The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-30
THE FRAUDS IN ERIE.

HOW DEALERS IN SCRAP IRON AND CAR AxLEs
GET RIcH-A NEW CHAPTER OF THE PATEn-
SON SCANDAL IN CONNECTION WITH THE DIS
MIssAL OF ERIE OFFICIALS.
Before Mr. Hugh j. Jewett, the receiver of the Erie
Railway Company. went to Europe investigations
commenced by trained detectives of the company
various frauds pracsed by officers with the
road in regard to the sale 10 outside parties residing
Paterson N j., Of scrap iron wheels betting and
tho general old material accumulated by railroad in
the OF its business The revelation Of fraud be-
came at that time clear that Henry Bowman, gen.
eral purchasing agent, discharged from the
piOy of the company, well as i. X Hahn superin-
tendcnt OF locomotive power; Robert Wallace, master
mechanic. Of Susquehanna John Scho1od, weigher
and John Borie, chief clerk at the same place.
Since the receivers absence Europe the evidence
has accumulated of unfair dealing to alarming
tent and tho following particulars furnished to
HERALD reporter yesterday by officer of the road
whose familiarity with the latest developments cannot
be doubted. 1t dealer in old
ais in Paterson, by the name Of Sigmond Dringer,
German, who only arrived there few years
poor man, has accumulated large fortune by what
claimed TO DO fraudulent COLLISION with the officials of
the road named above The affair has got into the
courts and it is stated thar Dringer agrees pay tho
Erie Railway in the noighborhOod Of s37, 900, sum
much less than is alleged to be DUE in order to have
his property restored to him from tho receivers
hands This Chancellor Runyan has agreed should be
done, providing Drnger executes a proper bond for
$4,000 The odus operand OF these frauds according
to reports made 10 c. L. Atteroury was
TO bring new steel into Paterson under old
| scrap iron. ana TO sell il TO Drngor at tho
valuation of the article; to send car axes
Wheels leather and rubSer betting to the estab-
lishmcnt at Il valuation far below the market prices
most OF the stun would 10 shipped on the Midland Rail
road away from tho place, and good deal of 1t found
way back the Erie road, through the cOnnvancc
OF the purchasing agents, and would be charged full
price new material.
In lot OF old steel tire sent to Dringer May 20,
1875, and shipped by him to L. Samuels Co.. PhiIa
dephia, on May l. there was a deficiency to tho Erie
Company OF S4sl 81. owing the weight charged to
| Dringer at Su5quehanna and while the price charged
to The latter was but S35 per tou Samuels paid Tor
the same lot $fs per ton he also paying the freight
| the same According to information received from
John X. Shivors Co., well known firm of Pnilade-
phia iron manufacturers and v Blackburn, master
at Susquchanna all kinds CT steel are sold at much
per pound and not per ton The lowest value to the
cents per pound and tue metal dealer paid but l-3
cents; nett loss according to the report, TO the
pany in the ABOVE TRANSACTION ST. 2S %
In the hnal report OF the detective 10 the company
touching the frauds In the maitor Of betting It appears
that N. HAM, QUO OF tue dismissed omcais, oy ms
authority as superintendent OF motive power issued on
January "a last the following order TO the master
mechanics :-'You will please forward oil the leather
betting you have stored shop to Robert Wallace
Susquehanna. According TO tho above general order
thcre shipped Immediately from Jersey City and
Port Jervis Rochester, Buffalo and other points large
quantities OF old being BY order Of ID. Galbraith
Shipment Of the made to Dringer 1t Is
claimed that this was uEderweighed as well rs under
valued. The trade aXles between the officials and
Drnger is also the subject OF an especial report from
the experts BY tins 1t is shown that between Sep.
TENDER and November last this dealer received from
the Erie road 2lU tons, about Ala axles ut 3S4
| ton, making 7,l40 When his place put under
the direction Of the Court and the receiver E n Mil
ler OF Newark appointed account OF the axle stock
taken It found that in his yards he had
hand 1872 he had sold to George A Boynton, No. 70
So l97 26 cash he sold TO John W. Quincy No 9s Will
lam street. 1867; to Edward Smith, No 49, Walnut
street. Philadelphia, lao. This makes gain somehow
obtained from the Eric Company OF about 100 axles
weighing gross 259 100 pounds, or about D. ia IN
cash value
In February shipment sent in 2,6l5
marked-"R Wallace care OF Dringer, Paterson scrap
IRON" This suspected ana followed by means
known TO railroad detectives Beneath the old scrap
iron found los bars of sce, about five and
half TONS cash value xS4l 49, although the Erie
Company had paid for 1t 81 26S g. II understood
that Drnger paid, after the discovery, In compromise
70 the company, about $3.50
Mr.. Leonard 5. Howard, metal dealer, Of No 90 Wall
street. stated to the writer that he bid the Erie Rail-
way Company, according advertised proposals, for
1000 old wheels $50 per ton cash
livery at Jersey Guy, and that the rejected
by Purchasing Agent bowman, the lot aftcrward being
turned over To Dringer at lower ngure II Is also
serted that Howard Bunting No Cedar street, pur-
chasing for Boston firm, oiercd $23 per ton for old
wheels, and with certified chcck Tor $40 600
with which 10 settle for the same; but the wheels
co ud be bought by the lucky Dr!ngcr, Who
It is charged secured the lot at $40 per ton.
1t will be that there have been rings In the out
side OF Eric stock well as inside Of the roads
agemcnt; In fact, detective told the writer that
many OF the men on the road are bribed-those in
humber positions with cigars and from these to gold
watches. IL will be II Pres dent Jewett will be
successful in stopping the stealing.