The citizen. (Honesdale, Pa.) 1908-1914, 1909-04-07
Arrest of Mckay and His
Partner.
THE SENSATION OF THE WEEK.
Lackawaxen Valley Railway in
no Way InvOlved-Hones.
dale and Hawley Trolley
Line Provided for.

Ah'S 1'SW Vi n SipN PuPClo vi 0dUutud1
last gave Honesdale people something of
sensation, by the announcement that
on Friday the offices OF George l.. Nc
Kay q Co., "stocks, bonds and invest
ments," on the sixth floor of 20 Broad
street, were raided upon information
furnished by scores of investors through
out the country who had declared that
they had bought mining stock from the
firm, which they either did not get at all
or had been induced to buy under fraud
ulent pretences.
As Mr.. McKay's firm was generally
known to be the financial agents of the
Lackawaxen Valley Railroad Company,
chartered for a trolley road between
Seelyville and Hawley, and whose obli-
cations have recently been put upon the
market, there were naturally many spec
ulations as to what effect the raid would
have upon the placing of the securitit 8
of our trolley road, and the pessimist:c
element took very gloomy view of the
situation.
We are very glad to say, however, that
from what can be learned directly from
present shareholders of the Lackawaxen
Valley Railroad Company regarding the
floating of the bonds of said company,
it appears that the arrest of &. L. Nc
Kay and his partner, Mr.. Colby, will in
no way affect the progress of the local
road. Those high in authority and in
fiuence claim that Mckay & Co. had Sc
cured parties to take the bonds, and that
it is question of only few days be-
fore they will be signed over-that.every-
thing was practically settled. Men of
means who intend to develop the pro-
posed road have on several occasions
visited Honesdale and gone over the
route with experts, that every detail
might be investigated. 1t was on this
kind OF trip that j. B. Walker, an
electrical engineer with the Ferguson
Construction Company, of New York,
made his visit few days since. The
proposition presented and the develop
ment possible appeared to the moneyed
men in such manner that they not
only saw a great opportunity to declare
dividends, but that much new territory
would be developed and many interest
ing points reached.
1t is the general impression among
those who have interested themselves
in trolley enterprises thatthis undevelop-
ed section, comprising within reasonable
limit, connections with Hawley, Dun
more, Scranton, Carbondale and Way
mart, is one of the most promising op-
portunities Of its kind in process of de-
velopment.
Charters of most liberal character
have been granted in the boroughs of
Honesdale and Hawey, showing not
only the belief of the authorities of these
places in the benefits to be derived from
the undo ,lking, but their confidence in
the proje RS and hackers of the road.
Whatevc' ground there may have been
for calliI Mckay & Co. to task for
other speculative offences, there is GER
tainly, in the opinion of all locally in
terested, nothing to be said to their dis
credit so far as their relations with the
Lackawaxen Valley Railroad are con-
cerned. While dealing with our towns
people, and our borough authorities,
they have been quite as anxious to con-
serve the interests OF the general public
as of the individuals more Immediately
interested, and the rights reserved to
the community in the.ordinances adopt
ed were largely at their suggestion.
The arrest of Mr.. Mckay and his
partner is now believed to have been at
the instance of parties formerly connect
ed with them in business, who are TAX
ing this method to "get even" for some
real or fancied wrong. Whatever may
be the outcome of their contention, it is
safe to say that no one interested in the
Lackawaxen Valley Railroad can be af-
fected seriously by the present compli-
cation. The very fact that the members
OF the Mckay firm arrested, were re-
leased on very moderate bail for later
hearing, would indicate that the matter
was not regarded in very serious light
by the federal authorities. At all events
they are entitled to q suspension OF
judgment on the part OF people here
abouts until they shall have had their
"day in court"