New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-17
OyER-ISSUE OF A MILLION.
cropcF LANES RICE A PRISONER

.ho oyr,icnment ut the Tombs Police Court of
George j. Rice, ex-pFesident of the Utica, Ithaca
and Elmira Railway, on charges of making over
;ssue of stock of the company. Charges OF emboz-
element aud forgery are to be made hereafter The
arrest was made at Demonico's on Friday night by
two Central Office detectives, who were assisted by
clerk in tn law Office of Treadwell Cleveland. of
No. % Wall-st.. who Is director in the road. Mr.
Cleveland and Henry Seymour King a banker,
of London. England, were the cOmpainants The
rrisouer Is a thcll-set, we-forned Engshlnan,
about six feet tall and weighing about go pounds
II was stated to Justice Paterson that the
prisoner had been sent to this country By
Mr. King 10 manage tho Utica, Ithaca and Elmrs
Railway in the interest OF the English stockhod
ers Hugh }. Jewett and Austin Corbn informed
Mr. King that they had reason to believe that Mr.
Rice had betrayed his trust. and Mr. King came 10
this country arriving on the Adriatic on Dsccmbcrl
Mr. King went before Justice M0rgan.and made an
affidavit upon which warrants were granted for The
arrest of MI. Rice and Moses w. Seraf the late
president and treasurer respectively or the Ctlca
Ithaca and Elmira Railway Company.
The evidence placed before justice MoTgan'Vhlch
was sworn to by Henry $ King of No % CoraAli''
London England is as olows:
rrat M All fines bet vecn tho 1st DAY o. June ie.9
ana the "a Gay OF June. lss2 one t'coft me ~
greaioeni AID one Moscs W scrut OF Enira Chem"s
Comfy. IOrk, the iftdsuIeI"I 'i 800.
ard iiya .;alIvay Company, corporation orsauiH 20.
upler thr laws % the ctttc OF NeW-4 ofh, "t
stock 81 20 900 shares OF tAe par van o. S-oo @ no.
W. 9-,VJOoo -, 6 = ~ en tnrii B. 1-sI. and Juue
- 1852. TIE ssi. George j. ii'.c ana H"a b. 5Ni.,
sr 'i5 of H. id Utca Ithaca ana Eui.a Hallway
if@s1t,r W fa,a Ibe Sta,c OF new York, vray ad
fe.i,uodiv did eicn aud procure 10 p' >'h'u' "l- sac
ian S To- i ef ,5 S OF iasiruaea, ar3ar TO- %
rrr-iac.tes tor 10000 share5 OF me cai t'
s;ok 0. The said Utica ithaca @.i l:Al'' i-.
~ la6gu.. Of which was nos ,horl-d oT pc clelcr
and sv-aas thc sud Utica ltlasi ANA i'o,r' i'ii
w panv or any amendment thcr o- Far -~r j'i
be,EGeIi 1 ,s 'e - ,1 i .-e ars. lcc d, VITA
in ctt 10 c.ir;Gd Third National ~ ug corporation
e-- in tpc ale Of Sca-Y .rs pledge ,ac s.dl l-c
and fraudacut ceruhcitc. 0rin .iiilcniF 10
lc ceIuhcitcs' ef tn l1'4..'.u '1 r, 't III 81,
80 o., e}tl ibl sad lard .,iola ia1. rlat PRIOR
- l Of PM 1851 ccg,iucaes Tor IY1e0 ,aa.cs
of are capital stock u tAc it1, A@rd am I'm t'
;way tompaHv had been d5.y aud la" ally ls.Jd l0
Iiwsrd Jeuaas ANA Charlie banks, trs,. go. o. LoHd',
England, wao now Tire ld"iIi owners -a h % y, o..
tc 1880 shares or the SAID capital stcch' and oil
Tie certificate lOr t-e same.
AZ the Tombs Court Mr.. Rice gave hIs age as
forty and las residence As HorscA. ads y. J. lie
vas remandcd, and the hearing was set down for
lOa. III. to-day
STATEMENT or NR. CLEVELAND.
There has been a long litigation over tho posses
sion of the road. aud the arrest apparently has
crown out OF it. The amount of money which Mr..
ilce a"EcQ 10 nave lceu III -''4iJ - "-''e~''
$4,000 with a possibility that it may be more.
The over s,ue Of stock is said to be due 10 Ls
failure as president of the railroad 10 see that
the ODD certificates were cancelled when nrS ones
were issued IN their stead. The Uuca, Ithaca and
Tlmifa Railway is soycnty-SlX miles long aud runs
from Enuira to Cortland, y. Y. Ia cNJaInluE the
LITIGATION and arrest yesterday NJ, Cleveland SAID:
The road formerly called the
Utica, Ithaca and ElmiIa Railroad.
AT that Zine Mr. King bought IT, bonds and kept
ON DONG So until he ascrrtaincd at lie money De
was paying for ncw bonds WIS ell 20 pay him i-i-
tercst on those n already held. ~ foreclosure lie
scared possession IN 1873 toh OF lEs Ioad ana o.
the CazrnOvia, COncstota and DE- kuyier itallWay
COMPANY and he brought MT. Rice over here rom
England and made hIn president Of both roads.
clerk in Inc office Of Henry ; King q
Co., bankers, OF London, at q sai9iE OF ~1Uo
wear Mr.. Rice was given a power or attJi' ,F ioF
Nh King. ana vas made the Ple-id"nf OBI ne .itA
Ithaca and EuiIa Raj way Ohc ucN r1taal y was
not long belor' Nj. King became d-set,isn,a "lih
Mir Riccs management, bUt rs the picslGt 90 'Ai
road Mr. RICE did net advertise tie annual
meeting for the election Of III. ctri5 I'D
lSeO and he cou,d not he got nd Of. Ills power
OF attorney revoked and Llanddmns
was procured 10 compel him t) GCytrlse me annual
meeting Tins year. hat Was called TOT JuAr =
bul on June u. Jos, ph X idturon, the Nte-pr'Sl-
dent of the road. secured q JUDGMENT against ~ ~
default and had Rice maze receiver n ORDER 70
keep us ou' OF our property. le was le.noVCa 4 az
temporary recover appointed an ma ". ON =
Cem0cr the new board OF cir ct0r~ Oh when Aus
liz C0rhIn IS president got possession NJ the road
The capitu stOch Of the company vas 10000
shares Of the par value of -, 100000. alter Pr.
King first got 30 session OF the road and Nj. Eice
was made president 10 was decided 70 l:sac new
certifcates and cancel The cd ones Mr.. Rice, as
president and Moses W. >erat. as treasurer sued
The certificates 10 the amount OF 1850
cancelled the old ones UNI! ne contrary %'S
learned a short time ago While Nh. RICE had "a;
power OF attorney for Mr.. King he negotiated
not, with MIR. Kings Endorsement, for $1,000 a.
tie Thnd National Bank OF this city, aud put NJ
lo00Q shares Of the sock as .,.t collateral al
Mr.. King. But after the power Of attorney
had been legally revoked IIce Kept 90 renewing
this note with Kings Endorsement and When
pressed by the Dauk for payment some line ago. he
gave a draft on Ii. :. King & Co. for thu amount.
he had no right whatever 10 Draw this dTait, but
dill It, suppose, nicely u gam time Ci e0urs: u
was returned protested, abd thea Nj King
discovered that his name Lad been used a,
iudOrser after the power of attorney haQ
been ], voked. Al the same tine ascertGineG
that there were 10000 SHARES Of this old stool,
there collateral Mr. King paid the note and took
up the STOCK and now holds about 10000 shares in
lie COMPANY when the legal capital is only 20000
shares re. may have pledged the other 1850
saaIes which should have been cane cilcd
s sCe"4 Been e a5e to nd fe" OFT What Las
become Of them. He also embczzitd the Inads OF
TIE company by using for e.s own private puIpo7. 5
money sent him by Mr. King for the use OF tn rail-
way, besides ialsug his sa.arH 10 a hIEh nguri anu
dong other little things. SO far We can only mud
wh-re be has taken $4,000, but the examination
has not been finished. here are ct1er pels0rs lHi'
plcated who have not been arrcs;eG.'
MR.. RICE's SIDE OF TIE CASE.
John H. Miller Of No. 80 Pines, one Of The
counsel for the prisoner, said yesterday that MT
Rice would be prepared TO meet the charges against
him at the proper time. There was DO doubt that
he would be able TO prove that every expenditure
Of the railroad complny's money by him was OF a
proper nature. aud that there was nothing fraudu-
lent about the alleged oyer-issre OF stock.
A friend of the prisoner gave