St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-31
LARGELY MOONSHINE.
a Boston Correspondent I'm
earths a Conspiracy"
F0RGED GRAig CERTIFICATES,
Ee Says, We're Worked OF on
Many Eastern Banks.
HIS STORY BANK NONSENSE.
None but Genuine Certificates
Have Been Issued.
FORCED GRAY CERTIFICATES,
HIS STORY RANK NONSENSE.
4 GAHARB FULLY EXPLODED.

New YORK, July 8O.-The Worlds
Boston special says that huge conspir-
acy has been unearthed. whereby sew
enty-three banking institutions in New
England were vicumized. The story is
TO the effect that certain employees Of
the Northern Pacific Elevator company,
of Minnesota. issued SI.5O0. 900 worth Of
forged duplicate certificates for grain
in storage in the country" elevators.
owned by the concern, where the in
spection is not so strIcr as at the term
inaI elevators. The forged certificates
were deposited with Eastern banks
as collateral. About SsOO,OO was
secured in New England and
the balance in New York. Some OF the
Eastern holders of the paper became
suspicious. and, on an investigation
being made, the true state OF affairs
came to light. The stockholders of the
elevators were dumfounded when the
facts came to their notice. and offers OF
settlement with the banks were at once
made and terms Of compromise offered.
J he company was then reorganiZed as
tle Lake Superior Elevator company.
with George Cooksey, of David Dows IL
Co.. New York. as president. The terms
offered 10 the banks were 30 per cent
cash, the remainder to be paid
In Five Annual Payments.
A committee Of bankers, whose insti-
tutiOns hold large blocks OF the elevator
certificates. was appointed to consider
this proposition. IL is Impossible to say
exactly what course the bankers viii
pursue, as they are loath TO talk. ana.
in fact. they have done ali in their
power TO keep the whole affair from the
public. The few who 90 say anything
and they are very few admit that
they have been swindled. and de-
clare that the swindlers ought to
be sent to prison. At the same time,
they say that good business policy, un-
der present conditions, forbid such
severe action. especially as the stock
LO.ders OF the elevator company are
ready to make compromise settlement.
The Northern Pacific Elevator com
pany is now II the hands of a receiver.
wiped out its existence. Among the
New England banks swindled are nearly
gil the state institutions here, which
Were Hit FkeavIiy;
banks at Portland. Ne. and various
banks in the towns about Boston.
GeUrge B. Cooksey, the new vice presi
dent OF The Lake Superior Elevator
company. in reply TO question as to
tie truth OF the Worlds story, die
"a ed the following statement:
1.-The Lake Superior Elevator COM
pauy and tie Union improvement and
Elevator company, botn OF Duluth,own
majorIly OF Jne stock in two country ele-
vaJor companies. namely: The Red
Valley Elevator company, on the line OF
the Great Northern railroad, and the
Northern Pacific company, on the line
OF the Northern Pacific. Neither OF
these latter companies IS in any way
connected with the organization OF the
railroad Oh whose lines it operates. The
business OF ali the four elevator c0mpa-
uI-s consists OF buying wheat from the
farmers wien the crop Is moving in the
fail and storing it either along the lines
vators at Duluth, and in making sales
OIL the same grain
FOR Future Delivery
al profit In order TO conduct this
business the companies are necess ariIY
borrowers oil munry, and they have been
puJ into their present difficulties by the
officers OF the country co mpanies at
temUting TO do too large a business on a
borrowed capital. The stockholders
are at work reOrganiZing the companies
on basis which Will pay the creditors
I'm fun and all of them to resume their
business under a new management.
In the meantime a thorough investiga-
lion OF the affairs OF the companies is
being made IN order to ascertain the
exact nature OF the acknowledgement
wnich has led to the disaster. Until
this investigation has been completed.
Ill would not be proper OH our part to
characterize the mIsmanagemenr."
MT. CoOksey would NOT say whether
he Ueheved there had been any inten-
Eonal fraud in connection with the mat