New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-15

THE EXTENT OF GRAY co.'s OPERATIONS
CARELCSSNESS OF BANK OFFICERS-ESCAPE
OF GRAY.
The recent operations of william h. Gray
Co.. obtaining large advances of cash on an ingenious
pan comprising several altered New State bounty
certificates and registered FveTweny bonds, together
with vast of personal has proved to
be one Of the bold and successful swndng devices
that have startled the street in years The greatest suf
frer seems to be the Mechanics Bank which loses about
$4,000 in clear cash. with collateral for the ex
cept the three altered State bounty certificates originally
representing 81 coo EACH The in which the bank
officers led into their mistake easily accounted for
by any who understands the ordinary routine of
their business person approaches the cashier and
sOcts loan in his hand he displays the offered colat
erals the cashier glances at the general form OF the
papers and the signatures both Of which he Is well
acquainted with that momentary glance takes in the
fact that the signature, the blank and the figures filed
that suces and the transaction is DONE
One moments close scrutiny, however, would discover
the defect the Of the papers printed in
large size, in strong green colors, the figures $780,
The chemicals used in erasing the original writ
ing changed the hue Of these figures TO q pale blue
The contrast between that and the original color yet
naming the worked border quite strong The
engraved letters printed in strong Onk are not in any
degree affected The signature OF John s. Harberger
Cashier" in bright purple Ink, is considerably blurred or
washed" two OF the certfces. But 1t appears that
in the hurry Of business Of these defects mo-
of the Bank of the Commonwealth, IL quite possible
that the fraud might not have been discovered for
registered issues Of United States bonds had been altered
in similar mannerthe erasure Of certain writing and
being about 10000 $4,000 of these in the 1861
and $4,000 in 1868 The legal investigation Of that mat
Hogan 1t that in the of Gray, the Govern
ment security he left withMessrs. Yermiye 4 Co
amounting to but $4,000, genuine and unaltered
United States bond This among the other collaer
ais for loan of $4,000 The Government securities are
1.bop = liz anO aynd m
there is scarcely possibility OF making any alteration,
the denomination especially being stamped promi-
would into and destroy the fabric Of the paper itself
In the New State bounty certificates the chance for
ton and filing out OF the blank is done with ordinary
pen and ink, and be changed with no more difficulty
Than the alterations made occasionally in checks. Thus
far the altered certificates which have been discovered
by the Manhattan Company. who have for OF
years been the transfer agents OF the state, are as
follows:
tsined Duplicates because the originals bad
Five cs5sca,es ii. class issued to 7 H. PTn's Oo
az Y state Of 1870 originally issued to
Elizabeth p T9yo[ one Tor $1,000 and The other ioI
the names in each were erased asd that Of william h. GRAY
vasbsed The loss these to mOasyenders will be 10000
ot,Io,, 70 mop.v.epder, 225OOO
The entire amount of the New-York state Bounty
Loan as Of 1870 outstanding is ,,,, ana
egeed stock. S2tl3 900
Coupon bo1ds'''' 40
o, there are many rImors as to other parties
orally losing various amounts, great and small, by the
same swindle and who conceal the fact account Of
their helplessness and modification 1t is generally be-
eyed however that the TO- al loss Will not exceed $780,
COO The report that Messrs. Jay Cooke Co. had pur
chased some Of the altered bonds from Gray Co. Is
denied Three yetwenty bonds OF the denomination OF
5000 EACH came into their hands In November-all OF
them from respectable firms, who instantly replaced
them by others soon as they discovered that the
OF the payees had been altered IL s not proven
Considerable constituencies been evinced by the Me-
chanics Bank, the Manhattan Company, ana others, In
consequence Of various reports rejecting more or less
upon them. The officers OF the Manhattan COMPANY
state that Immediately upon the discovery OF the frauds
at o'clock Fridaythey sought their counsel Judge
Slosson and being unable 10 ind him. resorted TO Mr.
Hammond. counselor for the Bank OF the Commonwealth
who upon thorough examination and cross-Question
ing Gray advised that account or the Manhattan
Company having sustained actual loss themselves
Therefore they dismissed Gray from farther interview aud
dispatched their transfer clerk TO apprse the press OF the
circumstances For this news was not re-
ceived THE TRIBUNE office and was published by only
one OF the SIX morning papers.J Mr. II. G.. Marquand
banker OF No. 43 Mast, denies the pubnsned report
that Gray in the employ OF the late nrn OF H.
G. MaIquand Dmock lie says no such person Is
known To him. ever been seen by him, or had any
connection OF any kind with him. The Manhattan Com
pany declare that they exercise great caution ana have
perfect system In their transfer business ana
on their part. Mr. Eugene Fink was examined yGser-
day by the Governing Committee OF the stock Exchange
connection with the operations or the nlln or
" William f. Gray & Co.." and denied that he acted ID
any other capacity than that OF broker asserting that
all the transactions on his part were purely legitimate
GRAY and hia birdie" (prObaby tue person
10 whom the letter found III his safe was addressed,
are said 10 have taken TO themselves wings and flown
away-in close carriage. But the direction OF their
flight OF present location the everwse detectives,
who always profess 10 know do not say Other parties
including expert in chemistry, undoubtedly aided III
the alteration OF the papers and participated IN tine
profits OF the speculation but their identity is not yet