New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-12
FIND FORGED BONDS.
Bankers Think Leland ". Prior
FIoated Bogus Certificates.
LBv Telegraph to III. Tribune !

Cleveland, Jan. 1.-THE cause of the suicide
of Leland W. Prior, president of the brokerage
firm of Denison, Prior & Co, became known TO
day, when the bankers committee announced
that it had discovered forged bonds.
It is believed that Mr.. Prior had confederates
in the sale Of these forged securities and arrests
may follow in few days The bankers com
rnittee to-day engaged detectives to work
the case in the hope Of ascertaining who
graved the bonds and who assisted Mr.. Prior in
disposing OF them
These forged bonds were sold in small lots
all over the country so that the individual Losses
will not be large, A large quantity went through
Eastern bond houses, II is believed. The bank
ers' committee announced that it is as yet I'M
able to determine the amount of the forged
bonds sold but it is believed that they will
aggregate at least 100000
One Of the bankers engaged in investigating
the affairs of the defunct brokerage firm said
tonight that the failure will probably amount
to 81 5000
Frank W. Rockefeller, brother of John D.
Rockefeller returned from New-York this morn
ing and later said:
+ think the stories of my recent investments
have been exaggerated in the gossip around
town not carrying fifty thousand shares
of Anaconda nor sixteen thousand shares or
Republic Steel. OF course. had done a good
business through the house. and had a consider
able amount Of stock up as collateral. sup
pose II is gone now.
The fact that the firm had been using spurious
securities was made known several days be
fore Mr.. Prior committed suicide. Those VINO
had a right to demand statement of the facts
from Mr.. Prior made the demand To their sur
prise they received no information, and without
q tremor 1t is said, Mr.. Prior told them that II
they persisted ne would take the secret where
no power could wrest it from him
The discovery of the spurious securities was
made by Cleveland men last week, and was
promptly put before Mr. Prior last Monday
when he returned from New-York The only
spurious issues yet found among the mu-
nicipaI issues and thus far they among the
securities from smaller Ohio cities.
Among the former patrons of the firm the be-
lief is growing that all the available assets have
disappeared and that nothing will remain of the
once f1ourishing business large debts. The
equities in the collateral loans, the seats owned
at the various stock exchanges and other things
may swell the assets somewhat but the traders
stand to suffer severe losses, according 10 the
present outlook
Boston Jan. 11.-No complaints have reached
the police authorities here that forged munich
pal bonds have come into the possession of per-
sons in this district The Boston Office Of Deni
son, Prior & Co. has been closed for business
since yesterday, and Charles w. Denison.
member of the firm, is supposed to be In Cleve-
land In connection with the failure of his COM
pany. The company did considerable business
In New-England In the sale of municipal bonds
Mr. Denison had charge of the Boston Office and
spent most of his time here.