New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-09-24
A BETRAYED TRUST.

AN OVER-ISSUE OF RAILWAY STOCK.
THE CULPRIT CoNFEssEs HIS GUILT-THE AMOUNT
ABOUT THREK-QUARTERs OF MILLION OF
DOLLARS.
IRON An OCCASIONAL CORRESPONDENT OF THE TRIBUNEJ
PHILADELPHIA, Sept. 23.-Ths quiet old city
has not been startled for long time yesterday
afternoon when IL TumOred that John - Morton,
President Of the West Philadelphia Passenger Railroad
Company and also President Of the Permanent Exhibition
Company, defauter 70 the amount OF $4,000 or
more. The ulmor proves to true Mr. Morton admits
that he has issued 10000 unauthorized SHARES Of
stock OF the railroad company of which be Is the chief
officer The number authorized by the charter OF the
company is 10000 OF the par value Of $50 each,
and 5000 only have been issued. Mr. Nor
ton has stood exceptionally bieh 90 business
man, and his character, until this discovery, was
above reprosch The companys affairs we're believed 70
be "A nOurlshiug condition. Very litte Of tho stock
has been offered in the market Tor long time
past On Wednesday last 14S bid for few shares
and $50 asked. On Friday three shares were sold at
$50. Yesterday there bid at 49, but the holder
declined TO sell at that rate. As soon as lo rumor OF
the dealcaton Of President Morton circulated, the
price Of the stock lel rapidly, until 60 only was bid
Later IN the day President Morton made the following
statement:
The report only true and have nothing 70 say
in j.sutoau 90 ms acuon have resigned tie Pfrs
d'ucy o the Market street ROAD, ana VIII ace the cohst
quouc Of my acts Many of my fIei ds have advised
NJ 10 leave the city, but VIII do nothing OF tine kind
! the conscious on KNOWING thui have not
made dollar self in the transactions bat have
been acluated by q desire 10 and others could crlm-
many Others, but VIII not dO 50 under any crcum-
stances. ann no coward moral OF OthcI"lsc ga lhfe
need be no fcir o. ny committing sWcdc' as soflc may
was drawn into the transaction by Others ara was
LED uut the tning got hey nj my control Even mp
o. last IAurtday had hopes uI beng able 20 meet OBJ
legations ana save mtseii ara othls nut III Ws oi.eltd
otherwise, and viii have To- meet the consequence,
whatever thcy may be- as those who got me INTO the
trouble Will 10 uOihiugtU aid i'm getting OF
/ have put no money in my pocket, When cosid hso
done had wished am conscious Of no dishonesty
DO my action aud y desire is make everything plain
clear 10 an. nave nothing 10 disguise, aud vii DO
strIgheu things mp. have been offered any amount OF
undergraduates Of thousands Of do.iars-by trends,
bat refused accept aid from any source ana hare
determined 10 face the consequence. THIS oyer-!ssuC
has been going 1870. found great difficulty in
lIug loans ana hat TO resort 90 extreme measures 10
Others from losing ana I'D SO dong was led on by
tie false nope OF Deng aie 10 come out OF the dicu-
failed 10 GO so, and now am compelled To meet
tie consequences. The oyer-issue wi amount 10 over
10000 shares.
II is stated by Mr. Mortons friends thar he has lost
heavily in various enterprises. He lost 100000 in a
motor for canaboats, about the amount in the
Centennial Catalogue Company, $4,000 in an evening
newspaper a large amount IN manufacturing porcelain
and wicker work. and various sums in other specula-
II is also alleged that the fan in Philadelphia and
Reading Railroad stock caused him heavy losses, from
time 10 time. he has speculated 10 considerable
tent in that stock.
The West Philadelphia Passenger Railway Company
ncor porated IN May 1871 and has been one OF the
anu DCSt lines III the city since ~,
establishment The report for the year ending October
1876 that the capital STOCK, authorized by law,
500 COOS theA mount of stock suhsc bed and paid n
SlUO zoos the gage debt is S25OOO0 Tae receipts
road S7Jj6js 10, and frOm the sac Of ond.
$4,000. The total payments %sZ222I 80 includ
mg $40 go dividends leaving surplus OF l73s o.
In consequence OF the exposure above narratd, Mr..
Morton has gwen mp the trusts committed To him. MI
samuel Baugn vino only 800 shares Oi the stock
OF the railroad company has be elected IN his stead as
President of tuaJ corr GRAFTON, aud william j. swan
elected Treasurer, and Mr.. Reed Secretary. Thomas y
Ellis been elected President Of the Permanent EXh