New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-09-28
| A NEW FORGERY LAID BARE,
THE PRODUCE EXCHANGE GRATUITY FUNu
AHEAvY LOSER
WILLIAM R. FOSTER, JR. THE " TRUSTED couN.
SELL" WHO HAS HELPED TO FERRET OUT
OTHER CRIMES HIMSELF ACCUSED
OF STEALING s1es. 900 BY MEANS
VI FORGED MoRTGAGEs-DE.
TEcTIvEs LOOKING FOR
uHE MISSING MAN
now WERE THE

now WERE THE
PAPERS STAMPEDE
The discovery Of another big swindle wsg mAde
known yesterday afternoon, when the trustees Of
the Produce Exchange Gratuity Fund announced
that William X. Foster, jr, their counsel. had
defrauded that fund to the amount OF 81 6s, 900
by means OF bogus mortgages, as was done by
James f. Bcdell, formerly with the law firm Of
Shipman, Barlow Larocque & Choate. 1t was
through the BedeH forgeries that the crime OF
Foster was discovered On Saturday Last Alex-
ander Mum, one OF the trustees suggested 10
Duncan c. Norvell the secretary, that the conf
Dental counsel of the fund be called upon to show
how his accounts stood and that they examine the
securities
The counsel had entire charge OF the inaucisl
affairs Of the fund, gave no bonds. and up to that
time had the full confidence OF the trustees Mr.
Norvell spoke to William r. Foster, jr., about ths
matter and Foster made frivolous excuse. Then
order given that Foster be ordered to appear
before the trustees. He called in the Office Of tho
fund on Tuesday and an arrangement was made
for him TO meet the trustees on Wednesday. He
said he was sick then and needed rest Foster
failed to appear at the time arranged and Alex
ander Il. Orr the chairman of the Board of Trustees
and Secretary Norvell took number of mortgages
to the Registers office on Wednesday, and then 10
was found that thirteen Of them were forgeries,
and that the amount involved was 81 SO, 900.
THE LAWYER MAKES HIS ESCAPE.
Pinlerton detectives put on the case, and
the matter was kept as quiet possible by tho
trustees in the hope of catching Foster, but hs
got away. He was last seen on Wednesday at the
1hirty-fourth Street Ferry about the time that
he should have met the trustees. The Gratuity
Fund consists OF $1,000, 900. All OF this amount
except 81 80, 900 WAS invested in bonds and mort
cages before 3bster began to rob the fund. Tho
visit of the trustees to the Registers Office de.
yeloped the fact that Fosters methods were ex-
actly like those of Bcdcl Forty mortgages were
supposed to be recorded in the New-York Registers
office including the thirteen forgeries. They date
back from 1888, and most of them were dated
during the time that Register Reilly was in tho
Office. One or two are dated in Register SIevin's
term.
Deputy Register J. j. Martin made the examna.
tion of the documents The seal was an imita-
tion of the genuine one but it was triae smaller.
and the impressions on the bogus deeds are not az
heavy as they should be. The type Of the certif-
cation stamp was also different than the type ot
the Registers stamp and the check marks OF the
recording clerk plain forgeries as wero
also the Registers signatures On all the forged
papers the acknowledgements were taken before
John OConnell as notary public. This gave rise
to the suspicion that Mr.. O'connell was impli-
Gated and he not at his office yesterday after
noon.
EXCITEMENT AT THE EXCHANGE.
There was great excitement the Exchange all
day yesterday, and the officials of the Gratuity
Fund was surrounded by members Of the Exchange
who were loud in their dcnuncatons of the loose
business methods on which the affairs of the fund
conducted. Secretary Howell begged the ex-
cited brokers to keep quiet and announced that
the trustees were preparing a statement The
citement subsided somewhat until this bulletin
was posted at 80 p m.
TO THE MEMBERS OF THE PRODUCE EXCHANGES
Yesterday afternoon it came to the knowledge OF tho
OF the Graulty Fund that Counsel william r.
Foster, ir., suspected OF having committed similar
frauds those pracscd by Bede In the office Of Shpman.
Barlow, Larocque Choate An investigation proves this
TO be the The Register has pronounced -
mortgages aggregatng slosooo, having frau iulens
certificates OF registration The investigation still going
and the members Of the Exchange will be advised Of
further developments Last evening Pinkertons Deteo-
tive Agency employed william Foster ir.
but yet report has been received from them
ALEXANDER f. ORR.
When this was sent over the tapes il gave
rise to the report that the Maritime Exchange
had also been victimzed. Recently William R.
Foster negotiated mortgage OF $1,000 Cor the
Maritime Exchange on property at No. 62 Lex
ington-ave. The trustees of the Maritime En-
change went to the Registers office and found the
mortgage was correct The interest on this
mortgage had been paid by James Z. Foster,
the brother of William K. Foster.
REFUSING TO GIVE A LIST OF MoRTG AGES.
The members of the Produce Exchange, after
the floor was cleared, waited about Secretary
Norvelrs Office, but no further information could
they obtain. The trustees called in ii. E. Deming
as counsel, and in response TO the demands of
members for further information, Mr.. Orr said:
" BY advice of counsel we have decided not to
give the list of bogus mortgages uatil tomorrow,
as it might interfere with the ends of justice,
and for the reason that our Investigation is moo
complete During the afternoon, when the en-
ctement was at its height the secretary's window
was closed up, and cn 1t was sign which read.
Closed for Repairs
1t was stated by Mr. Norvell that Mr. O'Connell
had been before the trustees and had given them
they were satisfied that he was not to blame.
Mr.. O'Connell was formerly clerk with Foster,
but he is i'll business for himself at Room NO.
4 Z, Produce Exchange Building. Later Mr.
Norvell made this announcement officially:
The notary whose appears all the bogus mort
cages declares the signatures TO be forgereS
On the Exchange it was reported that L Il. Inur-
her had seen the father of Foster and that he had
said he would make good the deIalcaion of his
SON. Another rumor was to the effect that Foster
had forged the name of his father TO q check
get out of town with. Neither story could be
verified Fosters father has been member oe
the Exchange for many years. He has business
at No 25 Cana[st, and lives at Babylon. L. l.
He is reputed to be worth about 81, 0O0,0CO. He
was on the floor of the Exchange yesterday.
NEVER KNOWN TO SPECULATE
William Il. Foster jr., is man about forty-fve
years old. He lived at Bayport, Long Island in
D house which is said to have cost $50, 900.
lie was never known TO speculate on the floor
and his income from his practice brought
him in $500 per year. He always dressed
,tylishy and had bearing that gave one the
impression that he had good opinion OF his
self-importancc. BY some persons il is said that
he played faro. lie is member OF the firm Of
Foster a. Wentworth, but Mr.. Wentworth had
nothing 10 do with the Gratuity Fund or the
Produce Exchange business lie is a member Of
the Down Town Club the South Side Club the
nj Ciuh nd he We<t Il, i,b