The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-24
THE ERIE FRAUDS.

WHoLEsALR CHARGES OF DISHONESTY "A
CROOKED FORTUNE IN OLD IRON BRASS
COPPER, WHITE METAL, PREssEs-rHx on.
FIc1ALs IMPLIcATED-THE SUITS BEEoRE
THE NEW JERSEY VICE CHANCELLOR.
The argument concerning tho Erie Railway frauds,
commenced last November before the Vice Chancellor
OF New Jersey, has been concluded. The that
OF Mr. Jewett, receiver OF the road against Henry
Bowman, purchasing agent; sigmund Dringer. specu-
lator In iron and Frank H. HAHN, superintendent Of
motive power; Robert Wallace, master mechanic, and
John scoyiIc, weighmaster, all OF the Eric road.
The frauds have, It il supposed extended through
number OF years and Aggregated many thousands Of
dollars During the past three years alone is alleged
that more than 500 600 was frauducntly taken from
the road. About year ago Receiver Jewett became
convinced that there were great leaks sono-
where in the road and bent every energy to discover
and stop them Stepby step the matter was followed up
until at last the receiver thought he had obtained tho
cew The road retained Mr. CORTLAND Parker, and the
parties named above secured the services Of Mcsss
futile and Gregg.
THE WAY 1T WAS DoSR.
Drpger Il is alleged purchased all Of the old stock
and iron OF tho Erie Railway No else ever had an
opportunity 10 get any OF it, The superintendent Of
motive power the master mechanic, the wcighmas-
and Horny Bowman, purchasing agent - alleged
conspired to defraud the road. They would cause
material TO delivered 10 Drpger III sold 10 him
but in disobedIonce to the rules OF the company
requiring advertisement aud public saie-and
gave him (Dringer) entire monopoly, sometimes,
tho complaint goes on TO say, s'without tho same
being weighed, sometimes by false and fraudulent
weighing thereof; sometimes by reporting false and
fraudulent weights; sometimes by mixing new ana
valuable with such waste material sometimes by other
methods of accom- plishng fraud In the premises; and
your orator shows that by means OF these various
KINDS and methods OF fraud aud by disposing oil said
waste material at prices below its true value and
price, and through the practice pursued by all
ont n oasS for his pretondsd purchases the said
Dringer hath become possessed fraudulenty Of very
large quantities OF said waste material Of SO great value
as That II treated sold to HIM, at fair
market prices he would be indebted TO your orator
in the OF more than $4,000 instead Of tho sup
admitted by nm to be DUE
After insisting that tho officers OF the road above
mentioned are responsible to the receiver financially
the complaint goes make specific charges the fol-
lowing being among tho most Important ~
MATERIAL TAKEN
besn nnssessed having OBTAINED the same from your
orator said company at the hands OF some of said
agents through fraud and practice aforesaid OF axlea
weighing over TAO. 0O0 pounds when report made
OF the same your orators financial agents weigh.
ing only 4S3 00O pounds the same being charged
whereby your orator. even were be paid therefor,
would be dcrauded in the sum OF over So 700. =
..Since the LIST Of May 1876 Driuger was possessed
OF steel tires weighing nearly $50 pounds belonging
to said company orator. acquired at tho hands
Aforesaid when report was made Of said tires az
Weighing only 192.3o0 pounds, and the same vas
trauduleny stated 10 have been sold At but $3S per
ton when tho price and value thereof largely
exceeded that sum- whereby your orator, even II paid
therefor, would be deIrauded In the sum OF ovor
Since the LIST of June 1875. there into Drngcrs
in the same manner about 1856 tons OF old
car Wheels valued at $22 per ton. Sevony-sx tons Of
this was never reported the receiver and for the
remainder only $40 per ton was returned. leaving q
Since the lst OF February 1874 Drnger came into
possession Of brass weighing 25 643 pounds and worth
Twelve each pound. II reported as weighing
only IL, 1856 pounds During the same period he OBJ
copper to the amount OF Is 400 pounds. worth
cents pound which was reported as weigh.
Ing g. pounds. The receiver states that even had
be been paia therefor be would havc boon deiraudcd
out of $3,700
partners resored to all manner OF contrivances %
rob the railway company. 1t Is alleged that In Feb.
ruary, 1915, Dringer obtained quantity Of good ana
| over one thousand dollars "rhe same was duly re-
ported beng 1000 pounds" says The complaint
land sold only five cents pound. whereby even
| II paid, your orator would be deirauded nearly or
| quito thousand dollars
And your orator further shows that It the habit
said Dringer personally to attend at Susqushanna,
where the principal machine shops Of said com.
| pany and whence the most said waste material
was derived and oversee the loading OF the cars In
tended him that said ours usually box cars,
a covered Ss
every scnt to tho wood piles belonging
to your such receiver to said company, and
scrap; this wood was never reported paid Tor.
And your orator shows that almost twenty cords OF
wood, worth 81 cord, was thus distracted from your
orator by said Dringer."
| OTHER QUEER TRANSACTIONS.
ns ION o. sns acas w
In the trauds:-"Your orator further shows that IN
January and February, 1875. there was irauducntly
Aforesaid sent to SAID Drnger from the Same shops
by said agents or some Of them, two large presses and
four smaller said presses being used and useful for
| making and renewing betting. There came With The
betting as n direction thereof u tag marked From
| Buffalo, Erie Car Snop' R. Wallace N. n, Susque.
hanna, Pa Nothing said OF these presses or the
price OF them in any bill TIL inquiry madc, whom
the 10Th OF March, 1876, bill was made out charg
ing Tor them at rates much less than their alleged
| value
ain the same month OF February, 1870 there was
Tor said Drnger and sent to HIM IN the Eric
from Susquchapna box Of steel shear blades tempered
| In oil The box was marked r. Wallace, Paterson,
o. s. Dringer, Susquehanna These shear blades
are foi ting iron and steel. No bill OF tho spring
steel OF the shear blades made ont nj the time,
| nor was any Information Of the transaction given "a
| your orator or his financial agents.
Your orator turt her that there fraud upon
your relat to certain other articles pre-
tended to be sold SAID Dringer SIX hundred and zen
said DrInger from tho said agents and sold than WINS
reported 10 your his said financial agents
a stove was delivered to him. belonging to SAID CON-
pany without report or pay, worth about $50 -
Alter number OF minor theits are mentioned tho
the statement OF the receiver closes oIIows-'And
your charges other large frauds occurred
the dealings Of said Drnger with said agents aiding
and abettng him. IN rcgaru scrap iron, OF which no
received said company from your orator large
quantities beyond those reported to your orator or TO
said company, thus committing frauds on them to the
| amount OF several thousand collars
| "And your orator charges that by reason OF said
frauds. committed as Aforesaid by said Drnger, with
connivance OF said agents and especially said Ham,
Wallace, Scovie and Bowman, he, the said Dringer,
as we'll the other parties and each Of them. and
should In equity be he'd trustees OF all the property by
him obtained aforesaid Tor the pereat OF your orator.
| receiver as Aforesaid"
A DENIAL.
In answer Bowman denies all completely In the
frauds and offers considerable evidence TO sustain him.
The OF the Vice Chancellor will DO made known
| In lew days
NEW JERSEY CENTRAL.
meeting OF the bondholdcrs of the Central Railroad
| of Now Jersey held IN the Chamber OF Commcrco
Yesterday afternoon Mr.. Royal Phelps in the chair