The Washington times., 1906-04-23
TEN MILLION PLOT
TO SN|NDLE BANKS
Seaton, Off for Sing Sing,
DisclOses Conspiracy.
MORGAN WAS CHOSEN VICTIM
False Bonds of Railroads Were to Have
Been Means for Making Dis
honest Fortunes.
MORGAN WAS CHOSEN VICTIM

NEN YORK. April 23.-Additional de-
tails OF the plot TO flood the market
Win SlOOO,O00 of forged railroad bonds
by which IL was hoped to swindIe prom
hent bankers and financiers in this
country end in Europe, and which only
iell through when 1t became known to
the projectors that Charles Augustus
Seaton, who knew of the plan, was in
daily conference with the district at
torney, have been disclosed bt Seaton.
MS was before he left the Tombs on
his way to Sing Sing. accompanied by
i. c p. Colmy and Samuel j. Hum
phreys, his confederates in the Norfolk
and Western forgery.
Even though the cOnspiratOrs sudden
~ stopped their labors the investigation
by the authorities is still going on Tho
principal in the plot. and many of his
companions, are known The former is
in this city, under constant espionage.
The Bankers Association of America *
deeply interested in the matter and
through its agents. the Pinkerton De
tective Agency. is leaving nothing un-
zone mere and IN other parts of tile
country 10 ascertain Just how far the
operations went before the band of
1orgerS became alarmed 1t is feared
however, that the cessation of the
any or them TO the bar. even with Seat
on information at hand.
Seaton's Confession.
His confession is in the hands of his
lawyer Charles T. lie Barber, who has
known Of the matter for some weeks.
and today he will send COPY of IT
10 Assistant District Attorney Garvin.
who had charge OF the prosecution OF
Seaton and the others
According 20 Seaton the forgers were
not lacking in money to put their plan
into operation had they not become
alarmed. and the very bOldness of their
operations might have been an element
which would have added to their sue
cess While he does not make IL clear
just now prominent bankers could have
Deeh duped by the plan, with all the
sateguards they have thrown about
IIelr business, Yet he declares that
among the firms whom it was boDsd
might be fieeced We're those Of 7 Pier-
pont Morgan & Co. Kuhn. Loeb q 60
ana Speyer d Co. in this city. while
C1ner nrms engaged in big transactions
throughout the country and in EurOpe
were on the list of the band.
Moreover, they had decided to forge
the bonds of many OF the most exten-
siVe railroads in the country, hoping
that the very names of the CORPORA
tions and the standing of their genuine
ponds Would aid in deceivng the men
most familiar with them.
Among the railroads whose bonds
were to be forged. Seaton says. were
the pennsylvania, the New York Cen
tral. and the Louisville and Nashville.
Open Brokers Office.
One man, so ran the scheme Seaton
has disclosed, would open a brokerage
office in some city-Boston. for instance.
Then another man-James Smith, say
would write 10 the bankers that he had
hypothecated with the Boston broker
100000 worth of leading railroad bonds
on which he had obtained a loan OF
$4,000. He was desirous of investing his
100000 of bonds in other securities. con-
trolled by the banker 70 whom he wrote
Would the banker take up the bonds by
paying the 5000 Smith had borrowed
and apply the other $4,000 to the Dur-
chase OF stocks which he controlled 1t
was known that the banker would send
his Boston representative to the broker
In that city to ascertain If Smith had
given 100000 worth OF the railroad bonus
as security for 4 loan. The answer
would be in the affirmative
Planned to Disappear.
It was the idea Of the forgers that,
after an examination OF the bonds. all
the necessary names on which had been
forged Sfdllfully. the representative of
the banker would be deceived into be-
leving the bonds genuine. and would
advise the banker to pay the $4,000
This done, he would get the bonds and
forward them to the banker Then
without further ado, the broker would
close up his office and disappear.