The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-05
j. j. SHEPHERD ARRESTED.
HE IS ACCUSED OF EMBEZzL ING
SI,.5O,OOO.

The Cleveland Capitalist Brought Up short by
frank Robson and . Receiver Appointed
for the big Firm or Charles N. Potter 4 Go.
He Declares that He IL n Ruined Man.
CLEVELAND. O., Oct. 4.-John ]. Shipherd, who
for many years has stood among the highest of
Clovcland's business men, q business associate
OF Senator NJ, A. Hanna and a man who
on his own boast has handled $4,000, 900
within the last fourteen years, was arrested
here to-day by n constable ON a charge of en-
bezzling money intrusted to his care. Coipci-
dent with the arrest of Shiphcrd was the placing
of tho affairs Of the stock brokerage firm Of
Charles II. Potter & Co. of 104 Superior street
In the hands of a rec siver.
This brokerage firm stood foremost in Cleve-
land as regards the volume of business OF the
class it handled. The receiver. Alexander S.
Taylor. took immediate possession. Tho ap.
p intmont was made by Judge Ong OF the
Court OF Common Pleas upon afiidavits
and statements presented to him in the
case OF Frank de Hass Robson against the
Cleveland City Railway Company, Mark A.
Hanna, John J. Shipherd. J.B. Hanna, Citizens
Savings and Loan Association, National Bank
Of Commerce, Union National Bank, Euclid
Avenue National Bank. and William G. Stable,
which was filed late on Saturday evening.
At that time o petition was filed asking for q
temporary restraining order against the street
railway company on tho grounds that the COM
pany was insolvent, that some OF its officers were
charged with embezzling funds OF the company,
that the stock had been watered for the benefit
OF certain creditors. and that dividends had
been paid one set Of stockholders in preference
to another set. The temporary restraining order
has practically tied up the company ever since
from doing any business except that Of operat-
ing its lines.
The first thing this morning the other clause
in the petition, that a receiver be appointed for
John J. Shipherd, was heard and granted,
Alexander S. Taylor. a real estate man. being
named as the receiver. His bond was fixed at
$685. 900. with the Fidelity and Deposit Company
as surety.
The warrant on which Shipherd was arrested
charges him with embezzlement OF the funds of
the Cleveland City Railway Company and the
Fort Wayne Street Railway Company. amount.
ing in value to about $l,25o,ooo. the property
Of F. De Haas Robson.
The specific charges arc fraudulently convert.
ing to his own use S1s3.2s6.15 worth Of per
sonal property belonging to Robson in add.
ton to liz $1,000 8 per cent. first mortgage
bonds Of tho Fort Wayne Consolidated road,
valued at S95, 900.
In tho suit against Potter & Co. Robson al.
Y AOkOo taoS ~ NV PSASo AZ
solvent; that they owe twenty banks and as
many individuals more than 81. O00. 900 Dor
rowed money. He therefore prayed for a judg.
ment Of 1891, 761.15 and the appointment OF q
receiver.
shipherd took his arrest hard. He shook
and trembled and declared himself q ruined
man. In the Justice Court, before Justice Bau'
der, he said:
"Well, it's true that l owe Mr.. Robson money.
I owe q thousand others. and ! have not got q
cont. / have made and lost three fortunes.
and now. I suppose. Mr.. Robson thinks
he has n ado 1t impossible for me to ever
make any moro money. The transactions
which led to my arrest have extended over sew.
erai years. and owing TO the magnitude OF the
dealing and the amounts involved, am at pres
emit unable to mako any statement of the amount
I owe Mr.. Robson.
II received money from Mr.. Robson in the
course Of our business transactions, but l posi-
lively deny that there was any cmbczzlement or
intention to embezzle. Everything turned
against me; stocks shrunk. and the value OF my
securities disappeared. In the last fourteen
years l have done business amounting to $50,
600, 1000"
After nine hours spent in trying to get bonds
men DR.. W. C.. Hopkins and 7. Sterling Beck,
with qualihed. In the sum of $4,000 each and
Shipherd was released, to await q hearing Oct,
IS. The Hannas refuse to talk. Public senti
ment In with Robinson.