The New York herald., 1878-07-10
How Man with Recommendations
Made Use of His Time.
GULLING WALL STREET.
A Trip to Europe for Very
Good Reasons.
EXTRADITED AS A FORGER

noted iorgcr who is hourly expected on the steam
sup Nevada charge OF Sergeant Kealy, chief OF the
detective force OF tn city, has created considerable
excitement in downtown circles HIS career wne
acting as .sbun" in Wall street was fully described
In the HERALD OF July last.
Gray came from Washington, where no held posi-
lion the Fourth AUDITORS Office, which he resigned.
aud after short sojourn in brokers' office in this
city started in business himself grand scale,
aud the space OF one month neeced
OF smartest ana most highly cs-
seemed bankers to the extent OF $3lOOoo
RscommendeI by Vice President, United states
Benators and members OF the House. Gray had no
trouble in obtaining the confidence Of the solid mon
oi Wall street, who would listen to any person
who expressed doubts regarding his character he
frequent borrower the street on stock col
hterals He acted the same other brokers who are
in the habit OF borrowing money from time 10 time
ron call"-that ~, by depositing collateral with tho
!, nder He accustomed 70 deposit us collateral
United States registered Gvewenties OF 1867
bounty loan certtcates OF tho State OF New York,
Ind 1t turned out aiterward that the former were
stocu and caveated bonds and the latter raised loan
rcrtincates IL the lenders had examined these So
puriiics carefully Gray, doubt would have had a
very short career
ALMOST CAUGHT.
Gray had been but short tlmc in business when
the firm OF jay Cooke Co. discovered that he ha /
l.It win them $40, 900 worth Of United States gov
rrumont bonds all Of which had been altered. They
sailed in Captain Sampson, detective OF the Stock
Exchange, and explained tho matter to him. They
,sked him to inquire mo the case, but account
xas he do anything hastily. ray bore such gh
nputaton that It was almost impossible for him to
b. privy TO u fraud. Captain Sampson repaired 10
Eray's office and, without introducing himself, gave
Bray understand that some bonds which were left
coIIn taru with ItyC CQOka II In bopu ruV
much surprised and volunteered to take the
bonds from Sampson and lot them exchanged. 10
this the detective refused TO agrec, claiming that he
not certain whether Gray would return or not,
and he must at least have the bogus bonds to show
his EN- poy ers, Jay Cooke Co Gray then took from
LIS safe u large OF coupons and securities and
placed them in SIMPSONS hands as bond
Tor his return, and The security being ample
bray allowed TO depart In search OF genuine
bonds. He returned In short with
Ihe latter and gave them to Sampson, and when tho
latter requested Gray the coupons, leit for
security, he refused TO do SO, remarkng that he
gaessed they were all right. On his return 10 the
Gice OF Jay Cooke Co. Detective Sampson informed
them mat from Trays action he was o opinion that
arrest should DO made IN the premises lie classed
Gray as swIndler aud rascal Jay Cooke Co., how
EVER would hear OF the arrest, aud Tor the time
beng Gray Was left pursue his neiarious PRACTICES
THE FIRST SUSPICION.
Gray Kept the lrins accounts the Bank OF the
Commonwealth and a private account IN the Ne
Euanlcs' Bank. On FRIDAY, December ~, le6y, nc
pverdrew account the B,uk VI the Common
EcatL, leaving security three bounty loan cert
bcates supposed represent $780, COO. Mr. Ellis, the
Cashier, passing INC teiler's desk attracted by
The iarge amount, aud took Inc bonds 10 the Man
t.n Bank, tue authorized state transfer esent or
bhem, ana showed thsm TO Mr.. Morrison, the Pres
aenl, VINO pronounced them genuine They were
then shown 10 Mr. Haroerser, tho cashier,
Mr. Enis was not satisfied and
tten the assistant transfer clerk, who anty
NJ the tiuie wnere he with the same answer On
leaving the bank building Sr Ellis met the gen tieman
wno had iuli charge OF tue transfer books, and re-
qu.sied him examine The certificates. rhcy
turned TO the bank together aud alter strict search
Uncovered thai all the bonus had been altered IRON
81 900 to $4,000 Accordingly when Grayis clerk
came to the Bank OF Com on wealth to make good
ia. overdralt and take up The securities Mr.. Es gave
him letter To his employer, In which ne requested
Gray call Tor the bonus IN person, he d,d not
now BANK OFFICIALS WERE FooLRD
When Gray arrived lac was ushcred into a room, in
which President Morrison Cashier harbcrger,
the Manhattan Bank, the counsel Tor that insti-
sni two special officers. Wuea inlormeo that tue
bonds raised and asked how long he had the
possess Gray replied that he had received them
tree days previously from wealthy gentleman, named
Ii. r Pratt who was stopping at the 81. Nicholas
Hotel. As tar us the statement In reg ard 10
the ,ime concerned Gray told the ruth, but II
the bank officials had taken The trouble to
tie bonds tney would have discoycre that they
aaed ayear previous SO cool and collected was Gray
nuder that Tho bank officials alter
rOnsuation with their counsel. decided not to have
HIM arrested us iL might lead 10 lor
agcs. Gray being asked II he had auy more oil
these altered bonds replied that be had safe
aud Que pledged rs coiiaieral win the nrm o C"e-
man BenedicI They Insisted on his gviUg up these
bonds to which proposition he cheeruiiy Consented
BONDS wKKE ALTERED
Ii seems that the bonus were altered IN this way
Whenever Gray needed collateral H. 4. Pratt. his
par,n.r, was IN the habit Of purchasing u genuine
Gvs Thousand dollar New York bounty fund bond !;
then taking II To tne Manhattan Bank he had IL
cuauped Tor lve one nd dollar uonds and then
transferred 10 the name oil Wiinalr n. Gray subsc.
quentiy the date was altered TO sucn time suued
tne purposes oi the swiudlers, ana each 900
THE GRAY BIRDS FLIGHT
On Saturday, Decemuer ii, Gray gave bis check on
Abe Bank OF TIE commonwealth for $40, 900 in pay
pienl ior some stocks bought on the previous day,
aud the bank officials refused to certify It, This
must nave frightened hun. and little later Id tue
day negotiated loan OF $50 000'ou fraudulent col.
latsrus with tho cashier OF Mechanics Bank, aud
gave It. 900 shares o Quartz Hal mining stock TO "A
woman named Isabella haskins. who called his olco
~ a carriage Auer purCha-Ing United States bonds
the $50 700 Gray disappeared, and athoug every
effort was made ny hs vcliDs and The Governing
Committee vi the stock Exchange to effect his cap
ture tue swindier eVadcd pursult IL w"s learned
Inay that he had edatsy repaired 10 tho house
Gcorsc Raphael. Ia Eleventh street, whore he
manned 10 conccalincnt ior week aud hen took pas.
Rage Tor Europe ln tue year 1871 NJ. Scbott,
her vi tho STOCK Board Ia this city, was
ooug business for the well known nrm OF
Gnatlcris x Co., London, was impressed that a
customer vi tins Grm tnc iuguvo iorger
then going under the assumed name Of James Payne
MurguI AR. Schott communicated VITA NJ. Jouu I.
benny, chairman oil the Law Committee oil the Stock
Exchange, and after some CORES spoudcnce the sub
5cst Mr Denny was satisfied thai Morgan was no oher
person tbau Gray. ln this connection IS proper TO
stale that Tor some time cray had called himself
James Peaboiy Morgan. and claimed to be relat!ve
oi the late GEORGE Peabody, the bunker nephew
oi the latter bowsver exposed THIS fraud Gray,
Morgan, said the oatne was ony used ia Joking
way.
Mr.. Denny obtained proof that Gray, alIas Morgan,
was hsing at No. 10 Upper Bloomsbury square, Lon.
aoD, apd captain sampson was sent 10 Eoropc 10
brlug forgor bncK. On ms arrival Sampson pre-.
secuted himself before SIR Thomas Henry mag stratc,
IN Bow street, London, WHO, alter exam ming
ucnlals oid him that he would send Two English de.
bciiyes no acquainted with Gray 10 m,
but sampson was refused PERMISSION to accompany
thSm. fbc detectives waited iu tue ncighborhO0I OF
Eray's d0nIcile ubII1 evening, and on the atter's
ouch tts officer, who was supposed To know the
swtndler, tapped him ob the shoulder ,nd told HIM
that he was PRISONER Gray waD going up the stops
OF tue house al the time anu very cooiy asked ior
whom the detective hpd the warrant. When tho
name oil Jamos Payne Morgan was mentioned he IN
sstsd shat his Leopold Nycr; that Morgan,
however, companion OF MS, and at that
" a ILnnnr IAn IL