The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1877-10-09

- SOoVVSOOSSOsS - y 0SIVOS V0I B001
Led % IN important Discovery.
Philadelphia Record.
Casual street-car conversation some
times have great results. An acct
dental one ON the Market street line
on Saturday a week ago between two
directors and heavy stockholders has
lei tn the exposure Of q gigantic fraud
involving lNss calculated from half q
million oil the way up to three millions
If dollars. John $ Morton, the
President of the Market Street Rail-
way, has in COLLISION with the Treas
urer and Secretary, overissuel stock
Of the company during the last seven
years to the extent Of tens If thOus-
ands Of shares, using it a. collateral
for personal loans, which have been
wasted in private speculaiionS.
Don't yOu think our President j.
running the Company into great ex-
expenses ON his cracky notions about
improvements = asked one Of the d.
rectors Of the other.
Il am afraid he Is doing worse
than that" said the other-Mr. John
G,ss. Who is also connected with the
Corn Exchange Bank. "Ey the way,
there's note in our company in hank
for over sI5, OOO."
"a note for $4,000" exclaimed
Mr.. William j. Swain, the other d.
rector. why, how can that be.
when We pay cash for all We get ?"
And then there Was q general sha-
king Of the head and q puzzled look in
both Of their cOuntenances.
Lets run down to the hank and
see about -" was the determination Of
both parties.
"Oh. yes Was the confirmatory
response ii the cashier. I'VE have
the Market Street COmpanys
note here for s15. 900, and besides that
President Morton has discounted two
personal notes by the hank. one fos
312. 900 and the other t22.OOO. But
it Is all right, ~ he has left over 400
shares Of the companyis stock with US
as collateral"
"FOur hundred shares! Why,
when did he get hold If that amount :
Let's 60 and see Samuel Baugh" IAN
other director. and one Of the heavi-
eat stockholders in the c0mpany.
"Well, this thing il getting stupen-
dous." was the response Of Mr.. Bough
Why. here Tony Dexel has been to
zee me about the stock Of the COM
pany, saving he had loaned $50, 900
on 400 shares.
''Baugh knew Of something being
the matter three months ago. " was the
comment Of . Third street broker on
hearing Of this conversation. His at
tentiOn was called to Morton's opera
tiOns to pledging large blocks Of stock
as collateral, and he intimated that it
was no doubt Mr.. Morton held the
the stock - trustee-as If using such
stock for personal purposes wasn't as
bad as stealing
When it was further ascertainetl
that Sl35, 900 had been loaned on
I, 200 shares Of the stock. the before
mentioned directors thought it was
about time to begin investigation.
They started to work on last Thursday
morning, goint out to the Wet Phila-
delphia Office Of the compony. The
President not arriving at the Office
until afternoon. they proceeded n
his brown stone residence on Arch
street.
"Is there an overissue Of stock ,"
vas the plain question. fatty put to
Mr.. Morton, Who denied that there
I'VE want TO see the books to re-as-
sure % have you any objection :"
"No; but ~ Mr.. HUM, the Treas
urer, il in Boston. and as he has kept
the hooks. Il would not he courtesy to
him to wait till his return, on Satur.
day"
Bot the directors could't sleep on
this uncertainty, and 50 the next
ing-Fridsy-they again went
to the depot and demanded the hooks
Of Secretary Stokes.
II can't let you have them. gentle
men. without the consent Of the Presi-
dent, WAS The answer.
"Go and end President Morton, iflt
takes al day and al night. and bring
IN answer to our houses If he consents
Or objects" was the order Of the now
thoroughly alarmed directors.
In the meantime Mr.. Stokes found
the President and said to him: IL
guess the jig = up. Mr.. Swain Is de-
to investigate the books"
"WellI guess It is" replied Mr..
Morton.
And before midnight the Secretary
made his report to the directors. II
Dnly required . casual glance ut the
hooks to show that fraud had been COM
mitted.
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