The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1906-01-19
Prior Used the Local
Water Works Issues
for $500, ,OOO-His Big
Failure May Reach
Three Millions.
The City Stops Payment
on the Interest and
Auditor Ashbrook is
.Investigating-Caused
Babcock's Suicide.

Cleveland, o., Jan. 15.--Three more
forged series of bonds, issued by lei
and w. Prior as collateral for loans,
were uncovered Monday. These
amount to 100000, and make the to-
tai of spurious bonds to date $1,oo0,-
600.
A member Of the bankers commit.
tee now estimates the failure at g.
100000.
Canton, O., has stopped paymen; OF
interest on its bonds until it can learn
what are genuine and what are forgec.
7. II. Bushnell, former judge OF ,ne
Juvenile court, has been appointed re-
eeiver for Denison, Prior q Co. The
application was made to the United
States circuit court OF appeals a, Gin
cinnatf,
L. w. Prior's private safe was open
ed Monday by an expert on orders
Of the bankers committee, which had
Eeen trying for three days to open the
safe.
Miss Harriet l.. keeier, a teacher .jr,
Central High school, has lost many
thousands of dollars In an investment
account she had with Prior, a former
pupil of hera.
The death of ex-Mayor Babcock,
from apopexy, is now stated by inti-
mate friends to have been the direct
result Of heavy losses through DenI-
Son, Prior G. Co.
} w. J. Hayes, president Of the Cuba
Land Co., Of which Prior was treas.
urer, states that Prior's books witt,
the company are correct to the cent
and that the company has not suffered
loss.
1t was learned Monday afternoon On
absolute authority that the bond for.
geries of Leland W. Prior. so far dis
covered by the Cleveland bankers
committee amount to $l,O00.000, and
are conf1ned to the Canton, o., wa
ter works extension As of 1904, the
4 South Sharon, Pa, sewer Al 41hs of
1904, and the Alpena, Mich. water and
light 5s of 1905.
The total amount Of the Prior fail
ure is now estimated at $2,7O0,000,
with the indications that 1t will pass
this amount The apparent assets
are from 100000 to $500, 900.
The following are the order and
the amounts in which Prior issued his
spurious collateral:
Canton, o., water works %, $780,
eco.
Canton, o., water works 4s, $780,.
Doo.
Canton, o., water works 4s, 500,
COO.
South Sharon, Pa, sewer 4ha.
100000.
South Sharon, Pa, sewer 4hs,
100000.
Alpsna, Mich, water and light 5s,
S25o,0O0
Alpena, Mich, water and light 5s,
S25o,ooo.
Prior was desperately involved as
the result of his speculations late in
1901, and first resorted to forgery, so
far as can be discovered, az that
time.
In August OF that year he hat
bought 100000 genuine Canton bonds
being the highest bidder when the
city awarded them. He naturally Sc
lected an issue he had himself han
died when II came to putting out a
duplicate lot as collateral for loans
that he must have to prevent his fail
nre.
Rapidly, one after the other, he put
out three forged issues of the Can
ton bonds, placing them for loans
where they could not conflict with
the genuine bonds. the location OF
which he absolutely knew.
Every day he believed that a lucky |
lurn In the market would enable him
10 redeem these forgeries and destro,
Them, enabling him to pay off his
debts and leaving the world none tho
wiser.
But his matters went from bad to
worse, and in three months he wac
forging the South Sharon securities
Ind floating them for needed loans !
ia the money market.
He was naw far beyond his depth. !
With one plunge he dived for half |
million dollars moro credit, and
Issued two sets OF the Alpena, Mich,
bonds, each for quarter OF mil
lion dollars.
This act was the holdest OF his |
whole criminal career, for his hous.
mad not handled the original issue OF !
the genuine Alpena bonds. They had
been sold originally by that city to the !