The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-10-03
WALL STREET ASTOUNDED.
A PINK or PROBTTY TURNING OUT TO
BE IN dRRJNT FORGER.
william &. Giimnn's Staggering Frnuds-Tn-
surnnce Scrip Raised from Hundreds 10
Tens Of Thousands Ex posure and Flight.

Tens Of Thousands Ex posure and Flight
On Monday morning two OF its certificates
were sent for examination as to their genuine
ness to the Atlantic Mutual Insurance Com
pany by tho Third National Bank. They pur-
ported to represent 900 each. and bore the
name OF William G. Gilman as tho person to
whom they had been issued Comparison with
tho books OF the company showed these ccrtif
cates TO have been originally issued for 800
each. and that the figure had boon raised to
$4,000. Inspection also showed apparently
greasy stains on the paper where tho words
"onc hundred" had been erased and "tcn
thousand" substituted. and also where tho
point in tho nguro 300" had been
changed. and tho ciphers added to make
10000" Tho certificates were accordingly
returned to the Third National Bank with these
facts clearly stated.
1t leaked out yesterday that the Atlantic Mu-
tual scrip bearing the name of William G. Gil
man were forgcrics and the American Ex-
change National Bank sent to the insurance
company ten certificates for examination. The
aggregate amount which the certificates pur-
ported to represent was ss7 800. Tho real asgre-
gate proved TO be 81 .260. Tho forgeries were far
moro clumsy than the two that were examined
on Monday. Tho paper was stained decided
yellow where the crasures and additions had
been made. and was perceptibly rough To the
touch. The ink. too. was Of n different color
from that with which the other words were
written.
Tho story OF tho raised certificates having
been noised about. the Atlantic Mutual became
bureau Of information for the rest OF the day
to all who held its scrip deposited as security
or otherwise by Gilman
Shortly after the discovery that the ten certif-
Gates held by the American Exchange Bank
were spurious. three certificates. represent
ing $25O50. were found to have been is
sued at $3.50. The name Of the holders Of these
not given. Investigation now showed that
there were still twenty-seven certificates. vary
ing in amounts from s20 to 800. unaccounted
for. which had been issued to Gilman As Gill
man had made his alterations without regard
TO rule. sometimes altering the entire fig
ure and sometimes only adding ciphers con-
lecture was baflled as to what the aggregate
aimount Of the alterations might prove. ON
by Yesterday nt noon this figure was increased
70 tlO7 80 Only three hours more. and this
became 1882 .3i5. The excitement In relation 10
the figures now became intense, and their pub
lie announcement in the stock Exchange in
creased the gossip and conJecture. II was pres
| emily told about that Gilman had had the hand
| ling OF bank paper which he had treated in
smilar way. and 800 900 was given as the sum
| OF tho spurious insurance scrip was soon
doubled. and iiO0 900 was quickly named as the
| The man and his father before him had for
so many years been looked up TO and respected
for fafr and honorable dealing that some could
not believe that he had been guilty Of such
wholesale crime. The fact, however that he
was not at his Office was Viewed by oven tho
| charitable rs evidence OF his guilt. and II soon
became patent that he alono had realized BY the
| crime,
busy. the Atlantic Mutual officers were adding
$4,000 10 the already ascerta med total of sl32.-
3i5 Of the forged scrip. By o'clock nine more
| oar 10 uf "a N hnI hngp
| received from trust company. the real figures
| of which. when issued. wcre only 81 400. In
| illustration OF the want of rule with which Gill
| man conducted his operations, tho original
figures and those 10 which they were altered
$4,000. one for so to $1,000. one Of $500 TO
81 900. one Of $500 to $1,000. and five flOo GER
lliltraatnes taatns to $1,000 each. max the total oi
| been issued 10 Gilman. one for $4,000 WIS dis
| covered 10 have been unatcrcd. The others
the insurance men did not accountfo for. merely
| announcing that there were only two or three
outstanding. Will" tho aggregate of the forged
| scrip. as above. was s2O637O
Now camo revelations as 10 Gilmans banking
| operations \ certificate for five shares II bank
| stock was discovered 10 have been rnisol 10
fIfiy' and Of six shares To- siNty. THIS discovery
| wns made by the insurance men in the course
| OF Investigation of their own scrip. but they did
| not feel Ut liberty 10 name the bank. They
equally refused 70 ignate the trust company
hiding the certin at represo on,ns tho s7i,0on.
| The first clue TO Giiman's frauds was purely
accidental. The story rs told by one OF the
| partners Of Henry THmadgc n Co is as fol-
lows; IN April last Gilman made loan from
| them OF flsOOO, giving ~ security the two
raised Atlantic Mutual certificates and ~ 900 of
other security believed 10 bc good, Wishing I.
raise money on these securities Tallmadge (
| Co. deposited them with the Third National
Bank Yesterday. and. SO Mr. Tai lmadgc says.
obtained The requisite lenn Inc bank men say
pected and sent to the Atlantic Mutual for iden-
tiilcatioD before any money WAS paid, However
President Coe OF the American Exchange
Bank says that Gilman left the ss7 800 worth OF
spurious certificates with them as security for a
large loan, he did not know how much, They
were badly stuck, that was certain. although
he could not give the figures They're stuck
ed some satisfaction in having company in his
misery.
bank as certainly 100000, perhaps more. On
ths street ne loss p was put at siPO oQQi NJ,
tual took great care to announce that the in
suranro company lost nothing by Gilman 5 ops
erations. The certificates arc not worth the
tho company is liable to loss"
Gilmans Office is in the ground story OF the
building AT the northeast corner Of Pine and
William streets. II i spari ious. and has usually
prosperous ioos. Yesterday only an old book.
his employer, was behind the counter. and two
deputy, sherffs acting IN behalf of Talmadge 4
the promises. Gilman's clerk knew NOTHING
about Gilman's whereabouts or his operat ions
Mr. Gilman went out Of town on Saturday.
he said. " to bring his family home from Nor
wich. Connecticut. whore they have bcon spend
ing the summer, and / have not seen hin
| since"
This was considered untrue by those who
hoard II, ms one OF tho insurance officials wa
positive that he saw Gilman in the street yes
| terdRy morning.
An old clergyman entered dilmans office late
| In the day. and betrayed great agitation whcI
told of the forgeres and the flight. Nearly al
who were acquainted with Gilman personals
or by reputation. until assurance was rendered
doubly sure. were incredulous MS 20 his having
been in fault. For years his credit had beel
gllt-edged and his name above reproach. III
was long depositor in the American Exchange
Bank and is even believed TO own some of th'
stock. He never had the reputation Of bcinl
losing Specifications, so that "What the dew
did he do with the, money!" WAS the question
asked in the Stock Exchange yesterday. Hi
church connections, too. had aided in sus
, tanning his business reputation. ana sneer
were frequent at the fall Of one professedly 81
| much hOlicr than other men.
The amount r@ilized by the forgeries as ye
can only be guessed at 1850, 900. apparently. Il
low estimate on the insurance scrip alone an,
the total may, as street gossip has It. be doubl
that
A German banker said Yesterday: VIM c
Gilman took course by which he could be un