, 1876-03-20

unbosom himsolf or NOT. "I}ut why do ron
think me III tho wrong7" asked. "Himpty
because do not regard Cor, uondrioks as Aa
honest man." "Of oourso you hAvp good rea-
sons for regarding him so, GonotAl y vontur-
cd to suggoat, "Ycs nIr; to mo thoy arc good
reasons and ! thi1k 20 to everybody clio vho
moro than desire to ba.o again. He wss ono
Of tho Ditoctors Of tho Water-Works Company, /
which claim deliberately swindled mo out Of |
81, 900. and for tho recovery q which have
Tint referred wien i remarked TINT did not
regard him an honeat man."
"Whas ~ thati" I asked quickly. desiring TO |
koep the old gentleman N talkauvc mood: 1T !
Works bonds. Tho facts arc these: In tLe fall
Of 1870 Harmon Woodruff and Judge f3oldon. Of |
New York. cauo horn for tho purpose Of organ-
iElng Wster-Worka Company, Thoy oHned
which represented tho entiro alock Of The Com
pany. To Inspire confidence and Hocuta D ready
aalo for thor bonds, they sought tho co-opera-
ton Of tovoEal prominent cittzons Of lndihnspo.
loss Root. William Dradon, James o. Wood
run, aud two or threo others whose nnnnes do
not nov recall ralliod to their assistance, and
smoaF s,no9 / them they divided s2so'ooo worth OF
Correspond dont-"D Did they give them this
stock ousrighs7"
Con. Sfcd.-"Ies, g.ve 1t to tho1n, and tbey
werc nado Directors Of tho Company. Gov.
$50 per shire. It didn't cost him faEtbIng.
But IN Was saying, tho COMPANY. VAS organ
izod, and. to raiao money to build tho worke,
bonds were insncd, based upon the canal which
these bonds wero iasnod al first and subsequent
ly $4,000 mora. Whether or not all Of tho
last issuo Wtro disppscd Of I au not Informed;
but It In in connection with tho sale Of
dnssx So i Of .o th"m ~ ,has Co., ao
Thcso bonds (ono hundred 81. 600 per cont
goid.boayoR bonds) were ordarod by u majority
Of the Directors to DO sold TO the 1ndlsnapolia
eonts on tho dollaz. Tho presldent Of tho bank.
Mr. William Henderson. and Gov. HondHcks, aa
Directors, both voted for the salo. But boforo
tho bank would purchase, it demanded porsonal
paid. hlr. Hondricks and four other Directors
bocarno security. sud then, a. = majority Of the
Board voted themselves $4,000 a. 600 eaoh)
for thus becoming security"
C0F.-''Iu other Wogtia Mr.. Hendricks and tho
four ether Directors formed - RUG aud voted
themselves $4,000 for securing thoir own
bondB7"
Gen. McG.-" Certainly. They constituted
lated things to suit themselves. But tho VII
!atny iB got to como. Aftor tho honda we1o
secured and sold TO tho bank at D715 conta, they
tccre rt3nrchased BY the Directors at par. aud
rcs0d 10 thenSetpts a. ~ ceHst p't he uo<taF, Hto
Directors aIlo,o.ng Ae.nsr'res $4,000 commission
for their trouhts IN selling The bonds 10 thens-
selpes."
Cor" DO you mean to Bay tl.at aftcr sollng
these bonds To the bank for FIX cents, aud shou
repu1cbassng them At par, thas after this tho
'1sing Directors ~ you call thcn, bought them
up for their own property Ut 10 ceuta 2"
Gen. Mcq.-'1 moan to say Just that. Hon-
bricks got $25,0o0 OF tho 800, 000 worth. paying
81, 500 tor them, and shen took 800 Is hs part
Of the e., 600 commission for making tho safo."
Cor.-"1n other words. thon. these Directors
used their positions As Directors to Zurich them
ssclsea and impoyestaiah the Stockholders whom
Gen. hlct}.-" Just TINT and nothing 1oss.'
Cor" Woro 10 objections nado Gu tho part
of tho stockholders who were not IN tho ring :"
Con. lloG-" Worry groat objeetions-so groat.
purchasing the bonds should DO postponed until
|. tho no1t regular monthly mectsng Of tho Board.
But, In tho meantime, portion Of tho opponents
Of tho echomo boing absent from tue olty lnot
taken).' tho ring got togethos aud ordered tho
1opu1chaso OF tue bonds.7
Cor.-"Dld Gov. Hendricks md his Cocoon
| episators return the $1o,oo which thoy voted
| themselves for securing tho payment Of tho In
Gen. McG.-"Not single cont OF 1t. On tho
contrary, thsy took 81, 900 moro {2i00 oaoh), nj
their commIss!on for sollipg tho bonds to them
| soiyea."
Cor.-"Atter hi. Henderson's bank had pus-
chesod tho bonds at VIZ conts, payment OF the
interest being socusod, why did it resell them to
I tho Company2"
Con. McG.-" Tho sala to tho bank was made
for Tho purpose Of giving the ring Of which
Gov. Hohdricka VIVA leading 'epsit, Al orpor'
tunlty Of swindllpg tho stockholders out Of the
el0,0uo. Having secured the money, then the
sa!o back 10 tho Company wAs made for tho pur.
poao OF giving the Directors IN opportunity oi
buying ID the bonds II 10 cents on tho dollar,
This transaction resulted In 1osa TO the stock
hodors Of $37,500."
| Cor.-"Would the bonds have sold for more
/ than 70 ccnts in open market?"
Con. McG.-"Of coursc thoy would. They
wors worth par, being doubly secured, and bear
tug per cont fntoreat, payable IL gold"
Cor" How much did Gov. HeudtickB make
out Of tho transaction. according to your fg
| urea z"
Gen. Moo" VOL, In the first place, ho go'
e33, 600 worth Of stock for nothing; thon - 60(
for securing tho payment OF interoas on tht
bonds, which ho Afterwards bought himHolt
then &4O0 for his Bhare OF the commission pait
to tho Hing Directors for selling tho bondB t.
themselves; then, Of the 100000 worth o
bonds, ho rot 25,000 for ST. 500 making in al
500 450 worth OF stock and bonds, for winch ht
paid SIT, boo."
| pKM0cHAT1o IAHcAL1TY,