The New York herald., 1877-10-06
THE AGE OF FRAUD.
The Last Of the Lyman Gang
in Custody.
THE GILMAN FORGERIES
Another insurance Agent One Hundred
and Fifty Thousand Dollars
"Shost-"

In the description Of tho shrewd system o. forgery
carried on 30 successfully and extensively By the
Lyman gang for period Of two years. published IN
yesterdays HERALD Il was stated THAI all the forgers
were the hands OF tho law oxcopt On yesies-
DAY morning the remaining vas captured ~ South
| ington Conn, by one Of Pinkertons officers, and
brought this city late In the afternoon Il may
therefore be stated that the gang 10 now completely
and enectually broken up.
The man arrested yesterday by the name OF J.
C. Hogan. Another man under the name was
arrested Monday and Is now In the Four
teenth precinct station house awaiting transfer
Calskin under warrant issued from the Criminal
Court at that place One botn OF those names arc
assumed. To unders,and why became necessary Tor
both assume the same name II must be remem.
berod that lafge draft purchased from the FIRST
National Bank OF Leroy purchased BY Hogan No.
I. the party VINO Monday The smaller
dras which altered 70 correspond With tho larger
one. was tranierred 70 Hogan NO al Catskil.
and by him collected through the American
being meantime returned 20 tho Leroy Bank by the
purchaser and the money refunded 70 him. To carry
their plans necessary that two men located
at distant points should assume tho samo name
What the real names Of the parties are 10 at present
unknown. hogan No. was arrested In tho Same pro-
coedng and tor the same offence ~ Lyman and Hogan
40. l. ana ho Will DO sent Catskill Tor trial No
further operations OF the gang addition TO those
published uncarthed by Tho detectives yesterday
Both Lyman and Hogan No. l were brought ycster-
day before Judge Barrot IN supreme Court Cnambers
on i wri. oil habeas corpus Obtained by Mr. William
+. Howe, their counsel. Mr. Howe stated that hs de-
Justice Russell, Of Catskill, and counsersiencd by
Justice Flammer, police magistrate OF this city Ho
claimed that The prisoners In court were not Tho
parties named In the warrant Hc asked an adjooEn
mont, as no was compelled 70 attend as tho General
Scssions where he had . case on trial
Assistant District Attorney Leary objected TO any
adjournment, and urged that the Court had power
named in the warrant not, this boinR fact be
determined beiure the police magistrate The only
question whether the warrant WAS valid
Ancr some iurtner argument Judge Barrett post
poned the argument upon the writ until this morning
Meantime Mr Howe has prepared ~ affidavit com
Fifteenth precinct, In not permitting him 70 the
prisoners at The station house, notwithstanding he
pleaded their constitutional right 10 SEQ counsel
THE GILMAN ToRoERIEs-HIs RRLATIvEs' ET.
yoRrs TO MAKE RESTITUTION VoR HIM
WHAT HIS VICTIMS MAY RECOVER
There wore no fresh discoveries In the Gilman
forgeres yesterday but there rumors Of oGer
to compromise, which could not be definitely traced.
II said that tho forgcrs wife proposed giving up
the family residence and furniture, which In her
name, and also TO add her private fortune to
immunity from punishment 10 her husband, and that
hts sisters willing to join with her by tho sacri-
Aco OF their interests In shcir mothers estate. The
sisters shures arc said to amount altogether TO
and tho wiie's estate to about $4,000 Tho
whole amount which could be raised In
this way would be $780, 000 including Giman's avai-
assets which said TO comprise sixteen shares
Bank oi Commerce stock, held by the American tx
total Of 81 oso ATTY shares American Exchange
Bank at $lOs So or S. 1905 OF certificates OF
the Atlantic Mutual Insurance Company held oy The
Home Lifo Insurance Company cash balance in Amcri
can Exchange Bank, less Eaton's check Of $l,Ol0,
$500; rcrp Of the New York Mutual Insurance Com
pauy $500; 0tner Atlantic Mutual SCRIP $l,U40;
rifles Oy Taiimadge Co., 81 O0o Office iurniturc
about 5000; total sSi,29O 90. rho story OF pro-
Mr. Henry Tallmadgo aud others OF tho victims dis
claiming any knowledge OF tho proposition.
The large safo In Gmans Office has not Jet boon
opened, aud Mr.. Tallmadge said had been decided
not IL at present. When the sale opened Il
will DO dono In tho presence OF all tho creditors
ANOTHER HEAVY DETALcAT1ox-ELJAH ALII-
GER DEFAuLrER IN ONE HUNDRED AND
Pity THOUSAND DoLLARs-THE CONNER
cnL UNION ASSOCIATION, OF LONDON, TILE
PRINCIPAL VICTIM.
The announcement OF tho dcfalcat,on OF Aliger
Brothers created considerable excitement In downtown
business yesterday The losses will fall heavily
| ON the insurance companies represented by them
| namely, the Commercial Union Assurance Company,
|. . OF London, having branch ofnco IN tho Equitable
Building; the GIon's Falls Company. Of Glon's Falls
the Mcrcnants, OF Providence, X L. and the Faneuil
| Hall and Shawmut Insurance companies. OF Boston
The nrm Of Alliger Brothers organized in Pine
street In 1885, and consisted of Elijah and Richard
| All,gcr and George w. SchoonmakeE About year
ago Richard Alger dissociated himsof from tho firm
and obtained tho agency OF tho Imperial Fire Insur-
| ance Company OF Lonoon. Two years ago Aiger
Brothers took possession Of spacious quarters in the
Equitable Building, whore apparently their good for
tune followed them.
In the early pur. Of last summer the senor member
OF the nrm. Elijah Aliiger, tho alleged deiauter took
| OF the Commercial Union Assurance Company bus
mess which periodically caod him similar mis-
sion At that tmc suspicion was entertained OF
dishonesty, ana he gave no clew which would lead
such supposition He represented the business Of
| tno agency 70 DO IN nourishing condition and any
discrepancy which might arlse IN hts accounts was at
tribu,ed tho want OF prompsncss Of ccrtan firms IN
paying their Indebtedness out thcy entirely
solvent no should be entertained that score.
He took hs departure from Lonoon tno following Sep
tanned that Mr. Alaers accounts needed looking no,
and the parent house was warned 10 be prompt in
making Investigations But TINS startling information
did not any disclosures OF onncial dolin-
qasncy; it did no. even shake tho con-
OF their agent When questioned on tho
subject Mr.. Alligcr confessed that ho tenn
porarily financially embarrassed, but that there
no cause Of alarm his debtors solvent, and
would make the dchcicncy all right IN good time. A
lew weeks ago Mr. Aiiger showed symptoms OF alarm
tho business concerns Of the company, and hc
dwct on tho importance OF his paying visit 10
London to hold personal consultation with the
SUSPICION AROUSED
After hts departure the company wore again advised
OF the alarming nature 81 the stuation and tho
London Secretary OF tho company, ). Stanley Brown,
and william Middleton Campbell, director, were
despntched to Inis city 70 take control OF tho
agency, whore they arrived September ~. Pend
Ing tho arrival Of Messrs. Brown and Campbell
the company tclographod Morton, BLISS Co. 10 as
sumo control Of the agency and 70 scrutnzo the
counts. They at vnco complied with their instruc-
uons aud hold possession until the arrival OF the Lou
don representatives. Messrs. Brown and Campbell
These gentlemen their arrival took immediate
troll ana began their work OF investigation, which has
res ulted In corroborating their worst fears.
Mr. Brown the secretary informod'a HERALD re-
porter yesterday that the amount OF tho deficiency
could not ascerinnod, tns company indebted
| 10 Mr. Aeer ior commissions the profits for the
last two years He however, thought that tho total
| not amount OF Mr.. Algor's dciacaton would
| DO about $3.50. 900. This was merely an
| approximation, however, which was only
| roached by striking what he considerod
| happy mean Mr. Alligcr was on his way TO this
| city ana his arrival expected next Wednesday.
Moan,ne the secretary preIorroo not going INTO do
| tails until Mr. Alnger afforded 40 opportunity to