New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-03-13
FRAUDULENT STOCK ISSUE
A MANHATTAN BEACH CLERKS CRIME.
WAS THE MONEY LOST AT BACCARAT "A WORN
4 LII

WAS THE MONEY LOST AT BACCARAT "A WORN
OvERCOAT THE ONLY OFFSET.
A fraudulent issue of stock has been discovered in
the Office of the Manhattan Beach Company, which
is leased in perpetuiy to the Long Island Railroad
Company. Notice sent to the Stock Exchange
on Tuesday that certificates representing 40 shares
of stock invalid and would not accepted for
transfer at the companys office. The stock was
issued by J. II. Fullerton, a clerk in the Office who
had charge of the transfer books One of the officers
had occasion on Friday TO refer TO the books and
detecting discrepancy in the amount Of stock held
in the treasury, asked the clerk to explain it, He
replied that certain transactions which had been
made did not appear in the account and he told
to correct it at once. Fullerton did not wait To
put on his Oyercoat, but taking his hat left tho
office. He has not been since by the officers Of
the company, who have put detectives on his track
On Investigation il was found that FulleEton had
issued stock in the names of fictitious persons, and
after having signed the transfer the back OF tho
certificates IN their names, sold the stock for his
own benefit Opportunity for doing this was
afforded by the fact that the company held some of
its own stock in its treasury. The whole issue had
been " listed at the Stock Exchange, aud con-
sequenty the clerk ran no risk of detection by an
over-issue OF stock. 1t was only when the account
OF the treasury stock was matter of inquiry that
the clerks operations were discovered.
AMOUNT OF The FRAUDULENT STOCK.
1t said by officers of the company that Fullerton
had been issuing stock frauduently for about two
years The amount of false stock has been found TO
be some 1000 shares worth about $4,000 The loss
falls Immediately on the stock brokers who accepted
the cert hcates from Fullerton. but their names
nave not been made public Several Stock Ex-
change firms are involved. one to the extent of 600
shares Prominent officers of the Manhattan Beach
Company said yesterday that the company would
lose nothing by the fraudulent Issue because tho
rules OF the stock Exchange make the Indorsement
by member an assurance that the transfer mas
been signed by the real owner of the stock. Ii was
said by members of the Board, however, that the
brokers who had received the stock from Fullerton
would have a good claim against the company for
the recovery OF their losses, because the certificates
have the signatures of the cOmpany's officers. In
previous of similar character, it said tho
raiIoad company had been obliged to recognize tho
stock genuine.
Fullerton had charge of the payroll for sOmetl me,
and on the day that he disappeared be had received
check for 1920 for the purpose OF paying some OF
the company employees. He drew the money from
the American Exchange National Bank and took t
with him when he feared that his irregular practices
aS transfer clerk had been discovered. The presl-
dent of the company said that the loss of this
money would be all the loss which il would suffer,
and that it had rs an offset an oyercoat somewhat
Fullerton had been employed by the company
about four years. lie Is said 10 be about thirty
eight OF forty years old and TO have wife and one
chd. He was as mid-mannered man as eyer
saw" one of the officers said; no one suspected bis
honesty for moment. He had been in the Office
ever since the organization of the company and
apparently had been faithful and attentive to MS
duties.'
Since his disappearance it has been learned that
the clerk probably LOST a considerable part ot hl5
gains in playing baccarat at the rooms OF tho
London Club, in Twenty-ninth-s5., where ne % was 2
frequent visitor. II is suspected that he lost much
more money there than in speculatlng IN stocks.
he sold the fraudulent stock through well-known
brokers' nut drew the proceeds from the sales with
out often mdulglng IN speculation.
WHAT WAS LEARNED THE LONDON CLUB.
At the London Club it learned last night that
Fnlerton had not been there since Thursday night,
when he played until nearly morning His usual
good luck appeared TO have deserted him, for he lost
about 800 at the sitting The secretaryof the club
paid Yesterday two cheeks of 800 each which he
udOTsed for Fullerton that night. lie sand that he
had not seen Fullerton SINCE but presumed that the
fugitive might be found IN Canada. lie added:
II j. ridiculous 70 say that Fullerton dropped his
money here spite OF his losses on Thursday nlght
lie must stand least $1,000 ahead Of the Aol-". He
came here tSO or three times week and Was always
here Wednesday aud saturday nlght> when The play Is
heaviest. Hr quiet In manner amt cool headed ia
playing lie never drank anything stronger than
mineral water and little Of that He generally n@i
plenty OF money and took him for business man VINO
simply played for amusement They tell me now that
he had salary Of only 81 200 year. Well AT can
il that have seen HIM have more tldn year Day
in his pocket lie Used % cash checks Tor tho
PLAYERS frequently. aud when cautioned hin about tbe
risk he replied that he did not think there was any
danger N dong H.
An old friend OF Fuerton's added:
He Away, PLAYED pretty big game. IIemember
meeting hlm at the knckcrbOcker totas" slN or
seven years ago do not know what he was doing
there nut ne had lots OF money and bet freely lie waJ
not loser cnera.ly and however his gambling accounts
may stand. / sIe that lie has not lost any 100000
on cards in the last years lie 10 that kind of
player