The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-10-07
BIG CLEVELAND SCANDAL
PROMINENT CLEVELAND BROKER
ARRESTED FOR A HEAVY EN-
nEZZLEMENT.
UPS Ind DOWNS OF The ACCUSED
a Year Ago lie Was Worth Big
Money, hut at Present He Has
Not Cent and Owes Heavily.
Fad Speculation.

Cleveland, Oct. 4.-John J. Shiphcrd,
who has for several years been promi-
nent as IN investment broker and street
railway promoter, was arrested this
morning on the charge of embczzlcment
He was taken before Il justice of the
peace on II state warrant and was held
in custody until o'clock this afternoon,
when he was released on $4,000 bail
The warrant was issued at the instance
of Frank de Haas Robinson, and the
charge grew out of the business dealings
of Shepherd and Robinson. who have
been closely associated for several years
in street railway enterprises in this city
and elsewhere. The warrant distinctly
charges that Shipherd embczzed S1S3,
236.15 of the personal property of Rob
inson, in addition to 112 street railway
bonds Of the value of $95,200 &
At the same time a petition was filed
in common pleas court asking for re-
Geivcr for the brokerage firm of Charles
III. Potter 4 Co.. with which Shipherd
was heavily interested, and of which he
was the manager. In the petition il is
charged that Shipherd and the firm of
Potter Il Co. had converted TO their own
Use the proceeds Of securities left III their
hands by Mr.. Robinson. These securi-
ties include three sets of Fort Wayne,
Ind, street railway bonds, and the sum
for which Robinson asks Judgment is
$991, ,161.15.
Included in these bonds were 112 $1,000
bonds of the value of S95,2O0, and upon
which one of the charges of embezzlc
mcnt against Shipherd is based.
Mr.. Robinson also represented in his
position that the firm of Charles III. Pot
ter 4 Co. was insolvcnt. and il owes
about S2,OO0,000 which it can not pay.
1t is alleged that the securities left with
Shipherd by Robinson were hypothe-
Gated at banks for the purpose of raising
money with which to carry on the va
rious enterprises in which he was inter
rested.
When arrested Shipherd had just
reached the brokerage office of Potter L.
Co.. in the Wade binding. He was
dumfounded when the constable served
the warrant.
Surely you are not going to take my
body he said to the officer.
"Yes, must do So" responded the con
stable.
What are you going to do:'' asked
Shipherd.
ii am going to take you before JUS
ticc and he will then arrange your bail"
Then Sbipherd accompanied the con
stable TO the Justices office. On the
way Shipherd said
"Well. / suppose that technically | am
guilty. but | have not Il dollar in the
world. of course | spcculated and in
vested with the money. If things had
come my way | would have been with
out doubt the richest man in Clcvc-
land''
While awaiting the appearance of his
attorney, for whom he sent us soon as
arrested, Shipherd was asked how much
he owed Mr.; Robinson, 49,,
"Oh, N.Y." he replied, that ] do not
know The amounts in these transac-
tons are so enormous | lost all track Of
them long ago. i am now 'hopelessly
lost. BY bringing this action against me,
Mr.. Robinson has ruined me. A year
ago l would have taken my oath that
was worth 100000 over my investments.
Today / have not a cent in the world,
not even enough to hire an attorney
Knowing that / have not dollar, Mr..
Robinson now makes me the scapegoat
in the hope that others interested will
shell out all the money he wants. Ne
gOtiations have been going on for year
with Mr. Robinson to settle these mat
tcrs, but he has purposely held back until
now. For q year | have had all | could
do to earn enough money for the daily
bread of my family by doing a little
scalping on the street. | know not what
to do now. The disgrace. of course
falls keenly upon my family, but do
not care, for | am not guilty. ! owe
lots of money to hundreds of others be-
sides Mr.. Robinson.
'In the fourteen years l have been
in business in this city have done a
business of some S15000.000. Yes, sir
did that right down in my little shop.
f,.l Gal