A CLEVER FORGERY

 

A CLEVER FORGERY

REMINISCENCES OF EXPERT FORGERS.

Another case that came under my experience shows fully the risks which large corporations are being continually exposed to by the intelligent criminal and the expert forger. During January 1877, the commercial circles of Wall Street, New York City, were startled by the announcement of heavy forgery, one of several that had been successfully operated within a brief time. The victims of this transaction were two prominent stockbrokers and the Union Trust Company of New York. with whom the New York Life Insurance Company had a large account. The forgery was most ingeniously contrived, and the perpetrators, whoever they were, displayed an almost incredible knowledge of the inner workings of the two institutions which they so successfully preyed upon.

The facts of the case, as far as can be learned, when the crime was first discovered, appeared to be as follows. The check, which was drawn for $64,000, was dated on the 2nd day of the month, although the discovery of its spurious character Was not made until the 18th, a fact which operated to a serious extent against the speedy detection of the forgers.

On the day of its date the check, which purported to be drawn by the New York Life Insurance Company for $64,000 upon the Union Trust Company, was presented at the counter of the latter institution, for a certified endorsement of its worth and genuineness. It was printed upon one, or what appeared to be one of the regular checks used by the insurance company and bore the signature of the president and other officers of that institution. In all respects the dangerous little piece of paper was genuine, and the cashier of the bank to whom it was presented certified it without a moment's hesitation.

On the same day, Mr. Horace Brown, a petty broker of Wall Street, accompanied by a gentlemanly stranger, who said his name was Joseph Elliott, called upon Mr. George L. Maxwell, whose office was near the Stock Exchange of New York. Mr. Elliott presented a letter, which purported to be signed by 1M r. Morris Franklin, the president of the New York Life Insurance Co., and which requested Mr. Maxwell to state upon what terms he would act as the broker in Wall Street for the company of which he was the president.

Mr. Elliott’s address and bearing were those of a gentleman, and in the extended conversation which took place, displayed the knowledge of an experienced man of business.

The matter was fully discussed, and Mr. Maxwell requested time in which to consider the question of commission when Mr. Elliot took his leave. On the following day, the 3d of January, Mr. Elliott again appeared in the office of Maxwell, and displaying the certified check for $64,000, requested him to buy $50,000 in gold on account of the New York Life Insurance Co.

Mr. Maxwell undertook the commission, and introducing Mr. Elliott to another gentleman in the office, it was finally arranged that the gold should be purchased at once, and the certified check was left with them for that purpose. On the 5th of January the entire transaction was consummated, the gold was purchased and delivered to Mr. Elliott, the check was duly deposited in the Mechanic's Bank, was honored, and, the business appearing to be fully and pleasantly settled, Mr. Elliott disappeared from the view of his brokers.

Nothing more was heard of the transaction until the 16th day of January, when the account of the New York Life Insurance Co. with the Union Trust Co. was audited, and the cashier was surprised to find returned in his handbook two checks of the same date and number although for different amounts. One of them being for $150,000, and the other being the $64,000 check already alluded to.

The cashier had no recollection whatever of having drawn such a check, and his investigations revealed the fact that it was not entered upon the stub of the checkbook. It looked wonderfully real, and the signatures of the officers were undoubtedly genuine, and he inquired of the president for information concerning its existence. That officer was astounded at the remarkable imitation of his signature, and the wonderful similarity which the check bore to the regular checks issued by the Company y, but he immediately pronounced it a forgery.

 An exposure at once followed, and measures were at once adopted to discover the parties who had successfully defrauded the bank. The loss was, however, reduced somewhat by a subsequent discovery that a gold check for $9,500 given by one of the brokers from whom Maxwell and his partner had made their purchases in filling their order for Mr. Elliott, had not yet been presented for payment, and certainly would not be, now that the original forgery had been discovered.

A general feeling of distrust was engendered in consequence of this discovery, and the brokers were placed under arrest. For a time, knowing and doubtful people shrugged their shoulders at various trivial matters which carne to the surface at the commencement of this inquiry, and during this period of skepticism, the officers of the bank and other prominent individuals found themselves the object of censure and suspicion.

It has often seemed strange to me to notice the considerable number of wiseacres that are born of a sudden exposure to a great crime, or the commission of some action out of the ordinary routine, whether criminal or honorable. No sooner is the revelation made than suggestions the most ridiculous and farcical are made with solemn visage by self-conscious philosophers, who, until that time, had remained undiscovered, or at least unnoticed. I do not think I am making a rash assertion when I say that popular clamor, born of this attempt to appear wise, has scarcely ever been supported by later events. In my experience, but a small percentage of cases have been found according to the prophecies of those, who were most eager to give advice, or to proffer their opinions. Be this as it may, however, the number of these “knowing ones” has not decreased, nor has their stock of knowledge been augmented. This case was no exception to the rule and had these governors of public opinion consulted and obeyed, every businessperson upon the street who had been innocently connected with this transaction condemned and excoriated. Fortunately for the good of society, however, there is a strong under-current of common sense which refuses to be guided by irresponsible clamor, and which awaits the determination of an issue before expressing an opinion upon its merits.

Mr. Brown stoutly attested his innocence of any knowledge of the forgery, or of any irregularity in the transaction so far as he was concerned. His statement was that a Mr. George NV. Chadwick, whom he had known previously in a business way, called upon him one day for the purpose of having him dispose of some horse railroad bonds, which business he conducted to the satisfaction of Mr. Chadwick. A short time after this, he was again visited by that gentleman, who informed him that a large corporation which he did not name was contemplating a change in some of their securities, and that he would introduce to him the agent of the corporation through whom the business was to be transacted. In a few days after this interview, Mr. Chadwick introduced Mr. Elliott to him, at which time also the introduction to Mr. Maxwell, before related, took place.

Notwithstanding these statements, Mr. Brown and Mr. Maxwell were both held to answer any charge that might hereafter be made against them. These arrests had been made by the detectives connected with the Police Department of New York City, and it was not until after they had taken place that I was engaged in the matter at all. When the investigation had reached this stage, however, my Agency was employed, and I set about making such inquiries, as in my mind, would lead to satisfactory and convincing results.

Upon undertaking any investigation, no matter how trifling, Iny first effort is to get down to the foundation of the crime, and to learn, if possible, a motive for its commission. In this case, therefore, there must be a foundation; somebody must have forged this check before it was presented; somebody also must have been able to obtain one of the checks which were designed to be forged, and that somebody I determined it should be my first duty to discover.

Mr. George H. Bangs, my late General Superintendent, therefore paid a visit to the office of the New York Life Insurance Co., and requested an interview with Mr. Franklin, the president of that institution. After the case had been fully stated, and all the facts thus far obtained had been given, Mr. Bangs inquired of the president if the company were in the habit of keeping in their possession their cancelled checks after their return from the bank.

On being answered in the affirmative, Mr. Bangs requested permission to examine these cancelled checks, promising to explain his purposes afterwards. The request was followed, and the numerous bundles of cancelled checks were produced.

It may be imagined that an institution of the magnitude of the New York Life Insurance Company necessarily draws a great many checks in the ordinary course of their business, and Mr. Bangs contemplated the portentous piles of narrow pieces of paper that were presented for his inspection, with serious misgivings. Undismayed, however, by the magnitude of the labor before him, and having learned from earlier experience, how important thoroughness is in minute details to eventual success, he began the laborious task of examination. One by one the little pieces of paper, which were the tattered representatives of such vast wealth, were taken up and critically examined. The officers of the company looked on with faces in which speculation and wonderment were mingled, but finally, as the labor extended into hours, they left him alone to his task.

At last, after hundreds of these checks had passed through his hands, and under his close inspection, each one in turn being critically compared with the forged check, he gave a start of exultation and exclaimed joyously:

“I have it beyond doubt!"

So engrossed was he by his occupation that he was unaware of the fact of his being alone, and that those whom he addressed had disappeared. Ringing a bell which lay near at hand, he requested the appearance of the officers of the company, and upon their arrival he placed the check he had found, in the hands of Mr. Franklin, saying:

“This, sir, without a doubt, is the check from which the forgery was made."

Mr. Franklin gazed at the paper in surprise; it was a check for one hundred and fifty thousand dollars and had been issued some weeks before the forgery.

“How can it be that this check could have been used by the forgers and again find its way into the possession of the company? asked Mr. Franklin, incredulously.

“It certainly has done so,” answered Mr. Bangs, “and how I will explain hereafter—but—now let me show you how I am convinced of the fact which I assert."

“In the first place,” he continued, I take it for granted that checks for large amounts are rarely, if ever, folded by anyone who does your banking business, but are carried in a flat book or wallet for certification or payment."

 That is quite true,” said Mr. Franklin.

"Very well. Now if you see this check, you will notice that it has not only been folded, but it has been soiled very much, as though it had been carried in the pocket. You will also see that the cancellation stamp or knife has penetrated through this check, leaving several sharp angular corners. Now if you will observe, one of these corners extends over one of the folds and is perfectly flat.” And he folded the check to show the fact. “What does this prove?” he asked.

Simply that the check was folded after it had been cancelled by the bank, and after it had been returned to you. The further fact is that this check was abstracted by someone connected with your company and has been carefully replaced in its proper place in the package, after it had served the purpose of the forgers.'

Permit me to asked you one question,” said the cashier of the company, now speaking for the first time; “admitting all that you have previously stated to be correct, what proof exists that the forged check was really made from this identical one?"

I am prepared to explain that point, and a most important one it is, too,” said Mr. Bangs, “and will do so fully."

Walking to the window of the room and taking the genuine and the forged check with him, he placed them both together, one upon the top of the other, against the glass, and requested the two gentlemen to come forward and examine them.

As they did so an exclamation of surprise broke from them both. The two signatures of the officers were not only exactly alike, but they were in precisely similar positions on the paper in both instances. Nor was this the only strange coincidence, but it was also apparent that in the genuine check, a roughness or imperfection in the paper had caused the signature of the president to deviate from its proper line, and to show a slight irregularity in the formation of some of the letters. This irregularity had been faithfully followed in the forged check, although the paper in that document was perfectly smooth and free from blemish from the other and is not what is called a free hand forgery.

“You will see,” said Mr. Bangs, still holding the two checks against the glass, “that there is undoubted evidence that one check has been traced.

Both officers were convinced at once of the correctness of this assertion and expressed themselves fully satisfied with the facts thus far added.

“Now,” said Mr. Bangs, “our first duty is to find the clerk who abstracted this check.”

To this task Mr. Bangs applied himself in a quiet and unsuspicious manner, and before the day had closed, he was positive that he had selected the clerk upon whom to fasten suspicion. His first question was: “Who draws your checks, as a general rule?” “They are invariably drawn by my special clerk,” replied the cashier.

“Does he leave his checkbook open upon his desk at any time?” “Yes, sir; frequently”

“Who then has occasion to transact business with him, who might thus be able to see the book?"

“Well, there are three clerks who frequently have business with this man, and who would thus have ample opportunity to inspect the books."

“And by that means,” said Mr. Bangs, “they would of course be able to know what numbers would be upon the checks at any particular time?"

“Yes, sir; undoubtedly,” replied the cashier with a start, as a new revelation was opened to him.

These three clerks were therefore made the subject of a quiet scrutiny by Mr. Bangs, and after he had finished his examination, he pointed out one of them as the man who had abstracted the check, and before he left the office he stated to Mr. Franklin in an emphatic manner:

That young clerk, Charles W. Pontez, is the man who stole the check, and I will prove it so in time. The astonishment of the two gentlemen at this statement was unbounded, but as they had placed the case in our hands, and had already received indubitable evidence that the forgers, whoever they were, had received assistance from someone in their employ, they signified their willingness to allow us to proceed in our own way.

The name of Charles W. Pontez was a familiar one to me, and his antecedents were readily recalled. Ten years before this time, he was a junior clerk in the office of the Union Transportation Company, and though a young man gave promise of becoming an active and trustworthy accountant. The secretary of the company was Joseph W. Chapman, who has since figured in many daring schemes of robbery and forgery. At that time, however, he was a highly respectable man, moved in the best circles of the city, and was married to a very handsome and accomplished lady, the daughter of a prominent merchant. By a life of extravagance, he soon became involved in debt, and yielding at last, to the influence of evil associates he became connected with a gang of burglars and forgers of the genteel order. These men had their headquarters in a billiard saloon, located under Brooks' Theater, and kept by a man who was known as Howard Adams, but whose real name was afterwards ascertained to be Carlo Justin Susscovitch, a Russian, and one who at various times had assumed other aliases to conceal his identity.

CONTINUED IN THE LATEST ENTRY AFTER THIS ONE