The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-12-29
RUIN In STOCK GAMBLING,
NEARLY HfLF MILIION DOLLARS
LOSr ny MR. OTIS ID. SWAN.
the society Library, the Union League club
the Prr-bvterian Church Of Oyster Bnr.
sho Phelps E-inte. and the Operators
wife aud Others Among the sufferers,

tho Phelps Estate, and the Operators
wife and Others Among the sufferers.
Mr. Otis d. swans failure in 1873 seems
TO have been the initial step In his mor.l as well
a. financial downfall. His friends at that time
sprang TO bis rescue, and several Of them sub
ecrlbed $4,000 each to start him in business
again but all to no purpose. He was again
drawn into the maelstrom OF wall street specu-
Iaton, and. as his own money was swept away,
he began to use the money that he held In trust.
1he nrst to 70, IL Il said, was his brothers.
Then followed the money OF the Presbyterian
Church az OYster Bay He had made many
handsome gifts to the church, and, having won
the confidence Of the congregation, had been
made treasurer ~ the church. His loss " the
monevs ot the church IL said TO have been ds-
covered soon after he began TO gamble with 1t,
bat friend and fellow trustee covered into the
church treasury the money that swan bud lost,
and for time, ~ was kept secret.
swan kept on IT, hls Wall street gambling, and
was enyiod a. a man of great wealth. Ills suame
was the open "scsame " to the doors OF fashion.
lie suent money with n prodigal hand and
friends trooped around him wherever he went.
He held the Society Lhriry's money, and that
wa next lost. The society being an organiza-
ton Of gentlemen Of establi8Ded wealth and
position. no close scrutiny was made into MIR.
swans accounts.
ono " the founders OF the Union League
Club. Mr. swan was its secretary during the
war, and subsequently the treasurer Of the
club huilding fund. This sum was invested In
United States bonds, and these were registered
In the names Of The Gve trustece Otis d. swan
John A. Weeks, J. A. Roosevelt, ". II. fogg
and r. II. Deiauo. or course, he could not
handle this iund. Bat, unfortunately, the col
Iecting Of the Interest was within bis control.
The ponds were deposusd witu the United
States Trust Company. and lie has collected as
treasurer all the interest for the past six months
amounting in the aggregate to 500. "1his
money" said Mr. Weeks, the chairman of the
trustees, be checked out without authority.
and applied to his own use. We shall not lose, |
think. mere than $500 Of this amount. No C.
tion has been taken Nv the club or by the trus-
toes to md Mr.. swan whereabouts"
For some time Mr.. Swan was the Secretary OF
the Oard Of Trustees OF the Dlcecker Street
SAVING Institution. There 10 no Possibility"
said MIR. Kennedy, "of bis having stolen any Of
tho money u tie baua. About two weeks ago
ne sent In bis resignation a. Secretary OF the
Board. simply requesting It's acceptance on the
ground that he intended TO leave the country.
RuoIOrs Of his financial troubles, | have since
learned. were then ufe, but knew nothing Of
them. Nothing was said Of the matter Ia the
Board Of Trustees. In fact he made Sd excellent
Secretary that We reg. cLt.d 10 have him go. /
was IA much astOnished any one 10 hear Of
bis missrvying money ~ did not belong to
him."
One Of Mr. Swans relations said Yesterday
"Tbe account that was published In TnE sun.
OF the loss by MIR. swan Of money belonging to
his brother Frederick aui his sister. Mrs. Fear
Ing. Is literally correct. Ho las had control Of
their es ate since tho death Of his father in 1895.
or course II l. lmpos. . 10 tell lust when this
IL .lat N.F faft
invested, aud. as tue interest WAS regularly paid,
no one had reason 10 doubt ais woTd. For 40 .
time At had been suspected that he was embsr-
rsssei as to his persona means. but oven this
be denied when questioned " hls relatives and
Intimate fiiends. The amount lie has taken
from hi. relatives " III not fall short Of SaDJOOJ
THIS. believe, no h.s enufely squandered in
reckless -peculations lie has not a cent Of it
left While his action Is, Of course, to be con-
demned, regard him as IN object Of conmis-
Grafton"
Itis generally believed that swans immed date
relatives would have said nothing OF their Losses
had his violation Of trust moneys been confined
TO such ~ be held for them. But hi- trlnsac-
tions took too broad q dold.
The most potable instance Il that Of the Ca
tate of Thaddeus PLelus every dollar Of which
amounting to about eighty thousand dollars,
Swan has lost. The circumstances OF this case,
"a gathered from the books Of toe Surrogate
office. and from persons who are Interested, are
~ follows:
Iu 1856! Thaddeus Phelps died, leaving his
property to bis widow, Dorinthia Phelps, and
ave daughters. lu 1859 the widow died. leaving
the property equally to her daughters: Sarah II
Anderson. wife OF Charles E. Anderson; ; Julia
Il. Movicker, wife OF William H. Mcvlcker
Maria H. Ashmore, wifv OIL Charles 5. Ashmore
IA ~ .,I
Arabsila L. Mot. wife OF Dr. Alexander B
Mott. lIy the VIII Of Mrs. Phelps two gentlemen
were named 90 executors. They, however. de-
eliDed TO serve, Hnd It became necessary to have
adminlstratOrs appointed bv the Court As al
VI the geutlomen mentioned above were in
terested partIoa, mono Of them desired
10 serve, and under the advice OF
lawyer who Wa - friend Of the Phelp.
family aud had hecn tho legal counsel OF Mrs
PHELPS IN her life time, Gus D. swan was select
ed This wa before MIR. Swan became broker
Ho was then p,actisng lawyer aud partner o.
the geuteman WHO ,ecomlneuded him. Subse
guentY MIR. swan va, made sole trustee, ant
the entire estate was placed under his control
bis father, Mr. Bon jdnn l., swan, since de
ceased, b1in. surety on his bond. Mr.. Swaf
sOl1 tho real estate and Invested, or said tina
be invested, the proceeds in iutefest-payiu.
Iecurtics. Hero also uninitel confidence
seems 10 have been rnponed Ia him. No inqulrl
was made, hui all sorfn 90 have had implicit re
nance M the f.itlfu execution OF his trust
Even after Ela .~.und failure ia 1873 none 0
the heirs di-tru,iod hiu. No account was ren
nered, Mr.. Swan siu py SAVING that tie fund
we're iufostcI u te Dt t adNan
Not NJ 70 5I the deAth of one Of the her
Swan vas compelled 70 render an account. a
that tune he reported that the entire amount q
money invested was eighty thousand dollarf
Up last wear tue Interest was regularly paid
Receutiv. r.wayer, some of tho heirs desired
tettlem ,ut. lie pas t.sn uf fom tiino TO tin
with p..u.l1le excuses unul at last tnelr suS
plcion, Wtra 4rou-nl and an account was de-
mMir !. On Fud'Y lt,t he promised 10 rendo
ATOM ,rtilcu' on Iuo-dly. Since then he ha
not been +eeu. "iue money Is all gone s.i
one Of tls ne'r., ".nI ! 90 not believe We shal
over r'cptr, un- .tut."
II t' nor'yta tnlt tnis ia,,er Transaction pro
Cipitdtcd Nir aa.ns l.Ent.
on, y. swan ls ao4ot fortY.sev0n years Old
Io j., VI L.s-ilm ataturo, has a round, sinopt
face, hs.yi c>elil-, aud h-ht hlir inclined {
baldness. mo sonrsn espro.sion OF his h'
indicates tn 1ldc, .a tha he really Is. lie
.f.f f.li xfi t.rsa