The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-03
What Superintendent MatseII
Has to Say.
A MYSTERIOUS ARREST.
The Continuation of the Examination of "Old
Brown" at the TOmbS.
What the Notorious Lambert, Now Pris-
Oner, Knows About Williamson
and s'The LOunger."
THE COUNTERFEIT $500 BILLS.

the Detective Department, under the direction OF
Captain Irving to arrest the three principal oper-
at0rs IN the great forged bonds case. The case Is
being worked up by Captains Irving and Sampson,
Detective Elder and Captain Walsh, of the Seventh
precinct. Hopes are entertained that the
TRINITY OF MALEFACTORs
concerned In this case will be speedily brought to
justice. In the meantime let it suffice to say that
superintendent Matsell holds mysterious pris-
Oner at Police HEADQUARTERS whose name and an
tecedents have not yet been divulged nor probably
will be for some days. The greatest anxiety exists
On all hands to know who the unknown capt. We is
The superintendent, for the present moment,
firmly and positively declines to disclose his NAME
Last evening the reporter went to the residence
Of Mr.. Matsell in Fifty-eighth street, and was
shown into his study. where the following CONVEX
sati0n took place.
REPORTER-I have heard that the sOnin-law OF
George Howell is reported to have been in connec-
ton with Johnson, late OF Sing Sing prison, who
came on to this city and acted as newspaper re-
porter, and was discharged from his position for
bacxmang, after which he returned to his old
profession Of counterfeiting. 1 have also heard
that Johnson has lately been seen in company with
another State prison Bird and that the two are
reported to have dscoursed together for several
hours one night. The notorious Williamson is also
CHIEF-Wel at the present moment am unable
to speak positively as to the correctness OF what
you have heard, but believe that your SUPPOSE
ton Is not altogether baseless Captain Thomas
Sampson is using every effort to get to the bottom
may be wrong In this, but hope not for myself
am taking the greatest interest in the effort to
iatho 9I the mystery: Well we have all laid our
1urther arrests. Some days the detectives would
tell me, 1--WE have apparently lost the track" and
SWELL NEVER MIND, BOYS,
you must SLICK to 1t ike suthhounds" and ! am
al say nas the
learn of the existence of forged bonds we try to
ges a. the guilty parties but there Is many slip,
look out keenly for the slips in the Police Depart
ment.
THE PHIL. STANLEY GANG.
Some time ago, you may remember Tom Sampson
arrested Phil. Stanley for being in possession OF
forged Toledo and wabash securities, and we are
now delfberating whether some OF the gang are not
implicated in the present gigantic swndes but at
all events the arrests we hope to make within
matter. Johnson, whom you before mentioned,
married one OF Howells daughters and a lieutenant
called Redgauntlet on account Of his red whiskers
and red hand.
REpoRTER-From what gather, Chief, you be.
lieve you are on the right track2
CHIEF-We do, undoubtedly, and believe mo- the
matter Will not be much longer in suspense. All
the swindlers connected with this bond swindle
have been properly "piped," and all the necessary
surveillanc, has been bestowed upon them.
The Examinat ton OF cold BrOyvno-He
Testifies in His Own Behalf-Cross-Ex-
amincd by Judge DOwling-ImpOrtan
Testimony of b. N. Holbrook.
The examination in the case OF Leonard Brown
was continued yesterday morning before Judge
Bowling. Precisely at ten O'Clock the counsel for
the Defence Mr.. william H. Fields, made his ap-
pearance in the examination room. The prisoner
Brown was brought up and looked as usual, not
only cool and collected, but calm and confident.
AS soon as Judge Downing took mis- seat the counsel
for the defence made motion for the dismissal OF
his client on the grounds that he (Brown) had
only acted as a broker for williamson and had no
knowledge of the bonds being forged.
Judge bowling denied the motion, and Brown
was put upon the stand in his own behalf He pro.
ceeded to give his statement as follows:
BROWNS STATEMENT.
am sixty-seven years old; Thursday afternoon
last, between five and six O'Clock, was passing
up Broadway, on the west side crossing Chambers
street some one put his hand on my shoulder;
turned around, and it was Mr.. Williamson; he said
he was looking for me- he asked me where he
could see me the next morning; replied "where
ever you wish-say the Aston House at halfpast
ten;" l was there the next morning at
at that time; Williamson came In, bought a HERALD
in front and looked at quotations OF the stock /;
made lead pencil mark above and below the
New York Central rs TO- quoted at 1O1 he wanted
to know If could borrow money on that stock; I
said, "Yes, If they were correct;" he then told me
he wanted eighty-fve cents on the dollar, and that
he had thirty bonds, which would make the amount
$25,50O, for Sixty days at one and half per
cent, to cover all, excepting one
told Mr. Williamson, ~ have'known you several
months, but wish you to give your full name :"
he did SO; he told me his name was Charles j. Will
hanson; then said to him, az want you to give me
the name OF somebody who knows you-some per-
son to whom you can reer;" he gave me the firm
name Of Killian, Billings & Funkhauser OF No. So
Broadway; then left him and passed down
Broadway and saw the sign over their store then
went to the place of business OF John W. Eddy
Co., No. 26 Pine street, and told them that
WANTED TO EFFECT LOAN
Of s25,500 at sixty days at one and half per cent
to cover all excepting one on thirty New York Gen.
trail sevens OF '76; Mr.. Eddy told me he knew
Mr.. Funkhau ser in st. Louis, and knew him to be q
good man; Mr.. Hoibrook, his partner, said he
would go out and see what could be done /;
he came back In a short time and said the
rate was too low; l suggested to him to
make an offer OF one and three-fourths to
two per cent; went out and came
pacK at three O'CLOCK, and Mr. Holbr0ok
was gone; then made an engagement with Mr..
Eddy or halfpast nine the next morning; when
arrived there both partners were there; they said
they thought the loan could be erected at two
per cent; met Mr.. Williamson at the Astor House
and told him he would have to pay more ;
he agreed to pay one and half per cent and a
stock note to draw seven per cent; he did not
have the bonds then in his possession but
said he would get them and meet me 1T eleven
O'Clock at Mr.. Eddy's place OF business; when he
came there introduced him he told Mr. Holbr0ok
ne had the bonds and took the two packages out OF
his coat and placed them on Mr.. Holbrook's desk:
Mr. HolbroOk took out a bond and remarked that
he was with Mr.. Corning at the time the CONSOLE
dalton took place; he went out with bond ;
before going asked Mr. Williamson II he owned
the bonds and II ne wanted loan or $4,000 at
and half per cent ana q stock now drawing in
terest at seven per cent; he answered In the
Affirmative; Mr.. Williamson remained until fifteen
minutes to twelve, then went out saying he had
an engagement and would return at little after
twelve,
LEAVING THE BONDS ON THE DESK;
Mr. Holbrook came in shortly afterwards and said
he had seen several parties; then went out again
tn frv Mr.