Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-09-02
IVES CROOKED CAREER.
His Clerk Turns States Evidence-Edw.
Woodruff Startling Story.

associate, George ii. Stsynor. 10 presented
herewith II 10 the confession OF Edvard W.
Woodruff. Ives confidential clerk aud bosom
friend, who 10 jointly indicted with bis en-
ployer for the commission OF a series Of most
remarkable crimes Woodruff tells the inside
history OF all that occurred in the little back
room at Is Nassau street, where Q beardless boy
sat playing al finance, wrecked rich corpora
tons and vast railroad enterprises as q child
might break costly toy.
The veil OF mystery which this young man
sought 10 throw about all his movements !, for
the first time torn aside. Ives will be tried be-
fore Recorder Smythe next Monday and Wood
run whose story Is told below. will be one OF the
many witnesses who will testify against him.
Ii is no small punishment 10 the man who
failed for $4,000 0U0 10 find IN the chief wit
nesses for the prosecution the clerk whom he
always sneered at as q fool Moodrufrs sworn
statement is as follows:
woopRUFF's confession.
81 know the defendants. Ives and staynor.
have known Ives ever since 1881. He was at
that time a clerk in the Office of Duchey A Co.
an advertising house at Park place and Church
street la October. 1858. while 1 was employed
in Newark. Ives came out TO my house 20 see
me. lie told me he had beeu with Chas. L.
Wing banker and broker. and was dong
bond business for him. aud Was doing all the
work and getting very little pay for it, lie
proposed to set up in the inyestmen MT business
for himself, and he wanted me TO come with
him, promising me $40 a month salary and an
interest IN the business. tie sald lac was going
IN with firm on the street known as Denslow,
Easton- Il Hertz, aud they we're gong 10 carry
has securities for him and have an interest in
his business, which, l believe. was one-half.
went there with him October I. 1883 with
the understanding that 1 was to have besides
my salary per cent interest in the business.
lie had only desk room with the firm. 1 had
never been in Wall street before and al ever
learned about II was from Ives.
IVES START.
At the time was with Ives he told me that
he had about $4,000 Of his own which he had
made while with Wing, and expected Charles
+. Opdyke a Co., now with Brestow Pest a
Opdyke, TO give him Z IL. O0O more as his share
OF the proceeds II q JOINT account Transaction
he had been in with him. FAIRIES, believe.
had been bond clerk Tor Opdyke q Co., aud
Ives bond clerk for Wing, and farles was
brought into contact with opdyke in shat mat
ter. Ives lost all this money, practically 10 the
last, while he with Denslow, Easton a.
Hertz in injudicious or unucky speculations.
Five or SIX months after he went with them q
fire occurred next door TO Denslow, Easton a
Hertz, whereupon Ives moved 10 the Office Of
George William Ballon Co., having only
desk room there. as he had with Denslow. Eas-
| ton Il Hertz. Ballon carried his securities
for him, as Denslow, Easton Hertz had
done, with the exception that in great
transactions Ballon charged Ives a commis-
sion for delivering these stocks or bonds
IN lieu OF any joint account arrangements.
Here he continued IN the investment security
business two or three months after which
period his desk was taken to the office of the
firm of Meeker Brothers, at "a Broad street.
For the first few days we were IN Meoker's
Office they received securities in whatever
! bond transactions we had. This firm was COM
posed Of Thomas ID. and William d. Mesker.
After Ives with them in this way for few
days he convinced the Meekers. who were
young men with money left them by their
father, what big concern they could make il
they would form firms in conjunction with
him.
He had long been DESTROYS OF connecting
himself with a firm which had membership
/ upon the stock exchange. and both the Meskers
were members VI that body. firm was sc-
/ cordingly formed, composed Of the two Nsekers,
and II lis under the tirm name of Mseksr, Ives
I q Co. They speculatcd IN Lackawanna. Ore
gon and Transcontlnental. and they lost in that
way $1,000 or $1,000. This led to q disagree
ment, and n equent personal Quarrsls between
/ Ives and the other members of the firm. Ives
got out of the firm of Meeker, Ives Co., about
July or August, 1884. He had very little capi-
tai still. having lost practically all be had made
in January.
INVOLVED IN TROUBLE
As near as / can recollect he got mixed up
with a man by the name Of Hedman Cohen.
This man told Ives that according to the
stock exchange list there were from 5000 TO
l4.OO0 shares of Mutual Union stock outstand-
ing. whereas, IN reality. there were only about
LOO shares outstanding which were held
lightly. and which IL would be a very easy Job
TO corner. The idea struck Ives as being quite
the proper thing, but IN order TO carry IL
through at least 5000 would be needed and
| he didn't have II. being clean broke then
In order TO obtain il We proposed and made
use OF scheme TO which / was strongly OPP
posed. The scheme was TO issue what called
debenture BONDS, sell them and invest the
money in real estate loans in the west at high
rates Of interest and make the difference on the
4 interest on the bonds
The high rate Of interest which be would re-
ceive in the west. In some manner Ives raised
$4,000 on a lot of these bonds, of which amount
he would have the use OF for some time.
| Through Newark friend he induced several
stock brokers to sell for his account $4,000
/ worth of Mutual Union on a margin Of from to
10 per cent. Ives brokers bought all this stock
/ that offered and hoped that when tho
brokers found that White. his Newark friend
failed to put up his margin he could force
| the m TO pay his own price tor the stock bought
under the circumstances. Some how the
brokers smelled a mouse and compared notes,
the result being that the transactions were de-
clared of. Thus the Mutual schemes fell
| through, and after il and the bond business
were settled Ives Co. were absolutely penni-
| less.
uls ueAt venture was IN mineral mango STOCK,
into which he dragged Staynor. About this
time there arose rumors to the effect that there
was to be a new railroad, TO be called the Han
cock and Calumet railroad, and which was to
parallel the Mineral Range line. Ives suddenly
determined to get possession Of the new road.
HIS FIRST RAILROAD VENTURE.
He made an agreement with Staynor whereby
the latter was to put up the money for the pur-
chase if Ives able to effect il. The result
was that Ives purchased the controlling inter-
est in the road for $4,000. Staynor was un-
able to meet the draft for that amount which
Ives drew on the firm.
But his intimacy with Henry Gillig Of the
American exchange, in Europe, was valuable
IN enabling him to procure funds through the
Columbian bank of Philadelphia. In this way
the draft was paid, the stock taken in the
possession Of Staynor, and subsequently West,
and there transferred TO either Ives or Staynor,
or by the direction of one of them into what
ever names they designated. The means for
the purchase of the stock were furnished
by Staynor, Ives having at this time not more
than $4,000 or 5000, il he had that much.
Once having got this stock into their HANDS
they elected themselves officers Of the road, at
the next annual meeting, which Was held in
JVpe, 1885, Ives being elected secretary aud
treasurer and Staynor president
ISSUED STOCK AS THEY PLEASED.
They had the transfer Office Of the company