New-York tribune., 1891-05-16
WAS THE DEAD MAN HONEST
.,EpAD w. STONE DIED BEFORE ANY ONE
-, SUSPECTED HIM.
~ rs SAID THAT As PRESIDENT OF TRUST
COMPANY HE SIGNED BOGUS STORAGE
OERTIFICATEs-THE STORY DENIED.


COMPANY HE SIGNED BOGUS STORAGE
CERTIFICATEs-THE STORY DENIED.
Rumors were circulated in Wall Street yester-
Say affecting the character of Medad w. Stone,
Sho died six weeks ago an honored and respected
man Charges were published that Mr.. Stone, as
rxesident of the American Dock and Trust Com
many had borrowed money from number of
hanks. giving as collateral warehouse certificates
isshed TO himself against cotton which did not
,xis 1t was said that Mr.. Stone had borrowed
$4,000 In this way, but his relatives strongly
denied that cent of this money was ever appro-
priated by him for his own use. They say thap
the money was used for the company, and that
sIj facts In the case will come out through law
suit which will come on for trial in September.
Mr.. Stone died in Philadelphia from pneu-
mania. and was buried on Staten Island His
home was at Ncw-Brighton.. The report
so,d that one of Stones sons examined
his fathers private papers, and found
a memorandum of loan for $4,000 from the
Corn Exchange Bank The family knew nothing
about this loan, and an inquiry was made at the
hank IL was reported that the Corn
Exchange Bank had loaned Stone $4,000 on two
warehouse certificates which purported to repre-
sent 5000 worth of cotton bales, owned and
stored by Stone in the warehouses of his COM
many ON the north shore Of Staten Island, near
81 George The certificates We're dated December
% 1890. and December %, SOL, and were num-
bored respectively 24,s2O and 24,s32. The first
represented l22 bales Of cotton and the second
90 The certificates were made out in Stones
handwriting, and were made out by HIM as presi
deut of the company. But there were no cotton
bales acainst which the loans had been made, ac-
cording TO the story.
This discovery was followed up by
n close examination among the banks In
This city 20 ascertain TO what extent these opera
,.ons had been carried on. 1t was learned that
,bere were more banks here which have had
similar transactions with Stone, and one
IN Massachusetts,, and that the amount OF
his leans. estimated according to the latest
rcturns was $4,000. The names OF the
other banks could not be learned yesterday
IL was said be issued certificates OF the
warehouse company as the president OF
the corporation which purported to SHOW
that he had large number OF cottoh
bales in storage at the warehouses he procured
his loans on these certificates, and the RESPONSE
bility by the company and the banks In TINS re-
spect remains to be determined. Stone stood hlgn
in the business community where he was known
ard his associates in the company are all hlgfuy
respected citizens He came here fifteen years
ago from Cincinnati, where he was once VICE
PRESIDENT Of the Chamber of Commerce. 1t was
not definitely learned yesterday what measures
the banks from which Stone obtained his loans
had taken to ascertain whether Stones certiii-
Gates ectually represented cotton, but the Corn
Exchange Bank has sued the American Dock and
Trust Company for the recovery Of $4,000, the de-
tails will soon be disclosed 1t was stated that
Stone issued certificates against 200 bales, and
that the documents were not numbered by the
printer regular certificates are, but the number
ins was done with a Pen. Regular certificates
have stubs. which are numbered with the certifi-
Gates.
II was supposed that he was very
wealthy man, but it was said yesterday that after
his death it was discovered that his fortune had
been greatly depleted. The theory was advanced
yesterday that Stone once found himself temporarily
embarrassed and issued certificate in the man
ner described to tide himself over his difficulties
Several OF his sons are grown. and are said TO
occupy responsible places in business.
President Nash, of the Corn Exchange Bank,
admitted that the bank had loaned about $4,000
10 Stone on certificates issued TO himself, which
appeared 70 be regular in every way. John NJ.
Bowers. counsel for the bank, said that there was
no doubt that the bank would recover the money
loaned 10 Stone, because IL had been established
by law that when an oihcer OF railroad. !. IoI eA
sble The bank would press its snlt, and would
not listen 10 propositions for compromise:
Thadeus ID. kennesOn, counsel Tor the American
Dock and Trust Company, SAID that the company
would repudiate the transactions and would not
accept any responsibility in the matter. lie lalu
stress on the fact that it was the duty OF the
mulcted banks 70 find out whether uhe cer'IhC"UoS
stood for actual cotton.
A. j Pouch who is now president OF tne Amer
ican Doc IS and Trust Company, sald tnls olscON-
cry Of Stones irregular operations was d telIipI3
surprise TO all who knew him. " II anypody ha4 a9
hinted at this In Mr. Stones Hfetme, i shoulg
have secuted it, so great was our trust IN Nun,
aid he. ~ 7 II
The other officers of the company are m, n
nuch treasurer and A. G.. Hacsy, secretary Ahe
ufce is i'm the Cotton Exchange Building.
An intimate friend OF Mr.. Stone sald yesterday
To any one who knew him personally ~ - un
necessary 20 say single word in reiutau9n OF
tie charge which is absolutely absurd l Know
hs malicious motive that prompted IL, ana pei0Ie
long the full details viii be made pupnc. INC
hct is that the cotton in question was DurheG III
d. great fire Of 1881 when Mr: Stone nearly lusss
his iife Through an oversight IL had been piaceu
10 the wrong stOrehouse ana cOnse4uen.S woe
not covered by the insurance. Mr.. stone sense oi
pride was so strong that he personally assumed
ts loss saving nothing TO any one connectu WIN
the COMPANY and had paid considerable part
Of IL when his sudden and unexpected death pre-
vented Ills desire from being fully carried out lie
wa In no way bound 10 assume thls loss, anu ~
seems Incredible that the very act which most OF
al STAMPED him as a man or honor shoulu now,
when he is In his grave, be dlst0ried so 'as 10
bring odium upon his name ana hulh.lldIn9h uPon
his family | cannot give further details noW
because they are evidence in q mercantile law
suit about 10 ke brought. The irends OF M: MI
Stone are not willing 10 show their hanus peIoIe
the case goes into court
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