The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1877-10-03
CROOKED COLLATERAL
WALL STREET EXCITED OVER AL.
TERED CERTIFICATES.
anee Company Raised and Hy.
pothecated TO the Amount
Of $4,000.

~ K" ORh, OCLODeT T. w all street is
excited because VIM. G. Gilman, dealer
in insurance scrip, has borrowed large
sums of money on such scrip, which was
frauduently y raised. At one of the ban ks
he borrowed sevent-fve thousand dol
lars. Additional discoveries are being
made. Gilman was in town this morn.
ing, but cannot now be found.
The Evening Post says: 1t was the
scrip of the Atlantic Mutual Insurance
Company which had been raised. The
amount of raised certificates, as far AS
found, is Sl27,000. The company will
lose nothing. Mr.. Gilman, it seems, OBJ
tanned two 800 scrap certificates on the
Atlantic Mutual Marine Insurance Com
psuy. which were raised to $4,000 each,
and hypothecsted with Henry Talmage
& Co., by loan of $4,000. The Amer
icaR Exchange Bank say they hold sew
ersl OF the certificates, amounting in the
originals to ST 1850, but which have been
raised to $87, 1920. An additional num-
ber are said to be out.
NEW YORK, October 2.-Henry Tai
msdge & Co., bankers, of No. 29 Pine
street, applied to the Third National
bank on Monday for loan, presenting
two certificates OF scrip OF the Atlantic
Mutual Insurance Company !or $4,000
each us collateral. The bank officials &C
cepted the securities and sent them to the
Office of the insurance company tor iden-
tifcation and certihcstion. They were
informed later in the day that the cer-
tifcstes were not genuine, but had been
raised from one hundred dollars each,
the amount for which they were issued
in 1876 to William g. Gilman, broker IN
insurance scrip, at the corner of William
and Pine streets This discovery was
made public this morning, and the banks
where Mr.. Gilman transacted his busi-
ness were the scene of unusual excite
ment. The vaults were opened and his
securities closely scrutinized. At the
American Exchange bank ten certificates
of the Atlantic Mutual Insurance Com
pany were found representing an aggre-
gate value of SS7,320, AID a messenger
was hastily sent to the office of the in
surance company to ascertain their true
value. A careful comparison of the
dates, names and amounts proved
that these certificates had been
originally purchased by VIM. G.
Gilman at different times during
years 1875, 1876 and 1877 in various
sums, aggregsting only Sl,26O. On this
lot of certificates hypoteecated at the
American Exchange Bank the iorgeries
amouated to $50 060. These forged GER
tifcates were presented at the bank and
deposited by Mr.. Gilman in person, and
80 highly was no esteemed by the otficisls
that they were not carefully examined,
and the amount of money he requested
was promptly paid to him. This amount
was estimated by one of the clerks at
between fifty and sixty thousand
dollars. Information was received later
that another set of those certificates
had been discovered, purporting to have
been issued foo $4,000, which, as origin
ally delivered to Mr.. Gilman, were for
$3.50. A trust company, the name OF
which could not be learned, also sent
in long list Of securities upon which
loans had been effected for large amounts.
Fifteen of the twenty-four certificates
held by this institution had not been al
tered, but the remainder had be9n raised
from $1,460 to. $4,000. No system
had been adopted in makirg
the forgeries. In one case he
mad altered a $50 certificate to $4,000.
When his needs were not urgent he
would deposit genuine scrip, obtaining
such per centage rs the bankers would
advance The forgeries were confined to
small certificates, the original amounts
ranging from $50 to 800. As far as the
Atlantic Mutual Insurance Company is
concerned, ali but three of the certificates
issued to Mr.. Gilman have been account
ed for, and these are for 800 each. 1t
is thought probable that these have been
altered, like others OF the same value,
to $4,000 each, which would
make the gross amount of forgeres
on scrip as follows: Third National
Bank, real value 800, forged amount
$4,000; American Exchange, real value
Sl,260, forged amount $87, 800; Henry
Talmage & Co., real value $3.50, forged
$4,000; Trust Company. forged $4,000;
outstanding certificates $500 forged
$4,000. T0ta.. real value, $50, 900, forged
S236,37O. 1t was stated this evening
that two shares of bank stock were also
forged and in this latter case $l,lOO
had been raised to $1,000, and this
will increase the gross amount
Of iorgeries to $247, 800 The alteration
in the smounts show that these iorgerles
have been carried on continuously Tor
over two years. No c,ass of securities
could have been selected on which detec-
tion would be less certain. The business
of the Atlantic Mutusl Insurance Com
pany is almost exclusively in the Marine
RISKS. The firm OF W. G. Gilman bad
been engaged in the insurance script
brokerage for over forty years. Mr.. Gil
man has not been at his Office since Sat-
urdsv, when he stated that ne was gong
TO Norwich and would return Monday.
He returned to the city yesterday
morning with his family, but did not go
TO the office. Detectives were put on his
track but could not find him. A requlsi
ton has been obtained from Governor
Robinson for him, so that be can be sr-
rested IN any State in which ne may be
found Mr.. Gilman bore the reputation
of a devoted church member and Sun
day school teacher. President Coe, OF
the American Exchange Bank, SAID its
losses would not be heavy, as the bank
held other securities of Mr.. Gilmsns,
which would help decrease the loss.
Peter B. Sweeney, and Hugh Smith, OF
the broken TsmmsDy ring, sold, to-day,
real estate which brought S65l, 900.
af RInfara