Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1871-01-12

n 6ONB OH~
-CAMRAOR SHPRCULATHN3 IN
HIDDEN TREASURE mlLEs
GRANT AND The SPIRITUAL.
IsTs-FOGGY WRATHER.
SAN FRANc1sco, January 8, 1871.
A Great Mercantile Sensation.
Thecommerciafworld has been much
excited during the past week by the
disclosures made in connection with
tho dissolution Of partnership between
Alvlnza Hayward and A. N. Coleman.
The firm of Hayward & Coleman, oil
merchants, enjoyed q high standing In
the opinion Of business men. MIR.
Hayward was. known TO be very
wealthy and a man Of unimPeachable
integrity, while his partner had the
reputation of being a shrewd business
manager and clever ~lnancler. The
position held by Coleman, as President
of the recentiy-formed Merchants Elk
change Bank, confirmed this opinion
Of his abilities and though it had been
whispered for some time that he was
interested in heavy stock speculations,
so many other merchants engage In
like operations that nothing whatever
was thought of it. The first intima-
ton the public Ind that anything was
wrong was thsappearance Of an adver-
tisement in the Alta Of January 18th,
signed by Mr.. Hayward, CURLY an
nouncing a dissolution Of partnership,
which was followed in a day or two by
several suits against his late associate,
in order TO compel him to refund GER
tain moneys, bills Of lading, valuable
securities, etc., which, it was alleged,
he had taken illegally, and to enjoin
him from using the firm name In any
future business transactions.
A swIndiiuE Partner.
From the allegations made by the
plaintiff In these actions, and from
other sources Of Information, It appears
that on the 18th of December Mr.. Hay
ward received q notification from a
banking house that on the following
day ~promissory notes amounting to
$25, 900 would mature, for which he
was requested to make provision. Re-
ferring to the blll-book, he was aston
ished to find no entry Of any such in
debtedness, but on repairing to the
bank the bills were shown him, drawn
ND by Hemenway & Merrill, wholesale
grocers, and Endorsed by Coleman with
tho firms name. Indignantly seeking
his partner, he demanded that tho bust
ness of the firm should be Immediately
wound up, to which Coleman, having
no alternative, consented: But re.
solved to take the utmost advantage OF
his position before relinqulshing it for
good, Coleman next day pcrpetrated a
piece of ~rascllity that would do credit
to James Fisk, Jr. He was, as before
stated, President of the Merchants
Exchange Bank, and going down the
next morning before business hours,
he ordered tho Assistant Cashier to
open the vaults, which being done, he
took out gold coin to the amount OF
$27, 5OO-an over draft Of the sum
standing to tho firms credit Of $l6,oOO.
As surety for this he gave o check ON
"uayward & Coleman" Having OBJ
tanned this large amount, he repaired
to his own counting-house, and with,
drew from the safe the invoices and
bills Of lading Of 100000 gallons OF
coal oil to arrive, and Endorsed them to
Hemenway & Merrill for $lG5, 800,
being $4,000 less than their real value.
His Career as a Spectator.
The object Of this latter transaction,
as we'll rs the Endorsement of Hemen-
way s. Merrill's paper by Coleman,
involves a somewhat lengthy explana-
ton. 1t seems that the former firm
intrusted the management of their
business to He. Henienway, a son Of
the senior partner, and that they had
such confidence In his honor and integ-
rity that 10 check whatever was placed
upon his actions. For a long time past
he and Coleman had Joined together
for the purpose of stock speculations.
and some six Weeks ago they planned
a "corner" In Original Hidden Trea-
sure. But owing to a full exposure OF
the attempt by the Chronicle, the
schemers came to grief and lost very
largely. 10 cover the deficit, Hemen-
way gave promissory notes In the name
of his fathers Arm, TO which Coleman
appended the Endorsement Of Ebay
ward & Coleman"
Preparations fer Flight.
As o o as these notes matured, both
Coleman and Hemenway saw that an
exposure was inevitable, but they de-
layed preparing for 1t until the last
moment. When 1t did. come the for
mer drew from she bank all the money
he safely could and handed 1t over to
Hemenway for temporary safe keep
ing, while the two endeavored to pro-
cure n further sum OH security of the
consignment Of the oil, having OBJ
tanned which, 1t was evidently their
intention to leays for parts, unknown.
Coleman does not appear to have been
particularly smart In this part of the
arrangement, for. as just narrated, he
entrusted the $27, 500 in cash to the
custody of his confrere, intending to
make a division of all the booty as
soon as they had raised additional
sums on the security Of the bills OF