The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-10-17
HORY HAD SOLD OUT.
Not g Stakeholder When the Deal"
Was Made.
from the New York Aiuertiser

y
..v revelations in the Adams Express Com.
nonvs ernbroglio, and the hundreds Of bust
80 and social friends OF John Hoey, the
donosed president, we're panied to learn that
- cold out every dollars worth Of his stock
l., the corporation just before the Boston
9snatch aud Kinley Express negotiations.
liam Spooner, the then vice president
vees IN the same transaction, and ne. too
',s1osed of all of his holdings in the com
-orvs shares prior to tie turn which en-
cbed him to the extent of Sl72, 333. The
aonmittee Of investigation was thunder
+-,,ck when these discoveries were made
The news reached Wall street before the
,nernbers of the committee recovered from
their sstoDlshment.
lust think OF il" said one of the man
o1ars of the company yesterday the presi-
dant and vice president OF the great Adams
Txpress Company sell all their stock and
then buv certain property for the company,
raving for il, out of the treasury, 300 900
more than it is worth'' The speaker was
Nexcited. and before he cooled off he iuad-
vertently dropped the remark that another
Gentleman, high In the councils of the COM
6sny. was also implicated in what he called
q very questionable transaction. "The cor
noration has been cheated out of q large
snn, Of money!" added the irate manager.
President Sanford. Vice President Love-
iov and Manager W. B. Dinsmore, the COM
ynittee appointed Tuesday to investigate the
financial affairs Of the company, were in
session ct the company's main office, No. 50
broadway, for four hours yesterday and
accomplished much of importance
"Come in" said President Sanford at 8
o'clock to a Morning Advertiser reporter.
II want to introduce you to our new vice
The reporter passed through the gate
where two watchful clerks have stood on
guard for the past three days and was
escorted into the big directors room. Vice
President Lovejoy and Committeeman
Dinsnore were seated at the big mahogany
council table and were delving in books,
documents and papers to find out just how
the company stands financially. II is big
task to 60 over all the accounts of millions
OF dollars worth Of business extending over
the past three years-since MIR. Hoey's in
cumbancy-and the members of the COM
mittee were inclined 20 believe that a re-
port could not be prepared before Oct. IS,
at which date the board Of managers meet
again.
IL is said that good many suspicious en-
tries and items have been discovered which
the ex-president and ex-vice president will
be called upon to explain.
"You may say" exclaimed President
Sanford as he dramatically drew up his
will spare no effort to recover the large
sums of money which have been unlawfully
taken from the treasury"
Will suits at law be instituted" was
esked.
Undoubtedly"
will a criminal prosecution be at
tempted?"
"IU may come to that"
''Mr. Hoey does not own dollars worth
Of stock" said the president. ~ regret to
say that this statement also applies to Mr..
Spooner."
This was what the investigation revealed
yesterday. The old president and vice
president, soon after they went into office
IN 1888, actually sold out all of their shares
Of the stock and the same men made the
trade by which the Adams Express Com
pany acquired the Boston Dispatch and
Knsley Express Companies in New Eng
land for the sum of $S50,000. The new
officers find that Hoey & Spooner, who
acknowledged IN the supreme court before
Judge lngraham last April that they
divided the sum of 100000 profits on this
deal, did not own dollars worth of stock
at the time of the transaction HOT for the
past three years. Yet they held office
during these years, until forced out, and the
president has actually drawn nearly 800, coo
in salary since ceasing to be a shareholder
henry G. Taft is said TO be the fourth
man involved i'll the deal. mo. s" being in
cognito at pI esent. The committee expects
to uuearth other queer things to-day and
they are prepared Tor any sort OF q surprise. |
is it any wonder that we wanted TO get
rid Of those two 2" said manager yes
terday with Indignation. 1T is the most !
remarkable situation ever coming to my
Knowledge he continued. How two |
men, with not a penny's worth of interest |
IN company with capital OF 81, 900, 900, |
could pocket their shares Of a 800, 600 DEAF
and continue in office three years without
discovery passes my understanding. 1t was
one of the cleverest and most audacious
schemes of financiering in the history of
Wall street. And now it is said that the
law cannot reach the ex,president. The
worst part of it is that we have discovered
that We cannot collect dollar from the two
eI-oiicers, there are so many judgments
alTeliy ahead OF u.s.
Stockholders arc becoming q trifie nerv-
ousoyer the revelations in the affairs of the
onrockribbed Adams Express Company
nAares have sold off from l47 to l40 since
tneexposures, but brokers do not fear that
taere will be any great decline in the price
OF the stock
Friends of Mr.. Hoey at Delmonico's yes
terday said that the ex-president would
maze statement soon ard completely ex-
oherate himself from the charge of NAL
teasa1ce in office. Mr.. Hoey has host of
Itlelds who are very loyal to him, ana one
ol t1em suggested yesterday that the pub
Ac should withhold Judgment until the ex-
president could be heard.
a dispatch from Bridgeport, Conn.,, yes
selIey says that the story relative to the
1ouole dealing practiced by ex-Vics Presi-
oshV Clapp Spooner has caused much |
a'tonishnent in that city in which Mr..
1Tpooner has lived for the past thirty years.
LEI re resides IN palatial house on Golden
an, the fashionable residential street; has
ooen pllar of Christ (EpiscopaD church.
anu mas always been regarded as a model of
uprigntness in business dealings. When
seen oy reporter yesterday he displayed
.nuC agitation, but refused to
taA. Mr. Spooner's health has
gsen Door during the past year, and he has
slso oeen greatly affected by grief at the
secenV death of his wife. Henry Sanford,
whose investigations resulted IN the dis
o'uln1nre OF Hoey and Spooner, lives within
asooueS throw Of the latter'S house. For
5eArs the two men have not spoken to each
ms, anu 1t has been common talk there
.las Lioey and Spooner were chiefly re-
Sponsiole Tor keeping Sanford out of the
ccesiuents chair of the Adams Express
company years ago.
"a consultation was held yesterday morn
III 81 oetween the new officers and the coun-
Az. tne company, Clarence A. Seward. to
NJ. ~ Illhe what action can be taken to GUST
Ia.' LI1oey from the board of managers. 1t
n rs Ueeh decided to proceed under the COM
rs N.Y. ia"' In which IA remedy is provided TO
H.. ent man from holding office in any
s.ocA company who is not share