The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-20
THE STOCK FORGERIES.
Investigation by Five Governors
of the Exchange.
Another Meeting Yesterday Brokers Summoned
$ to Give Testimony-What One Man Over
heard in q Tumult-Mr 1cKaye's
Broker Examined-The Psrpe-
traitors Of the Swindle
Must Be Discovered"


Must Be Discovered"
The opinion still prevails in Wall street that tho
disreputabie lorgeries OF Tuesday last though In
sighlhcant In their immediate results as far a.
the financial community was concerned, have re-
necteo 30 much disgrace upon the New York Stock
exchange that the Governors OF that institution
mast spare no EFFORT to discover and punish the
perpetrators OF the fraud. One OF the Oldest and
most prominent men on the street, yesterday, in
taking on this subject with q HERALD reporter.
SAID, IN most emphatic language, that in his
opinion 1t was useless to endeavor to raise the
great STOCK mart Of this country to the level of
the English Stock Exchange or the Paris Bourse
and keep 1t there while
SUCH DIsGRACEFCL swINDLEs
by which any man may become the victim.
can take place and the originators 20
unwhtpt OF justice. The Governing Conn
mittee seem mos. determined to keep their
action in the premises most secret, and firmly
decline to give newspaper reporters any mforma.
ton on the subject. The statement that Mr..
McKaye had been examined before them and the
precise nature Of the extraordinary testimony he
had given been published in the HERALD yesterday
morning astonished the frequenters OF the street,
ana several prominent members OF the Governing
Committee seemed to be profoundly disguised al
the matter having got into the public prints. The
fact that Mr.. McKaye had volunteered so impor.
tant . statement also seemed to create good deal
OF surprise and comment.
HERALD reporter learned yesterday from the
most reliable sources that that gentleman had been
before the Governors on two successive days. Tues
day and Wednesday, and that finally 1t was re-
solved by the committee to delegate the entire
charge OF investigating the forgeries to q sub
committee, with instructions to report the
result before taking any decisive action. That
subcommittee or i've met yesterday after
noon at the Stock Exchange at q quarter past
three O'Clock Mr.. 8. v. White, q broker, dong
business In Wall street. was summoned beford
them. 1t appears that Mr.. White Is the gentleman
VINO operated ON the floor OF the Exchange foEMr
McKaye, VINO Is only subscriber, and at the time
the forged letters were read occupied
SEAT IN THE EXCHANGE
outside the railing, from where he gave tnstruc.
tons to his broker to operate when the appointed
time came. What was the exact nature OF the ties.
timony given by MI. White before the sub-commt-
tee OF the Governors did not transpire but 1t was
understood that he corroborated lully Mr.. Nc.
Kaye's statement as to his having received In
the Stock Exchange, and that he was the lass
broker who vas selling Western Union stock when
Orton, the President OF that company, was read
by Vice President Wneelock, and the STOCK went
down S with na tumble nearly Jour per cent.
other member OF the Stock Exchange was
summoned before the subcommittee the Cow
erning Department, and that he made statement
that on Tuesday afternoon, about one O'Clock Inn
mediately alter the forged letter rom the Western
Union Company was read ana while the exclte-
ment Of the sudden iall which followed was at Its
height, he heard one broker, who was standing be-
side him. say to ..S another neI ,..uu
He was unable, 1t is said, to identity this man or
give any definite description OF hun on account of
the excitement which prevailed at the time, men
rushing hither and tnitner ana everybody In q
hurry. ,1 The reporter has the authority
subcommittee OF the Governors have re-
celved certain Information which indirectly I'm
In this connection, and that there was more of
this particular diSreputable transaction done
within the walls OF the stock Exchange tnan with
out-meaning, or course, by outslders-n0twith-
standing all statements to the contrary. The de-
tectlves, who are unusually mysterious say they
expect TO be able to unfold some important devel-
Opments In the matter to-day. They profess to
pay attention whatever to Mr.. McKaye's state-
ment published in the HERALD yesterday, and
laugh at the individual with the mutton chop
whiskers who was said to have supplied gratu-
itously the valuable Information which led that
MR.. MKAYR's BROKER
After the subcommittee had adjourned, at four
O'Clock, the reporter called on Mr.. White, Mr.. c.
Kaye's broker, at his Office IN Wall street. He
said that he had Just come IRON the sub.commit-
had received Information winch would impIicate
several members OF the Stock Exchange, he said
that there was no truth in the statement.
FURTHER STATEMENT OF MR. M'KAYE
me HERALD representative then called on Mr..
Mckaye. at his office IN Broadway, in the Etna
Lie Insurance building In reply to the reporters
questions he made some further significant state-
ments When asked or an accurate description
Of the man who gave him the Information at the
ST. Nicholas Bank which led to his operating SO
successfully, he replted:-
81 stood by him at u window and looked at him
closely. HE turned away and said, DON'T look &C
me attentively / don't want you to know me
again. OF course did not look at him very closely
after that though thought the matter very
strange at the time. He had no overcoat on and
1t seemed to me mat he had come from some
neghboring ofice as it was q day on which one
would need an overcoat. That struck me as
strange Also"
Whom did you think he was, might ask, Mr..
"weIl, thought he might have been an old
clerk Of mine" was the answer. "You know he
was young man. and young mems faces do nos
fix tnemeelves in ones recollection as firmly as
The more defined features OF old persons. lam
we'll aware that am open to suspicion and that
my conduct has been suspected, but circumstances
have consptred against me.
THE ONLY CONSOLATION TIA
have In the matter Is that made $4,000 $1,000
by the transaction, and no more but would will
ingy drop the $1,000 to be spared this result.
When discovered that the Governing Com
mttee had taken this matter up and that nv
name had been mentioned IN the connection at
once went to Mr.. Chapman, the President OF the
you suppose that II guilty in this matter that
would have taken the most prominent position I.
could have occupied in the Stock Exchange when
subscribers seat behind the ralingf No;
OR ANY OTHER NAM ...
would have gone to our ONCE and sent a messen.
ger to our broker with Instructions That is what
would have done under such clrcumstances.u
The reporter learned that one man had bought
5000 shares OF western Union when the stock was
at Its lowest point, and thereby realized IN few
minutes three and q hall per cent, or SCI 600 His
name Is known to the subcommittee. lie is out
aide the Stock Exchange.