The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-08-18
TO SWINDLE BANKS
TO GRAFT ON LARGE SCALE
UNEARTHED
WAS TO BE OF WIDE SCOPE
Fraudulent Corporations and Fic-
titfOus Notes Basis on which
Promoters Hoped to
Get Money.

BALTIMORE, Aug. 1.-THE details of
an alleged attempt to swindle banks on
a large scale by means Of fraudulent cor
porations and fictitious notes is told in
petition filed today in the Baltimore
county circuit court at Towson, for re-
ceiver for the Manor Lumber company,
of that town. The amount involved, &C
ccrding to the petition, is over $l.00060o
and 1t is asserted that the scheme has
been at least partially successful.
Benjamin W. Cross, of Cincinnati, is
the plaintiff, and according to the story
told by him re was induced to accept
certificates of stock in the Manor com
pany by Charles E. Corcoran, originator
and promoter of the scheme. which stock
he subsequently transferred back to Cor
coran.
Cross has learned since. he says. that
the company was not incorporated for
the purpose of doing a legitimate bust
ness, but formed by Mr.. Corcoran as a
part of scheme for alleged swindling,
covering territory from Boston, on the
north, to Chicago on the west, and Nash
vile on the south.
Mr.. Corcoran. being already interested
in some legitimate companies, notably
the CheGuasett Lumber company, with
branches in New York. Boston, Pitts
burg, Norfolk and Chicago; the American
Hardwood company, of Cincinnati, WITH
branches throughout the East and West,
and the Chesapeake Lumber company, of
Baltimore, wished, it is alleged, to in
crease the credit Of these companies with
the banks Of the country for the purpose
of 'kiting'' negotiable paper Through
them. He organized from eighteen to
twenty-one smaller companies, it is al
legged, ostensibly engaged in the lumber
business, from which he would on de-
mand receive from 81 900 to $500 in ne
gotiable paper, payable to the order OF
any of the parent companies needing 1t.
This paper was discounted in enormous
quantities. the bill alleges, at various
banks in the country, they being led to
believe that each note represented
bona fide sale of lumber.
Among the twenty-one smaller COM
panies so organized are the Manor, Park
ton and Suburban lumber companies, or
Baltimore county, Pocahontas company
of Norfolk; Sylvania company, of Ph1la-
delphia, and Muskoka company, of North
Tonawanda, N. Y.
The bill further alleges that, in order
to better carry out his scheme, he kept
mis- connection with these companies a
secret and led the banks to believe that
adj were independent companies. In pur-
suance of the scheme, the bill says, Mr..
Corcoran had been discounting among
the banks of this country worthless paper
aggregating at least $l000,OO0, including
SOC, 600 of the Manor company.
Within the past week the alleged
scheme of Mr.. Corcoran mas been discov-
cred, it is said in the bill, by the banks
of the country and they have refused to
discount any further paper. Consequent
~ the notes which the banks now hold,
It is stated in the bill, have gone to pro-
test. The concern is hopelesSly insolvent,
it is alleged. and with no money in the
bank with which to pay the bills.
Judge Burke appointed Osborn I:(IYell-
lott, of Towson, receiver for the Manor
company, and it is said that petition
for a receiver for the Parkton company
will be fled on Monday next.