The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-12-14
FIRST EDITION
WALL STREET.
Another Great Swindle-New York
Bankers victimized to the Extent
of Half Million of Dollars.


yesterday by the announcement of great frauds
IN the bounty loan certificates of the State of
New York, and in registered fve-twenty bonds,
by means of which an unprincipled operator had
swindled the street out of at least half mil
lion dollars. The facts of this swindle, as nearly
as can at present be ascertained, are these:-In
October the firm of William E. Gray 81 Co.-the
Company" being mythical character-bought
from III. G. stebbins y Co. the lease and furni-
ture of their Office, No. A Broad street, and
commenced business as brokers, or rather con-
tinued that business, having been previously
located at No. SO New street. William E. Gray,
the only member OF the firm known to those
doing business with 1t, was young man of pre-
possessing appearance gentlemanly address,
and good business qualifications and soon won
the confidence of those with whom he came IN
contact.
In addition to his personal advantages, he was
backed by several letters OF recommendation,
among which, 1t is said appeared vouchers from
the Hon. Benjamin +. Butler, Senator Morrill, of
Maine, ex-senator Fessenden of Connecticut,
Superintendent Calender of the National Bank
ing Department, and others of prominent sta
tions. These letters had the effect of doubly
strengthening the confidence already inspired by
Gray During the latter part OF last week the
Bank OF the Commonwealth loaned 100000 to
Gray IL Co., "on call, taking as collateral three
certificates of the Bounty Loan of New York of
$4,000 each. But before the transaction had
been fully completed the cashier of the bank,
thinking that something might be wrong, took
the certificates to the Manhattan Company-the
authorized transfer agents of the Stately the
officers of which he was assured that The bonds
were altered from $1,000 to $4,000.
On Saturday morning Gray called at the Bank
of the Commonwealth, and, with extraordinary
assurance, complained because the cashier re-
fused to certify his check. As a firm" he
banked with the Bank of the Commonwealth,
but his private account was Kept at the Mecha-
MICS Bank. Failing to secure accommodation
at the former, he went to the latter, and after
depositing with Mr.. Cox, the cashier, three
State bounty certificates, each for 10000 re-
ceived $50, 600 cash, with which, he said, he de-
sired to purchase quantity of bonds from Jay
Cooke & Co. Whether he bought the bonds or
not is not known.
Having procured this loan, Mr.. Gray COM
menced his preparations for flight and at z.
M. was doubtless many mile from the financial
centre of America. At about that hour, how
ever firm from whom he had borrowed $40, 600
came down upon his Office with Deputy Sheriff
O'Neill and an execution, and attached the pro-
perty therein contained. The firm" bank ac-
count at the Bank of the Commonwealth, of
$4,000 and the private account of $4,000 at the
Mechanics Bank, were also attached. Gray had
either forgotten them IN the hurry of his flight
or had considered it imprudent to check too
heavily against them.
The losses by the swindle are said to be as
follows, although doubtless there are many who
wese victimiZed who will conceal the loss from
the public, as well for the preservation of their
credit as to avoid ridicule:-Howes ~ Macy,
5000; Vermilye & Co., $4,000: Mechanics
Bank $50, 600: Coleman Benedict, $1S, 600; j. III.
Ewell 81 Co.. $25, 600; e. p Scott. $40,0 ,000 and
Brown IL Loveridge, $4,000. The last named
firm claim that their loss is nearly, if not en-
tirely covered by the property they. have at
tached When the deputy sheriff took possess
sion of the office on Saturday afternoon, he
opened the safe and found that its contents were
the books of the firm, a love-etter from Gray to
his ''Dear Birdie" and 100 shares of Quartz Hill
stock, now quoted at rs cents per share.
The Stock Exchange yesterday offered $4,000
reward for the apprehension of Gray, and early
in the afternoon n meeting of his victims was
held at the Office of Vermilye & Co., No. 20 Mas
sau street. Nearly all the firms mentioned
above were represented, and measures were
taken to raise fund for the prosecution OF the
search after Gray, and Platt, who is thought to
be his accomplice. Mr.. Vermilye expressed his
decided opposition to anything like compound
ing felony. AS yet, of course the losses can
not be definitely stated but it is thought they
will not fall far short of $500 900. Many bank
ers express themselves very strongly as to the
course Of the officers of the Bank of the Com
menwealth and the Manhattan Company. The
fact that Gray effected loan of $4,000 from
the Mechanics Bank after the interview of Fri
day night is said TO be the fault of the Manhat-
tan Company, which should have given the ne
cessary warning.-N. Y. Tribune to-day.