New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-27
IVES AND sTAYNER AGAIN.
BOTH ARRESTED IN A CIVIL SUIT.
THE COMPLAINT OF JULIUS DEXTER CHARGING
THEM WITH DEFRAUDING THE cINCN.
NATL HAMILTON AND DAYTON
RAILRoAD-HEAvY
pAJT, TTYFn

HAlLhOAD-hEAVH
BAIL FIXED.
Henry S. Ives and George II. Stayner were ar
rested yesterday on a Supreme Court order issued
by Justice Morgan ]. o'Bren on January %, on
the complaint of Frank r. Lawrence, attorney for
the Cincinnati, Hamilton and Dayton Railroad
Company. The order was placed in the hands of
Order of Arrest Clerk Bernard F. Martin and
Deputy SherifFs McGonigle and Young The Off
GERS were unable to find the defendants until yes
terdsy morning, and arrested them little before
noon at their offices, No. 9s Broadway.
The complaint charges Ives and Stayner with
defrauding the Cincinnati, Hamilton and Dayton
Railroad Company out of S2,553,32S 97 Judge
O'Brien fixed the bail at s250,000 in each case.
The prisoners were permitted to go about in the
custody Of the officers to look for bail As their
sIireties must qualify in the sum Of ST. ooO, 600 it
is believed that they will experience some difficulty
in obtaining the required bail 1t is civil suit
and whether they shall be locked up in Ludlow
Street Jail, or be allowed TO 60 where they wish
in quest of bail or pleasure. under the officers
charge, is a matter for the Sheriff to decide, who
is also the sole Judge of the qualifications of the
suretieS
POINTS IN THE COMPLAINT
The papers laid before Judge O'Brien Included
the complaint and affidavisS of julius Dexter,
the present president of the Cincinnati Hamil-
ton and Dayton Railroad, Christopher O. Waite,
the vice-pesident, Frederick II. Short the treas
uercr and secretary, and John Tully, q lawyer
Of this city, who is the secretary OF the Mineral
Range Railroad Company, one Of the roads that
were secured by Ives and Stayner The suit
Is for the recovery of 81, OF as damages
occasioned TO the Cincinnati, Hamilton and Day
ton by the alleged maladministration of
Ives and Stayner as its directors and
officers. Express mention is made in the
complaint that there are many matters arising
from the transactions Of the defendants, which
are still in litigation, and for which no claim is
made in The present suit growing out Of them
The papers are voumnous and the complaint
recites in great detail the story of the wrecl0ing
acts Of the arrested men.
THE FIRMS SMALL BEGINNING.
In February $50, the firm of Henry S. Ives &.
Co. was started, with Thomas G. Dorem1s, who Is
not mado party 10 the action because he was
not an officer Of the railroad company. At the
annual election on June 10, $50, Ives and Stayner
secured control Of the company, and their Board
made Stayner president and Ives viee-president.
clerk In the banking house OF Ives Il Co.-E.
| Wilson Woodrun-was chosen secretary and treas
urer. IL is charged that Ives and Stayner at
once began TO deplete the s2,000,o 900 surplus
fund OF the road. The banlCng-house was made
repositories Of the eompanys funds. and on Au-
! gust 2, 1885, the Executive Committee, con-
sisting OF Ives, Stayner and two other directors,
directed the treasurer TO place at once with the
fiscal agency s250,O0 in money The meeting
was held in Cincinnati at 3 p. m, Ives being
present. but Stayner being IN New-York. Mr..
siidrt The old treasurer. who had been made as
sistant treasurer swears that at o'clock that
afternoon a telegram came from Stayner In New
York ordering him to forward the s250,O0O at
once, which he did The whole amount taken on
deposit from the Cincinnati, Hamilton and Dayton
road Is placed in the complaint at s765, 900 and
more"
ISSUING TWO MILLION DOLLARS OF BONDS.
In February, 1887 the two manipulators caused
81, OOO, 900 of the bonds OF the road TO be issued
which were sold TO Henry Willard for s2,011,.
SAG so. The proceeds were turned into the firm
OF Ives & Co and ueated as a deposit of money
made by the company II is charged that this
was done without particle Of authority, and the
suit claims Il balance Of Ss27l25 40 for these
items OF deposit
Mr.. Shorts affidavit shows that ives and Stay
ner were constantly watching the companys
bank account and in December, 1886, Stayner
wrote TO Short asserting In an emphatic way that
about 81 90, 0007 was a tolerable balance 70
be kept in Cincinnati, and directing him TO govern
| himself accordingly. Constant instructions kept
Mr. Short busy pouring any surplus cash from
the company's treasury into that of the fiscal
agents.
Ives & Co. are also charged, among other
matters, with taking over 100000 Of the stock
Of the road in February, 1881 which is sued
for This grew out OF the increase in the capital
stock from s3,500,00 20 100000, and IL is
alleged that without any equivalent the two chief
officers took 800 shares Of the new ISSUE which
had been circulated aud pledged for loans, but
for which the company never received any return
PLEDGING STOCK FOR PERSONAL DEBTS.
Another charge relates that the $4,000 odd
shares OF the DAYTON and Michigan road, owned
by the Cincinnati, Hamilton and Dayton Com
pany, were taken by Ives and Stayner and pledged
for their personal debts. The complainant com
pany has recovered $4,000 shares OF It, but seeks
20 reeo,er 81 10, 900 as the value o; the missine
5000 shares IL is further charged that Ives and
Stayner seized for their own uses without recon-
nense % tho Cincinnati, Hamilton and Dayton, the
owners. se5. 900 unissued bonds in its treasury
and ss5 900 bonds OF the CincnnaG, Richmond
| and Chicapo Railroad With regard to S,s4(
shares Of stock of the Terre Hante and Indt
|
anapolis Company which ives had secured a'
aaent for the Cincinnati, Hamilton and Daytor
Company, it is charged that Ives & Go. promptly
bypothecatcd them for the debts OF the banking
| bonse After n wear and halt OF effort the com
pany has recovered only 4,3lO shares ana only
was able To get these at an expenditure Of
| $4,000 in cash.
THE SEIZURE or PREFERRED srocK'
A full account is given of the seizure by lvc'
and Stayner of tho slO,oOo,OOO preferred stocl
of the Cincinnati, Hamilton and Dayton road
authorized to be issued by the stockhoiuers OnN
for the purpose of redeeming stocks and bonds o
flat and other companies which had been previ
ousIy issued or guaranteed. The complaint de
ciares that Ives and stOyner took to tsemselye S
from September 1885 to july 18Th the '"s eompsn ep
amount Of this stock for wncaa a.st tnt
never received any value Ihe @ nrsS Or
involved the taking Of siO0SgSSO Oa amount % hSo
been reduced to s6 100000 pTelerrSsd s'GeH,
was captured In one lump Pres9gnS tLs ,,Soc DrAoc
| I,l,r x 1897. when lnS IIstuShc