St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-12-14
FINANCEEKlNG A LA IVES.
Sensational Charges Against q
Chicago Attorney.

NEW YORK, Dec. l3.-FOr two days
past two prominent Indiana lawyers,
Lew Wallace Jr., and A. w. Hatch,
have heen at the Grand Pacific hotel on
secret mission, extraordinary meas
ures having been taken to prevent pub
licity. The object of the visit of MeSsrs.
Wallace and Hatch was manifested this
afternoon when they appeared in Judge
Gresham'S chambers and laid before the
judge charges of a sensational character
against Henry Crawford, the we'll
known Chicago lawyer and railroad
speculatOr. The accusations against
MIR. Crawford are, in brief. that i'm 1885
he bought the Midland Railway company
of Indiana, for S50.0O0 at a foreclosure
sale, and within short time thereafter
originated scheme for floating bonds
for $40, DOC, 900 upon road. the value of
whose rolling stock, right of way an
all other assets, is not to exceed Sl75.-
600. Fraud of bold and ingenious
kind is charged against him, and on a
portion of the Sl0,000, 900 issue of bonds,
S260.000 are known to have been Oh
taiCed. with prospect that this is only
a part OF the sum fraudulently realized.
Messrs. Wallace and Hatch represent
the Loan and Investment Company of
New York, which claims to be victim
of Mr..
CRAwFORD's RAILROAD FINANCIERING
ito the extent of Sl50,lh,e. and is the first
to complain. They arrived here We'd
nesday with Dill in chancery,
filed in the United States dis
trict court Of indianapolis, but
flies to be secretly presented to Judge
Gresham. They represented to the
court Yesterday that Crawford had OBJ
tanned the money from the loan and
investment company by false pretanses
and fraudulant representations, the
road being in rotten and demOraliZed
condition, and that to substantiate their
charges they must secure possession of
the Midland company's books. This
could be done only by an ex parte order
for their seizure, because it was feared
that if the defendants were notified
they would destroy or secrete the books.
Judge Gresham decided thai notice
must be given to Henry Crawford, the
lawyer and president of the road, before
any order could be made. Henry CraW-
ford, president. was found to be out of
Chicago. but his son. Henry Crawford
Jr., general superintendent of the road,
was served aud appeared in court, secur-
ing a continuance of the hearing until
tomorrow, when Henry Crawford Sr. is
expected to return from Upton, Ind.
AS consequence nothing was accom-
pliShed but the reading of the bill of 100
pages of affidavitS by experts and others
corroboratIng the charges. 1t is
charged that Crawford and the other
officers are misapplying and
MISAPPROPRIATING THE FUNDS
derived from the roads operation. OF
the mnney loaned by the investment
company, less than $4,000 is said to
have been used in the discharge of the
company's legal claims, and 10000 is al
legged to have gone into the pockets of
the officers. The investment company
cannot foreclose for six months.as TO in
stallment of interest is yet due, and it
represents that if receiver is not at
once appointed and Crawford enjoined
from Issuing more bonds, and from do
ing anything at all. the value of the
road will be ruined by mismanagement,
misapplicatiOn Of funds, waste and re-
moval and secretion of assets.