New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-21
SOUANDERING THE ASSETS.

| REMARKABLE FINANCIERING OF W. FoNGAlNE BRUFF
AND Mr.. FLOYDJoNES-How THE STOCK AND
| BONDS DISAPPEARED.
| The decision of Judge Cooke on Saturday In
regard to Brooklyn Elevated Railroad Company va
eating the recoiversnp of Messrs Phelps ana "agsa
and severely blaming W. FOntaine Bruf the president,
and bert FoydJones the contractor. has attracted
much attention \ TRIBUNE reporter visited the once
of the company, at No. 81 FuItonst., Yesterday but
found no one except clerk, vino declared his ignorance
| of all subjects connected vito the company. Mr. Brun
left his house, No. s34 Lexmgton-ave some time ago
He is understood have been staying at the AsIor
House up to week and seen i'll the lobby
there on Saturday. Yesterday he could not be found
| Alfred Wagstdf said IN to inquiries was
appointed receiver without my request or knowledge
in the OF Keeler against Bruf and his codrectors
knew no connected with the read, and only saw
Bruff once when he down To office and wanted
an investigation which not part OF the receivers
duties We appointed To on ard build The road
| | was satisfied in my own mind of bad management
1t our business. however, to examine Mr. Brun
Mr. Deyo counsel for Mr.. FlOyd-JOnes. said: d" Mr..
FoydJOness contract assigned to Mr. Bruh for the
protection certain interests. and not FOR Mr. Brus
benefit something has been said IN regard to money
supposed 10 have wrongfully invested in mines.
The money that Mr. FoydJones got was N yment Tor
work done supersIuclure etc., OF the road, and
was MS TO spend as he pleased He is ready aud
anxious to 20 on with work. he wants to know
pered by iniunctODs and law proceedings"
Ii asserted that Mr. FloydJones's relations with
SchafeT Brothers, who advanced money aud received
large bonus are friendly. IL is claimed by persons
interested the suit that Samuel Schafer who, 1t is
alleged in afdavs TO receive private percentage
in addition 10 bonus, has been eDdeavOrng TO get
possession of the contract building the road.
H. III Morse OF the counsel for the receivers, said
Ny connection with the road began with the appoint
ment Mr. Phelps receiver, october IL, 1851 since
then nave acted counsel for both receivers The
capital stock of the company was S5,OOO,OOO; the
funjed debt was SO, 100000. The company has made
contract with Mr. FlOyd-Jones to build and equip the
road and furnish everything necessary For doing this
lie was 10 entire capital stock OF 100000,
and So 800 in bonds Whatever transfers OF stock
aud bonds made appear have been made III the
first instance Mr.. FloydJones under this Contract
ann m have been transferred persons for ali
kinds of Most OF the stock appears to
have been gwen away as bonuses None OF the Donds
sold above 90 and sales were made as low as 81. |
believe that the sales OF the bonds and stock ever
| exceeded in cash 81 100000.
'Theoricual contrast that Mr. Floyd-Jones should
| receive $4,000 in STOCK and $350O00 in bonds for
every mile completed. According 10 the terms Of this
contract he could never have received dollar not
mile Of he finished. He asked for change
in the terms OF in order that he might receive
funds as the advanced. On February TO- $780, the
directors passed resolution to pay linn according to
| the following percentages:
Per cent. Per cent.
| Foundations .......lO Cars and moors......l0
| Iron superstructure... .6s I1es and guards "a
Depos............... "a Fsn-plates, bolts, etc.
| Rails Observation-Disclosures. 442
Apparently sufficient funds could not be realized by
Mr. Fi5J DION tnis basis. and further Petition was
uaic, winch was answered Gy the passage Oh the IOIoW
Tesoirsd That the Presdent (W Fonta;ne Bruf) he
and Is hereby authorized 10 make advances OF bonds,
STOCK cash 10 the contractor MI H. H. FloydJones,
time to time between the respective isnances 81
engineers certificates and mat such advances snali
not value OF the work done ana materials dc
ered per vouchers satisfactory 10 the engneern-
| cnie Nv. FOntaine BruiP
| Under these resolutions stock 10 the amount Of
| $1.7j6,SS0 and SCRIP for stock to the amount OF
$50 500 aud bonds to the Of IL 900 and
scrip bonds TO the amount Of S2l7,!OO passed mo
the hands Mr.. FloydJones. From ills total amount
he dad not more Than million ana quarter III
| cash. THIS was because nearly al Of the stock
f rSe rtcs Of acfcemen executed janary IL 1850
| These between the brooklyn Elevated Rail
road Company ". FoGIane Bruf and Robert Il Floyd
Jones' parties OF the rs part ana Samuel NJ scidler auu
Simon schaer, comprising the irm OF sciaier Brotners
schar Brothers purchase the bonds at 30 cents
receive as gift $50 900 Of tnc capital Mr.. Brun
stated IN his affidavit that Samuel NJ Schaier
which was ie kent by which sani.l sshaisr
dollar bond aud $4,000 OF the CAPITAL stock OF the ran
way company for 100000 Of bonds in addition TO
advance. from a Mr. Fry. For and obIiga
lions stock aud bonds 70 large amounts were given
had mach money az The Mr.. Bruf
in trust contract before he had any connection
| with the coDpany. The FIRST assignment 10 HIN was
on December ~ 1875 and he did become connected
with toe company unul January 1879 Mr. Floyd Jonrs
| with Mr.. Bruf had Ia deposit 100000 with Co0pe
Hewitt g. Co. aud $4,000 with the Passiac Rolling
Mills COMPANY, and The bills ia TIC work went on
1t necessary raise tie money ia some way, aud To
the money advanced 10 was necessary to pay large
| BONUSES Lcgii, legislative and aldermanic expenses
may have swallowed up mucn more of the STOCK ana
bonds, the company was applying Tor legislative re-
lief at frequ nj intervals Tue ngures gwen above show
| that abJrt S4OO0,0O0 OF bonds, and STOCK
have been disposed VI. The uses 10 which these
\ were applied also Indicated. Hence II - APP
parent That neither Mr. Bruf nor Mr. FioydJones has
| bsen benefited 10 any very great extent financially
| Morally legally they had right 10 squander The
OF this corporation In this way, but nave no
beievs that they intended TO DO wrong or 10
acquire money for themselves personally In corrupt
II is evident tha they supposed they could 20
OIL and build the road with the al their command,
| or II there deficiency that second mortgage
might be made to 10 that IT was their property
and could hand IL they deemed best IL II fair
TO say that they claim assets enough left now 10
| complete the road"
II -