New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1890-11-19
FORGERY.
I Broker Commits Forgery
Amounting to Over Three
Hundred Thousand.
The Crimes Extend Through
Years and Cause the
Firm to Fail.

New York, Nov 17.-Albert H. Smith,
the Junior partner in the brokerage firm Of
Mills, Robson & Smith. at No. SO Broad.
way, is prisoner at police headquarters,
charged with over seventy forgeries, aggre-
eating $35O0OO Smith has acknowledged
his guilt to Inspector Byrnes and has
turned over all his property to W. A. Wat
son for the benefit of his creditors.
The discovery of the forgeries, which
cover period ofsix years, was accidentally
made Oh Saturday by a stock clerk in the
employ of Mills, Robson &, Smith. In his
confession Smith says he used the money
obtained by his forgeries to reimburse Gus
toners oft the firm who had lost money on
his suggestions. Before his arrest he made
clean breast Of his doings to his associ-
ates in the firm.
Although, the case is not yet complete,
Inspector Byrnes, aware Of the excited con-
dition of the money market. determined to
make public the real facts of the case.
Smiths method was something akin to that
of Bedell, the clerk of the firm of Shipnlan,
Choate d Larocque, who was sent to prison
tor long term recently. The loss resulting
from Smiths misdoings will fall upon the
firm of Mills, Robson & Smith, which has
been in existence since 1872, and which has
been held in the best repute. About six
years ago Smith became embarrassed, and
to save himself adopted the scheme which
has led to his downfall. His plan was sim
pie. He would buy seven, eight or nine
shares of first-class stock, and, by adding
cipher or the letter Y, raise the order to
seventy. eighty or ninety shares. These he
deposited with the firm as private account
and thus made his partners responsible
The shares in the course of time hypothe-
Gated with the Union Trust company,
the United States Trust company, Central
Trust company, Chemical bank, Phoenix
bank, Mechanics bank, Fourth National
bank, Nassau bank OF Brooklyn and Russell
Sage, until the amounts secured reached
between $4,000 and $4,000 in each case.
Smiths forgeries might have continued in
definitely if Stock Clerk w. A. Watson had
not discovered that the figures in certifi-
cateturned in by Smith on Saturday had
been raised. An investigation followed and
showed that Smith had purchased but seven
shares instead of seventy, as appeared on
the face of the certificate. This led t., an
overhauling OF the books of the firm, and
then all came to light. At subsequent
conference with his associates Smith made
a full confession and then went to his home
in Brooklyn, where he was arrested
Smith is a prominent church man and q
Of. several clubs. Knowing that
exposure was inevitable, he sent his resig-
nation to all the clubs previous to his ar
rest. The stocks which Smith bought were
St. Paul preferred, Omaha preferred, Mich
lgan Central, Lake Shore, Illinois Central,
Cincinnati & st. Louis preferred and St.
Louis & San Francisco. Some of these
were also deposited as collateral with the
Washington Trust company and the Amer
lean Loan and Trust company Smiths
crime is forgery in the first degree, and, as
he has confessed his guilt, he cannot es-
cape a long term of Imprisonment He is
forty-fve years old, and childless Wild
over. ..~ E's
All of Smiths forgeries are not total
loss to the firm, as about one-fourth can be
recovered. The net loss will be $27O, 900.
Smith was arraigned at the Jefferson Mar
ket police court to. day, and was remanGed.
Lawyer Walter Logan, of the firm of
Denning & Logan, who are counsel to the
firm of Mills, Robson e Smith, says this
evening that the firm has made an assign
ment to w. A. Watson, to whom Smith
Yesterday made personal assignment.