Show AMBITIOUS MR IVES H By That Sin Fell the Angels and so Did He THE NAPOLEON OF FINANCE Invention of Railroad Wrtckinz and Other New few Indies Ui e and Reign of anous ajioleons Henry Ward Beecl or in a sermon soon after the close of the war ventured a prediction predic-tion that Americans were about to indent seine entirely new varieties of ci ime He said in effect that as a rapid increase in the area of wheat growing resulted in the development de-velopment of unsuspected insects destructive t wheat and a continuous cultivation of ptte or other roots on the same soil produced pro-duced new enemies of those root s a rapid increase of wealth was soon followed by an equally rapid increase of burglars and swindlers swin-dlers and the marvelous development of roil roads would evolve or give Decision for orig joel and ingenious trickery which would for a time defeat the ingenuity of law makers It was a prediction based oa the principles of socia science and has been strikingly fulfilled ful-filled The first trouble however was o the nature of blundering rather than crime it might be called overproduction Railroad built were buit through wilderness with a recklessness that defied all economic law the result was a crash and the railroads of the nation na-tion which had been worthas supposed 1 000000000 soon sank to a valuation of 000000 000 This ought i i in the era of combination 1 1i com-bination Icon y tV s t Il c 11 ion and y consolidation i IIEMti K IVES and in the troubled situation of the times tha railroad wruler was horn glow and flour ill 1 A few tin appeared een before the panic IlUSINLbb LAWS DrLCD To the newspaper readers of 1SCG 73 the very name Ere calls up a vision of mooS extraordinary defiance of law and business methods The Bnti h stockholders were crowded out legislatures sere corrupted judges Men appointed for the purpose of looking out for the interests of the Erie clique and the volume of stock was as far is the public can lear arbitiaiily increased o aiiuinish at the will of a few men At length despairing of relief by legal methods the defrauded stockholders under the lead of Gen Daniel Sickles boldly organized a revo liition it can scarcely he l called by any other name and seized tho property The revolution revolu-tion in the roads affairs was almost contem poiarv with a judicial and municipal revolution revo-lution in New York city the moral atnio5 phero was purified and Erie ceased to be the great sensation The Credit Mobiher scandal just preceded the panic and exposed another now method of swindlinga within wheel a itT it-T ere I set of men who formed the know and ostensible co npany organized an inside company and let profitable contracts to tbem lIves Then came tho railroad wrecker HI his completely developed state The plan was t get control of a road mismanage it business till its stock became almost valueless I f i 1 MR BROOKE Counsel for the defense then buy it in and make the road efficient and profitable Tho stocks of course went up and the conspirators realized handsomely This was only one way however and could not last long it was followed by tho system of paralleling and consolidation A road was projected to parallel a near a possible one already established and in operation the owners of the old road would have to buyout the new or sustain still heavier losses In the sven years following the great panic of ISTo the country grew up to its railroads that is production s far increased that aided by the sven year of short crops in western Europe and the consequent increased creased shipments of grain i j made the ex istmg railroads profitable Then set in 1 newer new-er of speculative railroad building and many new men came t the front Of many of thc it u > no slander to say that their methods were as near tho line of actual fraud as the law would allow and they had the best attorneys to tell them just how far they could g but every now and then one stepped over the line and got his foot into the legal net I is extremely difficult to convict a man who deals in millions but it does sometimes happen evEs THE YOUNG NAPOLEON Of all the young operators In railroads no other ba had a career that compares i brilliancy with that of Henry S Ives the DISTIUCT ATTORNEY FLOWS Napoleon of Finance a his admirers call him Everything about him i phenomenal hh precocity his coolness and nerve the magnitude of his schemes and the success he had in inducing old and shrewd financiers to join with him He i but 28 years old yet i half his enemies say is true he is one of the most adroit schemers that ever sheared a Wall street lamb and if half his admirers i claim i true he i the most talented and farseeing seeing financier of tho ag a well as the most cruelly persecuted I 18S2 he was 1 mere office boy well paid at 6 a week In I8S7 he failed for 170000001 I He h been a member of three active fm ha organized an extensive and successful pool ha been the manager of a railroad company and wound up by spending some months in prison and standing trial for issuing fraudulent fraud-ulent stock certificates IVE3 CAREER Ivan i a native of Litchfield Con mode his first appearance in New York near ten years ago and became a messenger in Harper Brothers establishment Be ob I trained a position fa a Wall street n1 but changed rapidly till he had been in several offices Ho next became a member of the firm of Meeker Ives 8 C but early in 1S44 organized the now notorious firm of HenryS Henry-S lows 8 C Tho C included George H Stayner and Tom C Doremns E Wilson Woodruff who had previously been a partner of Ives was still his confidential man and in June 18SG they organized a syndicate and obtained a controlling interest in the Cincinnati Hamilton Hamil-ton and D i ton road which according to Woodruff they proceeded to wreck most systematically All that need bo stated hero as certainly known i > tjat tho stock fluctuated bewud auvthing lnowu I in Wall street since the wondeful times of Facihc Mail In the meantime however they had formed the noted pool in telegraph stock and Doremus a member of the Stock Exchange Ex-change had managed the matter there his methods were s peculiar however that the board expelled him the expulsion to con three in force whilo he retained his connection connec-tion with Ies He restored however ton Ive was rtored however how-ever to the privileges of the Exchange without with-out breaking with Ives Their next move was to attempt the socalled Baltimore and Ohio combine tLat is to get the latter road the C H and D and the Vandalia lines all under one management The cra hOmo h-Omo Ang 11 18S7 The firm failed for 17000000 The main testimony for the prosecution in the trial of hes just ended was that of Woodruff Wood-ruff who confessed i open court that he was the liar in general for the firm that he committed com-mitted perjury in swearing to fabrications on all the early trials i which ho was a witness wit-ness and as it has been clearly proved that ho committed perjury on several points in the lat trial one may b justified in taking what he says against himself a true and give all others the benefit of the doubt Ho swore on the trial that after making Stayner great dentI es vice president and himself secretary treasurer of the C H 8 D they systematically systemati-cally cooked accounts borrowed illegally and manufacture fraudulent stock a they happened to need it Much of this stock of course went into the hands of innocent purchasers pur-chasers And on tho specific charge of manufacturing man-ufacturing some 8600000 worth of this fraudulent fraud-ulent stock on Juno 21 1880 in the upper room of Stayners house in Brooklyn Ives was finally brought to trial In rebuttal of this damaging testimony of Woodruff Ives set ui an alibi the refuge of alleged offenders against criminal law from time immemorial and brought a sleeping car porter to prove it Ho swore a posi tivelvas Woodruff I but on the stand admitted that b e C Jf could lie on occasion irp occa-sion in fact had j i hed very recently l in order to be pres I I ent and testify in < JS m Mr lies behalf 1 JI I Public interest in Ives has been and is unflagging Slight of form I I only r > feet 7 inches in height smooth RECORDER SMYTH faced and boyish Presiding Justice looking spectacled like a student and delicate of contour he looks anything but a Napoleon Napo-leon or a criminal In ins own office he was frequently mistaken for one of tho younger clerks Except that he i rather too delicate for a man he i decidedly good looking in repose there i an air of modesty about him but when he talks his face takes on a very determined appearance and his tone indicates the most sublime self confidence He undoubtedly belongs to the Napoleon and Bismarck class of men the class that can influence much older men and devise new methods of attaining their ends a fast as old ones fail The cuts accompanying this article are from sketches tal en during the trial especially espe-cially for this paper by V Gribai edoff with I the exception of the portrait of Ives which i from a photograph |