Los Angeles herald., 1891-11-29
SEQUESTERED BONDS
Shady Business of Field,
Lindley & Co.
The Firm Guilty of Criminal
Borrowing.
Bonds Given Them as Collateral for a
Loan Rehypothecated.
Delivery of the Securities stopped by
the New York Stock Exchange.
Edwin M. Field to Be Placed
in an Asylum.
Associated Press dispatches.

ASS0ciated freSS DlSpatcneS
New YoRK, Nov. 2S.-The suspicion
that the firm of Field. Wiechers, Lind
ley & Co., which failed here yesterday,
hypothecated the securities held by
them on loan OF 100000, and amount
ing to $l,O00,o00, developed into cer-
tainty this morning. At the stock ex-
change $800,e00 of Union Pacific, Dem
yer and Gulf consolidated first mortgage
Sc were sold under therule on account of
the firm. Upon hearing this fact Judge
Dillon cent for Assistant Secretary Burn
ham of the stock exchange, and had a
conference with him. Sidney Dillon
was present. Burnham was notified
that the entire list of securities was not
good delivery, and was requested to
post notice to that effect. A meeting
of the committee on securities was hur-
riedly called by Secretary Ely, and they
came to decision that the securities
could not be good delivery, and posted
notice to that effect and sent word to the
various banks.
The securities named in the protest
of the exchange include the following
stock: Texas Pacific, Oregon Short
Line and Utah and Northern first mort
gage bonds; Union Pacific and Gulf,
Oregon Railway and Navigation COM
pany, Oregon and Pacific and Denver
and Gulf consolidated 5 per cent first
mortgage bonds.
Sidney Dillon said: "Their rehy-
pothecation of these securities is what
term criminal borrowing. | don't think
there can be any milder view of their
action taken.'
at the Office Of Field, Wiechers, Lind
ley & Co., Assignee Charles w. Gould,
in reply to the question, said: II really
don't know in what condition things
stand. have been preparing to take
an inventory of the securities and other
assets. AS to the reported rehypothe-
cation of Union Pacific securities,
really don't know anything about it,,
but j can hardly believe that such a
thing was DONE"
1.-The condition of Edward M. Field,
the senior member of the firm" Gould
said, sis serious. Arrangements are
being made to send him to private in
sane asylum"
After the close of the stock exchange
today the exchange officially announced
that the Union Pacific railroad had no.
JlucU IL tadb ScCGIltfcS VI tiiC ioCO foiuO
of $1,710,000 were misappropriated, and
these securities were accordingly de-
clared not good delivery.
The following statement is made by
officers of the Union Pacific: "Of the
securities OF the system held by Field,
Weiehers, Lindley & Co., in relation to
which the stock exchange made rul-
ing, large part were delivered to the
firm as collateral security for three
loans which matured November 18th,
14th and 25th, and the balance of the
securities for loan which natures jan
uary 1st next. The company repeatedly
offered to pay off these loans since the
funding scheme was contaminated, but
prepayment was refused. Since three
loans matured the company made every
effort to take up the loan, bat the lend
ers delayed, making various excuses for
not being ready to deliver the collateral
on receipt of payment"