The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-09-01
More Frauds I'm Erie.

NJ, o. uliuuiSHU, Oh.
More Frauds I'm Erie.
HOW ERIE HAS BEEN SKINNED AGAIN-How
DEALERS IN sCRAP-IRoN AND CAR-AxLEs
TURN THE PENNY BY CoLLUsI0N WITH DIS
HONEST RAILROAD OFFICIALS.
Before MIR. Hugh J. Jewett, the receiver
of the Erie Railway Company, went to Eu-
rope, Investigations were commenced by
trained detectives Of the company into va
rious frauds practiced by officers connected
with the road in regard to the sale to out
side parties residing in Paterson, N. j., Of
scrap-lron, car-wheels, betting, and the gen.
cral old material accumulated by railroad
in the course OF its business. The revela-
ton of fraud became at that time so clear
that Henry Bowman, general purchasing
agent, was discharged from the employ OF
the company, as we'll as f. X. Haln, super
intendent OF locomotive power; Robert
Wallace, master mechanic, OF Susquehanna;
John Schofeld, weigher; and John Borie,
chief clerk at the same place.
Since the receivers absence i'll Europe
the evidence has accumulated Of unfair deal
ing to an alarming extent, and the follow
inc particulars were furnished to Herald
reporter yesterday by an officer OF the road,
whose familiarity with the latest develop
ments cannot be doubted. 1t seems that q
certain dealer in old metals, in Paterson, by
the name of Sigmond Dringer, German,
who only arrived there few years since 4
poor man, has accumulated large fortune
by what is claimed to be fraudulent collll-
sion with the officials Of the road named
above. The affair has got into the courts,
and it is stated that Dringer agrees to pay
the Erie railway in the neighborhood
Of S37, 900, q sum much less than is
alleged to be due, in order to have his
property restored to him from the receivers
hands. This Chancellor Runyan has agreed
should be done, providing Dringer executes
proper bond for $4,000. The moduS OPP
erandi of these frauds, according to reports
made to C. l.. Atterbury, was to bring new
steel into Paterson under old scrap-iron,
and to sell it to Dringer at the valuation OF
the latter article; to send car-axles, car
wheels, leather and rubber betting to the
same establishment Mt valuation far below
the market prices. Most of the stuff would
be shipped on the Midland railroad away!
from the place, and a good deal OF it found
its way back to the Erie road through the
conniYance of the: purchasing agents, and
would be charged full price as new material.
In one lot of old steel tire sent to Dringef
May 80, 1876, and shipped by him to E.
Samuels d. Co., Philadelphia, on May 4tlA
there was deficiency to the Erie company
OF S4S1.51, owing to the weight charged to
Dringer ut Susguehanna. and while the price
charged to the latter was but S35 per ton,
Samuels paid for the same lot S4S per ton,
he also paying the freight on the same. Ac-
cording to information received from John
X. Shivers IL Co., a well-known firm OF Phil
adelphia iron manufacturers, and V. Black
burn, master mechanic, formerly OF the Jer-
sev City shop, but now at Susquehanna, all
kinds of steel are sold at so much per pound,
and not per ton. The lowest value to the
company at the time Of the Dringer purchase
was % cents per pound, and the metal
dealer paid but Is cents; net loss, according
to the report, to the company in the above
transaction, S4,02S.23.
In the final report Of the detective to the
company touching the frauds in the matter
Of betting, it appears that T. X. Hahn, one
of the dismissed officials, by his authority
OF Superintendent of motive-power, issued
on January oath last the following order to
the master mechanics 6 You will please
forward all the leather betting you have
stored ut your shop to Robert Wallace, Sus-
uuehanna.' According to the above gen.
eral order there was shipped immediately
from Jersey City and Port Jeryis, Roches-
ter, Buffalo, and other points, large quantl-
ties of old betting. BY order OF ID. Gal
braith shipment Of the same was made to
Dringer. 1t is claimed that this was under
weighed as we'll as underValued. Ihe
trade in aMes between the officials
and Dringer Is also the sub1e OF an
especial report from the experts. BY this
it is shown that between September Sth and
November 4th last this dealer received from
the Erie road 210 tons, or about ], Ala axles,
at S34 per ton, making $7,140. When his
place was put under the direction OF the
court and the receiver E. N. Miller, OF
Newark, appointed, an account OF the axle
stock was taken, and it was found that In
his yards he had on hand /, ,152; he had sold
to George A. Boynton, No. 10 Wall street,
in this city, 6S54. for which he received
So, ,497. .26 cash; he sold to John w. Quincy,
No. 9S William street, 1864; to Edward
Smith, No. 332 Walnut street, Philadelphia,
140. This makes gain somehow obtained
from the Erie company OF about 76O aXles,
weighing in gross 259, ,160 pounds, or about
SO, TIA in cash value.
In February-a shipment was sent in car
9. 6I5 marked: OR. Wallace, care OF Drin-
cer. Paterson, scrap-iron." This car was
susnected and followed by means known to
railroad detectives. Beneath the old scrap
iron was found 108 bars OF new steel,
or about five and half tons, or in cash
value S641.76, although the Erie Company
had paid for it $1,26S.64. 1t was under.
stood that Dringer paid, after the discovery,
in compromise to the company, about S25O:
Mr.. Leonard S. Howard, metai-dealer, OF
No. 69 Wall street, stated to the writer tnat
he bid the Erie Railway Company, accord.
ing to advertised proposals, for 1000 tons OF
old car-wheelsI at $50 per ton, cash on de-
livery at Jersey City, and that the same was
rejected by Purchasing Agent Bowman, the
lot afterward being turned over to Drlnger
at lower figure. 1t Is also asserted tnat
Howard Bunting. No. 4 Cedar street pur-
chasing for a Boston firm, offered S23 per
ton for old car.Wheels, and went with Ger
tilted check for S42, 600 with which to settle
for the same; but the wheels could not be
bought except by the lucky Dringer, VINO,
it is charged, secured the lot at $i9 per Ton.
1t will Be seen that there have been rings
in the outside Of Erie stock as we'll as INSIDE
Of the roads management; in fact, a detec-
tive told the writer that many OF the men on
the road are bribed-those in humber posi-.
tions with cigars, and from these to gold
watches, It will be seen If President jew
ett will be successful in stopping the steaE
ing.-Ne,o York Herald. ..l... s.5t...,
The first edition Of Burns's Poems,"
Kilmarnock, 1856, with an autograph .elegy
by the poet prefxed, sold for 98e l0s. ih