The New York herald., 1877-09-23
THREE MILLIONS STOLEN.
A Philadelphia Street Car Company
Robbed by Its President.
HIS EXTRAORDINARY CONFESSION.
Others Implicated Whose Names
Are Withheld.
[By TELEGRAPH TO THE HERALD

this afternoon by the announcements IN q shape not
to be disbeicved, that there had been overssue
stock Of the most valuable ana important rail.
| way corporation Ia Phiiadclpha-tho West Phiia-
| dclpha Passenger Railway Company, the Market
street nc with which of The visitors to the Geo.
| tcnnia Exhibition familiar. When the villa
rumors OF the siftod accepted as the
truth that about $3.50, 900 Of tho company's stock
had been Issued aud above the $500, 900
worth authorized by law. The investigations OF
| the HERALD correspondent this evening" however,
provo that the fraudulent stock much exceeded in
amount oven the extravngant stories OF tho street.
The truth seems 10 be--astounding as It may seem
that about twenty thousand shares Of fraudulent
stock have been put anoat, which. at $3.50
sharc-,hc price quoted up TO to-day-woud
represent IS, 100000 Besides this there Is a
cash dc1ct in tho treasury OF $780, 600
and large amount ofnocs OF the company outstand-
Ing II would bc difficult to picture the astonshmont
and alarm expressed on all sides whom IL under
stood that John s. Norton the President OF the
pany, mad avowed his responsibility Tor this gigantic
fraud Tho HERALD correspondent, who hastened to
Mr. Mortons residence in Arch street, found him ut
home. He was completely broken ana scarcely rocog-
nzable the brisk, CHEEKY gentleman OF yesterday.
MORTON coNrEssxs.
Ho did not deny HIS guilt He betrayed no hesita-
ton in making q statement concerning the affair.
The report, uc Salu was only true, and he mad
nothing whatever TO say IN Justification OF the course
he pursued. He had resigned his position Presi-
dent of the Markc, Street Railway. and dotcr.
mined to face the consequences of his action. His
irieuds, or at least some of thcm, had advised him
TO leave tho city. but that h. would
not DO. WHAT he had done, he said,
| through tho desire TO aid others, and he
himself had not made ono dollar by tho transactions.
| lie could mplicate many others In the matter but
would not do 30 under any circumstances He referred
to the fears entertained by that he would
init suicide, and SAID that, not beng coward IN any
sense Of tho word, there danger OF hts doing
that Others, ne SAID, drow him into the transactions
and he kept on until the whole thing got beyond his
control So lato Thursday last he had hopes that he
would be able all tho Obligations involved, aud
so have others and himself, but found that no could
not, and now must take whatever consequences
may result, and thai, too, without any help from
those who led him into tho trouble. He conscious
OF no dishonesty on his own part, he said, aud al
though ho might have put money into his own pocket,
hc had not done His only desire to make
every thing PLAIN and clear, to disguise nothing and to
do nothing dishonorabe HIS every cndoavor would
be TO .sraghtcn the thing OUT" Friends Ind offered
him hundreds OF thousands OF dollars but ho had
fused all aid and would let things take heir course.
The entire Of tho ovcrissue, he stated, would
reach owe. ten thousand shares.
HE HOPES LIVE DOWN
As 10 the consequences he said, he knew not what
tacy might be, but he hoped to be able to live down
the results OF his action Tho ISSUE he said had
been in progress since 1870. There great dcuty
IN liking loans and he felt compelled 10 resort " ex
| tremc measures to save others rom losing lie was
led ON by the false hope o! being able to safely
out Of tho difficulties. Notwithstanding Mr. Morton's
assumption of tho whole responsibility In this great
| ,n.n
belirfed other officers oil The company and coma
OF the directors had perfect kbo ledge OF the
transaction, and are NJ guilty as Mr.. Morton.
LOSSES.
| From inoury among Mr. Morton's friends 1t was
lear ned that nc has been losing large sums OF money
eight years back, ahd mas been carrying an immense
| load OF debt winch he helped to hquidate by manpu
Iaton OF the company's stock. He lost over $lOO 900
| In motor Tor canal boats; large sum ~ manuinc-
turing porcelain and wicker work over S100. 900
the Centennial Catalogue Company $50 600 In an even
inv newspaper IN PhadeIphA; AT least much
| moro IN a visionary street motor and
! great deal from time to time in Philadelphia aDd
Reaiing Railroad stock speculation. The interest
his personal Indebtedness and on tho money OF tho
company winch he was usins mas gradually accumu-
| lated until It has swampcd him. Tho last dividend on
tho stock OF the company, ten per cent was pad IN
borrowed money. TINS issuo WAS not disposed 0i
IN tue market, tho sales being intrcquent, and but
| little OF tho stock changing hfn nds unless In
a quiet aud private way. The surplus stock
| freely used, according to tho report. MS coilate
raj Tor loans from banks ana brokers, It's high
market value and the unqucstioned INTEGRITY Of tne
management OF the road rendering II very satisiac
. torv .rlv. below tho market
val,e OF tne stock OF the West Phaacpha Passenger
Railway Company, quoted by their officers, has
been $175 per share Tor Tue past year so nishiy was
this stock esteemed by investors that u was very
| rarely put up in tho mars CT. and, consequently.
is dIilicu.t to quote IN tho market reports During
the cptIro year oil 1875 there are only Two months
| In which sales mado In January, when 1t
| was sold In u small lot for s(35 per share, and IN
March when the price obtained was S155. On Wednes
ay there was bid for some shares at $4s per share,
| hui SlsO was asked. There were three shares sold
ycss DAY lor $3.50 per snare and this morning thcrc
| (.pgn nf a.
sold, the holders wanllns a much hgher hgurc. MI
Morton gave up his presidency OF the raroad company
this morning Mr. samuel Baugh, who owns only
au sharcs OF the stock, being elected In his stcau.
| William J. swain, was elected treasurer and Mr.. Reed
secretary Mr Morton has recently been President OF
The Pcranent Exhibition, IN which Office he has DIS
played much enterprise ana plbnc spirit
THE COMPANY
The West Phladelpnia Passenger Railway Company
Is one of the Oldest tho city! 1t was Incorporated by
an act Of the Assembly. approved Nay IA,
been one Of tho nosi successful and bcst man
aged lines in .he city hr. John. Morton
was elected President OF the Company In 1863 and
since 1866 has devoted his personal attention 10 the
ma cnt OIL the road. Hc mas enjoyed the very
highest reputation and 1t has been the common cx-
pression ms evening that he Is the last man 10 Pha
dclpnii who would have bccn guty oi tnc crlhic Vi
which be has confessed himself guilty
THE coMPANY's OFFICIAL STATEMENT
| The siatemsnt made TO the Auditor General OF ihc
State last year by tho West Philadcphh passenger
Railway Company for the financial year chdlhs oc'o-
Der, 1876, contained tho following iacts, which were
sworn to- .
Can,,,, s,ocr m nu,nyrized 10y law ... $500 900 90
Amnnn, nj sorL subscrlbcd ........... 400, 900 90
Arnun, ra ,d IN "a hy last repo 400. 900 90
ToI a,rnnt no pa,d m OF capital stock. 400 900 90
rnnJo ,.n, az nor last report ........ 100, 900 90
The amount now OF funded DEBT (classihcd abd dato
| OF maturity as iolows;-
FIRST mortgage bonds tda'o OF 100 oao ~
maturity, June J. is7sl.. .sloo,o ,ooo w
FIRST mortgage bonds date OF
'""'''''' ---s25O, 600 90
| Floating debt ns Dor last report and the
omount now of floating debt ............. Mono
TOTAL amount now OF iunded debt. 250, 00O W
Rate per cont per annum oil interest on
| funded dcbi--urst mortgage, 800, OOO ut
seven per cent, t15u,UO0 AZ SIX per cent.
| Date and rate per cent per annum oil dividend or
diyIdcnds;--
Cash, January II, 1875, s5 per share: July
H. 1916 S5 per share; twenty per cent
per annum.
Number of shares OF stock issucd........ 5000 90
par value OF each share. s5U 90