Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-07-18
The Career OF William E. Gray, who
Swindled New Workers Ont OF
0,000-His Escape and His
SumptuOus Life in Lon
don with
A Daughter Of Bale, the COmpOser-His
Final Recapture and Return to New
YOrk-The Officers Adventures
in England-HOw he was
Arrested.

Rev. Edward H. Gray chaplain of the United
States senate from 1861 to 1869, he obtained
a position in the fourth auditors Office at
Washington, which he filled acceptably and
honestly for three years. In 1856 he resigned
and came to this city with strong letters of
recommendation from Hon. Lafayette S. Fos
ter, then acting Vice-President, and from
several leading United States senators and
congressman. He was employed by A. w.
Dimmock & Co. until that firm suspended.
Then Gray started in business for himself in
New street. In July, 1869, he committed his
first crime, disappointing securities which
had been intrusted to him for sale, and also
engaging In the negotiation of stolen govern
ment bonds, for which new bonds had been
issued. He settled the claim against him
and the matter was not exposed. In the fall
of 1869 Gray engaged Eugene Finck, repu-
table young broker, to do his business, repre-
senting that he had a capital of fifty thou
sand dollars and that he was on intimate
terms with Charles Calender, national bank
examiner, General Butler, and Senators Nor
rill, Pomeroy, and Foster He opened an
office at No. A New street, subsequently &C.
cupied by Woodruff and Clahin. Gray soon
became heavy borrower, and to make good
his overdrafts at bank he forged and altered
New York bounty fund loan bonds and
United States bonds. On December 10, 1869,
Gray overdrew his account at the bank of the
Commonwealth to the amount of thirty thou
sand dollars, leaving as security three State
bounty warrants, raised from one thousand
dollars to ten thousand dollars each. When
informed the next day by Mr.. II rberger,
Mr.. Ellis, and two detectives, employed by
Jay Cooke & Co., that these were forgeries,
he feigned great surprise, saying that he had
obtained them IN regular course of business
from T. II. Pratt, gentleman of means
boarding at the st. Nicholas hotel. Upon
promising to furnish genuine bonds, he was
Ill - ,0kLo 10
good the claim Of this bank. The next day
he negotiated a loan of Thirty thousand dol
lars on this same class of forged securities at
the Merchants bank, with which he pur-
chased United States securities from Jay
Cooke & Co. Then he fed from the city.
Investigation showed that he had swindled
a large number of persons to the extent of
three hundred thousand dollars, leaving as
security raised bounty fund bonds and stolen
and Cancelled United States securities, the
proceeds of robbery In Pine street about two
years before. He went first to London, hav-
ing been aided in his flight by Mrs. Isabel
la Haskins, of this city, with whom he had
been intimate for a long time. Gray lived in
sumptuous style In London under the name
of James Payne Morgan. and dined with the
duke of Newcastle and Baron Rothschild, by
whom he was regarded as an American mil
lionaire. He showered gifts on friends in
England with a lavish hand. Continuing
his career as a swindler, he defrauded an
English banker out of twenty-five thousand
dollars a forged telegram stating that
thirty thousand dollars had been placed to
his credit in this city. All trace of Gray was
lost by the New York authorities until 1871,
when Information was received in this city
by Mr.. Schott, representative of the London
firm of Chatteris q Co., that an American
calling himself James Payne Morgan had
swindled several English firms, and that it
was believed that ba was William 4, Erav
the forger. Gray had become acquainted
with the elder Chatteris, WHO was favorably
impressed with him. After many overtures
Gray consented to form a partnership with
Hurlburt Chat eris, whose father furnished
fifty thousand dollars for the capital of the
firm. Gray deposited the same amount in
United States five, twenty bonds with the
I'm ierstanding that these bonds were to be
deposited In the safe of Chatteris & Co. until
his remittance arrived from America, when
promised to replace them with money He
further stated that he had purchased these
bonds as a gift for friend. After a few
months the fifty thousand dollars put In the
firm by the elder Chatteris was exhausted,
and on Gray's solicitation, with expressions
of regret at the non arrival of his remittances,
the elder Chatteris furnished twenty five
thousand dollars more to save the reputation
of his son as a business man. When this
amount had been swallowed up also, young
Chatter1s became suspicious, and accused
Gray of misappropriation. A quarrel ensued,
IN which Gray drew revolver and threat
ened to kill ChatterIs. He was arrested for
this act by an officer, who subsequently al
lowed him to escape. Gray was held in bonds
to keep the peace. The government securi-
ties which he had deposited were then ex-
amined, and the numbers were sent to Wash
ington. The reply stated that these num-
bers were those of bonds which had been
stolen. Meanwhile Gray had escaped from
England. Mr.. Schott gave this information
to Detective Sampson, who was stationed in
Wall street, and the matter was laid before
John L. Denny, then chairman of the law
committee of the stock exchange. After con-
sulting with the governing committee, 1T was
decided to bring Gray TO this country for
trial. Detective Sampson sailed for London
in November, 1871, with the necessary ex-
tradition papers. He learned that Gray was
then living at No. Is Upper Bloomsbury
square, and that he called himself James
Peabody Morgan, claiming to be a relative of
George Peabody. One day meeting a gem
uine relative of the philanthropist, Gray said
he was only joking, and that his real name
was James Payne Morgan. The extradtion
papers were submitted by Detective Sampson
to Sir Thomas Henry, chief magistrate In
Bow street, who pronounced them correct.
Two English officers were sent to arrest Gray.
When they approached him, saying they had
d warrant 1Or MS arrest, lue lOTScE COOlly re-
sponded: "You are mistaken In your man;
my name is Leopold Meyer; James Payne
Morgan, whom you want, is room mate of
mine, who looks so much like me that we are
frequently mistaken for twins" The officers
believed the story, and allowed Gray to enter
the house upon his promising to send Morgan
out. Once inside, Gray closed and bolted the
front door, blackened his beard and eyebrows
with burnt cork, and made his escape through
the rear entrance. Detective Sampson being
Informed of the escape, started IN pursuit,
and had frutless search for the fugitive in
Paris, Brussels, and other continental cities.
The forger subsequently visited The Hague,
and carried on successful swlndllng scheme
there, negotiating silver mining stock and
worthless coal-stock OF the Bastrop coal min
ing company of Texas. He also appeared in
Paris, where he claimed to be DR.. Georgius
Coletso, oculist. At the hotel Richmond he
was recognized by Paris detective who had
received his photograph from Detective
Sampson. A requisition was made upon the
French government, but before the necessary
formalities were completed the forger had
become suspicious and fed. Gray afterward
returned to this country under his new name
of DR.. Georgius Colletso, bearing a diploma
as a guarantee OF the college of surgeons in
London, and having among his baggage nu-
merous diplomas, degrees and recommends
tons, all of which were forgeries. Here he
formed the acquaintance OF the notorious
swindler Colonel William Fitzcharles Mozart.
ny, of Galveston, Texas, and together they
operated in the stock of the Bastrop coal
mining company of Texas, the Wichita COP
pei; company, limited, and the Texas copper
and mining company of Weatherford On
his return to London, GRAY presented to
English spectators maps and charts of great
lead mines IN Clay and Archer counties. Tex
as. He claimed that these belonged to him,
aud that they were included in the Scott and
Rutherford tracts of two thousand two hum
dred and sixteen acres. A company of Eng
llsh capitalists was then formed, and Gray
received twenty thousand dollars TO develop
the mines. Some of the persons interested
in the scheme appointed committee TO visit
the mines and report upon their condition.
Accompanied by Gray, an English expert
left London, April 2, 1875, reaching Denison