ANOTHER AMERICAN FRAUD.

Globe, Volume II, Issue 177, 2 January 1875, Page 4

ANOTHER AMERICAN FRAUD.

(From the Home Nc?vs.) A bold aud alarming swindle just brought to light in America has once more made the public feel uncomfortable. The Central Fire Insurance Company of Philadelphia has been, according to the confession of its managing director, a fraud from the beginning, and was originally started on 75 dollars, though its nominal paid-up capital was 200,000 dollars The story is an extraordinary one, and a brief summary of it will be interesting to the commercial community. A gang of conspirators opened magnificent offices in Chestnut street, Philadelphia, in the spring of this year. There was a large show of outward respectability about the concern. The president, Hayman, was a monied man. The directors were in good business circumstances. Everything looked prosperous, and bui-iness began to flow in quickly. Mr Foster, the state fire insurance commissioner, called to

examine the condition of the new company, as was his duty, according to the laws of the state He found the capital to; be 200,000 dollars, which the cash-book showed to be entirely paid up. The securities held by the company to cover this amount consisted of mortgages and railway bonds. These were submitted to him, aud went to show that all was right. As a matter of precaution, the commissioner went to the office of the Philadelphia and Beading Bail way Company and compared one of the collaterals with the record on their books. He found that what was originally issued as one share had been altered to 200 shares. An exposure was made, and the managing director, J. N. Elbert, fled, but was arrested some weeks ago and made a full confession of the fraud, which, for police purposes, was kept secret. The Central Fire Insurance Company was started upon this altered certificate, which was hypothecated to the Union Banking Company for 10,000dol. The same process was repeated to one share certificate of several railway companies, and thus a large amount of money was obtained. The romance of the story, however, is largely increased by the arrest of Charles Ostend as the forger. This man turns out to be no other than a notorious ex-convict who served a term of fourteen years in the States prison, and who has been at large for two years. In prison he amassed a fortune. " Jack Canter," whioh is his real name, was appointed book-keeper to the prison, and, by the ingenious use of chemicals, altered the sentences of dozens of noted male* factors, reducing sentences of twenty years to five or seven years. Mr Canter is 67 years old, and claims to be an Englishman.