The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-09-04

growing out Of il brought the company into
dscredit In Franklin county. and II soon becine
almost honclcssy embatrAsscd " was npp13u
| thi- time that the nine million sten. on whi,h
| ihe lcnneyivdui1 RAILROAD manages SO hr.cly
depended for the sue cssful accomplishing III Oh
| many Of their sc1cmc. WIS Killed hy the veto
/ mess age rt Gov. Gcary. The IT. Iceci. on INC
! vnnia Iron aud Raiir ,ad Company nal been "x-
| hnustpd. and Jones was now entirely dependent
! upon loans raised on the paper OF the c.mpAnV
! endorsed by his father aud other friends. zoe
banks at Reading mad no more money 70 iNvnd'
and In is dcsrcrate strait Jones Went TO Mac
! key and by giving him slOVp ui second mort
| gage bonds secured drpust 81 State money
with Oh, Farmers Natl Rank OF Reading.
! The following Is the testimony 81 Mr. Maltz-
] berger. Treasurer Of the COMPANY. In relation to
! this transaction. A. given before George Junkin,
| race ct al. pet the southern pcnnsy lvania Iron
! and Railroad Company;
EXPOSING THE FRAUD.
! Dy Judge Back-Q sunpose Won nnd an entry there
you never dclN cred bonds how do YOU for
% SEND these bonds to pcrsSa Of tSai nane sa that
acgn entirely II dii So the entry would he n, de-
a,d a a. s,atisnet pr9peri, MADE az the tune
t n 90 s9mcoodY cl,r 10 Won reca..eci ever giving
gond to Il j. c,y At rtsbursa by express t and md
ior mem go an express r,celni.
W Nacsey. N.-Iw no, he positive. io not re.
y Judge Iliacs~o But did yeu enter tRcm ON the
n22ots a, cent 10 mm, Al sunpose directed the
nct cmombcr hat ne did otnorwi-c how. "' ''' w
,Q-eo YOU SNOW what tho;g mas were wen to him
,,9 WHAT we're h. feiaiiogs 70 IN, come9ny ?. Al
In SOME way m the raising II money think rs. con.
neclon va tgr eai ~ perhaps OF money 70 the com
de WIS state treasurer. wa. he notP Al do
moi SNOW whether hc that time or not. That h.
Simply my imprc-,i,t ami. 4 cou.c. may he wrong
Q The ssiof XVI 1871 {. Tie date Ut e ISSUE u
pooS Were y6n irc,srcr al, KIT INK N Ti,'i
ny po yoq spg" %'e9 ,hJ alteration ni wsmd IN
/ at al.
n M,.tsrr,whicn a,erauon2 ..,,
a " WAGE aligr,gn 81 tie mint o9qS Of g
| Is sppar ntly written over erasure.
Mr.. Jones's testimony Is AS follows.
~ JUG m'ck @ Wi You please ate what m,
,, r,ag! ti and 4 MiEce o1 lTyogrsn Arn9i
Wa r Mag Mr Massey ssd Ne DID Ny S a. hls
naic to appear upon tue books OF the company. and
Transaction should he entered II Dis name
CtINCuING THE PROOF.
@ what vas the lrAnsacuon2 A.-Thc company
l'a lag. laskcG Mr. Isaac T. kcr To loan more money
Won %ss ao pF Tot ' taey n % w. az ia aa n,
9s AZ incir money wa. taken up by heir customers
had tie money to iend Ia their ,auts, the' voui lend
! Mickcy aud asked him to deposit money IN the Farm.
/ .rs Bank on hc,ilng. explained o. hin what MAJ
slit he had small deposit there. but tat hi. 'ncy
/ no' do n wv we 'e' '"' '"''' "'' WA w 'ou"
% money % ise si ta'c Te yoq mean
STOOD il o. rcan The m. ueys Of The stare. llc i'd
! aud hayc go douh, he meant IT. az least supnose
e meant aoo mil e& 9'Ag and had s,AS M"'sSS
never ssrcca to &c. and y ea nsSS S' h M a:a
90 tiAe an Interest 10 NE comp' AMI onr d 20 give
rny Or Interested IN r. h. would be- n So rvioc to Us m
a., Wy We 10 n9i make any ayr enent but NJ
u,t be would tS T. do H. and :. dli sd9-equsaty
for ts service, which OF service O. the conipiny
ana %shted 70 sye ep ,iocS if dia not c2rc 20
Rh,.c tl'so @, bond, lie gave n. t,e name Of Mr.
Nj. MaeAe,, log thlt nnahc al ryoe
Q.-Nas ths deposit made hy Mr. Mackes before the
loan wac IN d. t9you rs the Farm re- Bans Ayes,
| sir, understood 70 g. be
| A-Yes. sir.
By this and like expenditures Jones succeeded
! IN keeping his financial head above water about
year longer when the nnIl crash came and he
| ptopcrty OF Tue eonphny was SOFA on Toe second
mortgage, ana John Rice. OF the Pennsy lvania
Railroad. became the purchaser for that com
pany for $4,000 subject t. the first mortgage
OF Sbs50O. Mackey now me forward promptly
! aud presented, In the name Of the Allegheny
| National Bank Of Pittsburgh, his claim Tor the
| the sale. The creditors resisted aud allie sed In
IA cross bill that he had got the bonds corruptly,
and. therefore was not entitled to ANYTHING
! u"on them In answer 10 this cross bill M4ckey
/ nled Ills answer as follows: This Wa before
the testimony Of MHlHher-cr and Jones was
| glyen.l
WHAT MACKrY SAID.
Robert " .eey, one o. '4c deiend mt Ia the
/ exception TO the saii BIN Of complaint Tor answer
S oaa. GGeD o Sa' ANY pt 81 Sf ,s saa
lr-n iai lai Dad COMPANY we're s,ned 10 discharge
ans o'ner pcrs n. 10 n" second the 'aid ten uonas
t'n ,n ana ave cn lor more Than nyc years past,
/ cposilers'ion from &. L. Maacc aud not from me.
This answer was sworn 10 As follows
Robert ". Mackcy having pcen duly sworn, accord
fo7tS In fn-, soiss an.Sr are h.t and trae 10
a. tr sane tr s.'t,d 9n hs o%n Sn9~iease and tai
vorN believes tlem 20 b, true. >,i;usd
sworn t, anu subscribed before me jl, 81 iiy Of
/ Decembcr, \. T.. 1873. Josrru II MckFaHAN,
notary Funnc. mot RAJ seall
PAGE FROM KENNELS RECORD.
In regard to the arrangement which Jones
| had made through kembe with the Cum
perl and Valley Railroad Company. for the pur-
! chase Of the hrst mortgage bonds Of the South
/ err Pennsylvania Iron and Railroad Company,
/ he Testified as follows
~ judge back -Dm you have any assistance from
any other hoancier Ia getting that aTransrmeui maac
Ia ;te MT INSTANCE Mr. kemble presented the matter
@ AtNOur reques'Y A.-At my request, and meet
/ . DO uaa,r-tana what company Al am SPEAK.
T.. ~ h. officers Of the Cumberland Valley Railroad
Company at winch explained the nature Of IN enter
@ Wa NJ Hemble an oticer Of the company A.
| q You We're present aud explained A meeting
was pointed, - WINCH wa present and explained.
| q nde- contract 9etSeen you aud hini2 Am
u9eet a.Gins 1gtNesn ai h't NE y,,
! mean Dr understanding? Att was Il verbal agree
mcnt between HIM ana me mat 10 ne could pro the
guarantee Of the Cumberland NaeT Railroad Company
/ or the e41ilyaNla Railroad Company upon those
bones would give Tin an interest IN my contract, Il
/ 10 we're aflerNard made.
| q An iuterc-t ~ vnat contract Of YQurs7 A-lhe
! ralrJe.4 G. MS ruCtl0n contract
q Nhat sort Of an interest vas that 10 hep At
20 De part int rest between the cslimntcd value
| " the lJn4- with ~ without Tie gu rdute'.
! q. you not agree 10 give nm SPECIFIC number
ante or gettng sale accomplished Of the bona, TO
tur tuupcf ana NhNej iJrOndY A.-Nu, sir did not.
] Y Was dee to do anything about your G ntract
cert simply 60 take these bonus for MS get,
uns the honus suIraAtcedf A He sad he not 70
! get auy tOud-.
Q.-supposo you reconsider thar matter Of fact, and
say whether nc Was Mt to get 100000 Il O0nds2 A.
No, cir he wa not TO gc any lun at all. lie
get an interest with me IA the difference between hf
! Of the bonds with the guarantee, and that was
never determined 0r Iscertained. subsequently the
CHAMBERLAIN Hey Railroad Company refused guar
antce the Don TO- and Mr. krnble made a scttciucnt
with me and accepted t33OO Of stoca In satisfaction vt
! our agreement,
Q.-Pcrhaps Tins u an important enough matter OF
fact TO rcque that we should all be cautl
What We say about IT, therefore ask you to answer
| THIS question Was there not an agreement between
You and Mr.. k"mpe originally tlat he should have
tl5OuuOi the bonds for his services In getting the
ranseuent made when you wanted made with the
Cumberland Valley RailrOad2 A,-NO, there
never wa any such agreement or understanding.
DIVISION And SILENCE.
Q-wat there not subsequently, another Arrangement
by whlel he was ~ have 5000 forwAat he actually