St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-11-17
SEVENTY FORGERIES.
4 Member OF a New York
Firm ConfesSeS Stupen-
douS Crimes.
For Six Years He Was Guilty
Of Forgeries Without Be-
ing Detected.
dis System the Simple One of
Raising the Number Of
Shares Bought.
He Turns Over All Of His
Property for the Benefit
of Creditors.

New YORK, Nov. 16. - Albert III.
Smith, the junior partner in the broker
age firm of Mills, RobeSO1 and Smith,
at 96 Broadway, is prisoner at police
Headquarters. charged with over sew
enty forserieS, aggregating S350.COO.
Smith has acknowledged his guilt to In
spector Byrnes, and has turned over all
his property to W. A. Watson for the
benefit of his creditors. The discovery
of the forgeries, which cover period of
six years, was accidentally made Satur-
day morning by stock clerk in the EN-
ploy of Mills. Robson & Smith. In his
confession Smith says he used the
money obtained by his forgeries to re-
imburse customers of the firm who had
lost money OH his suggestions.
Before 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 some
thing akin to that Of Redell, the clerk
of the firm of Shipman, Choate & La
ROGUE, who was sent to prison for
long term recently. The loss resulting
from Smiths misdoings will fall upon
the firm of Mills. Robeson & Smith,
which has been in existence since 1872,
and which has been held in the best re-
pute. About six years ago Smith be-
came embarrassed, and to save himself
adopted the scheme which has led to his
downfall. His plan was simple. He
huu I1ar
of firSt-claSS stock, and, by adding a
cipher and the letter Y, raise the order
to seventy, eighty or ninety shares.
These he deposited with the firm as a
private account, and thus made
His Partners Responsible.
The shares in the course of time were
hypOthecated with the Union Trust
company. United States Trust company.
Central Trust company. Chemical bank,
Phoenix bank, Mechanics bank. Fourth
National bank, Nassau bank, of Brook
lyn, and Russell Sage. until the
amounts secured reached between $50
300 and $4,000 in each case. Smiths
forgerirs might have continued in
definitely if Stock Clerk W. A. Watson
had not discovered the figures in GER
tiicate turned in by Smith Saturday
had been raised. An investigation fol-
lowed, and showed that Smith had pur-
chased but seven shares instead of sew
enty, 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 confer
ence with his associates Smith made
a full confession and then went
to his home, No. 204 Columbia street.
Brooklyn, where he was arrested.
Smith is prominent churchman and
member of several clubs. Knowing
that exposure was inevitable he sent
his resignation to all the clubs previous
bought were, st. Paul preferred, Oma-
ha preferred, Michigan Central, Lake
Shore, Illinois Central, Cincinnati & st.
Louis preferred, and st. Louis q San
Francisco. Some of these were also de-
posted as collateral with the Washing
ton Trust company and the American
Loan and Trust company. Smiths
crime is forgery in the first degree. and,
as he has confessed his guilt, he cannot
escape long term of imprisonment.
he is forty-hye years Old and a childlesS
widower. All of Smiths forgeries are
not a total loss to the firm, as about one
fourth can be recovered. he net loss
will be s27O,000. Smith was arraig ned
Rt the Jefferson Market police court this
morning, and was remanded.
Lawyer Walter Logan, of the firm of
Denning & Logan, of Al East Tenth
street, who are counsel to the firm of
Mills. RobeSOn & Smith, says this eve n
ing that the firm has made an assign
ment to w. a. Watson, to whom Smith
yesterday made personal assignment.