New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-17
DISASTROUS RAILWAY POOL
now D. H. GOULD LOST $4,000 IN ONE OF cALvIl
S. BRICE'S SCHEMES.

S. BRICE'S SCHEMES.
/ The case OF David H. Could against George !.
seney Samuel Shethar and the Metropolitan Bank,
being heard by Judge o'Brien in Special Term Of
Supreme Court, Part l. was continued yesterday.
The minutes of the directors meetings
Of the consolidated Atlantic and North
western and Ohio Central Railroads, known
as the New Ohio Central were placed In evidence Dy
the plaintiff and they tell the whole story. The
first meeting of the board was held March l.
1882 and at the principal meetings held during the
existence of the road the transactions were In SUBJ
stance as follows:
March 1 1880 Present Calvin s. Brice. General Sam
uei Thomas George 1. Seney. F. o. French Daniel p
BELLS Joseph S. Miller Ex-Governor Charles Foster, OF
Ohio: General Thomas Ewing. John T. Martin and Sam
uel Shehar pool syndicate on this day Issued on
their property mortgage bonds 900 900 and In
come bonds g. 600 600 In order to OF debts among
which was one Of 800 900 the Commercial National
Bank Of Cleveland which Mr. Brice was an indorser
The loan was moved by General Thomas.
June TO- 1ss2.-By motion of General Thomas. Pres-
dent Shethar was authorized to borrow $500 900 from
Cashier George j. McGourkey. Of the Metropolitan Ma
tonal Bank. to pay further debts
October 80 1SS2-The board, the directors OF the
syndicate gave up project OF the syndicate and turned
It over to themselves directors Of the Ohio Central
Railroad.
February 49, 1ss3-The syndicate directory had pre-
yiously loaned the Richmond and Allegheny Railroad
construction funds 81 $50 OOO receiving as
security 900 second mortgage bonds OF the Richmond
and Allegheny The debt of the latter road was on this
day. cancelled by the Ohio Central directors ana the
60 O0O 900 bonds taken for the release
June - 1ss3-Mr. Brce moved that President Shethas
be authorized to borrow $500 900 from the Metropolitan
Bank in to pay debts and to secure the loan
by pedgng the 80 600 900 bonds mentioned above This
was done.
August IT. 1sss.-By motion Of Mr. Bricc se7o'ooo OF
Ohio Central Company second mortgage bonds were
converted Ohio Central Railroad River DIVISION hrst
mortgage bonds 1t that the Coal Company pohos
were held almost entirely by the railroad directors and
were not looked upon good securities as the river
Division bonds Mr. moved to authorize the pres
dent to ask the Trust Company to cancel the en-
tire debt Of the Coal Company in order to do away with
e25 600 bonds in the hands unavailable The
sale of the 80 600 600 Richmond and Allegheny bonds was
authorized and nrusted Messrs Seney and Shethar
August 3d. 1Ss3-Messrs. Seney and Shethar had not
been able yet to sell the bonds resolution was
passed stating funds In the treasury TO
meet obligations due September l. The directory
passed resolution declaring that the directors were SAT-
isaed with the economic management
se,,o,nlcr 1ss3-The Ohio Central defaulted on Its
bonds.
Nav. lss4-Tho Metropolitan National Bank suspended
payment. r
Ex-secretary Leland, of the Richmond and Ale
rhanv Railroad, was recalled, and testified mat III
1881 and 1882 the earnings Of that road after sub
traction of interest debt, amounted to less than
Cashier McGourkey, of the Metropolitan BANK, e1-
Discount Clerk b. @. Mitchell OF the same Danh,
General Thomas Ewing and Joseph W. simpson Tpe
mond and Aleghany and Ohio Central Railroads, were
placed on the stand and testified more or less readily
a. TO the payment of the trust-fund the contract
between the roads, and the details of the various
loans 49, - ,rvos.tr,
$4,000 in scheme he knew nothlhg Oh anu VI is
unsatisfactory results.