Weekly national intelligencer., 1854-11-18
srUpENDous FRAUDS IN CALIFORNIA.

STUPENDOUS FRAUDS IN CALIFORNIA.
The city of San Fr,ncisco was the scene Of much
cement in the beginning Of last month in consequence
Of the disclosures mentioned in the following narrative
which is abridged from the San Francisco Chronicles
On Friday afternoon the 9Th of October rumor cir
cuated among business that HENRY MEIGGs an old
resident and wellknown business Of city, had
failed with liabilities to the amount of about $4,000
and Saturday mornng several of the morning papers
announced the failure During Saturday forenoon it
became generally known that Mr. Meiggs with his fami-
ly and his brother, John g. Mdggs elected city comp
troller at the September ecco) not to be found
and about it found thu they had sailed We'd
nesdny night of the harbor the barque American,
which had been cleared at the for Ports
in the Pacific"
This announcement caused suspicion among parties
who had loaned large Of money Meggs on depo-
site OF comptrollers warrants securities that the
warrants we're not genuine DR.. Crowell had received
to the amount Of $4,000 from Mcggs as secu-
rity for loan Of 5000, and discovered by examna-
ton Of the comptroerb books tAs the warrants were
sac, 900 whi0E they had rseessd wcss forged Wns'
Neeiy Thompson Co. discovered that forged promis-
sorry note purporng be drawnby their house in favor
| of Meiggs, had been negotiated by him.
Messrs Adams s Co. published an advertisement on
Saturday, warning all persons tgant purchasing comp
trollers warrants until it ascertaned that the sus
pcion that Mr. Meggs had forted large amounts of war
rants was correct The Eyeniig News o. the same day
contained notice from Wm 1eely Thompson that the
note above referred to was aIforgery. These notices
created great excitement in tie city The nrst forged
was presented at the comptrolfrs office at K NJ on
Saturday and at halfpas fouA when the ohce closed
900 had been brought in Crowds OF persons were
collected in the Streets speaking OF the failure and ior-
geres and the brokers and bnkers were busy IN ex-
amning their comproers warAnts to see whether they
| were genuine not.
/ During the afternoon and etning 1t was discovered
that the forgeries of comprceIs warrants amounted 10
about 81 900 600: stock of theEaiforna Lumber Conn
pany of which H. Meggs Hesident had been Forged
4 to the of $780, 900 AID his debts incurred Ia
regular business transactions AMOUNT to about
It is said that county scrip hasbeen forged by Meggs
but the amount is not known.
i The manner in which the trger managed to raise
money with the least risk to hre to borrow money
nedoinp double tho amount of warrants security In
some he pledged even lrger proportion OF war
rants The oyer-issue Of lumhr stock wss issued In
similar manner, although froms deprecated value no!
more than about twenty cents on the dollar Was rseo
upon it. Many Of these hypdhecations were made as
long three months snce aud care was taken TO gave
them to the heavy banking Houses or to persons VINO
were likely take the warrants out into the market
appears that counterfeit ,ae or plates had been en-
graved for the purpose of striking off the blanks.
The bodest portion of his rgeries was the forgery
the notes in the of Vim. Nicely Thompson q 20.
amounting it is said to $4,000 His course IN this IN
stance was very different from that in regard to thu
comprollers warrants and much more likely TO b'
detected Meiggs confessed himself to be very much u
want of money spoke though he might fail atany time
Meggss house was searched On Saturday evening" ana
number Of forged warrants discovered there
The city warrants made upon blanks OF both the OH
and issue, in of $500 and 81, 900 The sigma
lures &C Mayor Garrison and Comptroller Harms are s.
we'll counereted that those officers could not distinguish
the false from the true warrants by the signatures
The effect of the failure and forgeries will be most in
furious upon the business Of the city, Confidence anon
business men is weakened Probably not less than tw
: hund.vl persons who week considered TO
sound for their oHg.gemepts 70 now broken, SO lar
they could be broken by the loss Of their capital whc
with some might be 81 600 and With others 500 600.
During the week previous to his departure Meggs ha
been very busy in raising ready money for his stock an
is supposed that he carried off about $400 in cast
He accompanied by his wife and three children an
by his brother John G. Meiggs 1t is not yet know
whether John Meiggs concerned in any of the forge
ries, although Henry must have had Gccomplices.
Meiggs has probably gone to some of the South Sc
Islands, to of the smaller ports of Asia or Eu
rope The bareuc American purchased of Abernethy
Clark Co. by Meggs on Monday, and was fitted up i
elegant STYLE The captain the vessel when questione
her. stated that she had been purchased by coup
of gamblers, who intended to take pleasure crus
through the islands of the Pacific On Tuesday afternoo
Meiggs and his family rode out in carriage on pre-
tended visit to San Mateo When about three miles sout
of the city they turned toward the bay and took boa
for the American, which lay off in the bay.
The American towed out Of the harbor on Wednes
day night by steam tug and made sail for the south
west On Friday afternoon she still in sight fror
Point Lobos having become becalmed. On Saturda
morning she out of sight but there was only litt
lind In the evening the United States steamer Activ
as to have been sent in pursuit. bat she was prevente
], an accident from leaving the harbor
Meiggs born in Cattskll, New York, aud lived 70
m ny years in Wlliamsburgh where he long mem
,er Of the City Council is said that he became bank
,um in New York. and that when applied to here by
IF III former creditors he paid his debts He arrived
5anl rancisco in july iS49 In the fall OF 1901 he wa
,ectc to the City Council from the First Ward and aga
n the fall of 1851, 1852 and 1853. He very boil
pecu tor and had three vortes for speculation land
umbsr and music. He the principal person in get
ing up the California Lumber Company which erected
mill in 65G Mt Mendocino, and from tho works Of whic
more TIN in 100000 feet OF lumber now brough
monthly to this city He built Musical Hall, and mad
great ea is und many sacrifices to have excelsnt must
,al perform an ces there.
Messrs Iooefroy, Sillem & Co. creditors of Mr.
Meiggs to III mount of $500 009 and he confessed ndg
ments in sl ir favor just before leaving Under tina
OF u igmcnt they attached large amount
real estate kt Id by Mr.. Meiggs He wrote letter 4
them delivere fter his departure which he COZ fesse
his crimes and st uted that he could live here no logger
The losses b. he failure are thus estimated by sh
San Francisco J, ou nal
Amount Of failure $780, 00
ants forged l,0O0,ao
CALIFORNIA; Lnmbert Company sto ck 2500t(
Forgeries on sundrJ hrnss. 50,ool
Total........ S2,l 0o, ,eeu
From the above rgeies the following sums prob
ably realized
100000 Comptroller warrants hypothecatod so
$3.50 OOe California Lumber Compa ry stock, hypo-
hecated at 25 cents on the dollar 62500
Forgeries several firms $4,000
Total. s6l2, 500
We designedly omit list Of the LOSSES which
copied by some Of the morning pap ers find that
nearly all the items dspuedin subsequent San Fran
cisco papers to that in which origin ally appe ,rcd