New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-21
CHARGES OF FRAUD MADE.
INVESTORS IN BRICK POMEROYS TUNNEL
AFTER OFFICIALS OF THE COMPANY.
WHO DENY ANY WRONGDOING.

One Of the pet schemes Of the late "BricK
pomerov was the constructing Of tunnel through
the Rockies For years his active brain planned
and projected, and by his fresid, after his busy
pen was laid aside he talked with his wife OF the
future and dreams OF fortunes In gold, silver
copper lead iron and coal hoated across his vision
He thoroughly believed in his great project, ana
doomed 1t with his characteristics energy. lie
regarded It as a wise investment for the thrifty
middlcClass people and would not allow STOCK
iobbers or gamblers 10 get an the ground floor.
The tunnel company-the Atlantic and Pacific was
capitalized 7,0oO.0o0 and soon 100000 was SUB
scribed. The subscribers came from all over the
country. and were all small investors. This was
strictly according 10 the projectors idea. His pur-
pose all through life was TO do something TO
benefit the people, the great middle class. and IT
his desire that many possible should
share in this bonanza.
Work begun in 1890. and the contrac. called
for the completion of the tunnel In 1888. When the
million dollars had been expended. abou: one and
half miles OF boring had beer completed. leaving
ne irly four miles to complete the work Labor was
Suspended then, and has never since been res imec
Lately Mr.. Pomeroy's favorite scheme has been
made public again. this time through the courts
and it is intimated that the officers of the company
may be indicted by Denver Grand Jury The off,
GERS are publicly charged with planning to acquire
the tunnel by allowing the taxes TO go unpaid and
then have their agent buy In the property. Accord
ing to the laws of Colorado. realty which Is In
three years for taxes may be sold without
redemption.
After an investigation by an attorney. a meet
Ing OF the Eastern bondholders was held in New
York at the Hotel Normandie last Thursday night,
and az A result actions were begun in the name OF
Mrs NJ f. Hoyt and others against A. S. Whit
taker and b. f. George TO compel an accounting
and also for foreclosure of the bonded indebtedness
Whitaker and George. IT Is alleged were supposed 1
TO look after the interest of the stockholders While
in this trusted capacity they allowed the properly
% he sold
the taxtite for less than Nu" and instead OF turn
ing IL over 10 the old company, they organized
one, and then sent out G,ncudf pr If
the old company to buy new stock or be frozen
out large perceniage o, ness s,ockho'oefs are
It is further alleged that without the knowledge
Of the late Mr. romeroE or b the s s5UCk 1md oGha
.:reat West lode and the Bonn lode. their property
lying the face 1 ~ the h pr SSs Covered
the entrance to the tunnel aid Oh course Closed 5
r. unless permission could be obtained OF the holders
'i T Ins knowledge Of this sale was kept from Mr.
ion t5 after his death This asked the snare and
Hond holders TO contribute 10 buy PACK their prop
ery from the gnRnG 1s were Surprised 81 another
irear which contained the INFORMATION that at
d me- had been reorganized under the name or
The Atlantic and Pacific Raroad lr - T. ~. a no MIL
ing Company WITH BS SaP'ISa aWyer who has been
Oan w. Snyd ihe Investigation for the old share
End bond hOd snd s saST be n set aside '
eI Wa snu a Tribune reporter called on Mrs;
ber s 70 the truth of the alega lions against
MessSs George and Whtekcr m she at nfst Inc de
clined 10 ta ago should have told you this story
was wholly false Now can only say tnat inc mat
ter VIII so1 this i; is asserted by the ac-
used officials that they are in position TO re,u's
an ,ne, 70 defraud. and Will do when the proper
time comes