The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1877-05-05
THE RUSH SLOANE DASH.
The Story of the c., 8. & G. Rail-
road Row Told in Boston.
National Associated Press to tho Star

National Associated Press to tho Star.
Boston, May 5.-About seYenty-five
of the stock and bond holders of the Gin
cinaati, Sandusky & Cleveland Railroad
met here yesterday to hear a report Of
the road from Mr.. s. FarlOw, who has
been in the West looking after the inter-
ests OF the stock ana bond holders. Mr..
Farlow spoke briefly of the expulsion of
Slo me, the former President of the
road, for frauds that were discovered in
1879, at which time the speaker was
chosen Pre- 'ident, much against his will,
when an Investigation OF the transac-
tions of the former President was Gu.
tered into, and as fast as the causes OF
action were decided, attachments upon
his property in different States were
levied upon. Subsequently Sloane was
turned over to the State authorities OF
Ohio on seventeen counts, tor embeZZie-
ment, etc.
He was put under SAG, 900 bonds, but
next day he forfeited MS bonds and fled
to Belgium. In 1874 the civil actions
were settled by Tie Company's accept
ance OF properly to the value OF $3.50, 900,
Afterwards Sloane was indicted on
twelve counts ior embeZzlement and six
for forgery. After the settlement OF the
civil cases at which Sloane was present,
In America, be returned to Belgium in
November, 1876. The deiautel bail was
! settled by the payment OF $4,000. Sub.
sequenlly, by the collision OF retiring
prosecuting officer and Judge acting
against the instructions OF this Com
pany, the indictment was non-prossed,
and Sloane was free.
Governor Hayes was informed of the
circumstances and sympar hized heartily
with the road, but he was CHOSEN Presi.
dent Of the United States, and nothing
was done. The papers in Sloane's case
were stolen from the office of the Clerk
Of the Court, but the company has cer-
titled copies in it's steel safe. Attempts
were made on Sloano's part to compound
the felony, but no propositions were ell
tertained by the company. In March,
Sloane approached Oscar Townsend and
proposed that he should be made re-
lceivcr; that Sloane woulu get rs large "a
salary for MIN as he could, and they
would divide it.; that he had made
T4O0, 900 out of theroad before, and he
loud make as much more. Townsend
refused.
subsequently,, by the same Judge who
had previously been engaged in releas-
ing Sloane, the latter was put in control
of the road and millions Of dollars were
lost to its owners. The Injunction was
given at night without any warning to
theotticers, and the offices OF the Com.
pany were taken pos ssion of violently
James d. Lay was made Receiver, and
he appointed Sloane General Manager.
The injunction was dissolved by high
er Court. The order of The Court was
resisted by Sloane and about two hun
dred drunken adherents, and the case is
to be heard again next Monday in CleYe-
land.
stven.eigbths of this property is
owned righ. around Boston. The in.
terior mortgage for seven per cent. is in
danger The case was taken to the
Federal Court and argued there last
Tuesday, but there has been no decis on.
II the property can not be got back into
the hands Of the owners the next thing
Is 10 get it into the hands OF a receiver
in the interest of the owners. Those
who hold the property now say thatthey
can keep 1t for year and that would b.
very destructive. Mr.. Farlow expressed
his confidence that the railroad bust.
ness would revive, and he stated that
the credit the Company was excellent.