Telegram-herald., 1891-05-16
ANOTHER BANK 1HIIF
REPORTED TO HAVE SIOLEy $4,000
As President Of the American Deck aud
Trust Company He Issuss Begus Cot
ton k~eeip1 and swsndied His
Friends Right and Left.

SEw YORK. May l5.-It has been dis
covered that Medad w. Stone. the late
president of the American Docks and
Trust Company, OF this city. who died
about month ago, was guilty OF ut
tering forged cotton receipts 10 the
extent of $4,000 or more. Ae cov-
cred up his tracks during his lifetime
and mis- forgeries only came 70 hight
weeks after his death. Stone was
largely instrumental in Organizing
the American Docks and Trust Com
pany, and was its president for years.
For years also the New York banks
have been advancing money on the GER
titicates of the warehouse company, TO.
no company stood higher and Nd man
was better known nor more respected
around the cotton exchange than Mr..
Stone. Mr.. Stone came here from Cin-
cinnati about fifteen years ago.
While there he was Woe president OF the
chamber of commerce. He was always
regarded as . man OF high business
character.
How He Operated.
stones method of operating was as
simple as could De. As president of the
warehouse company he would issue q
certificate to his own order, showing
that he had on deposit at the ware
houses certain amounts of cotton. Then
he would take the certificate to bank
and get loan on 1t. This is just where
the warehouse people say the banks
were wrong. All the regular receipts
issued by the company have printed
numbers which correspond to the num-
bers on the stubs OF the book from
which they are taken. BY ref
ercnce to the stub it may be seen
| to whom any certificate was issued, at
what time and for how many bales. OF
course it would never have done for
But ne procured from the printer a
number of certificates printed exactly
the same as the regular ones In the
book. These he numbered with his pen
and he was then ready to go ahead.
The amount of money Stone has raised
in this way seems to have amounted to
about $40, 900. 1t is said that several
| New York banks are involved for small
amounts and that one bank in Prov.
dence has also been swindled.
| His Victims Explain.
One of the banks caught here was
the Corn Exchange National. Presi.
dent William A. Nash said this mUrning
eyes, we have loaned few thousand
dollars on the certificates which Stone
issued to himself. The amount is not
over $4,000. The certificates are signed
by the president of the company and
while issued to his order appear in
every way to be regular. The fl, st init
nation OF fanirregularites in Stone'soti
ciai capacity came out about two week.
ago. Then a note secured by
one of the fictitious receipts fei
due and it was found thai
there was no cotton held by the
Dock and Trust Company for Stone.
account. Stone is known to have beer
a speculator both in stocks and cotton
He was thought to be a rich man, bu,
after his death it was found that he had
lost nearly all his fortune. He owned
and lived in = handsome house on
Staten Island, near the quarantine
station. He lived we'll, but was no
considered an extravagant man. 1t j.
thought that the Dock and Trust Com
pany will eventually reorganize the
certificates and settle for them rather
than run any risk of having its credit
| clouded.