The New York herald., 1873-08-31
How the ViIlanOus Frauds We're First
Discovered on Friday Morning.
WHO Is THE PERPETRATOR 2
Poor Brown, Broker, Bagged for
Supposed Completely.
Report That Half q Million Of the Bonds are
Held by Bank in the City.
Interviews, Reticence and Bewilderment
on All Sides.

Interviews, Reticence and Bewilderment
ON All Sides.
New York often lays the 1attering unction to her
soul that she is not easily outwtted in commercial
and banking matters. London may possess her
'|JOe the Penman" who maintained that he could
initiate any signature whatever within the space
OF An hour, including Horace Greeley's or Captain
Mayne Reid's, for the drawing up OF that legal in
strument known as the bill OF exchange. Bank of
England forgers may come and go, Fremont may
foster his railroad schemes In Paris, but the New
Yorker believes that the art OF forgery is but little
practieed in Wall or Broad street. From time to
time eruptions break forth in the classic regions
OF the Stock Exchange produced either by
Black Friday or the flooding Of the market with
bogus bonds OF many denominations
The following story shows, upon the high credit
OF Mr.. Denny, H. that upwards OF quarter of
million Of forged railroad bonds are anoat at the
present moment. and rumor, which is given for
what 1t is WORTH alleges that bank in this city
holds the colossal sum OF half million OF these
forged bonds 1t can only be hoped that the latter
statement Is an exaggeration.
INTERVIEW WITH MR. HENRY DENNY, JR.
Yesterday afternoon. while the lrequenters OF
Wall street were wtngtng their way homeward,
little dreaming Of the immense amount OF bogus
bonds which had been thrown on the mar
ket, HERALD reporter entered the office Of
Mr.. Kenny Denny in Jauncey court to hear
what that gentleman had to say with reference
to the new undertaking in the predatory art. Mr..
Denny was found hard at work, but kindly con-
senred to give the HERALD reporter few moments
OF his time to tell what he knew about the last
great swindle.
HOW THE FRAUD WAS DISCOVERED.
The way the fraud was discovered was in this
wise -On Friday Mr.. Olcott, Of the firm OF Olcott,
in Broad street. received from Messrs Sanders Il
Hardenbergh, brokers, of No. 112 Broadway, 1900
bonds Of the New York Central seven per cent
OF 1876. On Mr.. Olcott looking at them he discov-
cred that among the bonds offered, purchased by
him, were two OF the same number. These duplicate
bonds were both numbered No. 26l, and it will
be seen at once that Mr.. Olcott was justified in
thinking that there was something materially
wrong. Mr.. Olcott in this dilemma brought all the
bonds in question to me and submitted them to me
for my inspection and Judgment. told him that 1
had sold No. 26l to Messrs. Sanders & Harden
bergh on the previous day wednesday,, having
received 1t from prominent London banker.
felt positive that our bond was good, and ad-
vised Mr.. Olcort to 60 to the office of the New York
Central Railroad and make inquiries as TO whether
the bonds were counterfeits or not. Mr.. Olcott
Immediately started Off with the seventeen thou
sand bonds, which the company without hesitation
pronounced to be
FORGED AND CoUNrERFEITED,
with the exception Of the bond just alluded to by
me, which had been received from our London cor.
respondents This took place late on Friday after.
noon. This morning Mr. Olcott made a demand
upon Messrs Sanders Hardenburgh for the resti-
tuition Of the money paid for the bonds, which had
hoo cn1A of md -balr
and the money was promptly refunded.
THE PLOT DEEPENING-MoRE BOGUS BONDS.
''This morning Mr.. Wooster Sherman, who has
an ONCE above Messrs. Duncan h Sherman, the
bankers. In Nassau street. opposite the Sub-Treas-
ury, called upon me and asked me If would like
to make time loan on New York Centrals seven
per cent OF 1870 asked him how many he had and
he told me 10000, and that he wanted to
borrow eighty five per cent on them for sixty days.
I then asked him If he had them, and he
said, Yes and showed me one. Upon
examining 1t l found IL was a very excellent
counterfeit and forgery and II / had not
had my suspicious aroused on the subject
should not nave hesitated in purchasing or making
an advance upon them then told Mr. Wooster
Sherman that he was unwittngly the owner of
forged bonds, and that as they were in his pos
session must demand OF him where he had got
them from
AND WHO HE WAS ACTING FoR2
He promptly answered he was doing it for Mr..
Brown reputed broker having an Office at 112
Broadway, and tnat II there was anything wrong
he would willingly use his utmost Efforts in CO.
operating with me to detect the Offenders.
SENDING FOR THE STOCK EXCHANGE DETECTIVE.
/ then sent for the Stock Exchange detective, Mr..
Thomas Sampson, who promptly came round and
we went to the Office OF Mr.. Wooster Sherman, at
the address l gave you before, where we found
Brown sitting. As soon as arrived there and saw
that Sampson had his man left. Sampson then
arrested him, and found In his possession less
sum than $4,000 worth Of bonds OF the New York
Central seven per cents of 1876. Since then have
seen $4,000 other forged bonds Of the New York
Central Railroad, Of the same denominations and,
IN my Judgment, from what have heard and SEEN
j believe am justified In saying that there exist
from
TWO HUNDRED THOUSAND TO TWO HUNDRED AND
FIFTY THOUSAND DOLLARS OF THESE BONDS
now noating in the market. As far as have been
able to ascertain the chief operator is one Charles
]. Williamson who Is believed to be Identical with
the notorious Ross and Wright. This man appears
TO have been dealing through various brokers, to a
very great extent, dealing principally in New York
Central seven per cents OF 1876, New York Central
SKIES of 1887, New York Central skies of 1888 and
BufEao, New York and Erie first mortage bonds
Williamson is an outside man, and cannot take
upon myself to say whether all these bonds Just
mentioned are forgeries or not, or merely covers
BY which he was enabled to issue forged bonds; 1t
u Impossible TO tell.
CAUTION TO THE PUBLIC.
'T should think 1t advisable for any persons who
have bought any OF the classes Of bonds Just men,
toned since the date OF last interest payment to
have them examined at the several oflces OF the
companies to have their genuineness attested.
''ssmpson our detsctye was instructed. whenne