New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-14
ANOTHER GREAT SPINDLE.
WALL-sT. BANKERS VICTIMIZED TO THE EXTENT
OF NEARLY HALF MILLION DOLLARS

wALL-sT. BANKERS VICTIMIZED TO THE EXTENT
OF NEARLY HALF MILLION DOLLARS.
Wall-st was thrown into great excitement
yesterday by the Of great frauds in the
bounty loan certificates Of the State OF NewYork, and
in registered hve.twenty bonds by OF which an
unprnepled operator had swnded the "sreet" out OF
at half million dollars The facts Of this swinde,
nearly at present be ascerained are these In
October the firm Of William E. Gray & Gothic " Com.
pany" being q mythical character-bOught from Ii. G.
sebbns Co. the lease and furniture Of their Office NO
BrOadst and commenced business as brokers' or rather
continued that business having been previously located
at No. sc Newest L. Gray. the only member OF the
firm known 20 those doing business with H. was
young Of prepossessing appearance
gentlemanly address, and good business qualifications
and soon won the confidence OF those with whom he
came in contact In addition 10 personal advantages,
lie was backed by several letters Of recommendation.
among which. 1t is said appeared vouchers from the
Hon. Benjamin F. Butler, Senator Morrill, OF Maine, ex-
Senator Foster OF Connecticut Superintendent Calendar
Of the National Banking Department and others OF
prominent stations. These letters had the effect OF
douby strengthening the confidence already inspired by
Gray During the latter part of last week the Bank OF
the Commonwealth loaned $4,000 TO Gray Co., " ON
call" taking as collateral three certificates of the Bounty
Loan OF NewYork Of 200 each But before the trans
action had been fully completed the Cashier OF the pahK
thinking that something might be wrong took the cert
fer agents OF the Stately the oncers OF Wen nc MS
assured that the bonds were altered from $OOOo SuO
MT Morrison, President and Mr. Harberger Cashier OF
the Manhattan Company were at once sent ior nnu o1
their arrival Mr.. Gray, who was as cool ana cOectu
throughout the interview as though he had no interest III
the subject explained that he had bought the bonds from
T. S. Pat at the solicitation OF "A. s. Blackwell Oh the
latter person nothing was known, but MI HarDerger re-
membered that on the preceding Wednesday (the Sth
nstant he had sold Platt five $1,000 certificates Inc
altered certificates he thought were part OF those nc nad
sold Plat. Mr.. Grays explanation was long one put
even all his pausbty could scarcely restrain the sns
TOOK place In the paror OF the Bank of the Common
wealth, Messrs. Morrison and Harberger returned 10
their Office and sent for Judge sosson the counse OF e
Manhattan Company, TO consult with him as 10 their
proper Unfortunately judge sosson could tbe
night. On Saturday morning Gray again called at the
Bank OF the Commonwealth, and with extraordinary as
tfy his check As firm" he banked with the Bank OF
the Commonwealth but his private account was kept at
at the former he the latter and, after deposit
ing with Mr. Cox the cashier, three State bounty cert
caes-sach Sl0O0-received $50 600 cash, with which,
he SAID. he desired To purchase quantity OF bonds from
Jay Cooke Co. Whether he bought the bonds or not Is
Having procured this loan. Mr.. Gray commenced his
preparations for flight, and at y. IN was doubtless
about that hour, however. firm from whom he had Dor
rowed $4,000 came down upon his Office with Deputy
Sheriff ONei and an execution, and attached the prop
erty therein contained. The firm bank account ut the
Bank Of the Commonwealth OF $4,000 ana the private
account Of at the Mechanics Bank, were also at
tached Gray mad either forgotten them IN the hurry of
his flight had considered II mpudent TO check TOO
IL was then discovered that his operations had not
been confined to the Bounty loan. Among the securities
from which the original number had been erased, the
blank space being filed with another from which fact
argued they stolen. The alteration or the
Bounty Loan certificates was very skllliuly and IN
geniousy done excepting mat IN some OF them tnS
bond was attached regular power OF ana each
There are said be these altered certificates in cir
cuatiOn OF which five those purchased by Patt ana
those stolen about ago from Mr. Woolsey Of
Piuest.
The losses by the swinde said TO be as follows.
although doubtless there many who were vctlnzed
who will conceal the loss from the public we'll for the
preservation OF their credit as to avoid rdcue owes
a Macy. $4,000; Nermye 4 Co, $4,000; Mechanics
Bank $4,000; Coleman Benedict, $4,000; j. H. Ewell
Co.. s25OOO; T. r. Scott, $4,000 aud Brown Loyerdge,
$4,000 The last named firm claim that their loss Is
nearly IL not entirely covered by the property they have
attached. When the Deputy Sheriff took possession Of
the office on Saturday afternoon he opened the safe and
that its contents the books OF the trm love
letter from Gray 10 his Dear Birdie and 100 shares OF
Quartz Hill stock, quoted at &c cents per share.
Mr. Gray has been In this city about three years hay-
INK been the cashier OF Messis Marquand DlInmock
for tme ana the representative In the God Room OF
Mr. EastmOn for the rest Of the PERIOD mp 70 June last
the date of his establishing business of his own lie
was born in Bath Me- as IS atested by letter IRON the
corporate authorities OF that town. but was educated IN
Washington where his father SAID to be the chaplain OF
the United states senate ine nrst nnanciaI experience
OF young Gray obtained in the Treasury Department
In his stock operations here he procured the services OF
Mr. Eugene FINK member OF the STOCK Exchange, put
services Mr. Fink only those accorded
a member OF the Board TO any client.
The Stock Exchange yesterday offered 5000 reward for
the apprehension OF Gray and early III the afternoon
meeting OF his victims was held at the Olce OF Nerlye
Co.. No 20 Nassau-st Nearly all the firms mentioned
above represented and measures were taken to
raise fund for the prosecution OF the search after Gray
Patt who Is thought TO be his accomplish Mr. YER
lye expressed his decided opposition to anything like
compromising felony As yet Of course, the losses can
not be definitely stated, but II Is thought they Will not
fall far short OF 100000. Many bankers express them
selves very strongly the OF the officers OF the
Bank OF the Common wealth and the Manhattan Company
The fact that Gray effected loan Of $4,000 from the
Mechanics Bank after the interview Of Friday night is
said 10 be the fault Of the Manhattan Company, which
should have given the necessary warning.