The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-04-10
A STUPENDoUs SwINDLE.
J. W. Bugbee, of tSis City, Puts Forged Pa
per on Holt & Bugbee, Boston, to
the Amount of Si50,000.
Series of Crooked Transactions, Extending
over a Period of Three Years-rhe Sig
natures of Number of Western
Firms Forged-The Particulars
of the Surprising and Re-
markable Crime.

markaDle Urine.
A telegram was received by the Sentinel
last night stating that J. w. Bugbee, of this
city, large lumber dealer and a republican
councilman, had forged paper to the amount
of $l5O,000, and in addition TO that had
drawn drafts for large amounts upon the firm
of Holt Il Bugbee, Boston, up to March
80. A Sentinel reporter upon the receipt of
the telegram proceeded Immediately to Mr..
Bugbees residence, $50 Bellefontaine street,
but was informed by his wife that he
left the city yesterday morning, and
that his whereabouts were unknown.
She stated that she knew nothing
of his transactions, and informed
subject. The REPORTER next called on L. G..
Hay fatherin.law of Mr.. Bugbee,
who had just been informed of the
forgery, bat could hardly credit it.
The reporter then visited Mr.. A. l. Lyons,
lumber dealer of this city, who stated he
had just returned from Boston, where he
had gone at the urgent request OF Mr.. Bug
bee with the sole purpose to inform the
firm in that city, which he did, and returned
last night with Mr.. J. b. Bugbee, of the
firm of Holt Il Bugbee, and brother to J. w.
Bugbee. He said from the examination that
Mr.. J. b. Bugbee and himself had made of
Holt IL Bugbee's assets in Boston and this
city t0SIe Was nO uOuDb Out J06I tue ulfn
would be able TO pay all their legitimate
debts, and also the forged paper.
THE MANNER or THE FoRGERIEs.
Later in the evening Mr. j. B. Bugbee was
found by the reporter, and he stated that the
forgeries had been conducted for three years
past. The mode of conducting them was
to make a note payable to the order
of Holt & Bugbee, and payable
in this city, though the signature of for
eign firm was forged. One peculiar fact of
of the forgery was TO endorse on the end of
each draft or note, notify parties This
though in all probability was done to
deceive, and when the notes would reach
maturity they would be lifted by Mr.. Bugbee
by renewal, though at times paid. Among
the forged paper are the following sigma
lures II. Closterman, Cincinnati, SIS 600;
G. Henshaw & Son, Cincinnati, $4,000;
Hatch, Holbrook d Co, Chicago, SO, 600;
$4,000; Maui Brothers q Co.,
Philadelphia, $40 OOO t. w. Harvey, Chi
c8go, 1000; Holmes a Co., Chicago, $l0,-
600.
WHAT BANK OFFICERS SAY.
TO obtain further facts the reporter visited
Mr. ID. NJ. Taylor, cashier of the Indiana Ma
tIonal bank, where Mr.. Bugbee
kept an account. Mr.. Taylor
stated that for a year the bank had dis
drafts on the Boston house at par, which
were always promptly met at maturity. but
that the bank now held but 50 900 or SO 600
OF his paper on the Boston firm, which
had gone to protest Wednesday
and noticed received yesterday with
no reason other than not paid.
The amount Of the paper protested he
thought amounted to 81, 800. The paper
taken was all negotiable paper, being drawn
on the Boston house and always accepted
and paid by them. The paper was usually
drawn at 10 and 10 days sight He did not
think the financial standing Mr.. Bugbee was
such rs TO warrant the credit OF the amount
alleged forged, though the transactions now
appear to have been directly with the Boston
house. to which he sent the forged papers
The reporter next called on Mr. S Fletcher,
Jr., of S. a. Fletcher q Co., bankers, where Mr..
Bugbee did his principal banking business,
and who it Is understood hold considerable
gaper, but owing TO being unable to get any
information from the gentleman, who
could not be awakened by repeated
ringing of the bell, the exact amount
could not be stated. Mr.. Bugbee,
though having committed these forgesies,
for period OF three years showed repent
ance by his action at the last In sending Mr..
Lyon on with the information wholly un-
known to the Boston firm, and which caused
their suspension.
Mr.. Bugbee has been identified
for the last two wears with the
enterpriSing business men of the city having
built within the last twenty months two
blocks and numerous houses. He has at
present the large lumber yard between Lin
coin and Home avenues and the Peru tracks
and Yandes street, and is of the firm
of Carter IL Bugbee who run the saw mill
west of the river. He is also interested in
business in Kentucky though his acoumu-
lott To hax haor frD,,, sc
unsupported forgeries It is understood he
has stated his willingness to transfer all his
property over to Mr.. Holt and bis brother,
to balance the forged paper.
THE TELEGRAM.
The following is the dispatch sent by the
associated press last evening which gave the
first public information of the forgery in
this city:
Boston, April 4-The firm of Holt & Bugbee,
lumber dealers, suspended Yesterday. Ihabil-
tiles, $1,000 due mostly in Boston. The fall
ure of the firm, 2t is stated, IS caused by the
fraudulent action OF Mr.. Bugbee, brother ofthe
junior partner, who has Tor several years
acted buying agent for the firm at Indi-
annapolis. To cover his own losses he has
drawn against The firm, using as collateral
n 0teS of parties in the west, whose signatures
are admitted TO be forgeries. Bugbee confesses
to issuing SlS2 900 Of these notes, now largely
in the hands of Boston banks, but made pay
able in indianapolis. IL Is believed that
The amount of forged paper issued by j. w.
Bugbee of indianapolis, western agent OF Holt
& Bugbee, OF this city, is said TO amount TO
Si5O,00J, and in addition TO this Bugbee
has drawn largely on the firm mp
To as late date as March 30. Among the forg-
ed signatures are III. Closterman, of Cincin-
cinDati, $1,000; G.. Henshaw & Son, Cincinnati,
so GO; Hatch, H0lbrOok X Co, Chicago, S6,UUO
j. Griffith d. Son. Cincinnati, S6.vJO; Mauie
Bros. & Co., Philadelphia, $1,000; I. A. Har-
xey, Chicago, 10000; Holmes & Co, Chicago,
$4,000.
The Excitement ina Boston.
by Telegraph TO the SENTINEL
Boston, April 80 a. m.-There has been
great excitement in business circles in this
city for the past twelve hours, caused by the
development Of heavy forgeries, affecting
the standing of prominent Boston
house. The firm compromised is that of
Messrs. Holt & Bugbee, lumber dealers, l7S
Friend street, and the mischief has been
wrought by a brother of the last named men,
Der of the house. Forgery is the Of
Tense 10 which he confesses, and from
present advices his operations have been not