Helena weekly herald. [volume] (Helena, Mont.) 1867-1900, 1889-09-26
EMBEZZLER IVES.
The Young Napoleon of Finance Now
on Trial in New York.

In August, 1887, the failure of Henry s.
Ives & Co.. was formally announced in the
New York Stock Exchange. 1t appeared
in due time from the schedule filed by the
assignee of the firm that Ives had been
able to pile up liabilities aggregating ST.
666, 6,175, while the actual assets in sight
only footed up to $11 ,122O16. The failure
of almost boy With such gigantic inter-
ests involved in it created good deal of
sensation. People commented on the de-
STABILITY of criminal proceedings, but
months elapsed and the impression be-
done business with Ives and being inter-
ested accordingly in his being let down as
easily as possible, the biggest commercial
scandal since the failura of Grant & Ward,
would be allowed to die out. But now in
terest in Ives is revived and extended by
criminal proceedings against him, taken by
Julius Dexter, of Cincinnati, president of
the Cincinnati, Hamilton and Day ton Rail-
road company, who charges him with
grand larceny.
The warrant charges Ives with grand
larceny in appropriating to his own use the
sum of one hundred thousand dollars be-
longing to the Cincinnati, Hamilton and
Day ton Railroad. The sum of 1888, 500
was required for a certain purpose, and all
of this passed through Ives's hands and
was rightly applied, except the last one
hundrtd thousand dollars. On June Sd,
the First National Bank of Cincinnati made
draft for this amount upon the Western
National Bank, of New York, and sent it to
Ives. The draft was indorsed by Assistant
Treasurer F. II. Short, of the Cincinnati,
Hamilton and Dayton Railroad, and made
payable to Henry s. Ives, trustee, to be ap-
piled on the stock purchase. Instead of
paying this one hundred thousand dollars
to G. r. McKeep, president Of the Terre
Haute and Indianapolis Railroad, as he was
directed to do, Mr.. Ives deposited the draft
in the American Exchange National Bank
to the credit of Henry S. Ives & Co., and
thus diverted it to his own use with the
intention, as it is alleged, of defrauding the
Cincinnati. Hamilton and Dayton Railroad.
Ives was arrested and taken to the TOmbs
Police Court, New York, on this charge
where the Justice named twenty five thOus
and dollars as the amount of bail required
The proper security was given by his sister
Ives is twenty -four years old. His first
business transactions we're in unlisted Sc
curities with houses with which he had &C.
auaintance. From this beginning he
started on his own account. The firm of
Henry S. Ives & Co, came into being in
the development of Ives's audaci0us
schemes. It succeeded in buying control
of the Cincinnati, Hamilton and Day ton
Railroad. Following this great success was
Tho hn y;uo or tho otfomntod nnrchaR0 of
other railroads, including the Dayton and
Ironton, the Chicago and Michigan, and
the Terre Haute and Indianapolis. Ives
became great man on the street, but his
greatness was nipped when he was young.
There is no record Of such youth as he
failing for so large an amount, and the
wonder grows how it could be that grave
and reverend men should have confidence
in him which the disclosure Of his affairs
evidences.
Ives is cool customer. Nothing seems
to disturb him. When, in the course of
the inquiry respecting his affairs papers
were served on him demanding that he
should produce certain missing books, he
expressed great wonder that they should
have disappeared so mysteri0usly. OF
course they have never turned up, and OF
course they never will turn up. Ives has
a plausible address. His religion is said to
be the worship of success. There is no
trace of regret seen in him with regard to
his apparently questionable way of doing
business. His personal habits are extrava-
giant or the reverse according to the COM
panv in which he finds himself and the
whim of the moment. He is at home every
WHARF,