The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-10-25

HOW THE Frauds WERE PuRPuTRATED AND THE
PROCEEDS sQUANDERKD-LOOeE MODE or pON03
BUSINESS IN WALL STREET-THx BILL sHAyERs.
TRICKED BY ONE OF THEAsELvRs-HIoH LIVE UPi
TOWN, AT THE FASHIONABLE WATERING PLACES
AND IN THE TOMBs.
Since the immense frauds perpetrated by Charles B.
Huntington on brokers Wall street have 70 light
there email share Of curiosity In the public mind t
learn how is that be could have been 90 successful il
his rogueres that place Of shpers The frauds
mitted by schuyler couple of years ago, were easily
comprehended he was the president Of . railroad com,
paDy and entrusted with the Of s Stock and the
simplest mind could understand how with implicit conf
dence reposed him. he could overissue stock TO almost
any amount. But in the case Of tington-whosq
name has been for the last two weeks before the public
Is difficult to comprehend how he, who was unknown
% financial circles year or two ago, could have succeed
ed In victizing the note shsvers Of Wall street 70 The
amount Of some half million Of dollars The mode BY
which he did SO, will try 70 EXPLAIN
The first trace that we find Of Mr.. Huntngton'i
connection with financial matters dates back only fai
AZ 1852 when he and or three other individuals fell
into the hands of the police Of this city for the share
which they had in getting up fraudulent shinplase
under the Of the "Anacostia Bank of Wash
ipgton D. c." Indictments were found gsinst him AMI
bis accompices on that OCCASION but they were neve
brought to trial. on accounas appears from An endorse
ment on the bill-o SC me informally incompe
In the proof.
We next find him. shortly thereafter, having q little
box Of Office In Wall street. where he purported TO car
ry the business Of . bill broker in q small
retail style. This business consists in acting q
sort Of agent or go.between for brokers On
larger scale-that Is, he would 20 TO q broke
and find out what he would sell certain notes for and
then he would 60 TO another broker and ascertain wha
he would give for such notes, and then, If he found
NV tar he
from and sell to the other Al this time he boardet
up town with his wife . modest scale. He agreed
pay SIS week for their board but this moderat
sum he did not, 1t Is said find venient TO pay
left that boarding house and went to the Metropolitan
Hotel, where he staye for time; but he did no
here indulge in any OF the extravagancies into which b
Afterwards launched he subsequently went the New
York Hotel, where 1t he commenced to be NOR.
liberal In hts expenditures. We Afterwards find him oc
cupyipg part house ieenth street. and recently
owning two or three houses in Twenty second street.
Nothing is more strange In connection with Hunting
toms career than the fact that he little known II
Wall street or in commercial circles Our reporter con
versed TO day with oil the principal brokers on tn
them had never heard Of him until the time Of his
And yet be could raise halt million OF dollars anon
that confraerniy on forged notes, wherein the sigma
lures did not even pretend TO be limitations.
The supposton If that II u only within the Las
eighteen months that Hun neton commenced to operat
on forged paper IL may not be long. He hat
tfce at No. SO Wall street, and professed 70 car
ry on the legitimate business Of Q note broker, AZ
most OF our readers are in biissful ignorance
the business OF note shaving, will briefly de
scribe IT, Commercial firms even though they may havi
large capital are constantly compelled TO pay by notes o.
time inftead of cab The accommodation given by bank
Is limited: ana when they decne to make more advances
the notes Of drm bill resorted to- TheS
charge more or less discount the bills depending upo
the credit OF the drawer and the length OF time they ma
have 10 run before they The bills Of houses
first rate standing Technically known gls edged paper
VIII be discounted ut the rate Of twelve per c
per annum, while others, not 50 well known
trusted, the brokers charge discount Of or thre
per cent per month II follows, therefore, that In tins
OF ordinary commercial prosperity when bankruptcies
are rare these shavers make quite handsome prout b
their operations Huntington vas engaged in this capin
business.
The profits Of the trade large they must have beer
did not satisfy him, insufficient 70 enable him
niture, splendid equipsges, fast horses, and dashsn
women; so he resolved 10 try his hand that branch
the profession which has conducted him cell in tn
Tombs. lie went 10 work systematically, and used,
hrst good deal OF caution TO evade detection. He wa
In the habit OF gong TO the once Of broker in hig
standing and purchasing from him notes Of firms somi
tunes TO the amount OF ,0ol or $50 900 in : weeI
For these he always paid in certified checks He was
easy, dashing looking ieiIow-said the broker-had q
ways q segar In bis mouth, and perfectly cool an
nonchdldnt In his manner, that he might very wa
impose on ONE but there something about him th
could not understand. Icoud not com prehend why
sbould come and buy notes. not divide III
discount with him. and no could make nothing by them
de aihrwArds found oa, the secret Off. Huntngta
would buy these notes. duplicate them, sell tn
otes again, and use the duplicates ~ collatert
security In raising money. Al nrst, however, he usd
My the genuine notes. and 40 they were always foun
TO be correct he gradually gained the confidence thos
with whom be had dealings When he had .hus CON
pletely dsarmed them OF all susp,ciop he began 70 IN
The duplicate or forget notes. HIS plan was thn-r
would 20 into note brokers', say he wanted borrow
$40 Coo for month so, for which no would gve hs
own note OF hand certain other bills OF such and su
do 90 and amounts a. collateral security and he wour
leave . memorandum OF these bills. II the broke
would send 70 the firms purporling 70 be the draw
ers, and inquire whether they had out tho notes de
scrbed They woaid refer 70 their books, ind th4
hey bad issued such notes, and consequently ut
broker not doubling that those offered by Huntington
the real would advance the money asked upu
hem. With The money thus raised Huntington would
make spccuaiops or would take up osher bills becomns
due, or would use Tor his private purposes And tnss
he went on from week 10 week and from month &c
month.
Escaping often detected, he began to relax in nr
exercise Of caution Instead OF buying up genuine notes
brokers', AJAX 10 look st his paper his cy over III,
amounts, dates and names OF drawers and would under
AXE, from memory alone, TO duplicate such hethough
best lifted for his purpose. In this hawever, he
lines made slip, for we find that Mr.. Kane, broker
with whom he had extensive dealings, detected him or
severed be forreres Why this gentleman did not ha
hand the cuprit into hands OF tho law qus
which ne viii have some ocuy In ans ~ering 70 ,h
satisfaction OF the public Another broker holding
bch he suspected 10 be forgery went 70 the nrm pur
PORTING 70 issue H. ard although IL was but . clumsy
IL and BY mercy referring % ihe bill book, declare
70 be all right. IL tany wcnder that with such loo
Way OF DOING business frauds tuld be petrafed Ih
)ny wonder IL that they not much more numerous
The manner In which Huns,ngton's operations wer
brought TO light less curious than the operation
hem elves and proved him, aor all, to be rather
ess ane clumsy Tor q successful practitioner. Among
,arce CT which he gave 10 Beldsn Co. az Gala
crs security, in the usual manner Of Nessrs
Phelps, Dodge Co for over $500, which note va
ben on lis face over due rhat facl attracted affection
md On inquiry be ng made vas pronounced forgery
And even then Huntington would have been brougn
justice, but would have been allowed 10 20 on al
'nasn' were u not for the nrmress and DISCRIMINATION
u Mr.. noige, and his partner, Mr.. Stokes. The,
ought out officer Bowyer, and obtained his advice
nd assistance IN the matter ard although efforts
made TO shield Huntington from the consequences Of hi
cts they proved futile He arrested and held
pail IN $1,000. The very whom he attempted
avn the cccntcrfeft (hr. Beden) became his surety
iunp gton bad, previous TO hs arrest procured $500
n gold on his o~n oertihed check, and this sum
odged In Belden % hands ~ security 10 induce him
'ecome his bail But next day 9th evidences Of orgs
les came In and he arrested. Beden then pre-
the cancellation Of his bail, and II 10 said retain
he s24, ooo.
Another curious feature In tho transactlo,s Is tns
Though the total amount OF fsrgeres already AscerAne
$50 lie 49, 10 person be found 10 acsno wlcdg
hat he has been victmized. II the opinion Of expe
IA need brokers that Of forged paper pu