The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1890-11-21
HUGE FORCERIES.
The Junior Partner Involves q
Brokerage Firm.
TEE NET SHORTAGE $4,000.
An Artfui Little Cipher Made to Stand Up
Against Preceding Figures In Deposit
of Stock-He Confesses the
Crime.

NEW YORK, Nov 1I.-Albert Il.
Smith. the junior partner in the broker
age firm of Miller. Robinson & Smith at
80 Broadway, is q prisoner at police
headquarters, charged with over seventy
forgeries, aggregating $3.50, 600. Smith
has acknowledged his crime to Inspect
or Byrnes and has turned over all his
property to w. A. Watson for the bene-
fit of his creditors
The discoveries of the forgeries, which
cover period of six years, were acc
dentally made by a stock clerk in the
employ of the firm.
In his confession Smith says he used
the money obtained by his forgeries to
reimburse customers of the firm who
had lost money on his suggestions Be-
fore his arrest he made clean breast of
his doings to his associates in the firm.
Although the case is not yet complete
Inspector Byrnes, aware of the excited
condition of the money market, deter
mined to make public the real facts of
the case.
Smiths method was something akin
to that of Bedell, the clerk OF the firm
of Shipmau, Choate &c Laroque, who
was sent to prison for long term re-
Gently. The loss resulting will fall
upon the firm. which had been in ex-
istence since 1872, and which had been
held in the highest repute.
About six years ago Smith became
embarrassed and to save himself adopted
the scheme which led to his downfall.
He would buy seven, eight or nine
shares of first class stock and by adding
a cipher raise the order to seventy,
eighty or ninety shares. These he de-
posted with the firm as private &C.
count and thus made his partners re-
sponsib'e. The shares were in the course
of time hypothecated with the Union
Trust Company, United States Trust
Company, Central Trust Company,
Chemical Bank, Phoenix Bank, Me-
chanics Bank, Fourth National Bank,
Nassau Bank of Brooklyn and Russell
Sage, until the amounts secured reached
between $50, 900 and $50, 600 in each case.
The forgeries might have continued
indefinitely if Stock Clerk w. A. Wat
son had not discovered that the figures
in certificate turned in by Smith 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 to an overhauling of the books
of the firm and then all came to light
At subsequent conference with his as
sociates Smith made full confession
and then went to his home, 204 Column
bia street, Brooklyn, where he was ar
rested He is prominent churchman
and member of several clubs Know
ing that exposure was inevitable. no
sent his resignation to all clubs previ-
Gus to his arrest
The stocks which Smith bought were
St Paul preferred, Omaha preferred,
Michigan Central, Lake Shore, Illinois
Central, Cincinnati & St Louis, and
ST. Louis & San Francisco. Some of
these were a so deposited as collateral
with the Washington Trust Company
and the American Loan & Trust Com
pany. His crime is forgery in the first
degree, and, as he has confessed his
guilt he can not escape long term of
imprisonment He is As years old and
a childless widower.
All of Smiths forgeries are not a to-
tai loss to the firm, as about one-fourth
can be recovered. The net loss will be
S27O, 900.
Smith was arraigned at the Jefferson
market police court this morning and
was remanded.
Lawyer Walter Logan, of the firm OF
Denning & Logan, counsel of the firm
of Mills, Robson & Smith, said that
the firm had made an assignment to w.
A. Watson, to whom Smith made per-
sonal assignment