The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-08-16
STATEMENT OF e. B. KETCHUM
Tie Defaleati0n Varionsly Estimated at from
sSOO,OOO to $2,OOO,OOO.
The BANKERS Announce that They Will
Make Fair Settlement.

Tho revelations In Wall street lately made abun.
aany testify that there is something rotten in tho
In which business great degree haa b'en
acted in that busy and wealthy locality The three
several affairs OF the past few days have done 10
throw light into tho dark and sometimes empty recesscs
OF the gold speculaors vaults than have all the
aihdavits of the officers OF establishments
made within the past sx months
SUSPENSION or MEssRs. KEPCgUM SON AND COM
PANY.
gho excitement caused by the. Developments IN The
sse Of the Phenix Bank defacaton sts at its
h,ight when Tho fanure of r. R. Mumford ;avoiying
the possible loss OF large amounts, announced in
time 10 nda fuel TO the fire Al late hour Monhny
afternoon third and az possible, more startling piece
Of intelligence conveyed to the down town specuIa
tors and business community, when The suspension OF
payment Of the firm Of Messrs Ketchum, Son l. Com
pany, and the discovery Of forged gold checks 10 abn
bus amount, were announced the publs
THE FIRST DEVELOPMENTS,
ns above stated made on Monday afternoon, when
the fact proclaimed that humber Of forged gold
certificates in circulation, drawn upon some Of the
Wall street banks Tho news may easily be imagined,
created tho most intense excitement, and Mt night 80
great the anxiety of the most experienced and cool
headed SPECTATORS to dispose of their gold that less
than eight hundred thousand dollars changed hands.
Prom the few items Of information which could be
0icted at that time appeared that these checks had
ben Issued in the OF OF most prominent
city firms, including vormilye Il Co, Brockelmanp
Unger, Lockwood l. Co, Enstein n Rosenfcld, and
others, and IL repovtod that these checks only
10 bo used collateral for loans with the express under
standing that they 10 be allowed circulation the
street Their total value at Grst estimated at c
than two million Ave hundred thousand dollars though
parties that the amount will not exceed
million dollars IL WILL however, require consider
ao time 70 obtain precise statement Of the facts Of the
THE EXCITEMENT YESTERDAY MORNING.
Though the excitement still intense, the interested
parties enabled to look into the details Of the for
gcrics Forty thousand dollars in worthless certificates
presented at the Bank of New York for inspection
early in the day, and at pronounced fogeres II
1not yc positively who is the ssucr of these bogus
checks They hypothe ated in the of Graham
= Co, No 42 Exchange place. but there is little doubt
that some party has used the name Of the firm with
out proper authority.
Tho suspension Of Ketchum Son 4 Co. was announced
carly, and subsequent 10 this the suspension Of Mr.
Charles Graham brought about by his close connection
with tho lrst named frm Both of these incidents were
productive Of additional excitement aud the tbsme
of conversation for the business men, whether directly
iussresssd in the affair or otherwise.
sPECULATioNe.
IL was supposed at first that the 6rm Of Keteom Son
Co had been concerned in large stock speculatons and
being unable carry the balance against them had been
compelled to STOP Before long, however, these mors
assumed different shape, and 1t was currently
saated that OF the members Of the 6rm Edward b.
Ketchum, Of the senior partner, bad abstracted
bends and other securities the amount of two millions
OF dollars which the other members had been unable 70
mako good and hence the suspension Another version,
fb.tE Katrl
had forged gold certificates the incredible Of two
millions and half of dollars which certificates had been
placed in the Golfers OF the banks thus destined be the
Drucpai sufferers IL also declared that j.. u.
Keohum, having been In charge Of the business OF Mr.
Charles Graham, broker in Exchange place. during
Illness Of that gentleman, had escaped with several
checks which missing from his check book and
ths fact connection with the discovery Of a number
Of forged gold certificates drawn upon the Bank Of New
York. led TO the immediate suspicion that tho younp
man was implicated In the forgery, and had made good
mis- sscapc
RunoRs NEAR vHE TRUTH.
On inquiry 10 asoeriaincd that all these reports
10 certain extent founded In truth II rs alleged
with sufficient certainty that n. n. Ketchum de
faaiter 70 large amount not less ~ estimated thar
ono and perhaps two millions Of dollars, and pre-
eumcd that he procured the money party by absacnl
securities from the house with which identified
and party by issuing fraudulent gold certificates Tht
young man, Ia said, had been for some time entruse,
with the management Of the affairs Of the concern BIZ
father being temporarily absent from the city No on,
can suspect tho parties who may enticed him int,
20 dangerous speculation.
$50 THE FIRM HOPEFUL.
On te discovery Of tho facts rectcd above which ar,
wseasurabiy deserving Of credit, Mr. Morris Ketchum
Yesterday morning ordered payment TO be suspended
and declared that in fow days he would he prepared to
submit 70 his creditors proposition for liquidation
Meantime ali rsmtances frvn distance have beer
dspose eed in bank TO the credit Of tho remtters Il i
suppos,d that the large capital of the firm and The
wealth Of the senior partner reuder IL probable that the
creditors sRili not sustain heavy loss as was al
hrst foreshsdowcd
10 Is also svd that Mr. Graham has been victimized 10
enc extent Of t2s5 600 by forged certificates, which he
had negotiated colaicras and Obliged TO ko up
run HOUSE or KErouUn, SON AND COMPANY
pcsscssed the entire confidence Of the community, and
its ailuns much matter of surprise OF regret
10 all who hrvo nhnuccd 10 have dealings with s mem
bcrs
sTATrMgHr oe gIARLEs aRAuAS
Mr. CIaroa trahar, c.,nio,l. mariner of h,r,oo of