, 1874-10-14

An Astounding Frnud brought to
I4ight-Eunsv 1. Hs0::tts x1fEt1t:lssct Eon7-
p:tHY Wna Organized i'll HMAiuuri-
phlUs
From Tie Ne,o Tort Eepnolic, Oct. q.
One of the mont daring aud desperate ill.,
Btarces Of fraud which Las conlc bcfo.e The pub-
lie for long tilne haa been brought finally to
light by the arrest on " Wedncs,lny evening, Mt n
saloon in Bridge street, near Myrtle avenue
Brooklyn. Of the notorious fol gcr Charles Oste,
alias "juck Canter."
Tho circunstauccs Of tho case nre marvellous
fro III lho beginning, both oil accourtof tile bold
ness aud ingenuity or the conspirators~ tho
Etghntic natuse of the swintllfl,g operatiotss an
the con!me: cal responsibility Of most OF those
engaged in the transactions.
The history Of tlieso nefarions proceedings
boGiuH with the foundation Of tlo Cen.rul F!yo
Insurance Company Of Philadelphia, III the early
part OF lllis yonr.
A SHOW of woalth and groat external respcc.a.
billty wero tho 1rst means employed to deceive
tue community. Magnificent oiiccB we're rontod
u Chestnut stteat tho treHcoed wails Of whici,
wero adorned with exquisite paintings, which wed
III effect with lho splcndor OF tho furniture uni
the r:h luxuEiousnsaEs Of tho carrctinr OF theBo
lecl!olcho oltcos. We'll Dire. scd men stocd be-
hind tho dcsks and, to leave nothing to be desired
the Directors und chief officers woro universally
regarded an mcn Of wealth and largo
financial credit. Among these, tho presi-
dent, ". s. 1falfman. took tho foremost
piAce, mouel mnn, and. as it turned ont at,ov-
ward, tho ouly man oI ,nesns connected with tie
concern. Tie managing Director, John Nlchol-
hon Elbcrt, was ragardod as beiug III f4lr crenn,-
stances, hB relatives boing persons OF known
aud substantial wealth. II. II. Hai11uQp, rein
two ct tho President, wna tho Treasurer Is, j.
Noodle nud Charles i. lay, both VOL known NJ
business mon 10 phadolo ohia, ,sero gnlong Tho
Directors. lilo Company was Guly organized
undor charter. III nctordanca with tho Laws Of
m a n Of tIxtoS.fn
Tho capital represented 3200, 900. Among tho
principal stockholders voro:
s. ntHnan. 69o 6hares... SEC, 900
+ Innro", 900 saares.. ~ 90
II. ". Huffman, eco slarcR,... ..........., 1860
W. j. Noodle. 80 shares. TO- tQu
All tho ehareB wero covered By checks from
tho parties NAMED, which, It wss understood,
were ucvor to bc honorel.
In addition to tltcso ttatitous amounts, ". D,
Haip,nan held in truat LEGO shaios representing
$7S,0uu.
Tho csah.book showed s2ooooO pail in on ac-
count Of atoc.
Thus successfully launched, tho Company
1oated in smooth water and with every a;,rcnr-
anco Of prosperity until j. II. Foster, ssato Com
nHsiouer OF insurance, appeared o,!t he scenc.
lie came to Investigate the condition Of tho now
company.
Alr. Foster found tho nsao.s of the Contral
Fro Insurance Company OF Philadelphia to COLI
aist Of:
Thirty thousand doars in mortgage; 600
ynii,cd ut s2S, ,875; SUI Htarcs Of Lchieh Valley
lailroad atoc, yaiuod at S,35, 900; 5u0 shares of
Deawarc, Lncda~unnn j. Westaru Railroad
ntock, vglned at s2G,a4 800 shares Of Ceutral
Nalltoad, New Jersey. valued ut sal, Sin; 100
Jersey; aud 5000 nhasos Of Lebanon Paper
Company.
All tins stock appeared to bo tho absolnto
nroporty OF Tho Company. except TINT ut tho
nnth =, T$...t
tGomp9ny; aud they also. held % bonls Of tho
West E.d Passenger Railroad. Ct Philadelphia.
Ihs cottitcatea Of tho Ph.ladelfhE {: ltentaluss
ltallroad Company were FIR 1uu H,id :.U0 shares.
a!la Dated in tue name Of tho ceutr"I Insurance
upon examination. Mr.. Foster regarded oil
tlose securities an perfectly genuine. Ha. how
ever, tunk ,numlc1B Ct tho certiEcateH Ut sioux,
and, to make assurance doubly eortaiu, uacl at
Tho HeadHg l'ailsoa:l ui!lco to eco IT thoy cor
ssppo:s!ed "llA tlleir leeords Tho rcunlta Of
these inquiries Hhuwoa that the col ticates oi
the philadolpllia l. Reading Haroad Company,
representing ,tm 2oo. md 800 aha,cs, M shown q,
Central lAsuraucc Company, l,ad boen originally
1Ehtlca Tor QUO Nl,R.a eacl,.
1t became oyidont ct onre that gomothlng WIS
%;ro'iG. '; ai,a up;n snb5teling tho doeumonts to
writing IN lhu certiacatou lad boon erased hy
tlo llso OF chaulfcae, a.t[ that quo aud 3U0 had
been substituted for tho. Original amount.
Tho exposure was ut once made. It iu.notll.
ately became nlanifcHt tlat I'LL the certificates
lutl l..eu tA1a altetId.
Mr.. Fostor also found tllat tho asool; Of tho
Delaware 1 Lackawanna 1'alropd winch appeared
III tho naino Of ". u. Huffman Ind been ssued
pct to him, bnt to another rar;y, mud ropreseut-
tng Int ono share eaeh though examination |
alHwol their value to bo increased 50p-roll.
The llE''a':o Company was tul Of bti=inesa |
by th!"tne. Ono of itB cur!icat raidH ha,l bee,,
un thu Union HankiuR Company wltl wllu,u
]. n. E!tc!t had hyl o.l1oca:eu clio Of tho j,,- |
tla!ed certificates Of tho thllAaophta l. 1Ioadlug
Company Yor 200 hAaroa, ter which Ae received |
G1Q, GOO. Yllg wNo n1ao found 70 hayn hnan h.