Williams news., 1916-07-06
Copyright by W. G. Chapman

Capt. c. G. Warner. who was then general auditor for the Gould railway system, whose chief special agent l then was.
 "Furlong," said Captain Warner, T have just received a long telegraphic dispatch from one of my travelling auditors in Sherman, Tex. He states that a large amount of cotton, which had been shipped from that station, has undoubtedly been diverted in transit, as it has not reached its prop CT destination. I want you to go to Sherman at once, find the travelling auditor, MT. Finby, and make a thor ough investigation.
 Sherman was a point from which very large amount of cotton was shipped annually. It was the outlet for one of the largest cotton produc- ing districts of the state. For this reason the eastern cotton buyers and cotton mill owners were represented by agents here. These agents were really brokers. It was their practice, as soon as they had purchased cotton, to have it delivered at once to the rail- way company for shipment, when they would receive from the railway com pany's agent bill of lading, setting forth the number and weight of each bale This bill of lading, when signed by the railway agent, was negotiable at any bank in the cotton producing district. The bank would take the bill of lading, allowing the depositor 90 per cent cash on the face value, and would hold 10 per cent back until the exact value of the cotton had been ascertained.
 left for Sherman on the first train, and found MT Finby at that point. He informed me that the company's agent in charge at Sherman had left there on the preceding Saturday night, saying that he was going to take Q run down to Galveston on personal business and expected to return on the following Monday. It then being Wednesday, and the man not having returned, MT. Finby had become sus- picious and had wired to headquar te1s, with the result indicated above.
 spent several days at Sherman, making inquiries about the missing agent. Meanwhile telegraphic mes sages of inquiry were pouring in from New York, Philadelphia, Fall River and Providence, from persons who had purchased and paid for large quantities of cotton, the total value aggregating $121, ,000, and they wanted to know why they had not received it. If the cotton had been diverted from its destination and stolen, the railway company would be responsible for the loss
 After ten days investigation at Sherman, became convinced that three other men were connected in the swindle with the missing agent These may be known as No. 1, Mo- 2, No. 8, No. standing for the agent. The swindle had been perpetrated in this way: The bills of lading had been signed by the agent in blank and turned over to confederate in blocks. This confederate had then filled out each blank for various numbers of bales of cotton, setting forth the number of bales and the weight of each bale in the regular way. He then turned the bills of lad ing thus prepared by him over to a second confederate, cotton buyer, who placed these bills in various banks at Sherman, Dallas and other Texas towns, drawing cash for the face value, less 10 per cent.
 I succeeded in locating the family and friends of the missing agent (No. D, and also learned that No. had a brother living in New Orleans. I de. termined to go to that city and quiet. ly investigate this brother, in the hope of discovering where No. 1 was staying. I telegra phed to my office in St. Louis for George W. Herbert, one of my assistants. directing him to meet me in New Orleans, which he did.
 The brother of No. was found in New Orleans without any difficulty and there was reason to believe that No. Is wife might be staying with the brother and his family in the rather pretcntious mansion which they oc cupied. For some three weeks the house was assiduously watched, Her bert and I taking turns of eight hours each. This was one of the most diff SOAS tooho IudI nave ever uuu6T taken. was we'll known to the New Orleans police, who would, no doubt have rendered me valuable aid, bu if l had been recognized I would have had to explain to them my presenc, in that city. and, owing to the influ
 ential position which the brother o No. l held, the news of my presenc,
 might have leaked out and given tn, man whom I sought the alarm.
 Many amusing incidents occurre,
 during this vigil. One morning, afte we had been on watch for sey eral days, hit upon plan to fin,
 whether there were any women in tn
 house, hoping to discover the wife O
 No. 1 among them. A few block
 down the street couple of good
 looking young Italian girls were play