The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1877-09-29
THE FRAUDS IN PHILADELPHIA.
A PROMINENT AND HIGHLY RESPECTED CITI.
ZEN INVOLVED.

zen INVOLVED.
Great excitement was caused in Phiadel-
phia, on Saturday, by the report that the
stock of the West Philadelphia Passenger
Railway Company had been fraudulently
over issued to large amount, and that
Mr. John 5. Morton, the President of the
Company and also the President of the
International Exhibition Company, was
one of those mainly responsible for the
wrong. The stock of the Company con
sists of S, 600 shares, the par value OF which
is $50 a share, and has long been consd-
cred iirst-class security, and has been sold
as high as $50 share, all recent sales
being at about $50. On Saturday, af-
ter the exposure of the over issue, there
was great fall in the price, and at three
o'clock in the afternoon only $50 per share
was offered for it.
The discovery of the fraud was made by
MI. Samuel Baugh, one Of the Directors of
the Company. who has since been elected
President. Mr.. Baugh called at promi-
nent brokers office on Third street, on Mon
day last, where he was shown some of the
stock of the railway Company which had
been deposited there rs collateral security
for loan negotiated by Mr.. Morton. His
suspicious were aroused, and on Tuesday
he called again at the brokers' office and
asked TO be allowed to examine the certiti-
Gates. His request was at once granted,
and he found that the stock was regularly
issued by John S Morton, President; b.
F. Stokes, Secretary, and Samuel p. Hum,
Treasurer, and sealed with the seal of the
company. The numbers of the certificates,
however, seemed to Mr.. Baugh to be wrong
and on Wednesday he, in company with
another large stockholder, visited the office
in West Philadelphia, where they de-
manded to be allowed to examine the books
Of the Company. Mr.. Morton and Mr..
HUM were absent, and Mr.. Stokes, the
Secretary, refused to show them the books.
On Tuesday special meeting of the Board
of Directors was called and full ex-
posure made before them. On Friday Mr..
Morton resigned his position of President,
and Mr.. Samuel Baugh was elected in his
place. Mr.. w. j. Swain was also elected
Treasurer, III place of Samuel p. HUM,
and Mr.. VIM. NJ. Wright, Secretary, in
place of Mr.. b. f. Stokes. Experts were
also put at work to make thorough ex-
animation of the books and accounts Of
the Company, and this work is not yet
concluded.
According to the statement of Mr.. Nor
ton himself, confirmed by the best imfor-
NATION obtainable from other sources, there
have been between ten and eleven thousand
shares of stock issued irreguiarly by
Messrs. Morton, HUM and Stokes. This
stock has been hypothetical at an average
rate of 500 share, making total defal
cation of about one million dollars Nh
Morton acknowledges freely the fault he has
committed and has furnished the new
president of the company with what he
states to be an accurate list Of the false
certificates outstanding and in whose hands
they now are.
He states that the matter has been going
on since, 1870, at which time he suffered
heavy losses in Reading railroad stock, and
ever since he has been trying to carry the
loss and restore himself. He went into
several enterprises hoping by them he
would be able to recover the amounts he
had lost and thus make all things right.
His ventures proved failures, however, and
things went on from bad to worse, until
the final exposure. He freely acknowl
edged his error and only claimed that he
had no evil intentions when he commecced
his Irregularities his desire being simply
to save himself and those who were in
volved with him, and he declars that he
did not handle nearly all the money real
lied, but that Messrs. Stokes and HUM
a!e also deeply involved.
Mr.. John 5. Morton is one of the best
known citizens of Philadelphia He be-
longs to an old Revolutionary family. his
great grandfather, John Morton, having
been one of the signers of the Declaration
OF Independence. He has been prominent
in many public movements, and only re-
Gently was elected President of the Inter-
national Exhibition Co. During the Cen
tennial he was President and large stock
holder in the Catalogue Company, in which
he lost large amount of money.
Mr.. Morton on Friday sent in his reSig-
nation as President of the Exhibition Com
pany, and Mr.. Henry D. Moore is acting
as President pro tempore.
On Wednesday John S. Morton, Presi-
dent; b. +. Stokes, Secretary, and Samuel
p HUM, treasurer of the company, to-
gether with George Nickers, private secre-
tary to Morton, were arrested On charge
OF conspiracy to cheat and defraud. The
arrests were made at the instigation of the
newly appointed officers of the company.
Some of the parties gave bail and the
others we're held,