Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-11-18
Court this morning and remanded until
THE FoR0RRIEs.


Albert II. Smith, the junior partner
OF the brokerage firm of Mile, Robson Il
Smith. at No. % Broadway, was arrested,
charged with over seventy forgeries, ag-
grcgating 1850, 600. Smith acknowledged
his guilt to Inspector Byrnes. and
turned over all his property 10 ". A.
Watson for the benefit Of his creditors.
The discovery Of the forgeries. which
cover period Of six years, was acci-
dcntally made on Saturday morning by
q stock clerk in the employ Of Mills,
Robeson & Smith. in his confession
Smith says he used the money obtained
by hisforCeries 10 reimburse customers of
the firm who had lost money on his sug-
RestiOns. He made O clean breast OF his
doinRs 20 his associates in the firm. About
SIX years ago no became embarrassed,
and 10 save himself adopted the scheme
which has led 10 his downfall 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 be
would deposit with the firm as q private
account and thus made bis partners re-
sponsible. 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-
chsnics Bank, Fourth National Bank,
Nassau Bank Of Brooklyn, and Russell
Sage, until the amounts secured reached
between 800. 900 and $50, 900 in each
case. The forgeries might have con
tinucd indefinitely If Stock-Clerk W. A.
Watson had not discovered that the
figures in certificate turned in by Smith
on Saturday had been raised. An In
ycstigation followed and showed that
Smith had purchased butseyen shares IN
stead Of seventy, a. appeared on the face
of thecertifcate This led 10 an overhaul
ing Of tue books Of the firm, and then
everything came to light. Smith rs
q prominent churchman and n member
of several clubs. Knowing that expo
sure was inevitable, he sent his rcslgna-
tion 10 all the clubs previous to his ar
rest. The stocks which he bought were
81. Paul preferred, Omaha preferred,
Michigan Central, Lake Shore, Illinois
Central, Cincinnati and ~. Louis pre-
ferred, and st. Louis and san Francisco.
Some of these were also deposited on
collateral with the Washington Trust
Company and the American Loan and
Trust Company. He is forty-iive years
old and a childless widower. All OF his
forgeues are not total loss to the firm,
as about one fourth can he recovered.
Tho net loss Will be $40, 600.
THE TALK OF THE STREET.
The remarkable frauds perpetrated,by
the broker Albert II. Smith was the talk
of the streets to-day. The creditors of
the firm ruined by his specuations will
hold a meeting Tomorrow afternoon,
and at time n statement of the firms liza
bilities andassets will bc presented. The
firm OF lawyers representing the firm
said to-day that the figures approXima-
ting the liabilities Of the firm were
Duc on loans on which stocks and bonds
had been issued as collateral. $500, 900
due depositors, I 0O0-total, 5000, 900.
Assets-Stocks and bonds pledged, $780,
900 other property, about .S35.OOO-io-
tai SjS5,OOO.
AMOUNT OF SMITHS FoRGERIES
Smiths forgeries amount to about
S2lO, 600, and his private loans TO about
$40. 600. His assets are $50, 900. A
partial schedule Of Smiths forgeries
show that the actual value of the secu-
rites pledged is in most cases 10 or II
Der cent. Of the amount loaned on them.
For example, a loan Of $3.50 was OBJ
tanned upon securities worth $3.50,
and for loans ageregating S147, 400 the
securities pledged are actually worth
only SlG,500, the certificates having
been raised TO ten times that amount.