The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-10-01
A PHILADELPHIA EXCITEMENT.
Further Particulars of Charles
VEINS Affairs.
How He Employed Moneys of Important Trusts
Over Hundred Thousand Dollars Taken
from His Own Family-A Great
Mercantile Sensation.


In my despatch last night gave confirmation
OF the failure of Charles Vein Co.. OF PAS Chestnut
street. and related his mysterious absence from the
city. To-day have learned from an authentic
source that the case Is much worse than at first
imagined, and that one OF the greatest sufferers
will be his own brother. Mr.. Alfred vezin or the
firm OF Hall 4 Vein.
The trust which has been impaired to the greatest
extent Is that or the estate OF two daughters OF an
old and highly respectable mercantile gentleman
named Bohl Bohlen, who ded In 1886 worth up
wards OF $1,25o,O00 These two daughters married
two brothers OF German family named Haibach.
and both became widows AFTER few years. When
they returned to this city Mr.. John Bob
len OF the present nrm Of Bohlen x Co.,
OF PSI South Fourth street, advised them
as brother to name two trustees for their united
estate, which amounted to about $250,0oo, so that
their money might be properly put out anu the In
vestments attended to In q legal manner Mr..
George X. Zieger, partner OF John Bohlen was
named as one trustee, and II. G. McMurtre, proml-
nent attorney, as the other. As, however, Mr..
Zegler was In fact trustee or the whole OF Old Bob
lens estate-this being the only portion over
which he had not absolute control-and as Charles
VEIN had been previously named as the
gentleman whose position and influence rendered
him fitting candidate, he was permitted to take
charge OF the property In conjunction with the
other gentleman named. A considerable portion OF
the estate was N coupon bonds Gr various !, oSa
mon with his copartner IN the trust, mad command.
The allegations are that this trust has not been
impaired by HIM to q greater amount than $70,OOOi
but now did he get at the securities Is the natural
question. According to my inlormant-and ne
Is IN O position to know exactlY-a pOrton
of the securities OF the Habacn estate were for.
merly in the name OF Charles Vein. ST.. and a Mr..
Court Charles Vein, Jr could legally. and with or
without the consent OF mis- cOpartner, convert the
securities into better class OF property In his own
name. Some such arrangement appeared TO nave been
agreed upon between the two gentlemen lOr tnere
been the disposition Of some $780, o0o McMurtrie 1t Is
alleged, desired to know how Mr. Vein mad invested
ana s tsE to
ocular demonstration ana asked TO see them. We
Yin then SAID he was not quite certain that the
bonds he had purchased were exactly what ne
should have bought as trustee, and that he would
sell them again and sustain whatever loss there
| might be on the TRANSACTION so as TO geG at the
| right kind OF property for the trust. He asked
McMurtre to cali again, and sent ana obtained some
| bonds which hrs partner saw Aterward how
| ever, was stated that the bonds were only Dor
rowed by him for the OCCASION tue property not be-
The trust OF his father for his brothers and sisters.
| 1 am informed has been already entirely ruined
| Aired has been in the habit OF accommodating
him for a long time past by acceptances on alleged
collateral s the r importing nree o. Con
ana handed him at one time some signed blank
paper, leaving him to I'LL up the amount when
L
| up. This Is by no means an uncommon
| practice among merchants at certain seasons. and
In this case 1t seems To be perfectly natural case
that Alfred WHO looked upon his brother almost as
lather the tact Of his being the eldest OF the
family. with high social and commercial status,
| should grant any such favor 10 Charles Vein. who
to him was the very ''sOu OF honor" But 1t turns
| out that he only reported to Alfred that he had
! SIS 600 worth or such paper out, whereas now on
inquiry nearly $40 900 worth OF notes have been dis
covered to be afOat,
The second part or the affair with his brother Is
! with reference 70 a mortgage on some property.
He went to Alfred and asked for a mortgage or
$1,000. This was given, ana he raised money on 1t
In the regular way.
| Shortly afterwards he went to his brother again
and asked for another mortgage Tor Sl2, 000 when lie
promised to retire the former enc Tor $1,000 anu
place the larger one in the market This the trust
| Charles did not retire the smaller mortgage, but
! left them both upon the market.
| Again O second mortgage Tor $4,000 was pre-
! senfed to Alfred and from some explanation by his
| brother TO the failure OF the other ne, In the
| hurry or business and July believing all
| that Charles told him, signed this third
mortgage deed. Thus there were mortgages In the
market for $3l 900 on property That Alfred only
rated at about $4,000. he being under the impress
sion that sl2 900 only had been advanced. These
facts are the cause OF the intense excitement In
Philadelphia over the affair.
Up 10 this time, five O'Clock. nothing has been
heard or the missing gentleman, Charles Vezin
The accounts OF the firm are being investigated,
and in q few days the exact amount OF the moneys
taken. &C.. will be known.
wish to correct the statement that the trust
named Yesterday was 1.-The large Bohlen estate" 1t
| should have read "the Halback estate"