The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-07
A. V. SMITHS ALLEGED GUILT
REDUCING A MOTHER AND A DAUGHTER
FROM WEALTH TO POVERTY.
The Remarkable Financierinr OF the FoIiett
Machine Company's President-A Hurried
Departure Through the Side Door ora N oteI

Among the boarders in the Grand Central
Hotel two years ago was A. v. s. Smith. OF me-
dium height, stout. with Gorid complexion long
sandy moustache light curly hair and benevo-
lent countenance. He lived and dressed in tho
best OF style, was FREQ with his money, OF which
he displayed lnrRo sums in a conspicuous man
ner. and by all accounts was considered
pleasant person to know. He represented him
self ms purchasing agent Of the United States
Government and was in the habit Of sending
and receiving large official envelopes. post
marked Executive Mansion Washington. d.
@" Treasury Department" and the like.
Among his acduaintances was Mr.. A. y. Blake.
agent Of Adams Express Company. at 80 Broad
way President Brtton Of the Washington
Board Of Police Commissioners and many
bankers and business men in Washington md
Connecticut His brother was the leading part
ner in the Smith 4 Eggie Manufacturing Com
pany OF Bridgeport. and no had influential
friends in Chicago. Boston and Philadelphia.
His credit was excellent and he had little DIM
Guilty in securing the confidence Of the capital
lists with whom he came in contact
In June. 1877. the Foet Sewing Machine
Company was organized The machine was
tine invention of Mr.. j. H. Follett. Of IS West
Ninth street. who is said to have laborcd 1--WE
years and spent $4,000 in the enterprise. The
articles OF agreement were drawn up 10y Mr..
John II. Parsons and another lawyer. and the
amount of capital stock fixed at 81 .OO0.O0O.
| Among those who took stock and paid the first
installmcnt Of twenty five per cent wcro Gen.
Fred 4. Locke. Of Locke & Munro .3G7 Broad
way; Mr.. Henry Shaw linen importer. Of 50
Leonard street; Mr.. John Downing. contractor.
and Mr. f. W. Christian. The sharee on which
twenty five per cent only had been paid rose
| to forty-nve and the business was supposed to
be prosperous. What the company wanted.
however was a business man Of wide acquan-
tance among merchants and manufacturers.
| Mr. Blake introduced Mr. Smith to Mr. Follett
| and The other stockholders. They were charmed
test trial Of the machine was had in the
| companys shops in Centre stree. In the prcs-
| ence of the directors. several manufacturers.
| aAd member of a wealthy steel house of Lon
! don. II worked satisfactorily. and Mr. Smith
would elect him President. h. would tako
| $1,000 IN stock. aud procure them subscrp-
| tons TO- the amount OF 100000 more In ninety
| days. The directors at once elected Mr. Smith
| President at salary OF $4,000 per ycar. with
| prospects OF speedy i 'rcase. Mr. Smith uc-
| cepted the office paid down the e. 500 Install
| ment on his stock. IN cash. and entered upon
Tho moro tho directors saw of Mr. Smith the
more they congratulated themselves upon their
| choice. He was an active business man and
| smooth speaking, and OF such an open hearted
| disposition that il seemed prepOsterous to mis-
| trust him. While attending 10 his duties a.
| President Of the new company he continued his
| apparently thriving business as purchasing
agent Tor ihe G9vernment, He would enter
! store. exhibit official envelopes and documents
bearing the Government seal, and. on the
strength Of them and his connection with the
machine company, obtain thousands Of dollars
worth ~ goods. nil to be sent on to the United
State Government at Washington" This dis
armed suspicion immediately. nine business
men out Of ten think ng that. as the Govern
pent WAS TO receive the goods and receipt for
them, there would be no danger in the venture.
way he elainei sfE566 wSrih i~ Of yses o. tho
stephens Wise COMPANY. at Al Dey street at
the same tim1c Offering 10 Introduce their goods
lie got large am ,unts Of goods oi other firms.
Sheppard hnHpp GO. in tho same way. II
never occurred to- these gentlemen that the
! Goy"rnmcnt employed no pur, ,haSing ag,nt-.
| but offered It's contracts to the highest bidder.
| Even tho TACT II Mr. Smiths ordering the bills
| 10 Doe sent o. him al tho Grand Central Hotel,
and aiterward al tho Hotel ST, Stephens. failed
When MIR Smiths creditors had sent for their
| money four or five times. without getting n.
| thoy began t. think something WIS wrong. Mr..
| Stephens went 10 Pres -idont Smith. and told
| him that he must pny that SO 900 at once Mr..
Congress which had fiulod o. pass the requisite
| uuprupriatiou bills tp meet the claims Of their
| lowed by Mr. stephens, although u appears T.
| hive be'n believed in hy MERCHANTS who read
| harasscd Smith that the latter went 70 Mr..
! f0llett al the sowing machine oiilre and asked
| the loan Of 10000 OF Mr.. foliefs individual
| stock as collateral. ~ none ot Mr. Smiths
| financial difficulties Lad come to the compnuy's
| ears, and ~ he was mqrcgyGr pushing their
| him the stock, Mr. Smith receipting for 1t with
| a due bill This stock was pledged with the
| Stephens Nise Company IN part payment OF the
In he summer Of the following year Mr..
Smith aud his family visited Niagara Falls with
one Of the companys officers. smiths debts
| as purchasing agent were rolling up rapid
ly. and he was driven 70 gll sorts OF shifts in
| consequence. lie never drew on Now York
| parties on Middleton 4 Co. in Washington.
| There was much trouble. whercat Mr.Smith was
| yirtuousy indlgnan; 10 one pressing credltor.
| 10 whom checks had been returned protested.
| and who had been told tho appropriation story
| several times. Mr. Smith conndentlally ex'
Why, my loar sir you soc there are four or
I'VE different smiths % who BANK . WIN nlddie'on;;
hqye the, follow discharged"
| lie had plenty ~ money Tor himself. however.
| At the Hotel st. stephens he lived in luxurious
style running upn bill Of 81 900. or more. which
| is still unpaid. He Inspired confidence in the
| landlord by going into tho office. at dinner
| time. when the guests were about and hnginE
| down a package Of several thousand dollars in
| $50 aud tl0O bills. with the remark:
| There Rider lock that up in your safe, and
use az much Of II ~ you want 10. | don't care
| ABOUT carrying II around with me-
| 1t was considered discOurteous TO press man
| like this for payment. and so ms account was
allowed 10 run. He would walk into Stewards
|
| ing five or six 81 900 groenbacks. tell the wo-
men to order whatever they wanted. The bait
took. few weeks before his flight he ordered
on credit a bill Of diamonds Of Joseph Vein
| hold OF John street, who was so pleased with
| his customer that he pressed on him pair Of
| OF $3.50 diamond earrings, which Smith re-
| fused to take Whenever Smith left tho
| house he called q coupe, even II It was TO 20
| only a couple OF blocks. lie did not drink, but
was extremely fond OF Havana cigars, tho cost
Hest brands Of which were freely supplied by
| his landlord. lie was most fascinating talker,
| and charmed his AcQuaintances at tho outset.
| Mr.. Smith took directors OF tho company
| with their wives and families, 10 Washington
| entertained them ut Il brown stone mansion in
| III street, introduced them at the White House,
| the Treasury Department, and elsewhere, and
| Impressed them with the belief that he was a
| most important parsonage .
| Smith had weakness for the turf He
| owned and backed the trottng horse Sooner,
| for which he paid 10000. Sooner has u record
OF 1922, and several of the directors Of the sew
ing machine company saw him trot in 2;2l
on the NarraRansett Park course last summer.
| few weeks ago, Smith made strenuous
| efforts to have tho treasurer of the company en-
| dorse his check for n largo amount but the lat
| ter refused to do so. lie Attempted 10 borrow
| So 0O0 of Mr.. Follett. who declined to lend. A
resolution had been passed in tho Board OF
| Directors cutting on his salary and he began
| TO be looked upon with suspicion. Three weeks
| ago in tho temporary absence OF Smith. MIR.
| EOiptt wna allod To the SturteYaut House To see