The Portland daily press., 1884-09-25
CHARGED WITH FRAUD.
The Erie Telephone Company Deframd.
ed Out of $4,000.

ST. PAUL, Mimi, Sept. 23.-Investigations
concerning the management Of the telephone
business Of the State show bad condition Of
affairs. and have seriously compromised
the companies. The latest development is
that the Erie Telephone and Telegraph Com
pany, OF Lowell, Mass, has, it is said, been
heavily defrauded by one of its highest Off
cials. L. N. Downs, a stockholders and gene
raj manager of the whole system with head
quarters, at Lowell, Is charged with defraud-
ing the company out of $4,000 in 1888.
The Dakota Telephone Company was bought,
through Downs, for the Erie Company, he pay
ing Tor 1t, with the consent of the directors,
9IO,OVO It is now discovered that he really
gave out $50 600 for the line, and the remain
ing $4,000 he appropriated to his own use.
rms transaction did not come to light until
the past week. In August Downs left Lowell
for trip to Europe and his whereabouts are
unknown. 1t is believed he expected detec-
ton sooner or later, and has remained away
beyond the time when he said he should re-
turn. q. j. Jones, OF st. Paul, former man.
ager OF the Southern District, was subordinate
to Mr.. Downs and knows something Of the
transaction, but he says he cannot at present
disclose anything In justice to the officials of
the Erie Company. Among the various local
obliquities it is found that the local managers
extracted bonus Of $500 from the people of
White Bear in consideration of the introduc-
tion OF the system in that village, and the
money was never turned over to the company's
treasurer at Lowell. Jones saws that he knows
the essential facts of the whole affair. He
bad the management of the Dakota Telephone
Exchanges, and he aided in making the pur-
chases. When the right time comes he will
tell what he knows of the matter
Denies the Charge.
BOSTON, Sept. 24.-Loren N. Downs, ex-
General Manager of the Erie Telephone Com
pany OF Lowell, who in St. Paul dispatch
printed this morning is charged with extern
sive frauds in connection with the purchase of
the Dakota Telephone Company authorizes an
emphatic denial of the statements contained
in that dispatch. The purchase money ST.
GOO OF which Downs is alleged to have retained
$4,000 was paid by draft upon the Erie
Company and not dollar of that money
passed through Downs hands. The dispatch
states that Mr.. Downs started for Europe in
August and his present whereabouts were IN
known, when as matter of fact Mr.. Downs
has been about 0ston and Lowell for several
weeks past and to-day is in New York city
which place he leaves for Boston this after
noon.
Mr.. Lille, representing Loren N. Downs,
has said in an interview that the st. Paul dis
patch published this morning is untrue from
beginning to end. Mr.. Downs is in New York
and do not feel at liberty to make full
statement OF his affairs until / have his au-
thority He will return tomorrow. You can
make q positive denial however as 1 know
6OOuS tho AdbLcIs 1u0 ulSpaICu says GQdb MI
Downs is charged with defrauding the COM
paDy of $4,000. The purchase of the Dakota
company was not made by Mr.. Downs and it
was business transaction conducted in an
open and honorable manner with the full
knowledge of the directors and the money was
paid in full. The records of the company show
every step that was taken. Mr.. Downs went
on his vacation July 10Th and took trip to
Europe. He returned August 25th. He has,
therefore, been home for month past, al
though the st. Paul dispatch says his where
abouts are unknown. The story Is an outr age
GUS SANDER. W. A. Ingham, the president,
and VIM. FL. Bent, attorney for the company,
also authorized positive denial of the charges.
LOWELL, Sept M.-The report in Boston
paper of an alleged defalcation of L. N. Downs
of the Erie Telephone Company is regarded as
wholly false. The transfer clerk of the Erie
Company says that Jones, who promises future
developments, is at present under bonds for an
alleged defalcation in the Northwest