The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-11-11
COMING HOME TO R00ST.
the CIUSE or moss SHEPHERD'S
FININCIIL WRECK.



Real Estate Deprecated bv the Excessive
Taxation he had ~addled upon the city
The Immediate Cause Of the Collapse.
WAsHINGToN, Nov. 10-1he announce
ment OF A. II. Shepherds financial embarrass-
ment was not unexpected but was looked for
daily. For months past his paper has been on
the streets and offered at remarkably low dis
count At the meeting Of his creditors last
night. the class Of men called together were
principally those associated with him In his
management of N = Dl-t+ic, whilc pre- -ldont Of
the Board OF Public Works and Governor, and
who received from him many favors. Shep-
herds career AS real estate Spectator IL well
known. On June L. 1871, when he assumed the
once Of member OF the Board Of Public Works,
hts property was fairly assessed at s215,Gi2 and
this was burdened by deeds of trust to the
amount OF s2jO,0i2.SO. This, therefore, made
him worth at that period s2j,5go, provided
his property was not forced into the market.
in which event he would have been bankrupt.
On Oct. L. 1873, after he had neglected his pti-
vate affairs for the public good for twenty EIGHT
months, low assessment Of his property showed
a value of t45i,0ls which was covered 10y deeds
OF trust amounting to t3l7,gl2s0. This left
net value Of sl3GO75.2O in excess Of deeds Of
trust. and tllO.416 In excess OF balance on July
!, 1871. TO this must he added deeds Of trust
900. Adding this to the above S2j6ii6 Will be
found to have been cleared within a period in
which there were no bona hde profitable sales Of
real estate; so he must have cleared this
amount from his salary or t2.5OO per an
costing Si ne .ioo 3 pun" and f"rsshed s S''s
cost OF full, 10000, and has entertained royalty.
Large as Shepherds resources were, nis
schemes would always exceed them, and kept
him In hot water the richer he got. Before
the four-nillion-dollar loan rassed II was
inserted that his fortune depended UPON II.
In October le13, after the failure Of the Cookies,
be WIS known to have been between $4,000 and
$4,000 behind in his account at the National
Metropolitan Bank, Of which he was director
lie pledged <4JnOn worth OF District bonds To
Norton. Bliss X Co. at New York. lie loaned
$22j.O0O on them, and pla ed them, together
with another loan OF tJONO. to- his individual
account as Governor I'm this.bank, and checked
Comptroller, and Treasurer 81 the District. By
thfs and similar OPERATIONS he bridged over his
difficulties at that time.
Another crisis came when no expected $500
600 OF appropriations for the District In the
Spring OF 1874 and having failed IN this The most
serious cOnsequ noes were Anticipated. This
again was tiued over by the District Commis-
sioDers and board Of Audit consttuing the new
law "a authorizing an unlimited lssue Of District
36o bonds. In February, 1870, the second har-
vest was stopped 10y Congress prohibiting fur
Their issues under heavy penalties. and Shepherd
has smarted from the consequences OF this
legislation ever since. The OCCUPANCY OF his
pro erty on PennsylvanIa avenue by the PEN
sion Bureau last Fail In defiance OF law was an
imperative'necesstv for the finances Of Shep-
herd. ana tue same may ne said Of Mullett's re.
appointment by Secretary Morrill,.
Since the fact Of Shepherds embarrassment
has been made known II II openly asserted that
his troubles were fastened in consequence OF his
having bet largely on various States going Re
publican. Had returns been favorable to HAYES
1t ID thought ne would have been able to mold
out a while longer. The cry by his Ring friends
that he has done so much for the District is
raised, and they ask tlat mercy be extended
him. Shepherd mss built In all during the last
six years about Ons hundred and hfty-nlne
houses IN Warrington, ana hot fifteen hundred
as claimed. Most OF them are cheap tenement
tttra
at double the prices they were worth. IL 10
openly stated that bis property will not cover
his Liabilities. and the fact OF his coming out as
he has anu announcing his condition shows
that his case 10 desperate. In Washington to-
day there Is hut little sympathy manifested for
him. aud the poorer class look upon his down
fall AS "A punishment for the manner in which
he brought them down to poverty by hi.
tyranny which compelled them to sell their
little homes.
BY Shepherds downfall others will suffer, and
many OF the citizens OF Washington who were
considered solid are already showing signs of
contracted bv him. A few DAYS SINCE W. j.
Murtagh gave Shepherd an order on the District
Commissioners for t5,uD which they refused to
honor as othef persons mad prior claims On tins
money. THIS was done 10y Muriagh TO keep
Shepherd anoat until after the election.
1t Is asserted on good au'hoii ytult shepherd
ferrs proceedings, winch We been openly
threatened bv certain contractors. who allege
that he borrowed money Of them. To he paid In
contracts. One CONTRACTOR lately threatened
suit for nearly $500 In District bones. which
Snepherd osteusiOly Dorr wed, nut which we're
really tho dividend b. claimed from PROFITS on
contracts given uy shepherd AS Vice Presiden OF
the Hoard Of Public W Orks. The course he u now
pursuing will however, not stop proceedings In
servient "a they were in the case OF the cred
itor5 VI Jay Cooke y Co. against that lrm,