The New York herald., 1877-10-03
GIGANTIC FORGERIES.
Quarter Of Million in Raised Scrip
Certificates Discovered.
THREE Times AS MUCH said TO BIZ AFLOAq.
The Manner in Which the Frauds
Were Perpetrated.
AN ENTEEPRISlNG INSURANCE BROKER

AN ENlEhfNlDlNU lNSUhhNlE DHUhEN
A series Of astounding !rauas, pcrpctratcd In this
city, was brought to light yesterday the amount Of
tho lorgcrcs aggregating $3.50. 600 On Monday Two
"ccr6cates OF profits, scrip, Of the Al.
ian,c Mutual Insurance Company, No 81 Wall street,
were presented AT the company's oinco auhcnti-
cation. They had been issued TO William C. Gilman,
an insurance broker AZ No. 81 Pine street, and pur
ported to represent $40 600 each. Mr. Gilman bore mn
excellent reputation. business men who knew HIM
had the most unboundcd confidence In him. and his
word, TO old fashioned phrase, was considered
good his bond. When the certificates werc pre-.
scnted TO he insurance company by tho Third National
Bank no question rs 10 their genuincness had been
raised. bu, an examination Of tho books OF the
pany revealed the tact that originally these certl.
icates issued for only 500 each
rALMADGg co. y LOAN TO GILMAN.
The discovery was an astounding oac, aud could
only lead to one conclusion, that the respectable
broker Mr.. Gilman, was engaged In raising ccrta.
Gates OF tho Atlantic Mutual Insurance Company from
irsgnihcant sums 10 large amounts. Inquiry dc.
vcopcd the iucL that thcso rniscd certificates had
been negotiated with Henry 1amadge Co., Mr.. Gil
borrowing npon them and $4 600 n other sccur.
ties the sum Of sls,ooo ralmadgc Co. ADMIT loss
OF Sl4 900 by tho transaction Moro than tins they
will not say. II ihcy had not desired hypothecats
the certificates with tho Third National Bank, instead
OF no ding them longer as security for tho loan TO
Gilman the orgcrics would have been discovered
at least at this tmc aud tho successful
iorgcr might havo escaped while longer tho
discovery Of the startling scrics OF frauds
which created such profound impression n Wall
street yesterday. As was tho presentation OF tho
certificate tor authorization In tho ordinary course Of
business led 10 tho revelation OF tho bodies, series OF
frauds pcrpetratcd IN city, What IS more re-
markabic even than tho iorgcries Is tho manner
which they wore executed glance at them ought 10
have shown their fraudulent character aud had i, not
bcrn for Mr. Gman's hgn character uncx xccpt,on-
able standing tho "raiscd" certificates would mover
havo been accepted BY Taimadgo Co rcai sccuri-
tics. common eraser hai been used IN oDlitcrating
tho words .'onc hundred" the certificates, and after
some similar substance haa been applied 10
the crasurc tho phrase "tcn thousand written n
Anything moro clumsy It is impossible imagine.
and nobody can be moro surprised that they do.
ccivcd by II than Talmadgo L Go.
OTHER DISCOVERED
II soon turned out, however. that these frauds OF
which Talmadgc Co. wore tho victims were only a
part and u very small part, OF tho orgcrics committed
by Gilman Yesterday morning ten certificates pur-
porting TO have been issued by the company for
ss7. $40 scnt in TOR cxamna;.ol by tho American
Exchange Bank. Tho examination Of tho Atlantic Mu-
been Issued Tor only ST. 26o They all small in
amount tho largest bong for $500, wh,ie the others
were for $50, 500 ana 800 each. These cessdca,cs
were also issued TO William G. Gilmau The
amount OF tho frauds had reached
s1o7,32o and the possibilities Of iurtncr
revelations were becoming illimitable. II
known OF all men that Gilman dcacr In Nil
kinds OF scrip, especially in tho scrip OF tho Atlantic
Mutual and there was telling how many OF the
ERASED" certificates he had put upon Tho market
His capacity in agsrcgating small sums into vast
ties for placing his "sccuritics"t e easy
prodict whore NO would STOP II was PLAIN, however.
tnat tho rather nccnt OF $l0 $40 had hardly
satisfied his ambition and reporter Of tho HERALD
was sent 10 make inquiries into hosc interesting pos
sbllities. ....
eve have Information" /" said Mr.. John D. Jones, the
President OF tho Atlantic Mutual insurance Company
"of another set O these certificates which have been
raised from only $3.50 to $25,05 Like the Others
these had been issued 10 William G. Gilman, tho great
ccrtlcAte raiser scsniEg 10 prefer hs own 10 other
pcopc's the altered securities, probably be.
cause the weight OF his name ami hrs well known
business probity were his most powerful In the
neiarious practices IN wncn he engaged The
OF tho holders OF these certificates could
asccriained with any degree certainty, but Il was
assumed without any reason II appears that this n,cc
Ittlc raise pcrpctratcd upon tho Third National
/ Bank aud il was generally Understood yesterday al
tcrnoon that II WAS Mr. Giimans victim TO the Of
ometning like $50, 600. The story appart nty wns
without any ioundaton, but the contrary was asserted
In IN ~ quarters. There seemed to De littc doubt
that bank has lost heavily by Glmans operations
Such, at least, was the understanding In the best
officers all exceedingly roticcnt. Mr. Jordan tho
cashier, declared that he knew nothing about the
and than this ho could be induced say.
His general denial dd have the effect doing away
with the impression that tho Third National was
among Gilman's victims and the $30,00 story
kept In pretty active circulation all the afternoon ana
evening.
THIRD NATIONAL BANK.
Nr. j. f. d. LanIcr tho president OF tho Third Ma
tonal Bank, was found at his house In West Tenth
street last evening IN very enfccbled conaiiion.
has Doen unable 10 60 down town Tor three weeks past
but had been informed oi tho condition Of AFFAIRS and
says emphatcay that tbc bank loses nothing by The
forgery
Tho relation Of the bank 10 the forgery is thus stated
by the assistant cashier On Monday Henry Tamsdgo
Co., who held Two certificates of the Atlantic Mutual
Insurance Company, which had been hypothccatcd
with them by Gilman representing on their face
on them Of $4,000 Tho officers Of The bank
not liking the appearance OF tho certificates
sent them to tho insurance company TO SEQ
If all right and II WAS then learned that they bad
been raised from 500 each to $40 600 each. Tho
certificates we're returned 10 Talmadsc Co, and as
stated, this was The only connection the Third Na
tionai hat with tho forgery The president and Mr.
Parker Handy ono Of the directors state that
losers said Mr. Handy, Through god fortune aud
tho carciuioess Of our officers not losers
An 'rxsrirrroS'sr SPLENDID YrGuRKs
Up to four O'Clock the amount OF tho swindcs as
far as asceriancd, was $l3!3!o but about That hour
rumored that President Jones had OF
additional frauds. IL turned out that additional
ccrtncaes had boon sent Ia for cxamiGaton and that
tho aIteratons on these, which issued Tor
$l,4o0. aggregated $7sO00 Figures rule are un-
interesting aud abuatcd statements duI reading but
Mr. Gilmans operations In altering scrip certificates
are remarkable hat The following exhibit OF tho
way which bo tampcrca with these nine pieces OF
pnper increasing their value his nccessi-
Ties, will command attention.
Certificate ior...... 500 .rascd" to. $500. $1,000
Certificate or 10 "raistd' to. ...... 1000
Certificate or........ 300 "rasci' to....... 1900
Ccrt,nc,tc Tor. 500 raised" io...... 5000
Certificate Tor 100 'raiscd' to..... 10000
Certificate ior ....... loo raised" to.... 10 900
Certificate for ....... 100 sraiscd" to ... 10000
Certificate for ....... loo 'raiscdr to... TO- OOD
Ccriilcatc or..... 100 'raiscd' to...... 10, 900
Totals. ,4co s7I 900
THIS. IL must be cOncsscd. Is spenda figuring but
when Mr. Jones was asked who The fTA o,N v,ct,,n