Shore stock.
Oae million dollars in bouds Of the NeTYork and Harlem
These bombs were borrowed h7 The Lake Shore Road
rom Mr. Cornelius Vanderbilt, aid we're re'araAoe to
Nov - 2,Jl4 saaes Of Lake Shore stock
Fto l. 100000 dollars Sinking Fund bonds AMI Lake Shore
March l. coo 900 dollars in sinking Of Lake Shore
These s920GoOO in Sinking Fund bonds
on Feb l. 1873, 10 obtain the loan OF one million or dol
tbe Lake Shore Road in the Union Trust Com
panv, and the one million dollars balance thereof
were issued March :. 1879. to redeem and return
to Mr.. Vanderbilt, pursuant 20 aereement, the mil
lion dollars IN bonds OF the Harlem Railroad which
had been borrowed by the Lake shore Road as afoTe-
said Oct s. 1872, and were used and applied accordingly
George B. Grinnel Il co. had during this time as
property OF the Lake shore Road about 50 sAaTe OF
stock Of the Toledo ana Wabash Railroad Company,
under direction OF Mr. Clark, the President OF the Lake
Shore Roai wlo had control thereon ana power 70 sen
In the early part OF 1873, this plaintiff being one OF
the Executive COMMITTEE Of the NcwY0rk Central and
Hudson River Railroad Company, was 10 go to Europe
I'm the negotiation Of the ten million loan IN sterling
bonds then desired to be placed ny that company,
and made his arrangements to sail from NoT-York on
the 5lh day Of lMarch 1873 Mr. L. d. Worcester had
Road In plaintiffs place. About O'Clock the evening
of the lth OF marcn, 1873, while plaintiff was busy
engaged with Mr. Worcester at plaintiffs mouse in pack
Ing part OF ten millions Of dollar, OF bonds Of the New
York Central and Hudson River RlllrOad Company,
which was TO be taken with him. and IA Receiving the
parting sautatlOns OF friends calling 10 say farewell
paCka handed to plaintiff which proved TO CON
Toledo and Wabash RlllrOld Company by George b.
Grnuel & Co., with their check accompanying. for
5jO00) and over ~ plaintiff order, as Treasurer OF said
Lake Shore Road.
and having time 10 ascertain whetncr the safes had
been made BY authority plaintiff ud0rsed the check Tor
deposit to credit OF Lake Shore Road, aud han cd r. with
tlT G M acceSsof then present Tais was plaintiffs last
act as Treasurer OF the Lake Shore Road
NIr Clark as President OF tie said road, had plain
til Is informed and believes, purchased from time 10
time, during 1873 and preceding years for account OF
the Lake Shore Road stocks and bonds o. other c0TpO
rati0us and railroad companies, and. when deemed
necessary the credit or advantage Ot the Lake shore
Road, the STOCK OF the LAKE SlOrc lJdd laeIl' StcA
st0ck account was Kept with George T. GrnleH Co..
and wholly managed by nr. Clark himself without
what Mr. Clark did Ia the premises. P!a.nun had
pscunary interest IN said account wIaoyer nOT did he
ever give any direction Il respect thereof
Plalauff returned from Europe in June, 1873 While
steamer he was taken serousiy III WIN intermittent
fever. aud was carried Immediately 10 hs country home
at IrvngtOn, where ne remained Sex for some days
ON coming TO NeW-NoTK llty some days alter re met
Mr. Clark evening while entering his carriage, ana
after riding with him foW squares having Ye-J 6rit
conversation buJ NOT upon is ness tAey parted I'D front
Of plaintiffs residence. Mt Clark was taken sick the
Iext Gay and plaintiff never saw hun again in life.
some time aItcF MI C!.Iks deatu' Mr. Williams n de-
fendlnt and Or the lrm OF George b. Grnne Co.,
-l D
Lake snore Road $1,000 shares OK IKE shore stock which
was the nrst particular knowledge or information TO
the condition OF the stock account Of the Company
aged by Clara as PRESIDENT OF the road, communicated
NJ Cornelius Vanderbilt then President Of the New
York Central and Hudson River Railroad Company,
and fat4Cr-4nlaW Of Mr.. Clark, bad meanwhile been
elected President Of the Lake shore Road In Nj Carks
stead, ana plaintiff shortly thereafter being with Mr.
Vanderbilt informed him Of what Mr.. Williams had
Mr.. vanderbilt expressed surprise and concern, and
proposed al lMlnedlatc inquiry into tAe matter.
AZ ~. - --'.y. 49, ~ ~, J-l. - J.
great concern as 10 te hAlehee hodns such an enQr
NOUS amount Of It's own stock might have upon the
So - - So ~ & Ia o q m C -, !" i'iJ ~ NJ
relieved OF II, and after considerable consultation
pany, FULLY authorized to act on lts behalf proposed
that 5000 shares should be taken on the
hands OF tie Company by the few parties wlo were
informed Of the matter and kept OF the market
and carried by them ior jhe pToteoioH OF tae GO
that Mr. Scheu should take 1900 shares; the Clark es-
tate 5000 shares tns plaintiff 1900 shares; George
B. CfiunelI L Go. OJJ ana tue Company would retain
the remaining Il OJO shares, and pay George b. Grlne
Co. the difference between the then market price, 90
per cent ana price when the stock had been pur
chased for the Company or the average cost thereof
Plaintiff demurrel 10 taking 50 much stock ana car
ryus the same, but upon th- promise from NJ. Van
dcrot that De would ala him IN carrying the stock,
tlcrcupo1, within few days plaintiff toos up 1000
share, Tor Mr Nl1derJts account. az his request and
paid George b G-'1ueA & Co. s.51OcO therefor. He
also took up 1000 shares Tor his account, and
pad $4,000 tA-rctor and 1900 shares each were
tae rprescntatives Of NJ Clars estate; ana pIanT
h. informed alt believes tnat the stock was, pursuant
10 tis arrangement ana agreement, transferred aId
charged upon the books Of George B. GrnleI Co.. ia
accordance with said arrangement VIZ 1000 shaTeS 10
Mr. Vanderbilt lJ,co9 shares ea'h 20 NJ. scAeI, Mt
Carks estate aud piainf, 10000 shares TO George B
GnrneA Co. qla The balance ana GlI.rsLSe & ,S iet
standing 10 tie Lake shore Road account ana that
taken for raising he amount req nred 70
pay and discharge the SAID difference but thil before
iS f1le ed. payment "l' ''' 0'''S' De o''D4''' ~
Immed ately thereafter proceedings were taken in the
Dstricf Cour, OF the United states TO have them de-
f..r han "a
etnedues were lled bv them. which were published
in the newspapers, and which were IN many respects
Incorrect representing, among other tAngs, TINS PLAIN
IN as tBerdebtor to the amount OF millions whereas
tins plaintiff was their creditor 70 amount exceeding
sixty Thousand dollars, ana not their debtor 70 the
amount Of one cent, unless liability could be estab
len for the i've thousand suares OF stock balance Of
the fifteen thousand shares which he had agreed with
Nj Vanderbilt take, uVou Nj. VauderJts agreement
10 ala him To carry the same.
BY the publication Of tAs schedule plaintiffs credit
became immediately impaired, and other firms holdag
stimulated % ask permission 10 sell and 10 Teaillc
thereirom; because II was apparent thar II palntifs
relation 10 George T. Gunnel& Ca. was as stated in
their bankruptcy schedule, pAntlH would be unable
large estate, and was not involved 20 any degree that
would have embarrassed him IN the least, had 1t not
been ior TINS leorrcct statement OF his relations with
the SAID hrm OF George b. Gruncl Co. and their
and the apprehensOns thereby created among
his friends in the then state OF III. stock ana money
market 10 evident, however, that II plaintiff Sc
cures then forced upon the market and sold, he
would meet win losses reaching, perhaps, millions,
fact which ne could not view with equanmity.
BY this combination OF circumstances plaintiffs
nervous system was bro1gh into condition OF pros,
traon which united him for the transaction of busi
nes7.
body ne called upon by OF the Board OF Direct.
Ors the Lake, ShOrr Road III behalf OF .
mlttee or sdlt Bpt4G ana informed tAdt tleFl Wi- an
Unauthorized delivery of S2,-y1O10 OF sinking fund
bonds Of the Lake Store Road when had been
issued by order or this plaintiff 70 be pissed to tie
credit OF the stock account kept with George L. Grin
nell Co., by Mr Clark Plaintiff denied having given
any such order, bat was informed by Amasl stone,
jr tue director AFORESAID, that the COmmtIee Lad
such order over painurs signature among the papes
Of the Union Trust Company ana that there could be
doubt about IT, Piainn knew that ne had give.
such order, knowing 10 10 be such but, not sup
posing that the Committee, whO knew his signature.
could be mistaken "a TO the statement positively