The Providence news. (Providence [R.I.]) 1891-1906, 1893-07-31
N WAS ASABl|DpERAI|OA
Bogus Certificates Were Ussd to SWIM
die N,U EuSland Banks.
OLIVER WORK OF WESTERN MEN.
Losses fn Ios;on Arc Relieved to TO
smal;-A Circular Has Teen Issued
Looking Toward n settlement, Iut no
unsicls:aatinr s,ns Yet Been hcached.


BosroS. July cl.-Boston and New Eng
and generally have again been victimized
by the rascally officials OF a western cor
poratioD. but the case is not as bad as has
been reported. The case in brief is as fol-
lows: Officials Of the Northern Pacific
Grain Elevator company OF Minnesota
issued large number of duplicate ele-
vator certificates, which were deposited in
banks rs collateral Unfortunately the
100 elevators controlled by this concern
were not terminal elevators. over which
the closest supervision is kept by Mime
sofa law.
Instead. no state vigilance was exercised
In the case of these way station elevators.
and IL was wholly in this fact that tho
opportunity Of the swindlers lay. The
grain had been obtained on the original
certificates, and the banks had absolutely
Nothing tn show For Their Money.
It was not until the colt was stolen and
had been spirited out Of sight that the
granary doors were secured. or course
the frauds of the employees Of the company
swept it out of existence, and the North
ern Pacific Elevator company is today In
the hands of a receiver, for it was in no
way connected with the Northern Pacific
railroad, merely having its elevators
scattered along that line at points con-
yenient for farmers.
The new concern that succeeded TO the
business of the Northern Pacific Elevator
company was called the Lake Superior
Elevator company, and many Of the stock
holders in the old became stockholders in
the new corporation. Moreover, large
share of them are eastern men, and they
had acted as indorsers, so terms OF COM
promise were speedily offered, which
Have Yet TO Be Accepted.
What these terms are cannot be stated
with absolute definiteness, but 1t Is sup
posed that they provided for a large cash
payment of not less than half the total
value of the certificates, the balance to be
cleared up by q series of annual payments.
4 Still. nothing was suspected and eleva-
tor receipts were in active demand, for they
brought good rates Of interest, and what
better collateral could be asked for than
receipts Of grain in stores
The news Of the big swindle fell like
thunderbolt on banks and stockholders in
the concern. but great secresy prevailed in
the matter, more especially because Of the
stringency in the money market.
A Meeting of the Mourners
was held in this city to see what could be
done in the matter, and a committee was
appointed to act for the institutions repre-
sented. This committee consists of George
Ripley, president of the Hyde and Leather
bank: Theophilus King, vice president Of
the Bank Of Redemption. and George
Littlefield, president of the First National
bank OF Providence, which institutions arc
supposed to hold considerable slice OF the
bogus certificates
A Post reporter called on Edwin A.
Prcsbrcy, cashier of the Bank of Redemp-
tion, aud found him unwilling to talk
much about the case, except in general
way. He said. however, that he personally
would DO willing TO hazard a guess thai
the amount at stake would not reach half
the sum reported, running from $500, 900
to 81, ,000, 600.
He stated that a circular had been
issued looking forward to settlement,
but that no understanding had yet been
reached and that another circular might
very possibly be forthcoming. As for the
number of banks affected and the actual
amount of the steal, Mr.. Presbrey said no
one knew definitely, except the expert ac-
countants at work on the elevator COM
pany's books, although the members of
Rhe committee might have good idea
Of IT
He did state, however, that in his
opinion the number of Boston banks in
volvcd
Was Not Large,
nor nearly 40 great as has been given. As
TO the number Of New England banks
holding certificates, he had no idea be-
yond thinking It very likely many might
have got hold of them, besides those men,
tioned at Providence and Boston.
George Cooksey of the firm OF David
Dows & Co. of New York has been chosen
president of the reorganized concern, the
Lake Superior Elevator company. and un-
hesitatingly acknowledges the swindle.
Moses Williams, president of the Third
National bank and the State Street Safe
Deposit and Trust company, said that
while he had heard words dropped about
tho swindle. he had not received any
1ntimation that meeting had been held.
He said that neither Of the institutions he
a. conrected with has q dollar in the
Northern Pacific Elevator company's GER
tilcates. Evidently the gathering was
held with great secresy.