Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1874-11-04
A BIG INSURANCE FRAUD.
A COLOSSAL BUSINESS DONE ON A cAPI
tai OF NOTHING. .

A COLOSSAL BUSINESS DONE ON cAPI
TAI OF NOTHING.
On Tuesday evening veteran forgei
lately out of Sing Sing prison was ar
rested in Brooklyn, and taken TO Phila
delphia in the midnight express by
private detectives. The charge against
him was that he was implicated in al
extraordinary swindle, somewhat rc
scmbling the collapsed Palisades In
surance Company Of Jersey City, but
of far greater magnitude. The plinci
pals in the case are said to be promi
nent insurance men and bankers o.
Philadelphia, and the story of thcil
operations is one of surprising interest
They conceived and attempted TO carry
out deep-laid scheme to make for
tunes ON a sham capital.
The story of the Philadelphia officer
is that in February last the Contra
Fire Insurance Company was organ
lied in that city, with W. d. llaliman
u millionaire, as President; W. ii
lIalfman as Treasurer and Secretary
and for directors, John Nicholson Ell
bert, w. J. Noodle, G. A. Duy, and p
Thurlow.
The conspirators represented to the
insurance authorities Of Pennsylvania
that they had capital of 100000 in
vested in various railroad and Other
securities, and that their stock had
been subscribed for as follows; p. Thur
low, SEQ shares, $4,000; G. A. Duy
200 shares, $4,000; w. II. Ilalfman
100 shares, $1,000; w. ID. Halfman
800 shares, 100000; W. ]. Noodle, POO
shares, $4,000; Noodle. Gross d Co.
40 shares, $4,000 and w. ID. lalfman
1,5GO shares held in trust, $4,000.
The securities which the company
had purported to consist Of 100000 in
mortgages 500 shares Of Philadelphia
and Reading Railroad stock, s2s,s75
500 shares of Lehigh Valley Railroad
stock, 1876 500; 500 of the Delaware
Lackawanna and Western Railroad
s26,s44 3c0 Of the Central Railroad
of New Jersey, s3l,s75; 100 of the
Pennsylvania Central and 5000 ofthe
Lebanon Paper Company. A charter
was granted TO the company, and in
July they opened magnificent Office
in Chestnut street They had il ele-
gantly furnished, and employed a large
corps ofclcrks. John Nicholson Elbert
acted MS manager and he inspired con
fidcnce in the company, being a mem
bcr of the Philadelphia Board ofTrade,
and well connected The company
ran along smoothly and with every in
dication of having prosperous exist
encc until about the middle of August,
when Mr.. j, NJ. Foster one Of the
Commissioners of Insurance Of Penn
sylvania, became suspicious that all
was not right with it. He made an
investigation, and asccrtained that the
corporation was sham, and its entire
securities were forged and altered to
many times their original value II
was the old story of Montague Tigg's
Anglo Bcngalee Disintorcsted loan
and Mutual Life Insurance Company
with its elegant Office, its prctcntious
array of capital, and its outward signs
of stability and success. All about the
company was sham.
The officers say that Commissioner
Foster made two examinations into
the accounts of the company before
the full extent of the swindlc was dis
covered. Their books showed that
$4,000 had been paid ON account of
stock, but thatamount was all in checks
that proved to be worthless. The
Union Banking Company heard of the
suspicious against the the new compa-
ny, and remembered that il had lent
it $4,000 on two ccrtifcates'of Phila-
delphia and Reading Railroad stock
One Of the certificates was put under
n powerful microscope, and il was seen
that II originally represented one share
Of stock, but that the number had been
erased with chemicals and 300 shares
written in. The other certificate was
found to have been altered in the same
way, except that II was raised TO only
200 shares.
The discovery led to an inspection
of the rest of the securities represent
ing the capital stock of the insurance
company, and the result proved that
they had been similarly tampered with.
The certificates were each issued for
one share of the stock, and had all
been raised to different numbers, some
as high as 800. One certificate Of the
Delaware and Lackawanna, changed
from 100 to 800 shares, had tho name
of w. ID. Halfman, the President Of
the company, filed in, but as the name
could not be found on the books Of the
company it was thought that II had
been forged to enable the holder to
effect a loan. Most of the stock was
transferred TO ]. N. Ebert.
Commissioner Foster made q report
of the fraudulent character Of the com
pany to the Attorney General, and the
latter ordered ii TO be suspended
President Halhnan, the Treasurer, and
the directors Of the company were sub
sequcntly arrested on charges of per-
jury, conspiracy, anc forgery. Ont
hearing of their case before Philadcl-
phia magistrate, the statements made
by the President and the Treasurer
under oath when the company was
formed were introduced.
President Halfman's was to the
effect that bo had subscribed for $685.
900 worth of stock, and that he paid
for IL in three checks drawn to W. 4.
Ebert, banker Of 1921 Walnut street.
The Treasurer made oath that he
had received the Presidents checks,
and had given them TO the Finance
Committee to deposit. There was no
entry in the books TO show that they
had been deposited. Mr. w. II. Ebert,
q respected banker, testified that Prcsi.
dent Halfman's checks on him were Of
no value, and that hc had not author
lied him TO draw any on him for any
sum. The witness said that tho mana
ger of the company was his nephew.
The officers and directors were each
held IN s20, 900 bail. The only officer
who borrowed money from the COM
pany was ]. N. Ebert. lie dsap-
pcarcd when Commissioner Foster
made his exposure, and detectives
looked for him in H. Louis, Chicago,
anI naf,,if uto,.o to hoa ..I.t;.,..