The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-06
A RAILROAD SCANDAL.
CHARGES or ILLEoAL Use OF BOND,
BF FiSCiL AoENTs.

W. ". Tnford. President OF the Evs..,,u.
end Terre u"ute Ronrd, Auee.. ths, u
7. Nicholas g. 60. snd G. &. Baia-i. A..
Largely Indebted to the RsiIro,a Comma.
A suit TO Recover Nearly 81 900 %.
Thu following circular was sent yestsrd,, 10
the stockholders OF the Evansville and TER.
Haute Railroad Company by W. II. Tniord
President OF tho Board OF Directors:
1t is deemed proper by the Executive. Com.
mittee OF your Board that report be mad. 4.
you Of certain conditions which were found 70
exist by the directors elected by you Oct la
1893. and which have necessitated q su,psn.
sion OF dividends BY your company
II. I. Nicholas 4 Co. which firm failed jul,
30. 1893. had. prior to such suspen sion. been
the fiscal agent OF your company in New York
the senior member OF the frm being also .
member OF your Board OF Directors. As such
fiscal agent. Jour com deposited with
Nicholas 4 Co. bonds OF a par value OF $4,000
and OF n cost value Of approximately $4,000
These bonds we're hypothecated by Nicholas A
Co. but with the exception OF about $4,000
the entire proceeds OF such hypoth ecauon
seem to have been diverted from the treasury
Of your company. A suit has been Instituted
by your present Board arainst Nicholas \ o.
from the, treasury OF your company other
bonds OF par value OF S2S2, 900,
these conds had BEEN Sypothesated or OtS ,S
wise disposed OF. and no evidence can Be
found that any part OF the proceeds were ever
returned to your company. An accounting
has been asked for, and unless made. legal
proceedings will be taken against those re-
April 1893 the then President OF your Hoard
presented u bill against YOUR company for spe-
S8VO7l. This retention was not authorized
by the Board, and your company therefore has
1t was found that advances had been made
TO the Peoria, Decatur and Eyansyille Railway
COMPANY nggreGa,ting S4s2 900 ard while
pSny. i Is Believed that these advance. S %sP:
fiance thereof 1t will thus be seen that nearly
81. lOQ.O 900 have been taken from your treasury
Illegally. az IL Is believed. and as some Oft
who should be held responsible are supposed
20 be insolvent. the inevitable result must be q
large loss to your company The comnanys
cally administered. and the net earnings. In
excess Of Il xed charges. applied to the reluc-
indebt edness was reduced to some extent By
the proceeds from the recent issue OF stock,
s%t Sn sae to r' sSs Sad yssr ,o s
standing equipment notes agGregating s453-
Messrs. Fl. l. Nicholas h Co. said yesterday
afternoon that they had never been tho fiscal
agents OF the company. but had only acted as
statement 80 lar as the circular refers 10
us It is false. We cannot try our lawsuits in the
m AXE any extended statement for the public.
The statement is evidently intended TO make
us the sea pegoats for others This is unjust
and in due time will be corrected At the
present moment we have in hand securities OF
the Mackey system. with which we have had
our dealings, valued at S2B2. 0OO, against
which we have advanced S2S5. O0O.
This statement of Mr.. Titord's Is probably
actuated by disappointment through not 40
curing the watered stock recently issued and
the failure to force out other stocks in loans 50
as to enable Mr. Tilford and his associates to
acquire majority control Of the stock at low
prices at tho expense OF ourselves and cred.
itors."
The present m management OF the Evansville
and Terre Hauts came in after the failure Of II.
i. Nicholas 4 Co.. and ilr. G. G.. Baldwin who
was then President of the Board was displaced
bv W. IL Tilford. The company recently is
sued $1,000 900 Of new stock to pay OF the
floating debt and thus relense the securities
pledged therefor. Among these securities were
about 5000. 900 OF the companys general mort
m