Democratic enquirer. [volume] (M'arthur, Vinton County, Ohio) 1867-1873, 1868-07-16

AN ExTRA0RDINARY SKTNDLE.

A Young Merchant o. pittaburR Dis
appeare--He Negotiateo fraudulent
Notes for One Hundred and Twenty
Thousand Dollars--Hls Father-in-
law the Victim.
From the Pitiaburg (Pa.l Dispatch, juno 2l.l
A few days ago, considerable excitement
was created in business circles in this city,
by the publication of an assignment mo-
tice by which young and enterprising
grocery merchant largely in the retail
trade, made over all his property to two
assignees, for the benefit of his creditors,
Since the publication Of tho notice facts
have come to light showing some extraor-
dinary financial and business operations on
the part ofithe young grocer We give .
statement Of them as they reach us, nom
reliable sources, but refrain from making
public the names of parties, because legal
proceedings have not yet been commenced
against the dishonest merchant n
Some years ago, the young man in ques-
ton, being then only about twenty-five
years Of age, succeeded to the business OF
his father (then deceased), who had been
for many years one Of the most extensive
retail grocers in the city. He had built up
large trade in the central part of the city,
and had secured and maintained during his
business career the respect and confidence
of the public, The son, succeeding on the
death of his father TO the management Of
the store, Immediately branched out in
business in the most extensive manner. -
He had control Of considerable capital, but
not enough to warrant such reckless opera
tions as lie indulged in. He purchased
largely, and sold without judgment, chang
ing his lucrative business as much as pos-
.sible to an extensive wholesale trade. 4
He seemed anxious to do large business
without regardto whether ii paid Or not -
He would sell goods to retail merchants in
the city at less rates than the same articles
could be purchased in the Eastern markets.
One instance relatedis the sale Of o large
invoice of coffee to ons Of the closest and
best buyers in the city, for lower figure
than the same article commanded in Balti-
more. Nor did he .oonfne himself TO this
suicidal course, but inprudently aided.,a
number of young men, personal friends, in
embaTking in business in this city and else
where. One young man he set up in a
trimming store, and aided others not only
In the. grocery business, but in other de-
partments of business. OF course, he lost
largely by these operations Theyrequired
large sums Of money; but he seemed to re-
gard his resources as inexhaustible, and
continued his course until he was compen
ed to close his doors week before last and
make an assignment for the benefit Of his
creditors, l,,.~fg
The young man, while apparently in the
high, tide of success as merchant, mar
ried the accomplished daughter Of a mem
ber of one of the heaviest iron manufacture
ing houses in the city. Some months be-
fore he failed he had been in the habit of
procuring his father-in-law's Endorsement
Ia name well and favoTably known on
'Change--to negotiable notes for sums rang
ing from S400 10 $500 and $500, When
the failure took place the father-in:la pre-
sumed he, was involved by endorsements
on his son-in-laws paper to about $4,000.
But closer examination into the financial
operations Of the young man by the banks
and private parties, his paper showed a far
different condition Of aftairs than was
dreamed Of by any one with whom the
young merchant had business connections
1t appears that he had been in the habit
OF preparing the notes on which he desired
to secure his father-in-law's endorsement
in peculiar manner. Say the note was
for four or five hundred dollars, he would
leave in the body of the note, where the
sum was stated in full, ample room to write
in, before the specified amount, other fig
ures His father-in-law would endorse a
note for $500 but after the endorsement
was procured, and before the note was ne
gotiated, the amount would be raised by
the enterprislng grocer to twenty-five,
thirty-five, forty-fye, and in one instance,
he got it up to eighty-fve hundred dollars.
He did this by simply prehxing to the sum
named in the original note, an amount nee
essary to bring the note. up to his wants.
He would write thirty, forty, or fifty, be-
fore the small sum named in the note when
submitted to the eodorser, and thus get
thirty-dve hundred or ffty-hve hundred
dollars, as the case might be. He had no
difficulty in negotiating the notes. His
reputation as business man Was good,
and his own relationship to the endorser
allayed all suspicion, if any existed. Then
he distributed his financial fayors very inn
partially among all the moneyed institu-
lions and private bankers and bill-brokers
of the city.
~ This Was the way our young grocer was
enabled to conduct the reckless business he
managed for 50 long q time. After the as
signnment, week before last, both he and
his book-keeper disappeared from the city.
An investigation into the business opera
tons Of the young men developed the
facts above stated as to his method of
"doctoring" negotiable notes, and showed
that his father-in-law, instead Of being an
endorser in ten thousand dollars, ss he
supposed when the failure took place, was
on the paperof the young man for about
one hundred and twenty thousand dollarsi
The father-in-law had endorsed to about
ingenious manner we have stated, raised
the amounts set forth in the various notes
TO sum that aggregate one hundred and
twenty thousand dollars. Of course, the