, 1875-06-19
THE ROCKFORD ROAD.
Another Chapter in Its Unhappy
History.
How a Set Of Brokers Made d Million
Out of It.
Interesting Operations In Gold and iron.


Last Sunday an account ma gwen OF tho
manner In which doubtful railroad securities aso
eoHctimca Iotced OH the market thfoagh or1nce
given to newspapcr writer's. AZ siown III tho case
OF tho Rockford Rock ln'and i 81. Lou'a Rail-
road Company. III Tie present article tho aamo
~'snosa who declared thas tito nlluopco OF tio
press was necessary, and tint II nuas 10 ptr-
chased, "ll bo called OH to Hho" now bankers
and brokers aomeslmca itne thclf own pockets o9
hoavS DISCOUNTS or speculation Win ooano thos
ato fcftIrca 10 ho'1' Tho w'sneHb fe4ceteu 10 IA
T. II. boody. formerly Treasurer OF sho nock-
'oFd. l.ocA iblaod & Oh LOUIS ltall1oao' "no TO-
Gently gavo somo valuable os'acnce III 'Ao case
oeiofe t'lo alnstof IN Chahco1S.
ar. Uoody ssatcs TINT ho was tho principal
financial a3cuk Of tho raillo1d company to no.
ro.,to ,hc vtoIo 3aeue nf TIM hond1. amounting
- o. m, nm sr,,a haa,. ,r,r, Ixs,c,, II, ,,,s
W S1'eoo'ooo' ,ono Do.s 49, .,,.xsn h.,.
'attef part OF looo' % occa6'on ioq",tou' nu'
wero not all signed or executed until ahe 'atter
part Of February, l570. or tho cntrc amount,
49, nnn,rz n,,nny.
t.,<. r., t.r,,Ifa., ',re.,,o.r,,, Gorr,,r
o'oAes u ~, ~ -, ~.
disposed Of Sfstu5.ueo, ti!o contract WIN h'na
having been maao In Mn,eh, ICED. badgo agreed
il,c hon;s, md ,l,tluc. 6 per cent for commits
.1s. ,r.,. ...;o,, ,r,s ol.n c,ror him n NV in
s'on' 1Ao op.,en % %An A.so . slssa ns'a " fAs ~
gold eoln Of tlo ohl'eu e'asoa ~ pef cent
nbovo tho highest market valuo. Subsequent
contracts were, however, mado ly which Bulao
o,,1v ,,,d M ccnts and nyon as Inv m AZ couts,
80, rAa ,a,s. sar ,to ,,ar,,r - I'm rnn,,s rha
Oh 'Ao oo'1at ~. sno n'A!o''.g - .ao "oa41 too
average prco received ny LILO Company 9ttcr
Goluct!ng commissions, was only IS por ccut Of
tho par yaluo. No doubt tito average
wna inrcc1v ro1uccd by tho dciu:tjoa
"@1 Inn .,'fa,, n.exo .;,,,,, n,,,x-for,u ~
OF i2o boida Which wero Es'on a"ay-1ofsy TO
Henry G. Uonen, Of theindel~ndent twenty to
David Mollis, tho writer Of tho money articles OF
o,tt,n ~ t,o Jzo,,c,r- z,;t,ro n Gcrman nancr
..... ~ ~ a,.S su,.o,,n;, ,ro-f,, npa,o ~
OF TUG aa1no c'ts' 1a'uo'sa uos~ nuas'. a.
tho time ho agreed to sell tho bohde NJ par "aR
not connected with tic railroad company, got
It yccu,H moro than Bulpo coitctde,co taat ho
hccau1e Director eooM after tho costract wa8
mac. and that he ohtainca subsequently much
mGre liboral torna. Tslo following ii
TIE WAY IT TAB,
~ Mr.. UoodY enya:
u.-Do you Hnow who composed the firm Of
1lori.z Bui9e with whom that contract was
contract. I lea1ned subsequently, by tho iostl-
mony of Henry Uudgc.
'Q:--tlavo sou learticd since who composed
the firm OF Moritz Dudgo after tho t'lne THO
contract vas entered intus AL hnye harmed
TINT one additional nnrty besides Noritz Dudgo
WIS mombce Of that firm.
Q.-Who7 .-uenrY Gudgc.
Q.-Who is Henry Dudso2 A.--Ho was
New York. ...-.,.'.
Q.--Glyo tho full names OF tho poraona COM
posing lilo firm Of Dudge. sclnG d Co. A.
Henry bulge, Jacob SclliI. and Leo Lemnu.
Q.-W!th whom Naa tic contact made for tho
snle Of these bonlaf A.--Wilh ueury Dudgc,
as attorney for Moiitz Bndgo.
Q.-uld you make such negotiation Al
did.
Q.-Was Henry Dudgc connected IN any way
with tho Rockford Hook Island i Ut. Louis
Nailroad Colnpauy7 A,-Sot NJ that tlmo; ho
eoon alter
pEcAME 4 D1nEcTon.
aud q monbcr Of the Financial Committee.
Q.-Wllen this contract waH entered into on
tho 18th Of March With hlor.tz Dudgo through
Henry Dudeo.' acting as agcnt. and who: uu-
deFstapa, was q member Of; tne frm Of Mosltz
l'ndge, WAS that in contemplation Of hia hecom-
ing a Director OF tbs Ioau, OF was thore my
understanding whatoves at TINT tsmo? a.
There was no agreement at tho time but within
few days Or weeks Thereafter 1t was suggested
thai Henry Bulge should be tnnde'h Director,
and q resignation NIB procured, aud he was
Q.-I1ow early dig no commence to at as 2
four or six weoks after: -
| Q.-iiow rnauy bonds had been delivered Ut
| TINT titno7 A.-Tho first delivery was to tho
amount OF :576, ,U0oi which included the $500. 600
| chat ho had agreed to tako outright; that loft
s375.o00.
| Q.-Was Henry Bulge mombcr Of tho II
nance Committee? A.-1lo waa very eoon, not
i1nmediatoly, but probably ut tho very next
1nee:ng Of tho Board. he Waa elected membor
Of tho Finance Conniktoo.
| Q.-When did Leo La,nan become CONNECTED
with tue ltoad ? A.-At tho tlmo Of the annual
| meeting in Octobnr, 1860 ho waB thcn elected
[ Director aud member Of tho Finance Commlt-
| tee. -.
/ Tho wttnces thou goes on to explain ip dotafl
| tho terms Of tho first contact, as fullows:
| Ally tho first contract, that Of March l8.
Bulge was to have tho bonds ut par znd accrued
iototest, and wae to take por cent for selling.
| That was AEor1:z Bulge. IN addition, Bulge,
t3c,tt d Co. were to have 8 per cent on ali
| *Q.-What il tho dato Of tho contract with
| Butee, bchtT l. Coz A,-htarc!, IL, 1860.
| u,-Go On and state iu your own way and OK
| plum
THE WHOLE TRANSACTION.
| A,-Uuder tho provisions Of tilia contract,
thty had tl,o right also TO nav III gold instead Of