New-York tribune., 1891-04-30
A DEFAULTER DISCOVERED
HE COMMITTED SUICIDE SOME TINE AGO.
THE FACTS LEAK OUT DURING SUIT OVER HIS
LIFE INsURANCE-A. C. GILMAN STOLE


ABOUT $4,000.
The fact was brought to public notice by
suit in the Supreme Court yesterday that Arthur
c. Gilman who died suddenly at Flushing, Il. L.
on December Is last, was defaulter to the ex-
tent of almost S223. 900. and that his crime had
not been discovered until after his death Mr.
Giman's death was surrounded by great deal of
mystery and it caused stir in Flushing al the
time
j. S. Corey, the Coroner of Queens county, re-
fused to issue burial permit at first, in conse
quence Of the peculiar circumstances surrounding
Mr.. Gilman's death. All his relatives ana near
friends denied Indignantly the rumor that ne had
committed suicide, and although rumors OF Dusi-
ness troubles were rife at that time, they "ere
also denied Mr.. Gilman was a memoer oil inc
firm Of j. II. Labaree & CO., of No. I'D front-st
On the morning of the day that he died he
sent telegram to Mr.. Labaree saying that ne dlu
not feel well and would not be in the city until
late the next day. Mr. Labaree wished 10 see
his partner and so he went 70 Flushing Wheh
he arrived at Mr. Gilman's house he learned that
his partners wife had gone to New-York ana thae
Mr. Gilman had gone to his room, aIIer c"Nl"s
instructions not to be called as he did hoV ieci
we'll Mr. Labaree and the servant IN tne NOUS
raped on the bedroom door, but they receNeu
no response Then they pushed the door open
and went inside. They saw Mr. Gilman lying on
tbo he'd nartlv dressed. They shook him gently
but received no response Mr.. Labaree then dls-
coverod that his partncr was either dead or dying
/ and physicians were hastily summoned. "hen
tbev arrived the body was still warm, but Mr.
Gilman was dead or died soon afterward.
Various causes were assigned for his death py
+ba nbvsicians Heart disease they called IL.
Notwithstanding the fact that they all became
exceedingly indignant when it was suggested thao
Mr. Gilman committed suicide, subsequent de-
velonmcnts proved beyond a shadow OF doupo
that Mr. Gilman came to his death by his own
hand The story of Mr.. Giman's rise ana IAN
reads like romance with tragic endlng
On March 10. 1870, Gilman went to WORK
for the firm of Larabce q Steer, composed ol
7. II. Labaree and Robert W. Steer. Ills wages
for the first year amounted to 80 week Ill
1880 his salary was almost doubled, ana he 'Iie"
received S15 week until October $780, when
! Mr. Steer died The firm was reorgahHeu Uneh'
and tbe old members were impressed with the
,o,,,,, ,non,s business abilities that Mt the compile
tion Of the reorganization he was taken IN as
nortror He did not furnish any capital but ne
| was to receive 10 per cent of the profits OF the
busiposs IIe took complete control of the imam
ooI mart of the business so that his deialcatlons
| covering n period OF ten years, were not ulScoN-
cred until after his death
After Mr.. Gilman died Mr.. Labaree was asked
II he could give any explanation for one 'heoIS
that his partner had committed suicide lie
cxnressed great surprise when the theory was
| broocbed and asserted that so far as ne Khe"
tbe idea had not been entertained by his partner.
! Ue said that he knew of no reason why he silo"lu
take his iife as his business aiialrs WERE III soou
condition. He asserted that he knew, at leae''
that Mr.. Gilman had no business troubles Ill con-
,,ao.ior with his firm. The many rumors which
were floating about. however eNldenuS "iou'0u
Tho FIRMS snsoicions. and they got some expert
saoo,,ntonts +o 90 over the books. Vcysey %
ycvsev were called in for this purpose. and they
,o1o = caref,1 examination of all the accounts
l,cnt bv Mr. Gilman during the time ne was
| oo1nocted with the firm, and they discovered
shortage Of S222034 50.
The defalcatiOns were continuous uhe az
countants said. and were conducted WIFI uesi'o
of skill and treachery 10 his partners which ic"
cosos norollel The firm was composed, peslueo
Gilman and Labaree, Of Charles D hollIes anu
Seymour s. Smith Holmes lived IN Clhclniau
and pad no attention to the management ol V,e
bpsincss but he furnished a large part OF the
firms capital.
After tbe defalcatons were discovered Holmes
had 70 advance so, 900 to prevent the lrin from
going into bankruptcy. When he advanced this
money be took an assignment from the firm oil all
interest which they could secure in insurance
nolcies on Gilmans life for S56,O0o. Inc pollcIe'
were made in favor of Gilman's WIDOW, Mrs'
Vfssie Lawrence Gilman. For some reason Gilman
had deposited these insurance policies Wltn hI'
mariner. Labaree These policies were the means
of dragging the story of Giman's crime into court
After Mr.. Gilmans death Mrs. Gilman tried to
| oct possesson of these policies, but Mr.. Labaree
refused TO give them up. The firm contended
| that Gilman had used the money which he had
stolen 70 nav the premiums the policies. and
that consequently the money ought to go 10
them Mrs Gilman refused to allow that course
70 be taken. and it was finally decided to put the
| nolicies in the hands of Stephen H. Ohn, as
trustee He took the policies, collected the money
from the insurance companies and deposited III
with the Union Trust Company.
After Mr. Holmes had taken assignment of
tho firms interest in the insurance policies ne
demanded the money from Mr.. On. The latter
refused to give it up, and signifed his intention
of paying it over to the widow. Mr. Holmes
then began suit in the Supreme Court to re-
cover the money, and he secured temporary
Injunction restraining William b. Davenport, who
was appointed administrator of the estate; Mt
OHn. Mrs Gilman or the Union Trust Company
from interfering with the money. motion was
argued before Justice OBrien, iii the Supreme
Court. Chambers, yesterday, to make this in
junction permanent, pending the final decision of
the courts in the case.
Holmes in an affidavit which was read 10 the
court. said that Gilman defrauded his partners by
Systematically falslfying the accounts and by forg
ery. As has been said. the full amount Oh the
ldafolc1tion was S222, ,03i 80. There was due TO
Gilman at the time of his death the sum of
S6I2i 80 from the profits Of the business Gilman
Geposited the money which he stole from the firm
in the Seventh National Bank and the Mechanics
hank, Of tbs city and the Flushing Bank and
tie Queens County Bank of Long Island City.
lie drew il all out again before his death. how
ever and no trace of it can now be found. La
baree says in an affidavit that he could trace race
81 900 which Gilman had stolen from the hrm