New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-17
A FIRM OF BANKERS RUINED.
EXTENSIVE FORGERIES BY ONE OF THE
PARTNERS

Mills, koDes0n q Shilth, bankers. OF NO. 70
Broadway made assignment for the benedt
OF their creditors late on Saturday afternoon.
The assignee is William A. Watson, who has been
cashier for the firm for several years The
liabilities arc $35O,OO0 and the assets are prob
lematical. The cause of the firms downfall is
not directly due to speculation in Wall Street. but
arises from the embezzlement and forgery Of ono
OF It's members. This involved it to such an
extent that it became impossible for the firm
to meet its outstanding obligations.
The drm was organized to carry a general
banking business in 1882. The individual MEM
bers arc George II. Mills, of Montclair. N. j.;
William p. Robson, of No. 35 Garden Place,
Brooklyn, and Albert II. Smith, the junior mem
ber, of No. 2O4 Columbia-st., Brooklyn. Tho
integrity, energy and business capacity Of tho
firm quickly the confidence Of the community,
and it was soon on paying basis. The firm
did not do as extensive business many
of the downtown banking firms, but it was con-
sdered to be sound by both its customers and
competitors. The firm had modest Office and
several clerks to look after the details of the
business.
During the years that the firm has been In
existence the members have had perfect conf
dence in each other, and the mistakes that were
made in investments by any Of them were
believed to be merely mistakes Of Judgment. and
there was never the slightest suspicion of dis
honest dealing. The first cloud appeared above
the horizon early Saturday. and before night
its appearance had become Omnous, and threatened
the destruction of the firm.
Mr. Watson, the cashier. has also acted stock
clerk for several months. The firm desired to
borrow several thousand dollars on Saturday, and
Mr. Watson was directed to look over the stock
certificates and select sufficient number to put
a.
across certificate Of the Illinois Central in the
name of Albert Ii. Smith for eighty shares Of the
preferred stock. He did not know where the
certificate came from, and he became suspicious
of it from the fact that the writing was in inks
of different shades. Mr.. Smith was not in the
office and the cashier took the certificate to the
railroad companys office to see if it was all right
This led to the discovery that certificate for
eight shares of stock had been given to Mr.
Smith, which by few strokes Of the pen had
been raised to eighty.
LAYING BARE THE FRAUDS.
The cashier did not lose any time in returning
to the office and laying the facts before MT:
Mills and Mr. Robson. They were astonished
at the revelation and could not believe that their
partner had been guilty Of forgery. knowing
that some one had altered the stock certihcate'
they began an investigation to hx tho
guilt where it belonged 1t was sorry
task and the facts as they were
brought TO light. pointed conclusvely to Mr..
Smith as the culprit. They learned, by compar'
inc their books with the books Of several rail-
road companies from whom Mr.. Smith had bought
stock. that the number of shares in the certificate
held by the firm did not agree with the shares
ON the books of the company, the figures having
been regularly multiplied by ten. This alfera-
tion Of stock certificates was found to have begun
about six years ago.
The stocks Mr.. Smith dealt in were the ST.
Louis and San Francisco preferred, Cincinnati ana
St. Louis preferred, Illinois Central, Lake Shore,
Michigan Central, Omaha preferred and 81. faui
nreferred As batch after batch OF the frauduiehs
certificates were discovered, Mr. Mills and Mr.
Robeson became convinced that the hrm was
ruined They did not announce their lahuio
during business hours, for the reason that tney
did not cant to- add to the panlcky fecnns III
Wall Street. but sent quietly for Walter s. Logan
of the law firm Of Deming q Logan ana nao Q"
assignment drawn up to Mr. watson.
NJ Smith was kept in ignorance Of the investi-
cation that was being made during the day, and
vent in and out of the Office with the air of man
who could look the whole world in the face with
| tho confidence that comes of honesty In tho
ofternoon when it was seen that the wreck OF
tho Arm was complete, Mr. Smith was called into
tho .rivate office The serious faces OF his part
nors and the presence of the firms lawyer, made
him restless and uneasy. Mr. Mills. VINO Is an oio
man with hair as white as snow said IN a trem-
h,;rg voice: Mr. Smith, we are compelled 20
close our doors. We have learned to-day what
we never suspected Our books show that you
aro an embezzler and forger, and arc responsible
! for our ruin"
Smith became greatly agitatcd, and pressing his
| hands to his forehead, exclaimed pitifully: My
| God. It has come ont at last lie Durst INTO
tears and it was several moments before he conid
control his emotion. He asked for moment to
,b;nk This was given to him, and then he said
| that he was ready to make clean breast OF the
whole business.
SMITH CONFESSES ALL.
He confessed that he had been led into the corn-
| mission of crime by an unfortunate \pecuiation
soon after he became a member OF the firm lie
had also introduced several customers to the nrms
who opened accounts which in the end resulted IN
loss TO the firm He felt that 1t was his duty TO
replace what had been lost, and he committed
forgery to do it. He hoped after making good
the losses to be able TO take care of the raudens
stock, but his plans had gone amiss. ana IN
order to cover up one crime, he had Decn com'
peled TO commit others and many of them.
Mr. Smith made out an inventory of his losses
and transferred to the firm real estate and per-
sonal property valued at $4,000. all that he pos
sessed. He said that after he had made all tho
restitution in his power he would surrender HIM
self to the police and ask to be punished for
his crime. He appeared to be completely broken
down and after his statement had been taken
in writing he was allowed to go home:
Smith was a member OF a number Of political and
sociol clubs and of Plymouth Church. The nrst
fbing that he did after getting home was to
write brief letters of resignation from the church
and all the clubs and societies. without givine
When Mr.. Logan got through with the frmS
affairs at the Office, he called upon Inspector
Rvrnes. at Police Headquarters and laid the case
bcfore him. Late in the evening Detective Iitus
sccompanied Mr. Logan to Brooklyn and arrested
Smith at his home He ,s was srrs,s at tine ss
o"d time was given to him to complete the work:
He He then went willingly with the detective and
WAS locked up at Police Headquarters lie retold
the story of his criminal acts to Inspector byrnes