The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-10-16
A sT0CKJoBBIsG OPERATION.

How They DO It-Hish Contracting Parties
10 Wall Street Scheme-Fraudulent Issue
OF Pnrkersburg Railroad Stock aud the
Motives Therefor.
About the LIST OF August last 1t was made public
that there had been issue OF stock Of the
Parkersburg branch OF the Baltimore and Ohio Rail-
road to the extent OF S20o0,0O0. One Mr.. L. Craw-
ford, who had been the treasurer, 1t was alleged
had forged the signature OF the president, william
w. Vanwinkle. This fraudulent stock had been
hypothecated az collateral security for 5000 900
or $780, 00 The money was raised upon the stock
chiefly in Baltimore and New York. Crawford, it
appeared had none or the money, had led quiet
life and had means OF disposing of 1t. His being
assigned the responsible position was rather remark
able, not having average intelligence. This branch
Parkersburg Of the Baltimore and Ohio Railroad was
very desirable to the latter and also TO the Northern
Central and Pennsylvania Central because 1t cut the
connection OF the Baltimore and Ohio. The de-
probation OF the Petersburg stock was great
object to those who favored the Baltimore and Ohio
Railroad, because 1t Kept OF her competitors from
laying out much or venturing much for the pur-
chase OF It, and whether such man was selected
for the purpose Of being made victim OF, SO that
the stock should go down. is not known, but that
result was directly accomplished. Enough has
transpired to show that some three parties Of high
commercial standing awaited themselves OF the
situation and received the money advanced upon
this stock. The New York victims who had al.
vanced money upon the fraudulent stock employed
John Henry Keene, Jr., or the Baltimore bar, as
their counsel. Under his advice detectives from New
York, Chicago and Richmond were employed
all some nine. To each was assigned
any one 81 the detectives that any other
than themselves were engaged. Nor did any
one OF them know the ultimate object or the motive
Of his Investigation. The result was that deposits
were traced TO New York banks corresponding with
the sums raised upon the securities the day after
they were onered. These deposits were changed
from day to day and transferred to Chicago, and
thence to Fredericksburg, aud thence to Baltimore.
The discovery or one led to that OF the Others These
detectives were then discharged and fresh relay
obtained, no one OF whom was ever brought In con-
branches OF service. Some six weeks were Occu-
pied In the investigation and some ten thousand dol
lars expended in making 1t. 1t is said that at last
through some agency, papers were secured which
showed the distribution among the three, and the
result has been that sooner than suffer the exposure
the parties implicated made one settlement upon a
small claim upon the surrender OF the papers
which had been however, previously photographed.
Yesterday 1t was currently reported That q large
sum- beng the balance upon the issue or false stock,
was settled at eighty cents on the dollar the parties
preferrlng that to the exposure TO which criminal
prosecution would have led.
The success OF the investigation Is owing solely to
the new mode OF handling the notwithstanding
them perform the service Without disclosing to them
Its aim or object 80 that they were not In position
to have their virtue assaed by counter propositions
from the enemy.
Nothing has transpired to give any clue to the
parties, nor do the detectives engaged In the
matter know its results. Mr. Kcene went into the
matter upon q contingent fee and, it Is said, has
realized some $4,000 from the settlement.