The south-western. [volume] (Shreveport, La.) 1852-1870, 1865-09-13
Ketchum g. Son

terestng sketch OF this 'smashed-up" firms antece-
dents ETC.:
Among the wealthiest and boldest houses down town.
was that of Morris Ketchum & Son. Its operations
during the last four years have been enormous its gold
bung embarrassing to the government and its credit
far mere cash was concerned, almost unlimited.
The concern has smashed-gone entirely-and for the
following reasons: The junior member of the firm not
content with the legitimate line of business in which
his father had made fortune and name, dealt largely
in stocks; operated heavily in gold lost made, lost,
made again. lost more; hypothecated the securities of
the house. continued to lose forged gold checks with
which to supply margin, took up some of them with
the proceeds of the stolen securities continued his
specuations lost continued his forgeres lost kept
forging and losing, until his doomsday came; the dis
covery made public; and while his fathers house
fell crashing about his head Mr. Edward Ketehum took
up his bag and ran.
On Monday afternoon there were rumors on the street
that certain forged checks had been presented and
passed at the Gold Room. Examination revealed the
fact that rumOr was corree and that twelve or
fifteen checks for $4,000 each had been presented
Early yesterday morning it announced upon the
street and at the board of brokers that the firm of
Morris Ketchum & Son had suspended payment. In
tenses eagerness for facts followed the announcement
and the thousand tongues of rumor wagged ceaseessy
with tales about the and credit of who but
few hours before shared the respect and confidence
of their peers at bank or board
The business proper of Ketchum & Son that of
brokers and bankers. Three four months ago they
were the great bears in railway stocks of late they
have been the great bulls in gold, and to carry out
their theory that gold was "a purchase, and the
tional and greenback currency greatly inflated they
suddenly reversed their position in the railways first
covering their previous short contracts at heavy loss
street rumor said at the time from 81 100000 to
| 81, 100000.
The recent upward gold movement was of their
engineering. 1t was made to weigh heavily upon the
| money market because there was no export demand
Al bp1co
tally ahead of the July interest the public debt
But about the middle Goth of that month the
toms demand promised to accumulate gold rapidly in
the treasury, already holding about $35O0000O and
it was believed this demand would continue through
the month of August to advance the price of gold
in the open market from the comparative scarcity of
the supply outside, the large already monOposed
by this speculation. 1t then that the secretary of
the treasury determined to convert portion of his
surplus into currency at market rates. and then,
Also that the spectators supposed to have resolved
at any cost to take all the gold the government would
SELL and advance the price afterward. These facts have
served to render the house unpopular among tie sup
porters of the government and have done much to-
ward modifying the sympathy felt for them on the
street.
Mr. Morris Ketchum, an elderly gentleman, has been
out of town for time past and during his absence
the management of affairs devoved upon Edward
The young disposed to go it alone, outside OF
the parental house, and employed brokerage house
Messrs Charles Graham & Co.-one of the best known
and most highly respected firms in the busness-tC
do his work Through the medium of these people he
has done an enormous busness-mlions upon millions
we're as nothing to him-and at first he was very sue
cessful.
For the convenience of themselves, certain brokers
or dealers resolved to consider the bank of New York
as the bank of actual deposit of gold and an arrange
ment was made with the bank whereby it agreed, fol
the sum of $1,000 from each dealer, to receive, count
guard and pay out the gold on paper known as golc
checks which are in all essentials like any other, only
that they are numbered and need before they
for payment
l. The signature of the drawer.
3 The signature of the register.
8. The signature of the teller.
d. The signature of the payer.
Upon the payment Of $1,000 any one has the right t.
depost and check on gold, receiving from the bank
book filed with $4,000 checks, each one OF which ha
its peculiar number 1t is necessary that these tact
be given that the reader may understand clearly th
history of the forged checks
Mr. Edward Ketchum was in the habit of getting
ordinary checks from Messrs. Graham & Co. for pur
poses Of exchange, accommodation, whatever, ant
on one occasion he obtained check for $1,000. HI
then made application to Mr.. Leverich, the presiden
of the bank of New York, for the opening OF a go'
account in the name OF Charles Graham, received TN
check book paid his $1,000, and went Continuing hi
daily operations and needing money for margins will
which to carry gold he has from time to time deposited
with Charles Graham & Co. gold checks drawn appa
rentlv by welEknown houses the street, whlc
checks to be held as SECURITY, not presented
, bank and of course not detected as fraudulent.
) These forgeries are employed, as far are ad
vised only as margins to ney-oans made upo
genuine gold checks. Thus million OF dollars o
gold represented by genuine checks, and on S25O,OoI
represented by forged checks, say about 81 45OOoO
currercy would be borrowed, being the market cos
of the genuine million of dollars. And, in like pre-
portion with other loans the fOrgeries Representing
merely the margins between the amount which shout
have been advanced the genuine checks and tn
market cost of the gold. The stipulation with tn
money lenders in all cases that none OF the check
should be put in circulation in any way used excep
in default of the repayment of the loan after notice
The bunglng manner in which the torgenes Wer
done is most singular and suggestive. AS shown above
four signatures needed to the check before 1t is
0 the slightest value The book given kechum by tn
Lonl 0f New York contained five hundred bank check
= ranging from No. IS, sol to No. $4,000 inclusive,
that the possible extent of the operations is 81 10000
with this book alone. The signatures then to thes
checks one would suppose would need to be elthe
genuine nearly genuine as to pass close scrutiny
They neither.
The names were not spelled correctly, was ther
he least attempt to counterfeit the handwriting of h
parties on whom the fraud was committed How care
full business men could permit millions OF dollars
pass in and out of their hands pieces of paper whc
were not only not genuine, but didn't even look hA
genuine checks, passes our comprehension.
: The name of Mr.. Bunker Of the most careful
exact and precise of tellers, written X. Bunne
the name Of Brockleman, Unger Co., was write
t Bokelman, Ungar Co., and on throug the entir
d list This may be susceptible of explanation, but
e people who don't handle gold checks every day.
seems to say the least, strange that such enormou
stupidities such absolute bunders, could so success
fuiy be palmed upon shrewd, observing, moneygrasl
ing men, as are the brokers of Wall and kindre
streets. Banks too, are deceived and robbed by tn
. same unsuccessful success. forgery in result b'
not in appearance, has mucted the Fourth Nation
!; bank to the tune of about $25o,o0O. We learn th
this bank actually accepted as valid coateraS checl
representing the amount of S255 o0Ochecks not wort
0 rush What kind Of scrutiny do these bank oicia
subject paper to?
~ 4. Ko.ab,-,, dnnhtndlr made I'm his mind {