National Republican., 1888-05-24
THE BOGUS BOND OFFER.
Good Prospect of Exposing the Per-
petrators of the Fraud.

The bogus offer to sell to the government
S5,OO00O0 ~ per cent. bonds at los aud
S2G5,0O0 per cent. bonds at 1917, received
and accepted at the Treasury Department
last Friday, is still the principal topic of
discussion among the treasury officials.
There is no longer any doubt In the mind of
Acting Secretary Thompson that the offer
was not mere joke, but was intended to
have an effect on the stock market.
The offer was made in writing and came
by mail IL was regular In form and had
every indication of being n genuine Offer
The signature was that Of Maris & Smith. a
firm OF brokers In Philadelphia, who were
regarded as responsible persons and not un-
likely to have been selected as agents In
transaction of such magnitude. As Is usual
In such cases the envelope containing the
proposition was thrown aside with Others
after IL had been opened.
Acting Secretary Thompson teegraphed
the firm in the usual form, notifying them
of the acceptance of the offer to sell so many
bonds ut such and such rate He also
notified the assistant treasurer Mt Philadel-
phia by telegraph Of his action and author
lied him to pay for the bonds on presenta-
tion. These kilograms were sent about
O'Clock Friday afternoon, within an hour
after the bid was opened. No answer was
received to either telegram that day The
next morning, however, telegram was re-
ccivtd from the assistant treasurer saving
that the bonds had not been presented and
that the firm named in the offer said they
knew nothing Of the matter. This was the
first intimation that Acting Secretary
Thompson had that there was anything
wrong in the case, and he at once iAsti-
tuted an investigation. lie put the matter
In tie hands of the assistant treasurer at
Philadelphia, and instructed him to asccr-
tain the facts so far as he was able and to
report the result as soon as possible.
~, Further correspondence passed between
the acting secretary and the assistant treas
urer Monday, and more doubt was cast
upon the genuineness of the offer, but IL
was not until last Tuesday morning that
the department was entirely convinced that
the oiier was fraudulent. The mail Of that
morning brought a report from Assistant
Treasurer Page in regard TO the matter,
showing conclusively that the bid was a
bogus one, and that the names Of Maris &
Smith had been used without the knowledge
Of that firm.
1t also explained feature of the case that
had caused no little criticism at the depart
ment. This was the failure of Maris q
smith to notify the department on Friday
afternoon that they had put In no bid. Act
ing Secretary Thompson notified them by
telegraph OF the acceptance Of the bid and
named the amount and the rates. 1t was
natural TO suppose that If fraudulent bid
had been made in their name they would
have replied to the telegram at once,
whereas, in fact, they took no steps what
ever In the matter until the following morn
ing, when they saw Assistant Treasurer
Page.
Their explanation of this is that Mr..
Thompsons telegram was sent over their
private wire and said merely that the offer
had been accepted The telegram did not
say "their'' offer, and as they had made
none they supposed that 1t was merely in
tended for their information. Acting Secre-
tary Thompson said yesterday afternoon
that he was satisfied with this explanation
and that he had nothing further to COM
plain Of on the part of Messrs. Marls &
Smith. They had promised to aid him in
the investigation nov being made, and he
thought they would go to the bottom of the
matter in few days. b"
1t is learned from another source that the
detectives engaged on the case have OBJ
tanned information which will undoubtedly
lead to the apprehension of the perpetrator
of the fraud in few days.