The New York herald., 1877-09-24
By TELEGRAPH TO THE HERALD

BE INNoCENr--uow THE DISCOVERY WAS
MADE.
By TELEGRAPH TO THE HERALD.
PHILADELPHIA Sept %, 1877.
No arrests Of tho criminals have yet been made in
OF the gigantic OF the Market Street
Railroad stock. The under police surveil-
lance however. Mr. Morton, the President, Is still
at his residence Arch street surrounded by his
friends and the directors OF the company and their
legal adviser, Mr. John c. Bultt Mr.. Morton seems
completely broken down, ana manests a desire 10
in every way his power to straighten out tho
affairs Of the company he has nearly ruined and
make every rcparation possible.
WHAT SAYS.
He frankly conesses his guilt and FASTENED &c cor
rect the words put into his mouth by local newspa
per this morning. in which he is made TO say he did
wrong. He coniesscs that he committed crnc but
did not deliberately and knowingly enter upon sys.
tematc robbery. Hc averaged 500 share Tor the
stock but some o! II he sold as high as $780, He is
ind gnant Samuel T. Huhn the deposcd treasurer,
should pretend innocence. He declares that he with
Mr. B. i. Stokes the cysecreary, signed every share
OF the fraudulent stock that Mr. Morton put his
to, and entirely aware OF the fraud stokes is
probably The least guilty oi The three. Yesterday lie
fingered aronnd The depot and the olees unti nearly
all the directors mad departed Tor their homes no had
been raised from conductor on the road TO the high
position which he heid
Stokes it Is alleged, told the directors that hc
ready confess aud turn States evidence. He BAD
done wrong ANA was wiling to acknowledge IL, ami
that when ne signed the certificates Tor the overissue
he was aware that he was not doing what was right
'Weil, them" said member OF the Board, why
did you not come and tell ust D"
stokes replied tnat he thought the other TWO OIL
ce,s the ROAD hai more friends than nc had, and
that their word would be taxen IN preference 10 MS
RESPONSIBILITY OF TIKI COMPANY
There has been no forgery technically committed In
issuing the stock. IL IS all regularly signed by the
three officers, ana the company, II IS believed, viii TO
competed TO accept and honor IL as tue authorized
stock The innocent s,ockholders are legally respon-
sbic lor the acts oi their iatnless servants.
BEGUN.
Mr. Mostou's financial troubles began stated in
this mornings HERALD Eight year ago. after some
disastrous speculations IN Reading railroad STOCK to
nimsel, he used several hundred shares OF tle
circular STOCK 10 be issued. pom every share ol this
the heavy dividends the company thin declaring
had 10 be met pr ecsey IN The OF tue icgazed
shares. 10 meet these he had, turn, 10 throw
niue fraudulent shares collateral 10 borrow the
money ior the dividends ON TINS first, anu thing
Kept increasing III frighuul ratio until nothing
but hopeless ruin could be tue result.
HOW IT CANE OUT.
Although this fraud has been gong on since 1870 it
was not pectcd until last MONDAY, when IN the
multitude OF transactions IN which Mr.. Morton has
been engaged lac forgot 10 take up note iOr $34,0lO
which Inc Corn Exchange Bank mad iouncd him. IL
block of the genuine stock Dcng used as coatera Tor
It's paymen GA Monday, therefore, There MAS sur
und inquiry IN financial circles wnen ano her large
creditor house among the brokers began TO inquue
about another large dcposil-somo tour nun
dred sbaTes-which they had also as collateral Ior
similar Transaction OF Mr.. Mortons. Que OF the
directors Of the Corn Exchange Bank having u frcnd
among the directors oi the Market street RaIro oa6
later IN Tue week mentioned Incidentally 10 lat
tue protest OF Mr M0r,ons large note aud the KIND OF
co lateral the bank had, and the Market street
pricked up his ears and CONSULTED with brother d.
rector. The Two visited Market streeI depot on
Thursday morning last for The purpose secrug Mr..
Morton, when they found that both he and the
urer, SAMUEL L. Hum, away IN
the business hours and nobody there but
tho ary, b. F. Stokes. rcqccst by
| these ltHo dreclors-and they happened 10
be very large stocknolders-to LOOK ut Tue was
met alter considerable trcpidaton tue part Of the
secretary by lat-iUoed refusal Tnis astounded The
lwO acntleuen, and the reason Tor the refusal vas
gwen that The secretary did not ike TO show the
the VI both ,he president anu the
BY FridaysMr. Morton kuew that his criminal
been discovered, ana since that Time he has been
coseted IN his own mouse, new one, No. =, U37 Arcn
street
xAMSING THE BOOKS
The directors Ui the Market company arc hay-
Ing the books examined tU ind the extent of tho
Irauu ana IN iew days something dcnIte VIII DC as
ccrtalDeu. Meanwhile II Is known thai three banks
several brokers' nrce private banking houses and two
| or three Dusiness men and gentlemen means arc
! holders ol the wdterrd stock.
NO action win be taken Oy the directors OF the cxh-
biion upon Mr.. Mortons resignation until ine meet
ing AT three o clock Tomorrow.