The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-12-10
They PEDDLED The notes
H. E. Simmons Is Victimized by a
Financial Skin Game.
SCHEME TO JUGGLE A LOAN
kallam Proposed to Bny Whiskcy and
Trust to the Tariff-Cashier Hand
States That the Honesdalc Bank
Docs Not Garry simmons Paper.

New York, Dec. 9.-An interesting |
tale Of fraud has been unearthed in the
arrest of Henry Haigh, a lawyer, 55 |
years old, with an Office at 67 Exchange
place, and David L.. Kallam, of 229
Broadway.
II. p. Simmons has an office at 253
Broadway, and he claims to be the vic
tim of scheme, in which Kallam
played one of the leading roles, to de-
fraud him of $25, 900. Haigh was an ac-
tive operator in the scheme, but
whether he was partner of Kallam,
an employe, or only an innocent vic
tim, is not at all clear in Mr.. Simmons
story. The $4,000 represents the face
value of notes signed by Mr.. Simmons
and indorsed by Mr.. Kallam. This was
done, according to an agreement, which
allowed Mr.. Kallam to hypothecate the
notes to raise money for the mutual
benefit of Messrs. Simmons and Kali
lam.
Lawyer Haigh loomed in view when
Mr.. Simmons discovered that his notes
We're being peddled about New York
city, and that Haigh had some of them
and was Offering them for sale at 25 per
cent of their face value. The terms of
the contract were not being lived up at
all, Mr.. Simmons found. He had not
realized cent on the notes himself,
and the prospect of having to meet
$4,000 worth of his own paper was not
| pleasant. Mr.. Simmons sought Inspec-
tor Mclaughlin and told his tale of woe,
and the arrest of Lawyer Haigh and
Mr.. Kallam on Friday afternoon re-
suited
Simmons is president of the Prosser
Falls and Priest Falls Canal company,
at Tacoma, Wash.
Mr. Simmons Story.
Mr.. Simmons story Is that his COM
pany had issued bonds early last sum-
mer for 100000. These bonds were sold
under contract abroad, but before the
money was received Mr.. Simmons
found the need of ready money to con-
tinue the work on the canal. He tried
to negotiate loan, but failed to do so,
and finally consulted his brother,
Charles Low, on the subject. Low said
he knew that David Kallam also want
ed loan and Low expressed the opin-
ion that Kallam was in a position to
handle paper for the mutual benefit Of
himself Q<allam) and President Sim
mons.
Low was requested to look up Mr..
Kallam's record, and as it was appar-
tently satisfactory, Simmons said he
accompanied Mr.. Low to Kallam's Of
flee on July 13 last There, besides
Kallam, Mr.. Simmons was introduced
to a Mr. Western, who was said to be
a president of the Honesdale Savings
Bank and Trust company, of Homes
dale, Pa. Here 1t may be said that Mr..
Western Is regarded by the police as a
"stool pigeon" Mr.. Kallam said he
was president Of company which was
building railroad in West Virginia
that he wanted money for the tenn
porary use of his company pending the
sale of its bonds. He also said that he
owned forty acres of timber and coal
lands in Lincoln county, w. Va.
After a general discussion of the best
methods to raise money, Mr.. Kallam
asked that Mr.. Simmons sign foul
, notes for sc, 900 each, which were drawn
up and dated. Mr.. Kalllam proposed
, that these notes be used to buy whisky
at the lowest price, the same to be put
, in the warehouse. Kallam said that g
man named Dean would advance Il
= per cent. of the value of the warehouse
g certificate, and he proposed that the
money raised in this way be equal!
divided between himself and Mr.. Sim
. mons. When the tariff bill passed HI
: proposed that the whisky be sold anC
the profits divided between them anC
used. Mr.. Kallam agreed that tn
notes, when they matured, would b.
! renewed for four months more, i
J, necessary. He also agreed that tn
notes should not be used eXcep
through banks, and that they shoult
not be peddled out. Mr.. Simmons ad
. mits that he signed these notes ol
n Kallam's verbal pledge that they woul
be used as described.
:, A Mythical Mortgage.
l. Mr.. Kallam agreed to secure Mr.. Sim
mons for the portion of the proceed
a used by the former, to give mortgag
l. TO Simmons for the sum of $15000O o
Kalllam's wonderful timber and cos
+ lands in Lincoln county, w. Va. |
u the contract, however, was inserted tn
agreement that whenever any none
!, should be received by Simmons froi
his share of the proceeds of the note
1, It should be indorsed upon the NOR
IS gage and that when the indorsemer
amounted to the share of the notes n
# ceiyed by Kallam, and in the case of a
Is the notes discounted being paid an
taken up, the mortgage was to be cal
e, | celed and discharged. Kallam ais
st agreed to indorse the notes before the
/. went out of his hands.
g Under this contract Mr. Simmer
y signed twenty notes under blank dat
~ ranging in value from $1,000 to $40, ,O
each, and aggregating $4,000.
iee Mr.. Simmons went to California c
' n Aug. 3 last, nineteen days after signir
the contracts mentioned. While the
"a he learned that these notes were beir
in hypothecated and Lawyer Henry !
he Haigh had some of them and was o
fering them for sale for rs per cent.
h. their face value. This finally brougl
On Mr.. Simmons back to New York ear
IT. in December. After consultation wi
his brother the latter went to see M
N, Haigh about 1t. Haigh, according
vi Simmons, offered Mr.. Low $33, 900 wor
'' of the paper for so per cent. Of its valu
~. When Inspector Mclaughlin hea
~ Simmons story he detailed detectiy
40 on the case, and they arrested Hail
and Kallam today. OF the notes sign
w. by Simmons the police have thus {
ler recovered $4,000 worth
to Honesdale, Dec. 9.-H. c. Hand. cas-
Ter of the Wayne County bank, ma
al the following statement in referen
m, to Kallam's transactions to Tribu
eu' representative today:
y. "rhe Wayne County Savings bank
sSS- Honesdale, Pa, has none ofNthe H..
1Il Simmons paper, said to have been n
ass gotiated by d. l.. Kallam, for whi
he is under arrest in the city of NJ