The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1905-10-04
Big FRAUD ON BANK
Fsrssr Gets Ssts,e0e From New Yert
City National.
DISCOVERED AFTER CHECK CAME BACK
Clever Swlstisr PsssesisS Check 10 Cover
Ssoo,oes Lsss Msts 10 Pearl 4 Co, Brokers,
sns Received The Securities Which nsd Bees
Deposited % ceiIstefsI--Psssssted Bogus
Check Beariss Names sf the Owssss.

New York (SpeciaD BY means OF a
forged certified check OF Pearl & Co.,
ostensibly drawn on the Hanover Ma
tional Bank, securities valued at $780,
oSo, deposited as collateral for loan,
were obtained from the National City
Bank.
The National City Bank is generally
understood to be owned and controlled
by the Rockefellcrs and the so-called
Standard Oil crowd"
Conducted by men who showed they
had an exact knowledge not only OF the
business procedure between Wall Street
banks and stock-brokerage houses and
the clearing g-house system, but the spe-
chic transaction involved, a loan of $780,
600, was supposedly taken up and "a
hours grace obtained in which to dis
pose of the securities 10 innocent third
persons.
The facts becoming known just be-
fore noon, the best men OF the Pinkerton
Detective Agency, as well as the police
OF nearby cities, were excrting every eff
fort within an hour. Their reports at
night were that no trace of the missing
securities had appeared in any transfer
office, although there was a watch upon
every one of them.
All detective theories eliminate the
possibility of any professional criminals
being concerned in the swindle and pur-
suit. it was alleged, had narrowed down
to a certain number of men who alone
knew of the transaction in question.
Every one OF these men is so closely
watched that a single suspicious move
would bring on arrest.
Pearl & Co is banking and brokerage
house in 27 William street. The mem
bers of the firm are Dyer Pearl and f.
F. Slayback, both of whom are mem
bers of the New York Stock Exchange.
The firm is regarded as wealthy, doing
large business. Wishing to obtain a
loan of 100000 for a short time, Mr..
Slayback went TO the National City Bank
and negotiated through the proper per-
son there "one-day" loan, or a call
loan, as it is termed, at AZ per cent.
As collateral security for this loan
Mr.. Slayback offered stock securities of
1000 shares of United States Steel COM
mon, 1000 shares Of Rock Island COM
mon, 700 of Missouri Pacific, a. of Amer
ican Tobacco per cent. bonds, two $Ioo
bonds Of the North American Company,
1000 shares Metropolitan Street Railway
and $4,000 Wabash debenture B bonds.
This collateral had market value of
S35ooSo, and this proving acceptable the
money was paid to Mr.. Slayback and by
him deposited in the Bank of New York.
The note with the securities coming to
the loan clerk of the National City Bank
was by him deposited in the regular
place for such deposits, in great steel
safe, duly ticketed, after having passed
through the bookkeeping department TO
be entered in the proper books.
In a bank like the National City,
where the loans may amount to $I7o,-
100000, loan of 100000 passes without
ripple, and may be one of dozen of
larger size TO be adjusted within 10 min
utes.
Payment on loans is made by certified
check and those checks are carried about
by young men or boys. There was
long line Of such messengers before the
loan clerks window on Wednesday
morning, when young man. appearing
like the rest, placed a certified check for
$3oo,o37.so through the window. saying
he was there to take up the Pearl & Co.
call. loan with interest for one day at
"a per cent.
The loan clerk examined the check
1t was seemingly drawn by Pearl & Co.
on the Hanover National Bank, by which
il also appeared to have been certified
in the regular way There was not the
least to attract suspicion, and the clerk
obtaining the collateral from the safe
nuShed II throt,ph the window and turn
ed TO the next transaction.
The check went to the Clearing House,
which sent it to the Hanover National
Bank for collection, and was promptly
marked "No funds" Pearl & Co., when
asked TO explain, pronounced the check
a forgery.
Police and detective action was swift.
Before half hour the transfer office of
every security missing was notified of
the loss and formally advised not to
transfer the stock Word has come back
that no such certificates had appeared.