The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-10
ROB EQUITABLE OF $4,000.
IEMPLOYEE 4 FORGER AND WORK
ING WITH Az OUTSIDE CROOK.

When a bewhiskered tourist. who styled
himself William Daley, was arrested
Yesterday morning at The Rapids, a
hshermen's resort near Spra yueville, Pa,
by Norman T. Bailey, the assistant super
intendent Of the Pinkerton agency in this
oity, II became known that the Equitable
Life Assurance Society was recently swindled
out Of $4,000 and that Il narrowly escaped
losing much more.
Tourist Daley u the notorious Sam
Lobby, who has been so busy since he was
born. the son Of a horse thief. In the Eighth
ward, forty-eight years ago, that he won
two pages Of space In the Byrnes book.
This was his greatest Job, but he did not
do II alone.
His confederate was an employee In the
general offices Of the Equitable society
a. 40 Broadway, a man trusted for years
He has not been arrested, for reasons Of
the society's own, but they cay that they
are sure Of him, that he cannot escape and
that be will be seized in good time. Those
who spoke for the Equitable refused to
give the culprits name, 10 say in what
department he was employed or whether
he IL still at work.
William c. Cotton OF Brookline, Mass,
held q policy OF $4,000 in the insurance
company. In March, 1901, he pledged the
policy with the company for a loan OF
ap7 900, the policy having a surrender value
in excess Of that amount. check for the
loan was sent to Mr.. Cotton and the policy
was put In the society's vaults with similar
securities, safe from the ordinary robber,
hut not safe from the employee who had
formed the acquaintance Of San Lobby.
This man had aooess not only to the
security vaults but 20 the records OF loans.
How he came TO know Lobby OF how Lob
ley came 10 tempt him are matters not
vt on the surfscs. Whatever the history
o. their friendship may have been, the
policy was stolen from the vaults abOot
the isdh Of last August and given to Lobby,
forger and swindler Of twenty-five years
experience.
Next the trusted employee turned his
attention TO the books Of his department
and so changed the records Of loans and
securities that no debit appeared against
the account Of william c. Cotton.
How this could have been done would
require an explanation so complicated that
the public could not understand it, was
said at the Equitable once yesterday. The
balances were correct and Il was impossible.
except ct the stated periods Of examination.
20 discover the fraud. A dummy policy
Was put in the vault where Mr.. Cotton's
policy had been"
A few days after the theft the Equitable
received what purported TO be a letter
from C0ttOu me 3 4 tho Vpolcy-Und
loan agreement cailiaR for 81 900. The
letter asked for a han Of that sire and
requested that the check be made in favor
Of Samuel Edwards and mailed to Mr..
Cotton in care OF the Equitable branch
in Boston The Official in charge Of the
loans glanced at the records, saw nothing
charged against the Cotton policy, made
out the check and directed the envelope
as the letter had requested. The policy
was put TO bed once more in the vault.
The envelope that contained the check
never reached Boston. IL is believed that
81 ives stolen from the mail basket in the
Equitable Office by the dishonest employee.
who gave It 70 Sam Lobby
Sam had an account OF considerable size
in the Mechanics Bank, Brooklyn, where
he had had himself introduced many months
before a. Samuel Edwards. He indonsed
the check, deposited il in his hank and
drew on his account at convenient intervals.
not frequent enough to excite suspicion.
II was all very easy.
So easy Il was, in fact, that Sam Lobby
and the trusted employee determined to
do IL al over again. The policy was stolen
the second time. the books altered 30 that
the title 10 the policy appeared again to
be clear and unencumbered. and then
sam Lobby once more forged the name
Of William {. Cotton TO an application for a
loan OF $4,000. This amount was chosen
In both onses Of fraud because the thieves
knew that the company would not hesitate
20 loan II on a policy worth much more
The letter 20 which the Cotton signature
wss forged asked that the check be mailed
as before, TO the Boston branch and be
made payable to R. c. Henderson. It Is
not unusual IN insurance loans TO have the
checks bear the name Of some one other
than the policyholder, so no suspicion was
eIeited, and the cheek for $4,000 was sent
again.
Lobby had prepared for this case, II
sesms, weeks ahead. He had opened an
account at the Brooklyn Bank, giving his
name as r. G. Henderson. He backed the
check with this name, presented 1t at the
bank and tried TO get part payment in cash.
The bank officials got suspicious and called
up the Equitable Office. Lobby Edwards
Henderson got suspicious and didn't wait,
The Equitable Office looked up the matter,
lyn Bank not to honor the check. Lobley
had fed.
The Equitable officials said nothing to
the employee who was in position 10 steal
the policy, but the Pinkerton detective
agency set out TO learn the Identity OF the
forger. From the descript ions given Of De-
positor Edwards and Deposition Henderson
Il was plain that the two were one and that
the one was Sam Lobby. II was learned
that Lobby had been living a. Samuel
Edwards at lsS Twelfth street, Brooklyn.
but when they get there he had flown
He had been having a fine time with the
Cotton loans. He had two automobiles
IN which he and his wife were often seem
and he had an interest in two orthree race
horses which he backed with Equitable
money.
Since February the Pinkerton men have
followed Lobby all over the country. MI
Bailey found him at the Rapids yester-
day. Sam and his wife, registered a. Mr.
and Mn. Daley, wep having great time
fishing and resting. He had grown a hne