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

back ss.iincstes Of stock n both companies gave
the 81 Charles Iron Conpany-all Of which was my
o.At what time was that stock given By and return.
ca ,0 loua nNN, 20 ~ Iemembes when gave the
last summer
now THE MONEY WAS MADE.
The 81. Charles Iron Company. which Jones
speaks Of above. was an inside CORPORATION with
anomiuul canitl Of $4,000. George Rice. n
son Of John Rice Jones, Jones's father-in-l aw,
ana MS brother were the principal stockholders.
u obtained contract ~ complete a road from
the terminus of the Southern Pennsylvania
iron and Railroad Companv's road to the ore
mines. about two aud half miles bevond
Mount Pleasant Furnace. and was to erect ma
chinery Tor washing orc. Rice was nominallv
the contractor. and was 10 advance the money
70 DO the work. Jones. however. Transferred to
MN s25Wu OF the second mortgage bonds Of the
southern Pennsvlvania Iron and Railroad Com
capital with which Rice was generating. Rice
was To De permitted to mine 2s5O0O tons Of ore
without royalty. and in this way the st. On rlcs
IRON company was 10 he reimbursed for It's ex-
penditurcs. All the ore that was mined for the
furnaces. or q az was 20 be shipped over the
southern PennsNlvania Iron and Railroad Com
nanys road. had to pass over the ST. Charles
IRON Coinpanys road ard pay toll TO It.
The 81. Charles Iron Company was also given
contract to mine all the ore and deliver
4 to the Southern Pennsylvania Iron and
Railroad Company at =. 50 pcr ton George Rice
failed ~ soon as the Southern Pennsylvani iron
and Railroad Company got into Difficulty In 1871.
and then HE father, John Rice, "A representa-
stepped I'm nd completed the work finished
the road. quilt the machinery at the mines, and
then Jones. acting for the $. 7. |. and X. r.
Company, bought the works and gave Rice
judgment for $l2j,OOO. when all this was done,
IN 49,. the second mortgage was forcClOsed and
the property sold. under an order Of the SUI
prcme Court. JOnn Rice. who was one OF the
trustees under the second mortgage, acting for
the pennsvlvania Railroad Company, entered
into combination with the Reading banks
that the property should not be bid beyond
f31tuO. an amodnt sufficient to cover the
claims Of the banks which held nearly all of the
second mortgage bonds ana Ricc's judgment.
As soon a. Rice made his report. ~ trustee, to
tine Court. Jan. T. 1873, he asked for an order to
make deed conveying the property To j. Edgar
Thomson. which order was made. Bv this AZ
rangement tue judgment IN favor Of Rice. which
now amounted to SljU,0OO was Sc ured. In
order To swell the cost OF constructing the st.
ca rcs lion Company works Rice added to
the gross amount Of expenditures a commission
OF 10 per cont, which amounted To Slj.ii,.12.
Sucn IL the history OF the prominent points in
tins case as they have been developed IN the
court II this state. They are Of record, and are
known to the Attorney General oi the state aud
the members Of the investigating committee
appointed 10y our Democratic House OF X pre-
sentdtiyes, Out On all hands an iueXplicable ST.
fence has been maintained. The criminal code
OF the ~ .te explicitly provides for the punish-
ment OF offences like those clmmitted toy
Mtck'y. and 1t Is the sworn outv OF the AttOr-
ney-General to see that the law IS enforced.