The New York herald., 1874-10-09
A GIGANTIC FRAUD.
The Central Insurance Company Of Philadel.
phia and Its Operations.
Arrest Of Cantor, the Bond Forger, in Brooklyn
Yesterday Connection with the
Company "A Marvellously
Organised Company.

J0nn w. Cantor anaS Cnarles RIPLEY, allaS Ouver
Ostend. was taken into custody BY two Brooklyn
detectives on Wednesday night ar the instance OF
Detective Pinkerton, OF Philadelphia on charge Of
swlndllng on most extensive scale. The prisoner
has been boarding Ior the past TWO weeks Mt No 26s
washington street, Brooklyn, where he had q suit
OF apartments. From what can be learned OF the
transaction IN which the accused Is implicated
from the police, 1t seems that by the laws OF Penn.
sylvania upon the organization OF an insurance
company In that state the Treasurer OF
the company must deposit with the State
Comptroller as collateral Donos representing the
value of $30o,O0O Fifteen thousand dollars was
the amount OF capital possessed by the Central In
surance Company, with which Cantor Is connected.
Tie company was formed about three months ago.
and the cash capital was placed at 100000. The
$4,000 was invested by the conspirators In the
purchase OF railroad bonds OF the Central
Pacific and Reading and Philadelphia Railroad
companies and Western Union Telegraph Com
pany. The prisoner, It Is alleged, was employed
to alter and increase the figures the lace OF
these bonds so as to make them represent the
amount required to complete the collateral to
be deposited with the State Comptroller. The
operations were for the greater part, earned on IN
the keystone state, and the headquarters was IN
the quaker city. Cantor came to Brooklyn, where
he hoped TO gain an immunity from observation,
vainly supposng that the scandal would absorb
all atten ton from MIN in thar quarter. There ic
| Is supposed that he completed the work OF alter
ing the bonds which were duly forwarded to the
Comptroller at Harrisburg for examination, and
presented with an application for charter. The
State Examiner readily discovered the fraud, and
placed the working up OF the with the Pinker-
ton Detective Agency. The detectives OF that
| bureau at once suspected John W. Cantor, and
traced him to his boarding house in Wash
/ Rro0
hun into custody Mr.. Pnkerton called on
Detectives Folk and Corwin to accompany
ance when arrested and expressed no surprise.
Concealed beneath bed the Officers found
aud other parapnernalla Of counterfeter, ali OF
which were taken possession OF BY the police. There
were also found seven Westcnester County Rail-
road bonds, all fraudulent, and eleven bonds Of
the Mexican Republic, fraudulent, coupons which
Whan sa e o o Se
1 against him he voluntarily returned to Phiadel-
pnia on Tuesday at midntgnt IN charge Of pinser, M
there. Two otner arrests were made At Philadel-
phia yesterday.
Early this year the Central Fire Insurance Com
pany OF Philadelphia was organized, With Mr. w.
ID. Halfman as President, and according to the
| the original subscribers:-
" D. haiman, PTes,dent aoo shares 1900
" r. EbberIS w. iSo sh " Sos
j. W Ransn ioS shares 500
~ a NY, I =" sa res owW S9W
Noodle, Gross Co.. 90 shares 1000
W. h. Haliman In trust $50 shares 7Oo0
1t is alleged that the cash book showed $500 600
PAID IN on account OF stock, but which, It has since
been ascertained, merely represented checks
following were the principal ofcers:~W. s D. Hall
man. President; Fl. W. Aalfman, Treasurer; W.
Mooale' Y; a: Dny. +. Thuriow, W. d. ELDERLY and
Thev shortly afterwards opened an once in
Chestnut street, Philadelphia, and employed about
ten clerks, Their managing man was q Phnadel-
pnian, named John Nicholson Ebert member OF
specially connected, his uncle being prom inent
banker W. .. Aalfman the organizer and Pres
iaent was man IAN known to be wealthy and highly
In August but, according to the State laws ol
Phlladelphta- an 1nvestl0ation was made BY J. Nj.
Foster State Insurance Commissioner, concern
ing the securities Of said company. He found the
securities TO consist OF the following VIE. -
So shares fhilsdsphia and Reading Railroad
80 shares TsSsS valley aairoad 20
SO shares Delaware. Lackawanna and Western
sSsss. as,ss ssx
| troll OF Pennsylvania central.
sa4es sn9ss WEI. nS Rs2ssd rfes 81
All OF which were said to be absolutely owned
by the company. except the Delaware, Lacka-
$4,000 had been made. The certificate OF the
Philadelphia and Reading road stood In the name
| OF Caroline s. Ebert and b. Ebert and were for
2o0 and 800 shares respectively. The securities
were all placed In tho hands OF the Fidelity Trust
SUSPICION OF FRAUD.
Itwas discovered at the ONCE OF tae Reading Rail-
road Sampany tnat the certificates were originally
800 shares respectively, the alteration having been
made By forgery; the par value Of Reading Is $50
eacn The Lehigh Valley certificates for 500 shares,
$50 shares and 800 shares stood in the name OF the
Contra! Insurance Company. letter, however.
Valley Railroad states that the certificates In ques-
ton were for one share each. OF the Delaware.
issued one certificate, which was raised TO
500 shares Information was obtained that
". D. Halfman's name STANDS against the
| Delaware, LacKawanna and western Railroad
for 500 shares, and that the certificates had
been made TO somebody else and Halfman's name
inserted. The Information was found to be the
same respecting the central Railroad OF New Jer-
sey and the rest Of the stock mentioned. On August
| there had been transfer Of one share OF stock
to J. N. Ebert and to another person, end the
shares had been increased to l00 Mr.. Foster,
after he became aware OF the worthlessness Of the
stock, notified the Insurance Commissioners.
1 WHAT THE INSURANCE oFFlcERs swoRE.
MI Haifman swore when M examinedai ,S sm Pres Pres
urer by check; the check was on W. T. Ebert,
walnut street; ! am also President OF the Penn
sylvania Boiler Company; subscribed 200 shares
W. g. Haifman deposed that ne was Treasurer,
and that he Kept no books; that he received
200 tn checks and gave them to the Finance
Committee did not deposit the checks; held 100
eiss the Peoples Bank W j. Moodie also IS swore that
ne held 800 shares. G. A. Day stated that he was
Director and member OF the finance COMMITTEE !;
| checks were all handed to the finance Committee.
W. I. Ebert, uncle TO j.. n Ebert, testified that
he was not banker for Mr.. Halfman; Mr.. Ebert
| was never authorized to draw on me; he Is not
! in my employ; ne used desk room In my onlce no
checks we're deposited with me; had confidence
IN him.. w. T. Ebert was subsequently held IN
ban OF $50, 900. After the investigation IN the end
OF August 1t was found rom J. n. Ebert tue man
aging man. that nobody had deposited any stock
as collateral or borrowed any money. AS soon as
this became Known the Union Banking Company,
OF Philadelphia, came forward and said that they
had lent $4,000 on ECO shares OF Reading Railroad
stocks, and on examination by microscope found
that they had been altered, and that they had
been vicmized to the extent OF 81, 95o the shares
being $50 each.
fne case was tnen put into the hands OF Detec-
tive Pnkerton,. OF Philadelphia, VINO put . watch
on all o1lcers OF the company, and ElDert.s rela-
! tives al Detroit st. Louis and Chicago Ebert Is
said to have hid away for three weeks In Pniladel
phia. In the meantime the company tried to COM