The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-08
LED AoTRAY.

FoRaERIEs COMMITTED By MERCHANT TO
PREVENT IMPENDING BAKKnuPrcY-Hs Ar
REST.
A TO light in the District Attorneys ofios
yesterday strongly illustrative OF the temptations to
which merchants struggling hard against fate are
oftsntimes subjected, anu which. If yielded to, invara
bly, terminate in misfortune and ruin. young man
named Frederick Maxwell, successor 10 tho hrm OF
Maxwell l. Payson, who for twelve years carried on
the business of wholesale iru dealers 29 Front
street. some two years ago started his account
1t would appear that his reputation untarnished
and that he enjoyed great confidence in commercial
circles severa banks bong always ready to afford him
every reasonable accommodation. In conjunction
with several others, however he suffered from the de-
preston Of the times and about days ago made
assignment Of his property. Two days later he went
his lawyers Messrs Chamberlain Carter and Eaton,
and communicated to them tho startling fact that in
trying himself from impending failure, he had
negotiated forged acceptancss TO the amount Of
$685. O00 10 witS20, 600 on the Metropolitan National
Bank, $4,000 the Market National Bank, and
1000 on his former partner, MIR. Payson. He ex-
pressed the desire that all tho holders OF the forged
paper should be called together and all the facts Of the
the case frankly set before them. This done he pro-
ceeded TO his Southold. L. l., where resides
his WHO and five interesting children On Friday last
he returned to the city, whero he met his creditors
and confessed the entire transaction 10 them. Accord
ing the statement of Mr. Eaton, Of Mr. Maxwels
counsel tho directors Of tho Market National Bank at
their meeting decided to institute criminal pro-
ceedings; and having determined TO have Max
we'll indicted Mr.. Eaton urged the directors to take
steps the matter, offering IN behalf OF Mrs Max
well TO make restitution by placing ut their disposal
the entire OF her property Tho directors took no
further steps until thor next regular meeting Mean
while Mr.. Eaton again went 10 the directors Of the
Market National Bank and submitted full statement
OF tho assets and liabilities OF MAXWELL together with
that the uone Obtained on the forged paper had been
used by Maxwell the legitimate channels OF busi-
ness The directors, however believing they had
duty to perform toward the community, finally re-
solved to proceed against Maxwell on
criminal charge. Upon hearing Of this deci-
District Attorneys office, whereupon warrant for
his arrest was intrused TO Detectives OConnor ani
w hs WIFE before psc.
Attorney Bell. After AN examination Of the facts tho
prisoner was com united to the TomLs. Mr. Gilbert
cashier of the Market National Bank, went before tho
Grand Jury yesterday to testify in view Of the iDdict
mont found against MAXWELL bat the matter will
not be taken up tor elaboration until today.
TRANSACTIONS.
It would seem that Maxwell had an account in the
Market National Bank for fifteen years, and II 10 SAID
all his dealings with that institution have hitherto
been Of the most satisfactory character. Mr.. Eaton
said that. while the directors expressed great
considered, ia view of the crcumstances they had
no other course open to them than the ono they pur
sued Nr. Eaton furthef slated tuat MAXWELL never
failed before and had always stood we'll IN commercial
circles his financial embarrassment in this instance
having been brought about IN legitimate way and not
through any reckless speculation. HIS failure amounts
about $780, 000 including the forged paper, and his
nominal assets set down at $50, 0OO tho estimated
value OF which is $4,000. 1t was further stated BY
Mr. Eaton that OF late Mr. Maxwell sustained con-
t,nuai losses owing the duness OF the fruit trade
Drafts were drawn by Maxwell on his OWE GUS
toners, and he had them discounted at the Mar
Ike, National Bank, but tho forgeries In the
Metropolitan National Bank were negotiated through
brokers' AS Maxwell leaving the District
Attorneys Office for the Tombs yesterday evening he
seemed feel keenly his unfortunate position. When
arraigned before Police Justice Smith and asked 70
plead he said "All that Ii stated IN the affidavit Is
true. l am guilty" Only one complaint was pre-
scented against him In tho police court-viz that OF
forging the acceptance Of B. Dennemeicr " Son, Of
Canton ONO, TO bill OF exchange for $1.15S, dated
July g. payable IN sixty days Detective Field, how
forgeries S33, 0O0 The Justice remarked that in
fixing bail no could only by the record, and would,
therefore. require the prt 1ner 70 justify IN $4,000
Maxwell promptly replied that he didn't care for bail
He prepared TO 90 TO prison The bail, however.
was liked ia tho sum named.
In appearance the prisoner not more than thirty
five years Of age, although hts Is iortyswo years
He is apparently man Of education. He seemed
much dspirited ut his rum, but evinced detcrmins-
ton to abide the CONSCIOUSNESS OF his crime unlinch.
ingly. He committed to the CITY Prison TO await