Omaha daily bee., 1891-05-30
PArrERAED AFTER ln'kIB8EM.
Arrest OF an ex-Union Pacific Ofiicial
Charged with Embczzlemcnt.

DESvER, Colo, May 29-[Special Tele-
gram to TmE Bee. "A sensation was created
here this morning when it became known
that ex-Manager Rhodes, who has had charge
of the stone department Of the Union actc
for a number of years. was under arrest on
the charge of enbczzhug over 5000 of
money belonging to the road. In general
railroad circles, where Rhodes was well
known, and particularly among mis- friends
the news of his arrest was profound sur
prise and many would not believe the rumor
until the indisputabie facts were made
known. These facts were dealt out sparingly
and those Interested studiously avoided tell
ing newspaper men anything.
About one month ago the manner in which
tho Union Pacific was running Its stone bust
ness ut Atkins and Stout in Larimcr county,
became so obnoxious that the company de-
cided to leave the quarries This decision
must :have proved a shock to Manager
Rhodes who had charge of the department,
If all the charges against him are true At
any rate, General Superintendent Duncan
leased the quarries to Greenlee " Sou of
Colorado Springs. They took charge on
May /, and Division Engineer Ashton was
sent up to make the transfer and to see that
every thing vas properly invoiced. He spent
"A couple uf days at Atkins and then reported
to General Superintent Duncan that the les
sees were in full control and every thing was
found to be all right.
Up to this time Mr. Rhodes books had
not been examined, and mad they, per-
haps the genial superintendent would not
have been in such a serene mood.
According to the story Rhodes had apparently
made correct return every month, for all
the stone received. He had his Off ce and
corps of assistants with the other he adquar
tcrs OF the road in the second story of the
union depot, Every month he made state
ment of the business done, receipts, dis
bursements, etc. This was sent to the
auditor and was always passed.
However, it is alleged that there was a pc
culiarity about these statements, and that
was in tho number of outstanding accounts.
These represented the alleged Indebtedness
of n number of contractors and builders.
The next month many of these names would
not appear on the sheet, but, it is SAID, there
would be the usual full crop of outstanding
accounts charged to other people. This
excited no suspicion except as to
the stability of some of the firms
which had gotten stone. Manager
Rhodes enjoyed such an excellent reputation
for honesty and faithfulness to the interests
of the road that never the slightest shadow,
certainly nothing like a $1,000 defalcaLion,
ever appeared to trouble the high officials.
Pretty soon, according to the allegations of
the story, some of the Union Pacific officials
began to smell IA mouse. Somebody, whose
name was included in The list of outstanding
accounts, called and exhibited re-
ceipt for the cash he had paid MIR.
Rhodes. Next day General Superintendent
Duncan had notice inserted IN the daily
papers that Mr.. Rhodes was no longer in the
employ OF the Union Pacific road and that
company would not be responsible for any
debts that he contracted. This excited some
comment, for railroads do not generally ad-
vertso the resignation of any emploYe
In due time the accounts of the stone de-
partment had been audited, and as Mr..
Rhodes had explained one or two discrcp-
ances they balanced to penny The side of
the books which he received credit, it is
said. filled with outstanding
BY and by Il collector was sent out to collect
them, and right hero the trouble for Mr..
Rhodes is said to have begun. 1t
in nearly every case that the account
had been paid to Manager Rhodes
In IL short time the exact amount of the al
legged defalcation was known and a demand
was made on Rhodes for the money. OF
course he did not have it.
The Union Pacific company at once notified
the insurance and guaranty company of tho
alleged shortage and asked them to put up
enough money to balance the books The
but one thing to do, and that was
to agree to pay, and following that
came rush message to Keiths
detective agency asking that watchful eye
be kept on Mr.. Rhodes. The name of this
guaranty company no one will tell, but Judge
Waybright is their attorney, and when he
learned all the facts he thought 1t
good idea to cage Mr.. Rhodes Ac-
swore out Il warrant for Rhodes arrest.
a detective served it in twenty
minutes and Rhodes for the first time realized
that he had gotten into serious trouble Mr.
Rhodes did not want to go to Jail and he
found he had to give whopping big bono
The detectives were good-natured fellows
and agreed to walk around with him in the
day and keep him in a close room at night
This is the life he is supposed TO be leading
now. Although it is said he IS out on bond
Justice Palmer has no bond. In fact, he
DON'T know Rhodes has been under arrest
since Monday
1t is understood that Rhodes win claim
that he was authorized to spend whatever
money is missing, but the story sounds rather
fshy But little could be learned regarding
his habits, but it is intimnted that he spent
the 81 600 trying to chase some tigers out of