New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-08
WELLB0RN, WITH PISTOL,
TALKS OF BOND CASE
Saws He Is Looking for New
York Man, and Denounces
Carnegie Trust Company.
TALKED WITH GOV. HUGHES
Saws Conversion Suit Is Con-
templated and That Official
Wanted to Get Slice OF
Good Thing.

Charles Z. WeIIborn, president OF the
TftusvilIe Northern Railroad, when seen
at his home in Weston, \. j., last night,
was highly incensed at the attitude he
alleges the Carnegie Trust Company has
taken in refusing to return TO him the
100000 of TttusvilIe Northern bonds
put UP with the trust company as col
lateral by his brokers for loan OF
S25, 900 which WelIborn says he has Of
fered to pay.
He said he had only started the ball
rolling by bringing the matter to the at
tention of the grand jury and that he
had already conferred with Governor
Hughes in regard to certain transactions
in connection with the loan. He init
mated also that papers were drawn yes
terday in an action for conversion grow
ing out of the present complicated state
of affairs.
Mr. Wellborn waxed so hot in his de-
nunciation of the whole affair that he
reached into his hip pocket and drew
out small automatic revolver to en-
phasize his remarks, with the comment
hat he was looking for one man in New
York, and hoped he would meet him. He
declined to say who the man was.
The present status of affairs was the
result of d long train of incidents and
transactions, according to Mr.. Wellborn,
in which he was not the only person who
had been imposed upon by certain of the
trust company officials.
Originally l had an agreement to sell
an issue of $500,GOO of the Titusville
bonds at 953s through my brokers in
London he said. "A block of $4,000
was sold in London, and I took $4,000
more over with me last August, which
was disposed of. The largest part Of
the remainder Of the bonds was TO have
been left with the Carnegie Trust Com
pany and forwarded TO the London brok-
ers through J. P. Morgan & Co., to be
sold at the same rate. l was unable TO
deliver the bonds TO the London brokers.
and when 1 returned and offered to pay
the $4,000 loan for which they had been
placed as collateral, the trust company
refused to return them
Mr.. WelIborn said he believed that the
trust company had not had the bonds
in it's possession until recently and that
they had been bought up from various
sources after the tempest started. He
did not minCe his words In condemna-
ton of the business methods which he
alleged the trust company had employed
in the particular dealings with which he
was concerned. but laid the blame chief
" on its past management rather than
the present regime.
The misunderstanding began. said Mr..
Wellborn with G. w Chapman & Co,
the brokers who negotiated the s25 600
loan with the Carnegie Trust Company
and handled the 100000 Titusviile
Northern bonds as security through C.
M. Sexton, a brokers' clerk. who was
acting for Wellborn.
II feel sorry for Chapman" Mr.. Well
born said, for | believe he was greatly
imposed upon by the trust company in
this whole transaction" MIR Wellborn
said that he believed one reason why the
trust company formerly had held him
of" on a settlement OF the loan transac-