New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-04

norg, 10 convertible bonds Of the Railroad Company
the amount OF a300.00O and states that the towns
also tho LEGAL of 100000 Of second mort
gage Convertbr bonds, delivered them "a collateral
security for their gueFans.es The Railroad Company had
81 that time 500 900 OF hr mortgage bonds yet to he
Issued under tic provisions Of its chHtor. and s1oooW
~ the aOcancd converl second mortsIgo bonds TO-
g,hcr with 2640 shares OF us capital stock sill undi--
posed Of
On November ~ 1872. The bill alleges that The railroad
conpany required only .i-0u0n m c,-h to grnde, IRON
aud fence track, and 10 build the depot' bridge sc,
along 5 route with ns amount II - alleged. me tod
would have been built By Jan 1873. AZ thi- time
Eihellor :. Mills. Marvin T. Rodman, and Jonathan
obtain posse Of the bonds and represented 20 tie
tows that the railToad coinpany had enter n.' nv
railroad ,hat The Deedfu amount Of $4,000 had been
raised ana deposited wi The Erooklyn Trust COMPANY
agreed IN the contract to quidate and pay tue inter
est due the frat mortgage bonds OF tho railroad com
pany previously sold BY tho company and nor hypotDe
Gated aud that he lad further agreed t. pay tue interest
on tho bypothecatcd debit Of the railroad COMPANY ~,
that Hicharison contract had been ASSIGNED or aIed
TO be assigned to NJ. T. ROdman. and that lsodnan
ia fast represented the Brooklyn Trust Company besides
wealthy capitalists and that Rolman ana his associates
had deposited wlth ban Ing nrn Ia tn ty IN cahn anu
S9O0OOO snd the interest gu the ifst mortgage bonus
raroad iron 10 be used the tracks of the Company
Relying these representations the towns. 10 stated
100000 al par value the Brooklyn Trust Company;
which acknowledged their receipt; they were 10 be held
until The completion OF the road kOdnn and the Others
however not only failed 70 deposit the Si6OU0 necessary
for the ycn Of the interest due The nrst mortgage
bonds but also neglected II pay The interest on the mar
ket value OF the second mortgage bonds. and II iscaipd
their value much impaired Ia consequence Inc
towns discovered that kodman aud his co-sl ecli
tors had neither expended ~ 1000 for iron nor raised
nor Lied rcd the $iSO,OOO. Neither Brion Richardson
nor any persons representing him. completed u" ran
road. but they andoned whatever attempt they might
have made. -.
The discovery Of the alleged frauds was made by the
July. 1873 at which tilue they made demand
the Trust Company or nr return o the "hds Dnt =.
they allege with view dcfIaud the towns The Trust
COMPANY its President and officers cUnspiring Win Rod
man. White and others have refused 20 return ne bonds
giving various colorado peeXtS for thcu action In the
matter. H.,
The Brooklyn Trust Company On me Oiher hanl IN uS
Gefense claims that the tTaosactiOnA mentioned we're
personal matters Of Mills and ROiman. and mat II the
latter pretended thai they part of the COmpanys
business pretended 10 plcdge the C0nip4hy cle 10
this way. they thereby exceeded their authority some
testimony already been taken 10 the aud more II
expected The will probably net come up for argl,
meu in before next Fall Rodman las been one on
tie Witnesses xamiued and altogether there are about
$50 pages Of testimony Ia tho refrree posse 'sion
The Trust Company. IL Is claimed, still holds ABOUT
100000 OF the bonds.