The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-12
spER was FACING EXPOSURE.
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|.. ... t.ia' Traction Company and Tho
,N... rttR lisht tnd Elec'ric Tom.
a,e r .gth " which srirr represented
"A, p..s,s Co., confidential clerk ara beinG
r.,rr,yri trd merrri into thr Ntltntlc
,. rsetur RsilWay CompaRy The
...,.I IrIaf Company sts the trus'ee
t.f .a .asc ~ tho mortg1g" bonds Tor
a.. .0Y ~ rho now cpmis,ny From titne
IN .mc Mr. Norrrs r,'hrrci tho bonds ~
tho aI ..mpipy together. when m"
,., # ..a bonds had hecn asaemhled tho
,.v ra4 gcro ~ be- issued Mr.. RpHnra
n.r sr.ar thr4r bonds ~ 10 d%esposit"d In
e,,m,rgo for tho now ones, Among them
ser, tso btfcho-. ono ~ sioO ,Gn In the
-, ,,a., company and the other ~ S5n go
IN tho A-burv Park company
rhc.a nnrS4 Sricr tunk 20 Keech. Loew
80. instead Of tn the Central Trust Com
rary, and was specializing ON them with
tho stock ~ other companies ~ security
Lasi week. Il IL alleged, Mr.. Rogers book
Eper.r asked Spicr for the Central Trust
Tonnany's receipt Of these two patches
~ tonds Spier put him on by saying
iba, certain changes regarding the coupons
we're being made and he gave his personal
rocaipt for the bonds. ThJt was reported
moi to he satisfactory. The time had
come for the issuance OF The new bonds
II the reorganized company and MIR. Rogers
wanted them.
Spler was notified Of this fact and he
Wenr 70 Keech, Loew A Co.'S Office and got
possession 81 the bonds. What .pretext
H. used has not been made public. but II IL
supposed that he told his brokers that ne
SIMPLY wanted to exchange the bonds.
because the time had arrived when that
transaction must be completed. and that
no alone as an officer had the right to make
the exchange. This would seem plausible
N Keech, Loew 4 Co.. and knowing Spier's
relations to MIR. Rogers, and also having
full confidence in him, they gave him the
bonds, taking, Of course, his receipt Tor
That was on Friday morning. Spier
took the old bonds to the Central Trust
Company, the place MIR. Rogers had directed
from $. F. Hazelrigg, the president OF the
two old companies, for the exchange ana
got $500 in bonds of the new Atlantic
Coast Electric Railway Company. IL had
been arranged that when this final lot oil
$4,000 worth of bonds should be presented
~ .a,r hnnIa should ho iaailaH The for
malities usual with such transactions were
gone through with and Spier took the bonds
to Mr.. Rogers's Office, where they are now.
on this transaction Mr.. Rogers lost moth
ing. He had sent the old bonds to the
Central Trust Company n had got back
all the new bonds. He did not know that
in transit between his Office and that OF the
Central Trust office I ese bonds had been
deposited with stock brokers' by Spier Tor
speculative purposes. =,
On Monday morning, after the news OF
the death OF Spier had become known,
Keech, Loew 4 Co, sent a formal demand
to the Central Trust Company for the bonds
which Spier had obtained from them.
1t was refused. The Central Trust, COM
pany's attorneys said the bonds had come
to them l~egitimately, with proper authority
to make the exchange and that had been
done. The reason why Keech, Loew d Code
handed only $40, 900 was that that sum rep
resented what they thought was their
financial interest in them. Spier had by
pothecated the bonds Mr.. Rogers had given
him, and he had stolen from them rather
than Mr.. Rogers by getting back the bonds
under false p~retences.
Keech, Loew & Co. assert, however,
that they do not stand to lose more than
1915 500, even II their claim for the possession
OF the bonds is not recognized as valid.
They say the rise in stocks which they were
carrying for Spier brings down their losses
from $40, 600 TO the smaller sum. F. b.
Keech of the firm issued this state ment
yesterday afternoon:
Our possible loss through the late Char les
L. Spier will, at the maximum. amount to
about s57. 500. This n~eglects entirely claims
for securities and moneys SUFFICIENT to cover
the whole amount. which claim we regard
In every way as legitimate.
Mr., Keech said earlier in the day:
By advice Of counsel we shall not discuss
our Transactions with Mr.. Spier. The counsel
for the Central Trust Company says. l note.
that the loss is entirely on us, l I'm not so
sure about that. We waive none OF our
rights.
Adrian H. Joline of the counsel for the
Central Trust Company said:
If Keech. LoeS & Co. had notified us In
time. Of course. we would not have issued
the bonds to Spier. W. were not supposed
W hHON anu ulu NOT hHVW tHhb nv ny
potheCated them on the way from Mr..
Rogers's office to our own. 1t Is clearly a loss
for the brokers and we feel sorry for them.
We contaminated a legitimate transaction.
one We were employed to do. and can not
be responsible to Keech. Loew Il Co.
There is reason to believe, however, that
certain other securities are missing from
Mr.. Rogers's Office. 1t was reported on the
Street yesterday that Spier had gone TO an
other brokerage Office with $50 900 worth OF
securities and had asked that they be ac-
oepted for S25, 600 for speculative purposes.
These securities were made out in the name
OF Mrs. Spier. The brokerage firm de-
clined the account, and it is asserted that
Spier took them to Keech, Loew 4 Co.'S
office and used them there. Whether
heech, Loew 4 Co. have these securities
now, and whether that fact inspired Mr..
heech to say yesterday that the firms
loss could not be more than $57 500 at the
maximum, could not be confirmed at the
Office of the concern.
IT. Is evident that there is to be a legal con-
Test over the life insurance OF Spier. AL
ired Lauterbach, who is trustee of SIS 900
worth Of the policies on Spier's life, spent
some time yesterday looking into the legal
aspects Of the case. 1t il asserted that
keech, loew 4 Co. will endeavor to press
then claim against Spier in the collection OF
me policies issued in favor OF Mr.. LATTER
bach a. trustee. II will be several days,
however, before any proceedings are be-
gun.
MIR RpbipSnn of Tho r,,a rIion Tr1iat Conn