The New York herald., 1874-12-13
Scheme to Flood New York and Pbila-
delphia with Worthless Paper.
WILDCAT INSURANCE COMPANIES
The Detectives Exposition Of George +. Hills
Plans and Operations.

| ally uncovered, alterward adrOttiy explained and
finally unmasked again; and. though the perpe-
| traitor OF the onence IL known and even under ar
rest his action Is so full OF artince that he has not
yet alter the lapse OF several weeks from the time
OF his apprehension, been punished In the
| ightest manner. The story is OF the
| frauoulent actions OF which the police allege
George r. HIT, OF Philadelphia, has been guilty.
From the beginning, as the police tell it, the story
Is IN substance as follows:-George F. Hit is OF
| wealthy parentage and q man OF great natural
abilities. In his youth he was q medical student,
and while such he gave great attention to the
subject OF toxicoogy. In his latter years he has
| often boasted OF mis- knowledge OF the
| ehects OF polsons He never became accred-
iteo as physician, as ne relinquished
his medical studies and entered into mercantile
business. He first took part In the insurance
| business In Philadelphia. AlTerward he moved to
Chicago, where he followed the business OF an
| insurance agent, and then gave it up to become
dealer In grain Soon he returned to Philadelphia,
where he again entered the Insurance business
Judging from the accounts OF the police
| the City OF BrOtherly Love is the pe-
culiar field OF "wild cat'' insurance
| swinders. Hit had not been long back
in Philadelphia when he became the Secretary
and also the Treasurer or the Safeguard Fire In
surance company. The corporation was o.ga-
nized by Hit. 1t had no proper monetary foun-
dation, yet 80 plausible 80 smooth OF speech and
deceptive In manner was Hit that he induced q
number OF reputable men In Philadelphia to ac-
cept positions and allow their names to appear as
those OF the directors OF the bogus company Hit
put the company into working condition. He or
ganized agencies In several States, and he offered
everywhere large premiums to agents. There is
another Insurance company OF the same name AZ
Hits concern which has Q good reputation.
and the confidence which 1t enjoys induced many
people to c0nnde In the swindling institution
Everything went well with the Safeguard
Company for several months, during
which Hit received about $4,000. The
company had luxurious offices, spry and
dapper clerks, and hilt when he was seen,
bore the manner OF an an xious hardworking,
duty-loving business man. When he was not seen
in the outer ONCE he was, 1t is said, within his
private ONCE, his feet placed easily upon his desk
and box OF prime Havanas within his
reach. Meanwhile the Safeguard Insurance
Company prospered. When losses happened to its
patrons they would sometimes be paid-that is
when there was purpose TO be served; but
usually counsel would be employed to contest the
claims, and, they did not succeed in gaining ver-
diets for their CLIENT they at least sec ured time to
the bogus company. Soon, n0wevsr, q difficulty
arose, to meet which new means had to be
devised Mr.. Foster, the Insurance Commissioner
cat' insurance companies He suspected that
the Safeguard Company, was OF "wild cat' origin
he would soon examine the affairs OF the com.
pany to discover it's true assets Hit was not
ties were only spurred on BY it. ne soon de vised
methoo to deceive the Commissioner. He caused
epa TSsn Ss he Knew .sp al table
insurance companies have large investments Ia
bonds he d:s;ransd e. a. to present to Mr. Foster
was largely Interested In United States and rail-
cHad cS ,dS bonds m for bought in tns
STATE sas 1'soosS .ssss sss'nssa ssa
on the fact that the bonds which have been issued
by tue State since its reconstruction have con-
Besides these he secured from other bogus in.
surance men and from dealers In stolen securities
number sses rsse
bonds, the names on which he had altered,
Hits plan DOW % narroSy Up escaped deieai sdSSk.
In looking over the mortgages that were pre-
eas the 9
pany. II that honest person had happened to look
over the books he would have uneartned an i'm
secrets Of "wild cat,' insurance methods DDS
much Tau sooner than he has been. Well,
ttne STABILITY Of the Safeguard Company
f. G f mss fsSsssg ssvg they sased that o
pany So Jar ali Was eSs w @ anu his
schemes. But his success urged him on to greater
.5s He conceived grand plan
prepara.lons ,or that eve event. aDG He o.ca%e a1s
MIN Of the litnoGraphers and printers VINO aided
them, and these men he soon had in his employ.
the notorious Jack Canter. who is. perhaps,
the most skilled penman in the United
PoadepRRs KspRs' x1s was
ordered Dy Commissioner Foster to make an ex.
there was eudy yis bet~sen Prnde
its Secretary, and Hit Prinde knew how Hit
had worked the Trial o. the
ns;. nis bogus s sS%ps1y s3y.n hs ,v, were xsI
inca, IN cash and good notes. ana then he furnished
Prind!e with the Southern bonds and some Of the
well. But when these were presented to the Com
missioner they were rejected. This caused the
soon as 1t was gone out OF the nnancial world the
shrewd Hiit, showing that Prtndle was
latter, VINO specdiiy had to leave the s country.
HIT was now living iuxuriousy in one Of the best
q - r. az M
was at his command He and his Vile, 81
paramour, FQre the finest diamonds and drove
sssoss ss Sss; 5 sSSa 5. sss IL s Sss snsS
Of FSlsas1pSs ana NV y FORK, ana was doing
securities, he was suspected in Pnilaaelphia not
the Peoples nor the Third National Bank, where
he M had .u , accounts, Gun could ne get large i.ans
toner olthe latter bank, who loaned him $4,000 and
accepted as security United states registered
bond for S. 600 From an unsuspecting banking
concern In Philadelphia lie obtained another loan
Of 900 and gave 1t as SECURITY. also other
MIR. Gavitt mad made hf6 became due, Hit did
not pay II, and so the bond he mad given was sold.
1t passed through several hands and finally
reached the United states SubTreasury In thfs city
There 1t was discovered to be bond that had been
stolen ana was altered. IL was returned throughe
Hit Immediately redeemed It, and escaped being
arrested As soon as tnis accident TO his plan
happened Hit. fearing that the banking instltu-
ton from which he had borrowed the $45OD0
would hear OF It, and, having examined tie
securities he had given the establishment,
would discover that they also were va.ueless,