The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1889-09-18
A CUNNING ROGUE.
How Ives issued Fraudulent o.
Fl. & D. Stock.
Woodruff, Eis Former Partner and
Employe, Gives the Whole
Scheme Away.

Testimony which shows the "Young Ma
poIeon OF Finance" to be One of the
Greatest RiscsIs o. the Age.
NEW York, Sept 1.-THE trial Of Henry
$. Ives was resumed Monday. The first
witness examined was William Cromwell,
the assignee of Henry g. Ives & Co., whose
evidence was unimportant Edward w.
Woodruff, the notorious tool Of the young
6nancier, was next sworn. He said he first
became acquainted with Ives eight years
ago, both being employed as clerks in an
advertising agents osice. After that wit
ness went into the fire insurance business
and on Februory l, 1886, after being Ives
partner changed his relations and became
confidential clerk. Lawyer Parker asked
the witness what he had seen or heard
about that time concerning Ives inception
Of the scheme. The witness said: ~ went
into the back office and looked after a sup
plement Of financial paper containing a
map Of the c., H a. d. road. heard Ives
remark to Stayner that 1t would be very
good thing to gain control Of the road"
In June, 1881, he was called west in re-
sponse TO telegram from Ives. When he
reached Cincinnati Ives received him cord.
tally aud the next day the election took
place and Woodruff was surprised by being
ppointed-not telected-secretary and treas.
urer Of the road. On the same day, June
| II, Ives sent him over TO the c., H & D..
ofices TO obtain the books Of the road. He
got them and the same evening left for New
York Just before reaching Jersey City
Ives ordered him 70 come over and take
breakfast at Stayner's house in Brooklyn.
AFTER breakfast Ives produced the stock
certificates Of the company and told me TO
| fill them out as he 6irected-first 1000
shares in the name of Thomas Moore. Ives
said; Make them out in 400 or 900 shares
EACH Stayner said that was too much and
they were finally made out in lots Of 100
shares each. Altogether 1000 shares were
signed. These shares were made out on
June q, but Ives said to date them the 18th /;
that IL wo1ld be better TO do that, as they
would not look as fresh" t--tr
After some queries by the District Attor-
ney, the fact was brought out Of the burn
ing Of the stock ledger in the cellar Of Ives
house. Ives had said This book must be
destroyed. II 1t falls into their hands it
would show the fact OF the over.ssue Of the
stock" Woodruff then proceeded TO ex-
plain the contents Of the stock ledger in de-
tail and how the false and genuine stock was
recorded. l-HfrlfN #sNfg g.tt
Woodruff testified that Ives had told him
that as the company itself controlled ma
jorlty Of the stock the officers OF the com
pany had every thing in their own hands,
and that no trouble could come TO them
through the overissue Of the stock. Subse-
quently Ives had handed TO witness z, 800
"new" shares for the purpose Of cancelling
old stock; 1000 shares Of this lot OF new
stock were not recorded, because there was
not sufficient old stock for cancellation.
Ives had erased the signature Of Mr.. Zim-
norman from some Of the certificates In
order 70 deceive Mr. Burns, who was the
registrar Of the American Exchange Ma
tional Bank, where the stock was registered
according 10 custom. Ives had said TO wit
ness: 1--WE must not let Burns get onto
this or wen get up treen About August
% Burns called at Ives office and asked TO
see the old certificates for which new ones
had been issued and registered Witness
and Ives managed 70 temporarily reassure
Mr.. Burns, and that night Ives and Wood.
run sat up late and prepared what they
afterward showed Burns as the old certih.
Gates. As fast as the bogus certificates
were finished they were hurried over tc
Burns, who was waiting for them. This
scheme quieted the suspicious OF the banl
officials, which had been aroused.