The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-30
THE ATLANTIC CABLE.


new mode or taking advantage OF ones neghbor,
old Tom Fuller would certainly stamp any action BY
which any set OF men, directly or indirectly
would work to defraud others Of what rightly belongs
to Them has just bean brought to light in this city the
details OF which will doubtless cause small indgna
ton in certain circles OF the business community.
THE FRAUD SAUGuRATRD
short time after the Atlantic cable was declared
success whom the electrical current under sea had
waited, day after day, greetings and sautations from
America 70 Europe and from Europe to America without
interruption by accident the line Of communication from
the American end Of the great connector was made
10 run directly 20 this city, at the ONCE OF the
Western Union telegraph Company, In broadway.
NO had this direct communication been perfected
than hundreds OF bankers, brokers and merchants
put their names down ~ subscribers 70 certain
cable kilograms, each being allowed after payment
the cable from their correspondents in the commercial
centres Of Europe and the telegraph company
Ing to send the dispatches directly % them At their
offices by GRAND boys. The amount Of business done
through the cable by brokers from the outset increased
day BY day., and everything seemed TO DO rnnning
smoothly until about Eve months ago. when complaints
began pour in the company from number Of Sub
scrbers to the effect that they did mot receive their
dispatches until Ave. and fifteen minutes after certain
other subscribers we're known to have received theirs
and that subscribers seemed to be 10 possession
Of the regular dsspatcheA Tho company wore
opinion that their for the delivery Of the
dispatches 10 the subscribers perfectly system
his despatch before another sti the grumbng
among the late receivers grew more unpleasant TO the
ears o. me telegraph ocsrs ana they last Resolved
what part Of the subscription machinery tho screw was
loose In starting this plan the services OF private
manGuvring and detective working for some time.
succeeded In discovering the secret Of the early
this city. They rss sscsrsinsd thai number Of the
employees Of the telegraph company In shs once,
and several Of the GRAND boys, had been bribed
N INN M
mercial intelligence 70 certain parties Ave. ten and
fifteen minutes before they visited other subscriber
ONE OF rs ErrEcTs
The natural consequence Of this became apparent on
the Stock Board, where the who learned by their
higher n London tnan their Quotations IN this CITY. on
the strength OF their brbe-bought knowledge would
purchase thousands Of dollars worth Of these securities
At the New York market price: and then, fifteen
minutes Afterwards, when al other subscribers had
learned Of the in London, the securities Of
the New York Stock Board would reach higher
quotation, and the bribcrs would sell out what they
purchased 70 the tune Of hundreds and Thousands Of
dollars, profit accord ng % sns amount bought up =
persons had dubbed together, purchased one subscri
ibers ticket opened Offices - news agents or reporters
and had made practice to make several copies Of the
contents Of their genuine despatch, which copies
they sold 70 bankers who we're not subscribers 70 the
IHE swnDrHRs AND rHs ASSOCIATED rREsa
Another LEAK discovered by the detectives IN
the mysterious disappearance from time 70 time Of GER
cated Press and which afterwards found 70 have
reached the hands Of the bogus reporters From
their possession they were traced 70 the Offices Of Ger
tain NON subscribing bankers ana brokers' How this
worked will be better understood whom the system
Of receiving and ansating the dispatches explained
Il appears thai ct the period when the investigations
into the frauds were going ON was the practice Of the
telegraph company y telegraph the Associated Press
cable TO Boston and Philadelphia Immediately upon
ts receipt In this ctyn fact before It was delivered
to the subscribers In the metropolis The for
manifest when Il s taken into consideration that the
cable kilograms come directly 70 this city in cipher BY
means q wire s.closss rssssv:S TOT me transmits
cipher is the possession Of the telegraph people Of
ihe Western Union line In this city, and that the
dispatches ~ ct hrse transmitted are Of NO earthly
to any body who has control the cipher book.
soon therefore, the kilograms arrive at the Broad
dsphia and other large Cities while copies or the
dispatches being made out for delivery in this city
This being the case the surprise Of the company may
be imagined when IL was ascertained that the cable
kilograms. translated regularly sent from Boston
this city Immediately upon their arrival in that place.
in this city, long before the subscribers had received
their kilograms from the Broadway Office This nice little
ana had ~
honesty Of the compsny's employees q The Hub who,
dospatches BY rival lines directed 10 the BOGUS
reporters association in this city. The latter. Of
course on being furnished with the corrected
kilograms, straightway made several copies Of
them, and distributed them TO its subscriber So
worked by the Boston men and the bogus reporten
hare that for loag time the detectives were Ct loss TO
understand the inner workings Of the ring and had
passes through Boston had been subjected to regular
course OF tapping"
In addition above mentioned lines Of fraud upon
which the brbed fought the light long and
. se hs better ' Of anohss pv in
duc,ng certain OF the telegraph erTand boys to meet
them At given points, where they would receive their
dispatches and then instruc-and compensate well for
thorough carrying out OF their Instructions
be TOO great hurry in delivering the other de-
spaichea or course these men went 10 the
Stock Board on the receipt OF thor despatch,
and made 'apiles'' Of money-perhaps at the
expense OF the pockets OF their fellow subscribers out
once The money was made n would seem that they
bothered their heads very little ~ 70 what extent their
subscription conireres were losers oy their bad faith
CRIMINALS.
Il must not be supposed for an instant that the brokers
engaged in this dishonorabie ordinary
their daily bread by trying 70 get small profit
for great exertons made 70 fleece whom they may By
means The reai criminals were certain leading men
In the bull and bear circle, who controlling
Of money, had NO scruples about usng II svishly
the furtherance Of gigantic swindls provided they
made good percentage ON their Investments In their
particular buslnsss spheres they considered
| 70 BE- men Of high standing and integrity
ssbs so~sros The conversion Of me Psiss sl.odss
| and . momsns Afterwards push little needy beggaf
boy craving for penny for bread iase The gutssrs IN
front Of their moncy-vaultsd counting hoosa They are
"leadng uen'' for all THAI
| aow rns DETECTIVES WORKED I'M CASA
L
Of the swindng employees Of the telegraph
pany and Their bnbs 10, for ~ ingenuity. deserving Of
special mention IN: p:r;ss wss sndsrsos sns mvs.
the in propvsis pso~i but brought 70 ;asr assist
. host Of supernumerasies. First and foremost
youngstsn were engaged By the telegraph COM
pany - srand boys and msn - clerks, ope-
| rators, brokers asd bogus newB rp0ssers, and
each were under strict injuncsions 70 follow shs
same routine Of business - the objects a
their scrutiny followed The time taking
70 watch their every action and movement that
nothing might Be left undone thai would aid In nxing
she fraud upon thoss who really guily That they
succeeded In their several Designated tssks the facts
above narrated abundant evidence 70 their credit
/ A FORMAL INVESTIGATION
The telegraph company, being furnished With all
the facts developed by the detectives, held formal
| meeting, ~ No. las Broadway and called upon the
various euprits appear before them and mako
70 such questions should be put to them concerning
the fraud ssvera Of the guilty ones 81 rst responded
TO the call and made clean breast Of all they knew Of
the swnde; but few days afer the notice OF the
| pany had been issued they met secret conclave
themselves and resolved recognize right OF
L oralit To foro me-