The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-09-24
PRESIDENT MORTON'S FRAUD
THE VEST PHILADELPHIA RAILROAD
OYER-ISSUE OF STOCK.
Tho Central Insurance Forreries-The Con.
pany's President's Imprisonment-Presa
dent NJ orton Making Known his Associates

pany's President's Imprisonment-Presas
dent Morton Making Known his Associates
PHILADELPHIA, Sept. 29.-Developmenta
to-day in the great Morton over-issue OF moro
than a million dollars worth OF stock havs
brought to the surface the fact that stock speos
ulations in the first instance were the cause oi
the over-ssue OF the Market Street Railroad
stock by President Morton. A decline of ten
dollars n share on fifteen thousand shares Of
Reading was more than the gentleman could
meet. and the fraudulent stock was issued in
order to negotiate a loan to meet den-
ciencies. VIM. II. Ebert OF this city was
his broker. Elberts nephew Nicholas.
about four years ago. was mixed up
In tho notorious Central Insurance Company
forgery OF bonds for the purpose of convincing
the State Insurance Commissioner that ths
company was in sound condition. Nicholas.
by the advice Of his uncle, turned States ev-
dence. and was put under t20.0 600 bail. Through
Elbcrt's testimony the President of the company
was sentenced TO seven and u half years im-
prsonment. while tho actual forger rot ten
years. aud both arc now in prison. the in.
former getting off scot free. The uncle claims
that Mr.. Morton has wofully deceived him, and
has brought him to ruin, by his fraudulent ovcr-
issues of stock. and that he was totally ignorant
of the bogus character oi the stock.
MIR. Morton meets that charge squarely. and.
for the first time. gives an idea OF who his assoc
ciatcs in this fraud are. He says. am not q
whit surprised that Mr.. Elbort should make
such a statement to you for publication; but he
is the last man who should have done 50. will
| tell YOU frankly that, oil all the gentlemen thm
stock. he is the only one that from
certain circumstances which nrc not nec-
cssary TO repeat. that could have had
the slightest idea Of there being any fraud of
wrong IN The matter. do not say tat ,evor
| told him thcrc was an ov r-issu Of sto X In 50
many words. but lac must have known it ha
could not have helped 1t As "a business man
| he must have nude inquiries ana found Out
all about it. My first transaction in stocks
was was with him in $50; lie hgli for ,ms
purchased at somewhere between ;j2 and t54
share. | was at Cape Muy at tac time when
the war broke out between Frame and Prussia,
| and Reading tumhlrd out slu share The loss
! was greater tLHn i could meet, and MIR.
Ebert was too weak To- carry 4!
On, the market and sold. The sccurides
| had placed IN Mr. L.O'u, uHnds were
not all my n 9Tn. or should hay SSo g@eI Sea
and stood it. but n part of them mad been
loaned to me by II ir'nd. and hoping
indcbt 'dnc,s, | dId thut wMch | should
not have nlon'. I made the over. Ssues
oi stock. ana negotiated a iuln. and from
going on. | have ISSUED about 10000
fraudulent shares aud Mr.. Ebert holds 5000 Of
| these at this moment. tO-elh n with a number
| Of bonds. | have meyer been able Ia get any
statement from Mr.. Ebert as to how We stood;
|
would never have i ready. | wis cautioned by
friends to have nothing TO DO with him. and get
my ta m f G1 gs amSd d. ns on ms far nn
| II was always cry for money. | must
raise him money; at one time II would bs
| for commissions. another time TO meet interest.
| but at all times II was money. money. | am sat :
ishrd now that since 1870 he hls lived solely III
| OF me: in fat know II. II" did no other busi-
| ness but for me. When he asked me to 20 bail
| for his nephew. Nick. did il. although knew
Mt the time | was hurting mvscif in tho
| Af
| Mr.. Ebert was sued several years ago and Julg-
mcnt for $4,000 obtained AGAINST Il ~ ile.amaa
did So and in Consequence had !, - ~ out (
my own pocket. Nhlc the eot 'nbl' had
and even when his duu-;l r was mar
rmd. the Sheriff wAs IN ihe, house.
| for him 10 give me Il II 'lt Wrnt, questioned
him So. closely tnut l cornercd hm. and
100000 for his own personal u-" upon
my securities. TO prove to you whether
or moi, and 10 show YOU how he has bounded
| and hed me. list n To- these letters which ho
sent me only yesterday morning:
Dr.n MosIos want to see , you a. oncc 4. possible
sl3.S,. / can Get On with sl2oD today II you have
AH1 ssg, an }. aoI. isfG ;"''' Yours Ll''"'-
A second note came in short time. IA fol.
lows:
want to sec Won at once Il,ou have any share, Of
sept - i-77 Einrar
H. did not wont m" 10 get my securities ou.
of his hands lie Mas making his living III Il
You Will please say for ne hat should never
| have uaen"d my lips about this il Mr.. ri,prt
had not spuAcn llisI' linrns hs arm nigh
Morton in the most Litter tom, tin-cd with re-
/. ntnrnt, exclaimed. when, WIS trying to
aSy ally that atm man 6ci til" RI ruddSr & and 5tecrei '
mo nto tho stream where he kept me-
wifi t.t.tftuu.l MIR Marian had
my t,lrlblr s"rrot in my own bosom. To lace the
wol "a AM carry ON my own extensive ven;
turrs. Many tn'S persons haNr wondered
at my energy. AMI hshcd me low | could
attend to the smaller details. USED TO
smile to myself, unt tnlnh, oh. % you only kncw
what kn,w. .nd iho ctnErr tn"t IL proving
upon ny hrait y9u would see that nave
m.rn to t9nk 4 tn b9-ines,; l w.nt IN,
net street bridge n-ht with all tins On
NY mluI have learnt To con uul my feelings.
would moi do Ike lstston ot san Francis -
commit .ridr. nn,o dctrrmiurd t1 stand /
all du ur .'It the rOu,rqurn Wilut .,ty may
be-. | know the ordeal have to ~ through
WITH and with uy Sensitive nature 81 BE-, trrrl-
bri tui wli try ANA meet I iitr ID n'n'
Onrol tim i'aiin- Nt"A"rs "io n"" hods
amount of the over i~-uo, llo -a}s tuai
=" f e'o% g'I.@ & SqaIa4 Yp1 sHigS' s AZ Al
lateral ior money borrowed not share
of u Wis Sod out and out So that diNi,
plrr uliat, th'rN io~urr Of thr iaui. II VAS
! lur li ~ reason lilul VI iluu MhS Aulr lH Ep ~
for su many ytius without being di- 'oNrr,d.
H. li addition tl tine nat rl~t on l~ loHns. he
had 10 pay the heavy dividrnds on tine stock
whlgn s.tNr ti"l road such hlEh value ~ the
market ho would soon have hnrn sWdmp'd.
TINS lnguS sio IL WAS never placed IN large
blocks. the largest amount of It IN uny one
place Uhat with lSad' Joaucsl did not rAcerd
one hundrrd thousand duliars. The rest was
put around IN various money Lenders hands ID
| bio b. OF from litrn thousand g. tAlriy t4uu'
sand, beginning with thu Corn ENrhun9 Bank
who held lrun thlriy tAouHAui 10 ioriy thouoand
| cred tor rStull sllnrlt~ around 3iuil tND SINAI
including the DrrNr9, aud tue SAVINGS utuhs
and several country lHnk0.WhO also llin'I hin
| money the oNrri0su" l- prr"fiS good. u
rather II VIII have to Dee mtiU good 10 tao cAtehl
oi tho loans made uuun IT,
IIquor Dealers Moving.
Tho Agntion Committee appointed In the
NAV mss, u,.nusuf lr d, llor., iu coolcr Institute