The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-11-10
sTUPENDDols FINANCIAL FRAUD.
The Great F'orgeries OF Henry Mciggy-Another
Schuyler Affair Nearly Two Millions OF
Dollars Involved.

From the San Francisco Chronicle, Oct 16
On Friday afternoon rumor circulated among bust
known business Of city, had failed, with labi
tiles to Abe amount Of about $500 000 and Saturday
failure During Saturday forenoon II became generally
known that Mr. Meggs with his family and his bro tho
John G. Mcggs elected city comptroller at the Septem
Der eecton), not to be found; and about it
was found that they had sailed Wednesday night out
of the harbor in the bark American, which had been
cleared at the custom house for sports in the Pacific"
This announcement caused suspicion among parties
who had loaned large sums of money to Meiggs, de-
posits of comptrollers warrants, securities that the
warrants were genuine. DR.. Crowen had received
warrants to the amount of 600 from Meiggs Sc
curty for loan of 00O and discovered by examin
forged Adams Co. discovered that warrants for $40
600, which they had received were forged VIM Nicely
note mirroring 10 be drawn by their house In favor Of
Meiggs, had been negotiated by him.
Messrs Adams 4 Co. published an advertisement in
the Evening Journal OF Saturday warning all persons
against purchasing Comptrollers warrants until 1t
ascertaned that the suspicion that Mr.. Meggs had
forged large amounts Of warrants was correct. The
Ereninp Nsms of the day contained notice from
VIM Nicely thompson, that the note above referred to
was forgery These notices created great excitement
in the city. The first forged presented at
the Comptroer's Office at two p. NJ on Saturday, and
at past four when the Office closed $3.50 900 had
the streets speaking of the failure and forgeries and
the brokers and bankers were busy examining their
70 see gne'ne na .ney were sena
discovered that the forgercs Of Comprollers warrants
amounted to about 81 ooo stock OF the California
Lumber Company, Of which H. Meiggs was president,
had been forged to the amuunt of $500 900; and his
debts incurred in regular bushes transactions, amount
10 about $500 600 Il Is said that county scrip has been
forged by Meggs, but the amount is not known
TIE manner In which the forger managed to raise
money, with the least risk to himself was to borrow
money, rcdging double the amount of warrants
r.y. In he pledged even larger proportion
u warrants The issue Of lumber stock issued
in similar manner although, from its deprecated
value not more than about twenty cents the dollar
raised upon ii. Many of these hypothecations
were made as long as three months since and care
persons who not likely to take the warrants out
into the market 1t appears that counterfeit plate
plates had been engraved for the purpose Of striking of
tic blanks The bodest portion Of his forgeries the
forgery Of the notes In the OF VIM Nicely Thompson
aat
the Comp.roier's warrants and was much more likely
to be detected. Mesgs confessed himself to be very
much u want Of money, spoke though he might fail
at any time and made representations to the
trary 10 any person. Meiggs house was searched on
Saturday evening and number OF forged warrants
The city warrants made upon blanks Of both tho
old and new issue in sums Of 5000 and u 900: Tho
are 20 wel eounterfeite that those ocers could not
distinguish the false from the true warrants by the
great many reports evidently false sre in circua.
ton In regard to the forgery and to many Of these
90 not wish to give cur,sucy Many names are men;
scrip and does not hesitate to forete the failure
Of various houses which hold the scrip
Inc erect Of tne rOrBeIies VIII moot
furious upon the business Of the city Confidence among
the business ia Weakened Probably not less than
two hundred persons who week considered to
be sound for the engagements are nov broken 80 Tar
they could be broken by the loss Of their capital,
which with some might be 81 900 and with Others
$4,000 One business man remarked that 1t Was worse
than the May FIRE. ~ .4.
Take il all in all the forgery the most extensive
bold and successful on record 1t win long be great
fact the history Of San Frsncsco and after the body
Of Henry Moggs shall have been worm eaten, the
memory Of his deed win remain as another confirmation
Of the proverb that honesty IL the best policy
During the week previous TO his departure, he had
been very busy In raising ready money for his stocks
and II IL supposed that he carried of about $780, in
cash II is sid that porter carried down TO Of the
whsrves two heavy carpet bags supposed TO contain
gold coin, to b carried % IN boat By him 10 vas