The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-11-17
A BROKER TURNS FORGER
STOCK CERTIFICATES RAISED TO
TEN TIMES THEIR VALUE.

Seventy Manipulations of the Kind
Net Him S35O,O The Discovery
Made by a Stock Clerk Employed
nv His Firm-The Firm Will Lose
S27O,OOO.
NEW YORK, Nov. 16-Albert H. Smith,
Junior partner in the brokerage firm of
Mills. Robson & Smith, at No. 90 Broad
way, is a prisoner at police headquarters,
charged with over 20 forgeries, aggre-
eating S35O,OOO. Smith has acknowledged
his guilt to Inspector Byrnes and has turned
over all his property to w. A. Watson for
the benefit of his creditors.
THE DISCOVERY.
The discovery of the forgeries, which
cover period of six years, was accidental
,~ made Saturday morning by a stock
clerk in the employ Of Mills, Robson
& Smith. In his confession Smith SAYS he
used the money obtained by his forgeries in
reimbursing customers of toe firm who had
lost money on 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, and fearing that the matter might
be used by Wall street sharps, determined
to make public the real facts of the case.
SMITHS METHODS.
Smiths method was something akin to
that of Bedell, clerk of the firm of Ship
man, Choate & Laroque, who was sent to
prison for long term recently. The loss
resulting from Smiths misdoings will fall
upon the firm of Mills Robson & Smith,
which Las been in existence since 1872, and
which has been held in the highest repute.
CAUSE OF HIS DOWNFALL.
About six years ago Smith became en-
barrassed, and, to save himself, adopted the
scheme which has led to his downfall. His
plan was quite simple. He would buy
seven, eight or nine shares of frst-class
stock, ard, by adding acipher and the letters
"ty,n raise the order to seventy, eighty or
ninety shares. These he would deposit with
the firm as private account and thus made
his partners responsible. The shares were
in course of time hypothecated with the
Union Trust Company, United States Trust
company, Central Trust Company, Chemi-
cal Bank, Phoenix Bank Mechanics Bank,
Fourth National Bank, Nassau Bark of
Brooklyn and Russell Sage until the amounts
secured reached between $20, 600 and $780,
600 in each case.
AT THE END OF HIS ROPE.
Smiths forgeries might have continued
lDueunltely II Uno STOCK clerk, w. A. w at
son, had not discovered that the figures in
certificate turned in by Smith Saturday
had been raised. An investigation fol-
| lowed and showed that Smith had pur-
chased 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 a
subsequent conference with his asso ciates
Smith made a full confession, and then
went to his home in Brooklyn, where he
was arrested.
CHURCHMAN AND CLUBMAN.
Smith is prominent churchman and a
member of several clubs. Knowing that
exposure was inevitable, he sent his resigna-
ton to all the clubs previous to his arrest.
The stocks which Smith bought were St.
Paul preferred. Omaha preferred, Michigan
Central, Lake Shore, Illinois Central, Gin
clnnati and st. Louis preferred, and st.
Louis and San Francisco. Some of these
were also deposited as collateral
with the Washington Trust Company
and American Loan and Trust Company.
Smiths crime is forgery in the first degree,
and, as he has confessed his guilt, he can
not escape long term of imprisonment.
lie Is 40 years old, and childless widow
er. All of Smiths forgerieS are not total
loss to the firm, as about one-fourth can be
recovered The net loss will he $270,000.
smith was arraigned at the Jefferson
Market police court this morning, and was
n remanded