Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-08-06

III WOLVES Version OF Inc
steal.
W York Correspondent Cincinnati Enquirer.
Ew York, August 2-The publication
3 this morning of The over-issue OF stock
he Cincinnati, New Orleans and Texas Pa
Railroad Company, caused a good deal
xcitement among those who are Interested,
betty or indirectly, in the Erlanger syndI-
1t was moi without interest TO the
ncial community and in railroad circles
s orally, both Of which seem to have
ched the progress of the syndicate and
observant OF its SUCCESS. Mr.. Fred
life, the manager of the syndicate, was
nd by your correspondent in the Office OF
several railroads in which it is inter
d, over the National Bank of the State of
v York, corner OF Exchange Place aud
liam street. While admitting that the
ir was unfortunate, be said that it could
have more than a very temporary de-
ssing effect upon the stock or prospects
standing of the company. He narrated
ELY the facts in the case, which were as
: lows:
When the Erlsnger syndicate undertook
ease the Cincinnati Southern through it's
bpany, the Cincinnati, New Orleans and
as Pacific, it was considered both fair and
bedient that the city Of Cincinnati, by
son Of its interest IN the road, shoi,ld be
re sentedi in the management. Mr.. Doughty
proposed by the interest in that city as
b representative. He was a member of
"A okthe best families Of the city, and his
Nation for honesty, business capacity
responsibility was unqaestioned. He
appointed secretary. In order TO facili-
3 and, in fact, 10 make transfers of stock
! he absence OF President Cook, that Off
was accustomed to sign stock certificates
blank, it being the practice Of the com
by, as with all other companies, to issue
bew certificate upon the surrender of ar
one for transfer. Soon after Doughty's
tn it was discovered thai TO old certi6-
les had been received for the new ones
led representing 1000 shares of stock.
Lsident Cook, who is also execute OF
*ughty's estate, took time to ascertain the
Act amount Of the over-issue, the holders
the stock, and the amount of Doughty's
bate before making the facts public. Mr..
blhfe is quite confident of the opinion that
ther the company nor the present holders
Ethe stock will lose money by what has
Inspired. He understands that Doughty
4 left an estate about equal in value to
n of the amount Of the stock he over
he'd and appropriated TO his own use. The
tsons with whom he hypothecated the
lex certainly have claims upon the estate
The amounts advanced. Should they en-
zee them and return the stock to the estate,
! company would claim the stock from the
late. Ca the other hand, the stock has
In legally issued so far as the form OF the
+tificates and the signatures of the officers
! concerned. There has been no counter
hing or forgery, yet the stock is illegal in
u it is in excess Of the amount authorized
law 10 be issued, and the company has re-
we'd no value for it Yet, should il be
eided that the company is responsible for
stock, it could doubtless claim
3m Doughty's estate an amount sufi-
ut to redeem the over-issue, and II the
ate was not sufficient for the purpose
lou could be taken against Doughiy's
hdsmen, who are liable IN the sum OF
b0.000. Mr.. Wolfe thought the matter
uld likely go into the courts for adjudicz-
n. In equity Doughty was responsible,
d his estate and bondsmen we're equal to
y demand that might be made. He said
IL Doughty had invested some money in a
Sicsgo construction company, in Cincin-
Iii gas enterprises, and about S230,000 in a
uthern railroad, the securities of which
build bring a return on his investment ii
i estate WAS not forced to realize on e
REASONABLY. Mr.. Wolfe said that he
'uld not see how the affair could have any
5sAanlial disastrous effect upon the plans
success of the syndicate.
Mr.. Wolfe, it will be perceived, is very
rcumspect in his statement, which is valu-
bic more for what IL conceals han for what
i openly reveals. He might have told that
8 is the president OF the Cincinnati, Selma
bid Mobile railroad, and that his private
|cretary, Mr. II. Calm, is its secretary and
~|easurer. He might nave told how il was
hat a man In such moderate circumstances
! Doughty should buy over S230,000 worth
i bonds and stock in his road without his
howledge, or without awakening any desire
. his part 10 know how he got the money
! do it. Possibly he can throw the needed
|ght on some obscure parts Of this "ssd
Hair" and it may be that he can give reli-
BILE information as to who were Doughty's
ssociates in the Cincinnati, Selma and Mo-
lie ssdeal." The Sinking Fund Commits
|opers are to meet on Thursday to pass
bon the action of tue trustees in ordering
be release of 100000 of the guarantee
binds deposited with them as security for
baking the needed betterments. As we
lave already stated, the request is an au-
|acious one, and is not in ~consonance with
be conditions of the lease. It should not
IL honorad