Waterbury evening Democrat., 1891-01-14

tle piece or this csg put With an equal expenditure we c steal a whole town in the West or even in New Jersey, If 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 a 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 1t 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 a few who had 'the tip" it was regarded as a good thing. At Rays suggestion the necessary money was now raised by the sale of stock certificates which were to be put on the 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 a trust company, and could be disposed of only under the treasurer's authorization.
 
 and harder pressed financially. His means of borrowing seemed exhausted, and his old-time economy had apparently fled 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 here temp tation seized upon him. His power to authorize tho sale of the stock certifi- cates and to receive tho money thus real ized 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 att 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 sel found that the sale of the certif- cates, regulated as it must be by the manufacture of machines, barely suffced for the necessary expenses. The com pany was living from hand to mouth. That balance which Russell had used as 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 tho treas- ury was bare. Russell needed thou sand dollars, and he didn't know where to get it. For long time he held out md 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, method of forcing a loan. If the men who bought the cer- tificates had discovered the state of the case they would have had no redress under the law except by suit against Russell personally, which, as he had nothing, would have been useless pro ceeding. He knew that in such case compromise would be easy. If the worst came he could go 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 if you get your money back. l will pay you that on condition of your silence"
 It would not have been the first loan that had been forced in that way in the commercial history of New York.
 Having authorized one overissue, 1t was not so hard to bring himself to do 1t again, and he did 1t, 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 financier 'smelt mice." He was more fright ened than he had ever been before in his life, and nearly tainted away when, one day, Ray proposed to go with him to the factory and make an inspection. He succeeded in putting off the catastro- phe for time long enough to give him an opportunity to consider. Ruin of the