New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-02-11
ALLEGED FRAUD IN TOWN BONDS.

DETROIT. Mich, Feb. 10.-The city OF Adrian
is in state Of great excitement over the discovery OF te
seemingly unauthorized negotiating OF Oh oouT'
Of the issue Of which no one had any knowledge short
time AGO the City Council authorized the lssue Oh tH
amount of bonds for water works purposes, but there mas
been active hostility c the measure, and DOUBTS nave
been raised as TO the legality Of the authorization Now
il appears that whole issue Of these bonds has been
negotiated through the Union TrusCompany Ncw-fork,
and over Onchaf the money drawn on them Inc May OF
Of the city. Thomas J. Nayin is alleged by New orS
people 20 lie the person who negotiated the bonds ana
drew money on them when the facts became known
yesterday Navn left the town. There u no Houpt iC
bonds purporting have been signed hy him have been
sold in New York and held bv experienced dealers
who believe them entirely genuine.
TIE validity of these bonds Will probably he
established only by the courts Whether the Issue is held
10 lie legal or fraudulent one apparently II likely to
make or lose money by the operation The money paid FOR
the bonds is on deposit with the Union Trust Company 10
the credit Of the city authorities OF Adrian, ana the
bonds ar. in the hands Of Post. Martin X Co., No. 81
Pncst who with d. \. Ea-on. houcat the whole Issue
They had sold some Of the bonds but when was an
nonnccd Yesterday that there some irrecuarty IN
the issue they at once recalled all that they had ne
gotiated
At the Office of Post, Martin & Co. it was said
that the issue of bonds was fully authorized
so fer as the members Of the firm had been able 20 learn
If there had any rregularity il probably tech
nical rather than fraudulent member of the firm
said: Mr.. Easton sent agent to Adrian 10 in
vestigatc the matter. who reported that after
fun consultation with the city authorities lie
was satisfied that the bond was valid one.
UuOn these representations took One-haf Of the
amount and Mr. Ea-on the other half paving for them
Jog The bonds bear per cent interest ana f'lh 0he
half twenty years, and one-haf thirty years 1hey
were q desirable investment in my opinion ana
we competed with other houses In hlliny
for the bonds I'm re ard to the conduct
of the Mayor Of Adrian. believe that in any event he
has committed only technical wrong. Tie could rly
have tended fraud because when he left NewNork nc
could have taken the whole paid for the bonds II
he had wished had been paid into the Union Irus Com
pinv President King said today that he should have
paid over every dollar of II If he had been asked to DO So
The Mayor had him the authority OF the city 10 re-
ccvc the money and the paper signed 10y citN officers
and bore the official seal n III" Mayor Lad Intended o
steal the money he cOnld have had better oppor
tnuitv Ibreve the matter will be ully explained aud
the bonds proved 10 be Valid
The money paid for the bonds remains in the Union
Trust Company and will be paid now neither to the city
nor the buyers until the legality Of the bonds hA been
determined. II s understood that draft for small
amor: had been returned previously hccanse Of an IN
for1nay in the signatures. Another draft Tor conS
crhc -lm which the Trust Company has been advised
by TELEGRAPH will hc returned.