New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-03

~, .,,o,.,t .......... 81 ,902 es
i iGSia r aSs sSaad be deducted The following lie
uuOu.ii carried, VIZ; .o..,o.
& H. Pcirce. .....-.........~-...'''' s93's2e -
C. alsion ..........-..........-.. $50, -
Sc = II nv o' saak Of watciiovn...... gigi5o
Rollins Hros. q Co ........- ~~...-. Is 90 10y ~
T. W. h"'aekoper '''''''''''' o-----D-9 e2o.524 70
..,....,, o,,o,rs ........... 81 .l5o.s7s 90
Accord ~ 10 MaugaIn's testimony Pierce had f9'cd
II, IA and all mat had been collected since was the ~
,-st aud dividend. on the culaJcras Tncse colatef
, ycr. So 500 OF first mortgage bcns "f the WABASH
Decatur aud last ST. Louis Railroad, ana T9'loo OF
minded COUPON ceraca Of The same road, worm al'o
setber about $4,000. Tue collaieIals To the Ias'oh
loan were forged bonds. In proceedings against thc
fo-ecrs something was recovered wuieh has been cred
it'd the bank viii recover more or nave TO return
,rlrf had air adv been obtained depends on decision
of the Court Of Appeals We; made OF the codtrras
Z. the Jones aud lns Erothcrs loans, Tl41ooo are
first god mortgage bonds OF the heW-JeiSel
and New-YOrk Railroad Company, claimed 10y
TIE receiver OF that company. and S9'Ooo
IN the Ncw-York Central Railroad Real Is
tat, bonds. apparently forgcres. Nr Mangam says be
has been 30 informed but does not know 1t, ana IN,
made ne inquiries. Though he admits II wa
bis duty the person ob aiming the loan having raieu
he considered t0at .uaa OF 10 value UNA the
tecpn.iructon ~ the NcW-JCrsey and New-Iork Com
rary lie believed Jones was not wealthy. The loan to
Tho Ws,crfoNn Bank was made IN lS7J. ana soon after
The hank failed No effort has been made TO realize on
the coiataras which were Insufficient rs security.
Tic, embrace $4,000 OF mortCgc bonds ct The DAVIS
Sowing Machine Company Of Watcrto"n. The Swing
Machine Company claims these ana seven OF The bonds
900 mover received the signature Of Tie president OF
the company.
ILLUSTRATING TIE PRESIDENTS METHODS.
Tie Doughty loan illustrates presidents methods.
II grew oat OF a series Of oaus made 10 Theodore Der
dol b-twccu November -. ISL. ana November. lsI2
Bca, faied Ia 1873. The co'tesals were ina lcqdaie'
aid che company had nothing 10 d" hut Ia realize VIVA.
IL ooud and charge tlc deficiency 80 profit and
loss Iue cad. II carried the securities 30 june
2 .s-I, and then mgde nominal SAL
"a 4. IL. Doughty, al twice Their market
value = rd.u then owed. with interest, uominnHy,
sI5l GgJ. This sun then Ostorsth laIei -
Dauaaty. on Bordcl's securities Mr.. Best notes M
banaam- testimony show ihat THIS was on'j sndi'
tr,n.aet,on, the bank being obliged g. msurc Il
doughty aro B., Mr.. Maug,H's law, from an
los Transaction, us 10 was done for the heneh' "
tae cot..,nv TIE securities we're waikiki Valley r.
road. ANA M Mlueam eXpr sscs belief that at oo.'
time 10 tie .urc they Will bring their face value.
with rer.rd o. %, 7. W. lIucdckoper loan, Mr. i ~
make. Nj Mangain's testimony show that II IL purely
f, ifions and * rcnarkabl. chiefly account OF tue
large amount involved, SsJi.476 o. aud the W'.-
spread deception which it reveals The bonds appearing
n. collateral. were bought by HucdeSoper preparatory
10 "A foreclosure He not to be held bound
for any deficiency soc loan. Part Of TIE col
iaierals were bonds . Indiana division = i'e
Chcago Dthgile tct Ninecnnes Railroad lD.y
were turne1 in, and an assessment on them was
paid By tho rust Company on he reorganization df the
railroad con.-ny. The assessment WAS charged TO
HueekoV,t a. loan. The origin OF the loan was sale
By W T. shattuck. agent OF the railroad company. Of
100000 OF the mortgage bonds Of that company to
the National Trust Company. at So. Mr.. sHatGck w"s
then a trustee OF the Trust Company. The prices
he paid iOr the bonds ranged from 71i2 to
so Der cent. Default made the bonds
rrg.1
10 take Jack she bonds at and interest II thr Tru,
Cou,pany would loan the money them as collateral
The railroad company ofere ine Bloomfield NOR gage
n further collateral The railroad compa y failed TO
keep promise and the Trust Company sold the col
laterals and bought nem. and ihon this transfer was
made 20 az 10 give IL the form OF IA ioan This
amount was, D,cembcr T. S35f,47O %. Charges
have been m de since which tnCease IL
TO S3JGO2O .. against which the Trust Com
pany has colaterals worth probably flJs956 81
owing loss Of SIg7 Oei %. winch President Man
esIn well informed or be had made safes Of the same
class Of securities only few weeks before
SIR. Best says: "Tne foregoing hciIons, classified
under the head Of loans make chapter ~ hnaHohl
history which. he hoped. i'hout parallel Tie
Culpahlc nature Of the acts tS connection with the
decepuons which they ccrpre apparent, aud 1t Is
unnecessary that should write word either Ia con
doDement on in condemnation"
LOANS LEGITIMATE BUT RrPgEHFNsBIE
Mr.. Best next calls attention several tlans,
which may be egtmateiy calle'. loans, vet, their
character and bearing, IA" sag- they nea .! rs
reprehtiisible those before tOned In 1871. loans
aggregatng $4,000 were nadc to two persons H. JAY
1874 the balance of principal unpaid SG1;5 20.
the arrears Of interest amounting to III $50 20,
IN all a. $50 AZ. The collateral TO this 1915 ayes
of Jefferson Iron Company stock. having then maAct
value These loans closed Jrl 3. 1874. the stsc
having been apparently sold for 81 800. but nu
diaely made 10 do duty collateral for new loan for
1880 as
In August, 1876, loan was made TO j. j. GRAY, OF
$4,000 Other loans and credits were made to hn,
but tue credits were charged to persons trustee
insisted calling in this loan The President simply
charged $50 800 to James Brady. trustee. leaving $780,
3Os still the Of Gray After eopous extracts from
Mr. Mangam's testimony to this loan Mr. Best says
The dupicty OF Mr.. Mangam in these Transactions
IL made painfully prominent BY his own testimony. He
loaned $l44 cOlaterals OF the nominal value Of
OF which 33 900 represented by old stock
of tire Mis- ouri Pacific Railroad, wOrt little more than
waste paper OF the remainder, there were $4,000
OF the third mortgage bonds OF the same road.
which Mr.. Mansam admits were not paying In
terest Indeed, Of all the securities only $685.