New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-02-18
81 MNANOIAL PITS. Z
WALL-ST. DUPED.

MARKET BROKEN BY TWO FORGED LETTERS
GIVING NOTICE or ADDITIONS TO THE STOCK or
WESTERN UNION AND WABASH.
The Stock Exchange opened quietly ycster-
day. Up to about y. NJ. tbere general advance
OF from to per cent Western Union Lake Shore, Har
lcm Uuion Pacific and North West leading the list bur
with DO large transactions in The brokers had set
tied do the conviction that 1t waste be dull day
ghou aud the attendance the floor OF the Elk
change was much smaller than Is usual at that hour
Soon after second call the apathy suddenly dis
peed by ono OF the audacous frauds that has ever
been perpotratod the history OF the institution
Some one presented himself at tho Newest entrance OF
the EN- hange and handed to page the following com
muuicaton incosed in large yellow envelope, ana adj
dressed to Moses II. whoelock Vce-Presldent:
WESTERN UNION TELEGRAPH CO.. new YoEK' Feb , IL
MOSES II. WHEELocK, wee PTeSideW " l. Stoc" III
chance:
yOu are hereby informed that directors Of this Com
lauy, after mature deberaton. and acting, as they
of the Company havo decided increase the capital
stock of Tins Company from si0Is4lO To SOOooOoO; tue
with The Is Of the sale OF .2gS235 OF stock lately
in tho possession OF tho Company. will DO expended in
exclusion OF the lines OF the Company to nearly all The
postOfces in the United States, and for me establish
ineUt limo to California and Mexico. The directors
beg 10 state that while the establishments OF new lines
inIy delay for little tho expected dividends TO stock
holders, they express confident hope that by thus
taking possession of the whole field and eheetually
thwarting the establishment OF a rival company, the
ultimate value Of the stock will be in way diminished,
aud that reasonable dydends can be paid at no distant
day. Yours truly, WILLIAM ORION, President.
Tho communication was written paper having the
Western Union Company's official headlines printed on
and Mr. Wneeook read it 10 tho Exchange without
submitting IL tho President. While tho reading was
still 10 progress second Communication was handed ill.,
and brought to Mr Wheeock by page. IL was IN
closed in an lenvelope similar the other and was
sealed with what appeared TO DO the imprint Of tho
Toledo. wabash aud Western Company's official stamp
Tie paper al,o bore the QG'ia headings OF he wabash
Company. M. Wucelook road thls as follows
TOLEDO. WABASH A.P WksIhnN Rtn " i.! CO."
10 the Vies.Prss,fent OF ne N. J. stock Erchangc
la accordance win tAo rules OF tue New YORK STOCK
Exchange. you hereby notified that at the eNpira-
ioH ,Hrty days tins Company Will issue 10000 shares
of adh iOua capital stock, increasing lho colnuon
Proceeds of sucn All 1nal shall be used the
purchase OF new rolling stock and engines, ana Tor re-
bridge for bading additional double track, Tor tho
purchase Of steel rams Tor obtaining improved terminal
facilities aud for OF ler similar purposes OF the ON
paBY Very respectfully, D. d. toN
TIE reading OF tho letters caused more excitement
than has been known the Stock Exchange since Sep
tember There was a general stampede to sell western
Uuijn and wabash. aud prices rapidly FELL the former
declining &c! 70. aud the latter from %. to 40.
These stocks carried the entire list with them; and
brokers sitting quietly in their o3es startled by
the quotations reported by the stock telegraph ana
rushed 10 the Exchange to what had taken place
Ia the midst OF tho Wild excitement few members
=
those famillarwitb sgnatures OF Messrs orion ana
Cox pronounced lhe letters forgcres The excitement
thcroupOn partially sub5ded and the letters were sent
TO the Officers OF tho companies with requests for full
information. The letter bearing the signature OF j. d.
Cox was returned with tho following Endorsement
The above IL not genuine. Mr. Cox - III Toledo.
There has been no meeting neither IL this Dir Co.'s sig
nature. A. ", BRIGGS, TRANSFER CLERK.
Dir orion sent tho folio wing letter:
WESTERN UNION TELEGRAPH CoMPNSY,i
NEW-l DIRK, Feb. Il, 1874
IL O. CaAruAS Presiier. HerYort Stoei EIehange:
sIR nave Just been informed tnat an announcement
nld0 the sock Exchange that the directors
of the Western Uaion Telegraph have recently voted to
increase the capital stock TO sjoOo,o" lhls annouuce'
has ncd lOr several IL 'ns nor has rhe matter Of
OF capital stock Of the COMPANY been SUD
ret OF consideration at any meeting or the Executive
WILLIAM orroN, President.
A reaction followed the reading OF the letters, and
there was as much an xcty purchase back tho stocks
sold rs there had been few minutes before TO unload
At first the decline nearly recovered but tho mar
ket was unsettled feverish, and closed weak II Is
impossible form estimate OF the losses caused by
the false though they Thought to be
very large. IL believed by prominent members OF the
Exchange that the swlndie was planned ana executed
by the persons who few weeks ago set in ercaa
ton the report of Commodore VanderDilts death III
coad not have besn expected that the street wonh be
deceived very long and doubtless the purposes OF tue
conspraors were achieved in the brief time that their
story was believed. II not intended however, that
tb3 truth should DO discovered 50 soon.
some i,rlOrO l.. M a note was received ht Tue
Office OF the Western Union Telegraph Company adj
dressed 30 WIN. Orion President, ana pearh. INC sS
pltnre of A. G.. Clarke. private secretary OF Com
m1dore Vanderbilt II requested Mr.. orion 10 attend
meeting Of nc OF the Wesern Union Telegraph
Company at the Grand Central Depot Ht 1870 D. NJ
siar notice, woIo 5oht - another gentleman IN the
Office who uDeyeI the Summons. Mr. orion WAS Onl OF
tie Office tho arrival OF the nCtO ana returning about
I:3D at once teegrdphed TO VIM. Il Vanderbilt TO learn
~ nntter ,ucl "A meeting 10 he held. receiving
repy IN the negative. he romIined and was ON hand
ready TO repu1iac the authorship OF the letter To hr
Wheeock IL was propo to keep hin out of the way
for an hour or two No Othoer OF the Toledo. Wabash
ana Western Company was In town excepting Mr. Ham,
Assistant Secretary and Assistant Treasurer He denied
the report mphatcay aud said That no meeting OF tue
directors bad bOen hold In which tho subject OF III
creasiug tho amount OF stock had been discussed