The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-03

Augustus Schcll and Horace +. Clark We're
officials both In the Union Trust Company and
tho Lake Shore Railroad. They were also en-
gagged together ia heavy stock spccuntions in
which James II. Banker Treasurer OF the Lake
Shore Company, was partner with them. In
tho course OF these speculaton- It became
necessary for them TO put ny an additional
margin with their hrokcIs. They had already
exhausted thoir own resources Tor this purpose,
and had no means available ior Inc new deposit
Gniorihes circumstanccs they went to tho
Union Trust Company, whore "A largo quantity
OF tho bonds Of tho Lake shore Company hnl
been deposited for safe keeping. from this
mass of bonds they took the value OF t22J0,OOO
and handed them over Ia their brokers ns the
additional malgin demanded. Thcso boul5
did not belong 10 them. They paid nothing for
them. either tothe Lake shore Company. whose
property they were or TO the Union Trust Com
pany their custodian. They simply took them
aud applied thom to their own use.
Technically this was not stealing. though
stealing CONSISTS IA taking by stealth thc prop
orty of another II ia true tho bonds they took
wcro not theirs. and it Is true they were tnken
without the knowledge or consent ot cithcr tho
stockholders OF the Union Trust Company or
the stockholders of the Lake shore Company 4;
but ns MIR. Sch H. Mr.. Clark and Mr. Banker
each held the Office Of trustee director. treas
urer. vice president, or prcsiient in one or
both these companies. ana Ms tn"y had the legal
power 10 take nud dispose OF thc~e securities.
II follows that their act was what is known "A
n breach Of trust. or a dcfalcntion ns II Is po-
litolyc called in modern language, But in our
plain style We cannot call II anything but rob
bery.
But whatever may be the pre- Use description
Of their proceeding in the terminology OF the
criminal law or in the fashionable phrase OF tho
dny there cnn be no quest on rs 10 its essential
character In its nature II was exactly the same
aa tho net Of TwcedLnd Connolly when they
pundered the Treasury Of New York, OF which
they were Official guardians Or II was tho
same as the act Of Carlton. tho Secretary Of tho
Union Trust Company. who likewise went into
its safe and took thercfrom bonds. stocks. GER
tincntes and moneys belonging to tho COM
pnny There is no difference in morals between
what hO did and what was done by Augustus
Schell, Horace f. Clark and James II. Banker.
Tho only difference Is that he was an obscure
person while they were mon OF standing and
eminence. charged with largo trusts aud en-
ioying-nt lcnst one ot them-tho public conf
denco to an unusual degree
Such are the plain facts. and We have recorded
them with worry great regret. Mo hone II may
yet be proved that there is some error in tho
statement and that tho truth is Otherwise; but
Wa believe this Ia impossible. When such a
man rs Augustus Schell IL held guilty of such
robbery. who Is there that can be safely trusted
INVESTIGATION NEEDED,
Rom IN, Sun q Orto,er 80. 1878
Mr. James H. Banker has resigned his oflce
as Wee President Of the Bank Of New York.
This has boon rendered necessary 10y the rove.
Ation that he was u party with Augustus Schell
and Horace I. Clark. TO the appropriation, as q
margin for lhrir stock gambling operations. q
81 800 Ouu of bonds Of the Lake Shore Rnilrond
Company. which had becn deposited for safe
keepiag with the Union Trust Company"