The Globe-republican., 1891-01-28

tie piecc Of this city. but with IN equal
expenditure We can steal . whole town
in the West or even in Now Jersey. II
we can find one there that isn't already
stolen. The question is: Where's there
the most money? I'm rather in favor of
. new place that may grow in State
where legislation hasn't so rigid mar
ket price"
The question was left unsettled for
the time being. and it was decided to
market the motors in another way at
first Russell gave his attention to the
experimenting the preparation Of the
works, and the construction Of as
many machines as were necessary
for purposes Of exhibition. The stock
had been worked up to a salable figure;
indeed, among few who had 1.-The tip"
it was regarded as . good thing. At
Rays suggestion the necessary money
was now raised by the sale Of stock
certificates which were to be put on tho
market as the machines were made
that is, when ten machines had been
built, hundred shares might be sold
ON the treasurer's certification. The
stock was placed on deposit with trust
company. and could be disposed Of only
under the treasurer's authorization.
Meanwhile Russell was getting harder
and harder pressed financially. His
means of borrowing seemed exhausted,
and his old-time economy had apparently
hed beyond recall. He was involved in .
dozen difficulties, but had hitherto man
aged, on his original plan OF borrowing
from Peter to pay Paul, to keep his
credit from utterly falling to pieces
But the sums necessary were larger now.
and harder to manage. And hero temp
tation seized upon him. His power to
authorize the sale Of the stock certid
Gates and to receive the money thus real
ICED was the bait used by Satan. In
this way he drew his own salary ahead
once or twice but succeeded in keeping
square accounts. But the company had
only small balance. Ray was occupied
in other schemes just then. and his At
tention was removed from motors tenn
porarily. He thought that for the pres
ent the company (which meant Russell
Of course) should run itself. But Rus
sci found that the sale of the certifi-
Gates, regulated as it must be by tho
manufacture of machines. barely suficed
for the necessary expenses. The COM
pany was living from hand to mouth.
That balance which Russell had used a.
q loan fund to relieve the exigencies Of
his own position was no longer sufficient.
There had been DELAY at the factory;
some mechanical problem had to be
solved, and practically no work was be-
ing done. The sale of certificates had
been carried to the limit, and the treas
ury was bare. Russell needed thou
sand dollars, and he didn't know where
to get it. For a long time he held out
against temptation; and then, perceiv-
ing that affairs would soon be straight
ened out and the manufacture of motors
proceed again, he yielded to the pressure
of immediate need, and authorized an
overissue. That is, he sold certificates
on machines which had not been built.
This was. in reality, a method of forcing
a loan. If the men who bought the GER
tificates had discovered the state of the
case they would have had no redress
under the law EXCEPT by a suit against
Russell personally, which, as he had
would have been useless pro-
ceeding. He knew that in such . case
would be easy. If the worst
came he could 60 to these men and say:
"You have bought these certificates
They are worthless. You can sue me,
but you have no redress against the
company. You should feel satisfied II
you get your money back. I will pay
you that on condition of your silence"
1t would not have been the first loan
that had been forced in that way in tho
commercial history Of New York.
Having authorized one overissue, it
was not so hard to bring himself to do
it again. and he did it, much to his dis
credit.
About this time Ray turned his atten-
tion to the Motor Company's affairs once
more. and it was not long before Russell
began to be afraid that the old dnancier
''smelt MICE" He was moro fright
ened than he had ever been before in
his life, and nearly tainted away when.
one day. Ray proposed to 60 with him to
the factory and make an inspection.
He succeeded in putting OF the catastro-
phe for time long enough to give him
An opportunity to consider. Ruin Of the
s 2|,aE81 l