The New York herald., 1870-02-10
LIGHT ON DARK TRANSACTIONS.
How Bogus Bonds Are Obtained and Disposed
Of-Van Saun Co.-Brilliant Financial Ope-
rations-A United States Detective in
New Role-Threatened Assault on Jim
Jrbilee's Bank-Loans Made by
Cashiers and Secretaries of
Trust and Loan Companies
on Bogus Bonds, &C.


that similar revelations respecting other houses,
seemingly respectable, might be anticipated. The
numerous robDeries OF bonds and securities the
known completely OF government agents and .de-
tecuves' IN fraudulent TRANSACTIONS and the immu-
nifty from just punishment enjoyed by the sharpers
were certainly suthclent basis for the suspicion.
We are in position to state on reliable authority
that there are rf not recently destroyedl hundreds
OF thousands OF bogus bonds held by bankers ana
brokers to-day on which large loans have been
raised. But so cleverly have these frauds and
forgeries been effected that The guilty parties cannot
DO punished Since last September loans to large
amounts have been raised on bogus securities
through the connvance Of secretaries and cashiers
Of prominent loan and trust companies. 1t is .
fact for which there is proof at hand that certain
cashier OF an insurance company remarked in
brokers' ofnce In Wall street that he was prepared
TO loan $4,000 on any security offered hm'' II he
could only get o sufficient bonus. This Is not an
isolated case by any means did the cashier nj
luded to think that he was committing himself
further than his associates had already DONE.
1t Ia actually wonderful how such lamentabe
lack OF honor ana proDlty IN bank loan, trust and
insurance company officers can escape the notice OF
the parties Interested the welfare OF these con-
Germs and 1t is fearful TO contemplate the demoraz
1ng influences OF such characters their associates
III,
indeed, that corruption is not confined to political
parties but that 1t prevails and nourlshes In our
financial circles.
case which was before Judge Spencer In the
Superior Court on Tuesday stirred the muddy
waters OF Wall street considerably, but owing to q
legal bubble the instructive facts and important
statements which will be found in the following All:
davit were not brought to the surface. A HERALD
reporter who watched the case however, saw thar
rna tae,o strsaightway sl set TO WORK TO- obtain
story here reaed ss w the % torm seen IN a the
vls. oavls. IL being necessary, however, to q
t,aorougn understanding OF all the iacts that the
ucularly 1T ls here stated-On the 23d or september
last Mr. Samuel q. Barr had desk room In tne ofice
''Co." was Augustus II. Wheeler. Mr. Barr did busi.
ness as broker IN limited way. Van Saun Co
were also brokers' Barr was green on the street ana
were shrewd, and, as :he appended atidavlt shows,
not troubled with the quail!ng OF conscience. A
government detective (real or sc-called), named
kendall, made has appearance about the date men,
t0ned ana sent word through another party to Barr
tnat ne mad $4,000 OF government bonds when ne
was willing to .lendn Tor the sum OF 81 5OO It was
not mentioned whether they were stolen or not
Barr would not have these bonds himself hut mem
uoned tue matter TO Van Saun d Co., who eagerly
emDraced the 0iler and commissioned Barr to ncgo
tlate the matter lor them. They gave their check
old so. But Kendall was wide awake; ne took the
cnsck, got It cashed. put the money In his pocket
ana could not return 70 Messrs. saun Co either the
ponds Or the money. The latter went back and re-
negOtatlon, and then there was scene. Barr fol-
lowed Kendall to Philadelphia. TO which city ne I'm
mediately decamped, but The detective slipped away
ana Is sui At large a reward or $500 has been
offered for his apprehension by Mr.. Bars friends.
Time wore on; there was no account OF the fugitive
and then Van Saun commenced O system OF perse-
cutlOn ana annoyance against Barr for The purpose
OF forcing him TO pay them tho $1,000 lost In their
6peculatlOn Letters or de1amatOry character
were mis- friends TO his associates and every
effort made to frgnten him into acqulescence with
their demands. Finally they commenced legal pro-
CeedlnRS against him, and he was, accordingly,
arrested, but, OF course, Immediately bailei out.
1ne motion made by Barr's counsel in the Superior
hearing Is TO be had On Tuesday next when the Iol-
lowing airidavit and Others are to offered evi.
way OF preface, Mr. Barr's affidavit sworn to yes.
terday before 0 notary pubic and duly attested Is
AFFIDAVIT OF SAMUEL G. BARR.
During the month OF september, 1869, had desk
room In the office OF Van saun Co., No. 20 Broad
street. in which Augustus Wheeler was said
20 be partner. MIR. Wheeler proposed TO me one
evening In September, 1862 going up town III a
Sixth avenue car, that ne would draw a check upon
the bank for s., ,O0o and that would 20 to une BANK
and get the check certified. The check was to be
certined on the right hand corner After brIaging
back could very easily, he argued change the
seightn to "eighLyn by adolng "y,n ana aaulng all
eo to the $4,000, making sS0,Ooo, after the cneck
was certified. could open an account within a day
or two before did this TRANSACTION in the Tenth
National Bank, IN which James Fisk, Jr., was .
$50 900. could deposit the check at twelve O'Clock,
and between the hour OF twelve and hafpast
twelve, could draw Soo0OO out OF that bank, and
give them, Van Saun Co., for whom Mr. Wheeer
was the cashier, $40 900. FISK was manager. and
he would not look into the matter very closely, and
at hallp twelve could draw $50 600 on. that
bank ana by giving him $4,000 ne could swear II
was all right ano no one had any claim against me
or him, and 1t would be lett FOR tne two banks 10
ngnt 1t out. Mr.. Wheeler woua swear tnat the check
was all rignJ and according 10 their books. ! re.
fused to do IT. lhen Mr. Wneeer SAID, III you are
not disposed TO get US our money back tnat we have
lost In tlls TRANSACTION wis we VIII take legal pro-
ceedings IN obtaining TINS $1,000 or US under false
REPRESENTATIONS" Van Saun ~ Co. knew very well
that there were certain bonds thai they could obtain
by paying at the rate OF about ten to fifteen per cent,
OF which they were willing to buy at that rate, pro-
ylded they could get Inc to make Ihe loan
on the bonds, as i had desk room III
their oifice, and was loan broker and such like.
They were wiling to take lnose bonds upon which
eheY could get loan at par provided they could get
tne bonds at such rate-get them through me: and
ifIt was necessary after they had obtained them
shey dd not care whether the bonds were bogus or
what they were.
Mr.. Van Saun said this to me:--They were willing
TO take the bonds at any rate; that they knew lney
could borrow par upon the bonds, and they would
20 into heavy speculation. They could borrow the
Ceoded In the speculation that they woua redeem
the bonds and stand all right; but II they did not
from their ONCE; one would be there, no one
knew who could lather the ponds or pay them; but
II they succeeded In their speculations they would
redeem the bonds. pay the loan and dispose Of them
as they saw proper. They would like TO get from
100000 to S1,0O0,000, they did not care which.
4ney were down In the street TO make money any
way. and they were bound 10 do so; ana If they
bought these bonds or goC them, If they got these
bonds and made time loans upon them, would get
my commissions for making the loans, and would
stand share OF the profits derived from the trans
action. ] told them would have no bonds coming
through me whatever taat / knew were question:
able They said that one Joseph Dows had known
or knew about such bonds, and could get them upon
sucn tcrnIS; but the bonds to come directly 70
Van Saln Is Co., and they were to make the loans,
and that they had made arrangements, or they could
borrow par upon the bonds for from six 10 nine
months
Mr.. Wheeler said, like this:-'I tell you, sam,
what eau do. There are Hudson River Railroad
certificates that ere very ordinary, common
looking, ugly things; we can buy certll-
cafes OF ten shares each; alter them to 100
shares each; we can get loans on those" My reply
was, II don't know anything about them;
never certificate OF Hudson River Railroad In
my life.u lie asked me TO do 1t. told him would
not. told HIM would have nothing to DO with 1t
whatever lie said, Il have the ink and all the
necessary implements here and everything that Is
necessary to carry the thing through. There can be