Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-08-14
ABR0KER'S DOWNFALL
BaCker, Who Failed for S4,000,000,
Arrested for Grand Larceny.
A GEORGIA JUSTICE AFTER HIM.
BE Claims to Have Been Swindled Out of
$4,000 by Backer.
SOME VERY QUEER FINANCIAL DOINGS

NEW YORK, Aug 13.-The Hon. William
D, Harden, Presiding Justice of the City
Court ofSavannah, GA. TODAY applied to JUS
Jice O'Reilly for warrant for the arrest of
Abraham Backer, the dealer in commercial
paper at 2S5 Broadway, who failed recently
for 81, 100000. The affidavit charges Backer
with grand larceny in the first degree.
Judge Harden told Justice O'Reilly that
Mr.. Backer had made away with debenture
bonds Of the Central Railroad and Banking
Company of Georgia, valued at 5000, and
certificates of the Savannah Gaslight Com
pany, valued at $3.50, which belonged to
him. The Justice issued the warrant and it
was placed in the hands of Detective O'Con-
nor, Of the court squad, to serve. The
detective arrested Mr.. Backer at his home
and arraigned him before Justice O'Reilly
According 10 Judge Harden's affidavit, on
March II, 1890, he delivered to Backer a
promissory note. The Judge says he sent a
letter to Mr.. Backer, asking the latter in
the capacity of broker, to get the note dis
counted and forward the proceeds to him.
MI Backer wrote back, demanding collat-
erAl security for the payment of the note at
maturity. Judge Harden offered the Cen
tral Railroad and Gas Light Companies
bonds, which Backer is now charged with
the larceny of, as security.
BACKER WANTS SECURITY.
This letter to Mohr Bros, bankers, of Sa-
vannah, through whom the negotiations be-
tween the Judge and Backer were carried
on, was offered in evidence by Judge Har-
den
MftTr1g RDfoG II aro1x- 10 NJ. n
Harden's letter of the 23d, forwarded to ME
by yuu, and which return to you here it is
customary here to have 20 per cent margin
in securities above their market value when
borrowing on them, but owing to your rec
nmmendatiOn l Will take 10 per cent from
him. am not so particular to have the
bonds be first offered in addition to the
Central Railroad debentures; any good stock
Will answer instead. If he has ten shares Of
southwestern Railroad stock, let him send
them with $4,000 debentures. This will
make about SllO0O in securities. When he
sends the certificates, please see that the
power to transfer them are in proper form.
The transfer can be made in blank
a. BACKER
ID. J. SULLIVAN.
After the receipt of this letter. Judge
Harden says be sent to Backer securities of
the Central Railroad and Banking Com
pany of Georgia, amounting in all to the
par value of s.. zoo and certificates repre-
senting so shares of stock in the Savannah
Gas Light Company, of the par value of sos
3 share. These securities, the Judge saws,
We're accompanied by a power of attorney,
as demanded by Backer.
RENEWAL OF THE NOTE
When the note became due on October 6
Judge Harden asked for and got renewal
OF four months. The last renewal came due
on August II last On July g Judge Har-
d,
the note, and received yhis in reply:
Mr.. W. d. Harden:
In reply to your letter of the sth can say |
that II you will pay me on account ofyour |
note for $1,000 due August Il, 1891, 50 600 / |
think / will be able TO renew S.. 900 for 80 |
days on the same terms as before Won to |
leave the same securities as collateral that |
now hold. A BACKER. |
ID. j. SULLIVAN.
Before the arrangement proposed in the |
above letter could be consummated, Backer
made an assignment for the benefit of his
creditors. Now Judge Harden saws he has !
learned from D. J. Sullivan, who was Back, |
or's confidential clerk, and from the Ma |
tional Park Bank, of this city, that Backer |
did not use the debentures of the Central /
Railroad of Georgia, nor the stock of the /
Savannah Gas Light Company, for the pur-
pose of procuring the discount of his note,
Or Tor securing renewals, but that he got the
note discounted and renewed by the Ma
-lonaI Park Bank on the strength of the
makers good name and reputation, without
iepOsltlng with the bank any of the collat-
erals which were given to him upon agree
nent that they should be held and used as
security for the payment of the note only.
A DIRECT THEFT CHARGEI.
Judge Harden further says in his affidavit
hat Backer ''did fraudulently and felon-
ouSlv and with intent to deprive me of the
-lght to the ownership in the securities. as
'lCn and transfer the securities and the GER
lhcates Of stock representing the same TO
he Merchants National Bank of New
York, upon a loan procured by Backer from.
hat bank for his own use aud for the sole
Jenetit Of himself"
Justice O'Reilly fixed bail at $4,000 and
Examination was set down for Saturday.
iacker was supposed to be prosperous, and
Fhen, on August 5, he made an assignment
Without preference to Benjamin F. Elm
TEN, OF the law firm of Townsend, Dyett &.
Llnstein, II caused considerable talk down
own. His liabilities direct and contin-
rent, were reported to be 81. .000 coo. Be
ides being a heavy dealer in commercial
laper, he was the capitalist of the firm of
Backer & Co., commission merchants.
lie also had q mill at Glastonbury, and
manufactured goods there
THE CAREER OF BACKER.
Backer had been merchant in the South
or many years, and came TO New York z:
bout 2 wears ago. His original business
n the South was in groceries and liquors.
hen he got into the cotton business, later |
ntO cotton goods and then into CONNER
lal paper. His large connections in the |
,Outh enabled him to handle great deal of
.aper, both as broker and purchaser Some !
I this paper he indorsed. and had dis
oUnJed at banks, and on this paper he had
contingent liability
He was said TO handle some of the best
aper made, and about $4,000. 600 of it an ,
ually. His assignment was caused, it is ,
aid, by the condition of the money market, :
-hich made il very difficult for him TO ,
cat the quantity Of commercial paper /
'hich he generally handled. and also to the !
ecline in certain Southern railroad bonds, |
which he was a larger holder 1t is said | I
y persons who are in a position TO know, /
nat The present charge of grand larceny ,
gainst Backer was made as a test case. 1t /
understood that there are a dozen or more s
ersons who are ready to make similar COM
laints. Lawyer Wutermyer acknowledges !
nat there are other complaints, but denies
lat the present case is test one.
FOR MENTAL DEPRESSION
I L.. .T1-rr ax.s.l