The midland journal. (Rising Sun, Md.) 1885-1947, 1905-10-06
BIG FRAUD ON BANK
Forger Gets S56O,OOo From New York
City National.
DISCOVERED AFTER CHECK CAME BACK
Clever Swindler Presented Check to Cover
100000 Loan Made to Pearl & Co., Brokers,
and Received the Securities Which Had Been
Deposited as Collateral Presented Bogus
Check Bearing Names OF the Owners.

Cneck Bearing Names oil the uwners.
New York (Special) BY means of a
forged certified check of Pearl & Co.,
,stensibly drawn on the Hanover Ma
ional Bank, securities valued at $780,
80, deposited as collateral for loan,
we're obtained from the National City
Bank.
The National City Bank is generally
understood to be owned and controlled
by the Rockefellers 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 house system, but the spe-
.i6c transaction involved, loan of $780,
300, was supposedly taken up and "a
hours grace obtained in which to dis
pose of the securities to 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 exerting every Ell
fort within an hour. Their reports at
night were that no trace of the missing
securities had appeared in any transfer
office, although thereNwas 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 single suspicious move
would bring on arrest.
Pearl & Co. is banking and brokerage
house in 81 William street. The mem
Ibers of the firm are Dyer Pearl and f.
IT, Slayback, both of whom are mem
beers of the New York Stock Exchange
The firm is regarded as wealthy, doing
IA large business. Wishing to obtain
loan of 100000 for a short time, Mr.
ISlayback went to the National City Bank
and negotiated through the proper per-
lson there "one-d day" loan, or 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, AZ of Amer
lean Tobacco per cent. bonds, two 500
bonds of the North American Company,
1000 shares Metropolitan Street Railway
and $4,000 Wabash debenture B bonds.
This collateral had a market value of
$35oo8o, and this proving acceptable the
him deposited in the Bank of New York.
the loan clerk of the National City Bank
I,, L Ioo4e;taI -. tho rafr1lar
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
a ripple, and may be one of a 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 certified check for
S3oo,o37 so through the window. saying
he was there to take up the Pearl & Co.
call loan with interest for one day at
w per cent
The loan clerk examined the caeck.
It was seemingly drawn by Pearl & Co.
on the Hanover National Bank, by which
It 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
pushed it through the window and turn
I'd 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 rNo funds" Pearl & Co., when
lsked to explain, pronounced the check
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
ransfer the stock Word has come back
hat no such certificates had appeared.