The New York herald., 1873-10-19
The Dsfaultins State officials Money
in a New York Banking Office.
FRANK R. sHERwTM LOCKED UP.
How Phelps Got Possession ! of
the State Money.
HIS ACCOUNT OF $3.50, COO.

Az bWO O'CLOCK yesterday ditcTuDOH SpsCidl
Deputy sheriff James Erb, detailed for that duty
by Deputy Sheriff tucson Jarvis, arrested Frank
X. shcrwin, doing business as an exchange
broker at Nos. rs and so Broadway, under
the drm name OF snerwin d Co., on an
order OF arrest issued by Judge Enoch
L. Fancher in the Supreme Court, at the
suit of the State OF New York against said sherwn
in Which bail was fixed at $4,000. This order
OF arrest was based upon afidavit5 In
the action made by State Treasurer Thomas
Raines, Deputy State Treasurer Fulton Panl
and Attorney General Francis G. Barlow, cbarg-
ing Sherwin with corruptly and Intentionally
contriving with Charles e. Phelps, late cashier in
the office OF the Treasurer OF the State OF New
York, to convert 70 the Of the said sherwin
certain valuable securities OF the State to the,
value OF s55O00 State Treasurer Raines sets forth
IN his affidavit that on or about the 18th
Gay OF September last the State OF New
York were the owners OF certain
draft for $4,000, drawn by the FIRST National
Bank Of Buffalo, to the order OF r. Porter Lee
teller, on the Fourth National Bank Of New York:
troller OF the State; endorsed by N X
hopkins, Comptroller, TO Thomas Kanes,
Treasurer, and by Fulton Paul, as Deputy
Treasurer, to Charles Hudson cashier. That
Phelps, without render. ng any equivalent consider
alton to the State frauduently transferred said
drat to Hudson. who, being the cashier OF the firm
OF Sherwn Co., presented the same for payment
and appropriated the proceeds thereof to the use
OF sherwin Co., who knew that Phelps was
wronglully In possession thereof That Paul
had no authority to endorse said draft to
any person , or % Institution sn,.,. except 70 the
repositories OF the funds OF the State. to the
Manhattan Company in the city OF New York, the
Fiscal Agents OF the State tor paying the interest
its funded debt. That Phelps, Sherwin and
Hudson were each cognizanG or the fact that the
endorsement of draft, the property OF the State,
IRREGULAR AND FRAUDULENT
That on or about, August 2S draf; raj j. belonging to
OF Poughkeepsie, Tor $4,000, on the National Bank
of the Commonwealth, in the city OF New YORK.
by Phelps fraudulently endorsed, payable to-
Charles Hudson, cashier, and by him wronglully
collected and applied to the use Of Sherwin CO...
with
LIKE CORRUPT KNOWLEDGE OF SAID sHERwIN.
That on or about the 11th OF September last the
State owned draft No. 70, ,423 for $4,000 drawn by
the Merchants and Mechanics National Bank OF
Buffalo OF the Merchants National Bank of
Comptroller endorsed payable to the order Of de-
ponent Raines, as State Treasurer, and by Deputy
Charles Hudson. cashier That Phelps appropriated
this and transmitted 1t to Hudson, who collected
it and applied for the benefit OF sherwin Co.,
property Of the said State Of New York
DEPUTY TREASURER PAUL's AFFIDAVIT
states that he afixed his signature to the two
Buffalo drafts, when presented to him with others
by Phelps, who prepared the endorsements; that
favor Of one Of the Albany banks authorized to
hold the deposits OF State moneys. and
endorsements were filled out in favor of Hudson
by the number OF drafts which were brought for
his signature at one time by Phelps, who was,
cashier in the Treasurer's siice and in charge OF
the State securities and bank accounts; that the
drafts were passed to Hudson without the 'knowl-
edge or assent oil deponent.
ATTORNEY GENERAL BARLOw'S AFFIDAVIT
yersed with frank R. sherwin in the city Of New
York, who stated to him that on or about the 14h
Of July last Phelps opened an account with Sher-
win d Co. In the name OF Charles H. Phelps,
cashier. He deposited that day $500. and there
alter I such M sums as $1,000 $1,000, $1,000,
which was his last deposit, was on the 18th OF
September and, as appeared by the deposit ticket,
drafts endorsed by The Deputy State Treasurer;
that Of the drafts bore the signature |
that defendant & sherwin knew these transfers were
not regular or authorized; that the account en-
soms e @ s sos OF
substantially the WHOLE OF said sum has been with
drawn from sherwin 4 Co., by Phelps. by or before
drawn was by a certificate OF deposit in
the Bank OF North America for s25,ooo
tember, SIS, 900; September 8, $4,000; September
20, $4,000, and September 27, $4,000. All these
checks were signed by Phelps as vs. cashier. There There
without the addition OF cashier" That Phelps
stated to Sherwin that he made good to the State
the sums withdrawn by him for private account by
repayment from his own money.
THE ARREST OF sHERwIN
Mr.. Sherwin was taken at his banking ofice.
when he expressed no surprise. He asserted entire
confidence his ability to find the required bail and
was at once taken by oficer Erb to tue Shcrin-s
office in the New Court House, where Special Deputy
ID. G. Gale took charge OF him under the orders OF
Deputy Sheriff Jarvis. During all the afternoon
and evening Sherwin made ruitless efforts to find
surities. He was taken at dark to the house of
Deputy Sheriff Jarvis, in East Tnirty-fifth street,
and thence conveyed at, eleven p. NJ, to the Lud-
low Street Jail, where he remains.
Sherwin has been before the public to some
extent as a daring financial operator Tor some six
years. AT the time the Mason Doree, In Four
teenth street. was closed he took a lease OF the
building and undertook to astensh New York by
dry goods operations. In very short time
he was connected with what he styled
'sthe Vienna Syndicate.n He has been in the bank
ing business at Nos. IS and 50 Broadway for some
two years He took the demand made against him
behalf Of the State as matter OF Insignificant ac
count protesting to believe that he fully vim
dicate himself when the matter comes to trial.
He has family residing at Flushing.