THE CHECK COLLECTOR January-March 2003 The Journal of Number 65 THE AMERICAN SOCIETY OF CHECK COLLECTORS, INC. Office of WARNING Circular No, 464 Chief of Police Oakland, California Oakland, California February 27, 1923 Be on the lockout for a woman check passer operating' at present in Oakland, Calif. Following are two exact reproductions of two different cheeks passed by her on the H. C. Capwell Company, this City. This Circular is sent out for Your Benefit, and to procure your cooperation in effecting arrests of bogus cheek passers, please keep and compare this writing with checks received. I Oakland, Cal. hJUx) > ^ 192"’"' 4% ItHrU JfeSi1 fteSOMM or OAKLAND CALIFORNIA 4|3j8 ['i® Pay to the order or H JJ~' J 7^ Humboldt Savings Hank This particular woman check passer may give you a check on aiy bank, or may use any name, a* one time when she cashed a check she had two children with her, a aoy about four and a girl about and a half years old, she acted as if they were her own children. She is described as being small in statue, 35 to 40 years old andof medium complexion. She appears at the store and selects the article wanted, then wites a check for the amount of the charge. She has passed a number of bad checks throughout this City. At one place she was in company with another woman, a bit larger then herself, and about the same ag!. Do not throw this Circular away, keep it in your office or casi till for quick ready reference, and should this woman tender a check to you, detain her if possible, using discretion and tact, until the Police Department can be notified, phone number appears hereon for quick aition. Address all communications or dispatches direct to Telephone Lakeside 3600: Local 35. JAMES T. DREW, Chief of Police Oakland, California. Number 65_THE CHECK COLLECTOR_January-March 2003 Editor: Robert D. Hohertz Contents Box 190332 St. Louis, MO 63119-6332 (314)9614399 4 Wall Street Forgery - Patterson 7 Sanford Dole - Studley Advertising Manager Melanie C. Hohertz 8 Revenue Stamped Paper Exhibit - Lesher 3837 36th Ave., South 16 Cumulative Index Minneapolis, MN 55406 21 Carolina Narrow-Gauge - Leifer 23 Letters to the Editor 24 Announcements The Check Collector (ISSN 1066-3061) is published 25 Secretary's Report quarterly by the American Society of Check Collectors, 10201 26 Member Exchange Grosvenor PL, Apt. 902, Rockville, MD 20852. Subscription only by membership, dues $10 per year in the US ($14 per VISIT OUR WEB PAGE year in Canada and Mexico, $20 elsewhere). Periodicals http://members.aoLcom/asccinfo postage paid at Rockville, MD 20852 and additional mailing offices. POSTMASTER: send address changes to:The Check Collector, PO Box 577, Garrett Park, MD 20896. All rights reserved. To our members: Write something for The Check Collector! We need articles about checks, check-related subjects, and fiscal documents. We retype all material. Illustrations require an original or a good, clear, black and white copy, preferably as large as can be obtained Original checks sent in are copied and returned carefully. Any questions, ask the Editor! To our advertisers: Deadline for advertising copy to run in the April-June issue of The Check Collector is May 15. The Check Collector is an effective means of reaching the check collecting hobby, and our membership of collectors and dealers of checks and related financial documents. It contains feature articles about checks and check collecting and news about the hobby. The cover, although of another era, is a good match to the Advertising orders must be paid in advance and shall be lead story. Fraud and more fraud. Then there is overthrow restricted to checks and related fiscal documents, publica¬ of a government, a stripper as a Vice-President of a railroad, tions, accessories, and supplies. The ASCC accepts adver¬ and - an Index! Who said check collecting is unadventurous? tising in good faith, reserving the right to edit copy. Copy for ads must be camera-ready or the Editor will set it as best he can. ASCC assumes no financial responsibility for typographical errors in advertising. However, it will reprint that portion of an advertisement in which a typographical error appeared upon prompt notification of such error. sr An Advertising rates are as follows: All advertisements and payments should be submitted to the One quarter page $25.00/issue Advertising Manager at the address shown above. Business card size $15.00/issue v $10 discount for four issues paid at once. -J THE CHECK COLLECTOR is a quarterly publication of the ASCC. 2 Number 65 THE CHECK COLLECTOR January-March 2003 THE AMERICAN SOCIETY OF CHECK COLLECTORS, INC. A non-profit organization organized under Section 501-(c)-(3) President: Membership Directory: NC, SC, GA, AL Robert D. Hohertz Coleman A. Leifer - see above Judith Murphy PO Box 190332 Box 24056 Saint Louis, MO 63119-6332 Security Printers: Winston-Salem, NC 27114 [email protected] William G. Kanowsky 1533 Savannah Dr. Northern CA Vice-President: Evansville, IN 47714 Michael Turrini Michael S. Tuirini PO Box 4104 POBox4104 Slide Program: Vallejo, CA 94590 Vallejo, CA 94590 Larry Adams 812 1/2 Story St. OR, WA, ID Secretary: Boone, IA 50036 Dick Naven Coleman Leifer 6802 S.W. 33rd PI. PO Box 577 Regional Contacts: Portland, OR 97219 Garrett Park, MD 20896 [email protected] New England, upstate NY Canada Robert Bird Kevin Thorbum Treasurer: 8 Bartlett Drive 103-67 Famham Gate Rd. Dick Naven Georgetown, MA 01833 Halifax, Nova Scotia B3M 4A6 6802 S.W. 33rd PI. Canada Portland, OR 97219 IL, IN, OH Lyman Hensley Directors: 473 East Elm Membership Interests Lyman Hensley (2004) Sycamore, IL 60178-1934 Robert D. Hohertz (2004) 1. Checks, general M. S. Kazanjian (2004) NJ, DE, MD 2. Checks, USA Coleman Leifer (2003) David Brase 3. US Government Checks Dick Naven (2003) 5523 Halpine Place #202 4. Miscellaneous Fiscals: Lee E. Poleske (2004) Rockville, MD 20851 Bank Drafts Phillip G. Ryman (2003) Bills of Exchange Robert A. Spence (Emeritus) VA, WV, PA Certificates of Deposit Michael S. Turrini (2003) Phillip G. Ryman Promissory Notes 859 Park Circle Warrants Departments: Harrisonburg, VA 22802 Receipts 5. Checks, Great Britian Editor, The Check Collector. TN,KY 6. Checks, Canada Robert D. Hohertz - see above Joel Rind 7. Checks, World 14 W. 8th St. 8. Travelers Checks & Money Orders Attorney Chattanooga, TN 37402 9. Specimen Checks Hermann Ivester 10. Ration Checks 5 Leslie Circle ND, SD, WI, MN 11. Refund/Rebate Checks Little rock, AR 72205-2529 Russ Hornbacher 12. Other 916 N 8th St. 14. Counter & Modem Checks Check Pool: Bismarck, ND 585014108 20. Vignettes Phillip G. Ryman 21. Autographs 859 Park Circle AR, MO, IA 22. Railroads, Steamboats, Mining Harrisonburg, VA 22802 Hermann Ivester 23. Banking History ryman859pa @ aol.com 5 Leslie Circle 24. Security Printing & Printers Little Rock, AR 72205-2529 25. Check Protectors & Cancel Devices Librarian: 26. Wells Fargo History Charles V. Kemp MS, LA 30. Stock & Bond Certificates PO Box 71892 Dale Flesher 31. Revenue Stamped Documents Madison Hts, MI 48071 130 Lakeway Dr. 32. Emergency Scrip Oxford, MS 38655-9666 THE CHECK COLLECTOR is a quarterly publication of the ASCC. 3 Number 65 THE CHECK COLLECTOR January-March 2003 Ketchum if You Can - The Wall Street Forgery by Roger Patterson Editor’s note: In December I went to the movie Catch Me if You Can, and enjoyed it. Since then, Roger Patterson sent me copies of two pages from Harper’s Weekly, page 547 from the issue of September 2, 1865 and page 597 from the issue of September 23 of that year detailing a Wall Street forgery scheme. There are a few similarities between the plot of the movie and the developments reported in the weekly magazine, as well as some very basic differences. The story apparently began in the issue before the first one quoted here, but one can get the idea very well. Here it is, followed by Roger's comments. September 2,1865: THE WALLSTREET SCANDALS The Wall Street storm is subsiding, and the wreckers are busy over the craft which went to pieces in the gale. A few small defalcations and frauds have been brought to light by the general and thorough examination of accounts which followed the Jenkins and Ketchum developments; but there has been no revulsion, and the prophets of evil who likened the Ketchum explosion to the collapse of the Ohio Life and Trust Company in 1857, have thus far proved false augurs. So far as can be judged at present, the indications are for fair weather. Even Ketchum and Graham will pay substantial dividends to their creditors, and by singular good fortune, the losses caused by their failure will fall on people well able to bear them. It is now important that the lesson taught by these frauds and disasters should not be thrown away. There are three cases before the courts, each of which should convey instructions to Wall Street. Ketchum’s case was thoroughly described in our last number. But few additional facts have come to light, though many falsehoods are current. One paper, which has often abused dealers in gold as traitors, insists that Ketchum went to pieces trying to “bull” gold; whereas, the fact is, he had latterly but little interest in the gold market, and only dealt in gold for the purpose of accounting for his being possessed of such quantities of gold checks. His arena was the stock market. Another paper solicits sympathy for Ketchum on the ground of his alleged loyalty. The fact is, the house was a bitter opponent of Mr. Chase, no friend to Mr. McCulloch, and a firm foe to investments in United States securities. Another paper lays the blame of Ketchum’s forgeries on the Legal Tender Act. It might just as fairly be laid on the discovery of America. True, if there had been no Legal Tender Act Ketchum’s forged gold checks would not have been good collateral. But if America had not been discovered there would have been no Ketchum to cheat, and no Wall Street to be cheated. Why not abuse Columbus as well as Mr. Chase? A villain so unscrupulous, so double-dyed, so ingenious as Edward B. Ketchum would have robbed people any where, and under any circumstances. Two hours before he fled a broker visited him with the weekly bank statement. He examined it with his usual languid interest, and discussed its effect on the market quite calmly. To a confidential suggestion with regard to his policy in the market he replied, with a lie that was familiar to his lips, that his interest was trifling. h igure 1 A check similar to the ones used by Ketchum in his forgeries. Printed by R.C. Root, Anthony & Co. of New York. The check is printed in red, with the word "GOLD" in gold type. THE CHECK COLLECTOR is a quarterly publication of the ASCC. 4 Number 65 THE CHECK COLLECTOR January-March 2003 He was marvelous as a deceiver. A gentleman who traveled with him observed to a friend that he seemed to have none of the faults of a young man. He never drank, his language was always decorous, he did not gamble, and among women he was a Puritan. Yet it seems now that, with a wife only lately married to him, he kept a mistress in style not far from his own home. His affection for his father seemed exemplary; yet he did not scruple to plunge that father - who had labored forty years to accumulate a fortune - into the depths of penury and disgrace. Some of his idiosyncrasies seem inexplicable. He not only kept accounts with a dozen or more brokers - some of them under feigned names - but actually kept as many as twenty different accounts with one house. These accounts were generally distinguished by letters. A, B, C, D, E, F, P, Q, X, Y, Z, and other combinations of letters. Edward B. Ketchum furnished the margins for all these cabalistic operators, and amused and perplexed his brokers by the variety and seeming contrariety of his orders. What his object was, unless to gratify his inordinate appetite for mysterious combinations, it were hard to say. It was no joke to be his broker. To one house he would send a slip of paper at 10 a.m. saying simply, “I have sold two millions of gold - Deliver for me to-day.” Or again: “Borrow 10,000 Erie for me before 2 p.m.” But his business was so profitable to his agents that they did not object to working hard for him. He is said to have robbed the firm of which he was a member of the bulk of their securities. They were so sound a house, so universally trusted, that many persons, especially in New England, used to leave their stocks and bonds in their custody merely for safe keeping. A large proportion of these stocks and bonds young Ketchum is said to have abstracted. A question will arise, in connection with this branch of the case, touching the responsibility and the duties of copartners. There were four partners in the house of Ketchum, Son & Co. How could Edward B. Ketchum abstract these securities without their knowledge? There is in law a degree of neglect, known as crassa negligentia, which differs but infinitesimally from felonious intent. The house has published a card disclaiming complicity in Edward B. Ketchum’s operations. It has been generally received with derision. People cannot comprehend how so shrewd a man as Morris Ketchum can have been ignorant of the operations of the “Ketchum party” - as his son was called - when all the Wall Street operators and all the newspapers talked of nothing else. If the street gains nothing else by the Ketchum scandal, it ought to derive the lesson that in every banking firm each partner must assume his share of responsibility for the dealings of the firm as a whole, and of his copartners individually. A question has arisen as to the disposal of the enormous sums of money with which young Ketchum seems to have made away. In gold and stocks, in 1863 and 1864, he must have made over a million. He seems to have obtained a million and a half by the issue of forged gold checks. And from his father’s house he is said to have purloined some two millions’ ? x x x Co worth of securities. In all, this youth of twenty-five must have had a capital of $4,500,000 to trade upon. What has become of it? How much he lost on his short sales of stocks C, in January, February and March of this year no one can tell. In last number we set down the gains of his opponents in Erie at a million. Further inquiry leads us to estimate them at more than that figure. In other stocks he lost proportionate sums. There is reason to believe that the race-course at Saratoga, and not a few of the blood-horses which have run there this summer, were really paid for by Edward B. Ketchum, whose losses to their owners furnished the means for these flights of extravagance. It is supposed in some quarters that he went away with large sums of money. It will probably be found, if he is caught and tells the truth, that he had $70,000 when he ran away - neither more nor less. ^CX-c^Ccc* " Figure 2. A facsimile of a forged letter written by E.A. Ketchumfor the purpose of supporting a false identity after his flight to avoid prosecution in New York. THE CHECK COLLECTOR is a quarterly publication of the ASCC. 5 Number 65 THE CHECK COLLECTOR January-March 2003 To tell the truth, there is not much sympathy felt for his victims. Some of them were careless, others imprudent. What can be said of a broker who, knowing Edward B. Ketchum’s means and his position as a junior partner in a house trusted by all men, speculated for him to the extent of ten and twenty million dollars? And these money-lenders who advanced money on his forged gold checks - receiving them in a bundle in a sealed envelope, and never subjecting them to any security - is any body surprised or much grieved at their losses? Que diable allaient-ils faire dans cette galere? September 23,1865: THE WAI T STREET FORGERY We give on this page an illustration of a gold-check forged by Mr. Edward Ketchum, who has been indicted for larceny and forgery. We also give fac-similes of his forged handwriting, as shown in extracts from letters found upon his person at the time of his arrest; letters which were intended to appear as addressed to himself by his near relatives, and as supporting his assumed character as a Western merchant. In the gold check the word Gold, it should be stated, is printed in gold letters running across the check. Figure 3. The picture printed in Harper's to illustrate the type of check forged by Ketchum. Note that this version has a place at the left for two signatures, unlike the one illustrated in Figure F Checks were not often featured so boldly in news stories, and the clever, full-scale sketch in Harper's is a collector's delight, down to the passable R15 revenue. Fortunately, this old gold can be found in original form in the marketplace. The 27"’ Annual International Paper Money Show will be held at the Cook Convention Center, 255 North Main Street. Memphis, Tennessee on June 13, 14 and 15, 2003. Show hours will run from 9:00 a.m. to 6:00 p.m. Friday, 9:00 a.m. to 5:00 p.m. Saturday and 9:00 a.m. to 4:00 p.m. Sunday. A meeting ol the ASCC is planned for early Saturday afternoon. Check the show program for the exact time and place. As I will not be there, John Wilson and Judith Murphy have volunteered to lead the meeting. THE CHECK COLLECTOR is a quarterly publication of the ASCC. 6 Number 65 THE CHECK COLLECTOR January-March 2003 Sanford Dole by Max Studley The Bank of Hawaii, Ltd. Check dated July 27, 1923, signed by S. B. Dole, transferring funds from his checking account to savings account at First American Savings & Trust Co. (Honolulu). Sanford Ballard Dole: First Territorial Governor of Hawaii (1900-1903). Born 1844 in Honolulu, Hawaii. Died 1926 in Honolulu. The son of American missionaries. He studied at Williams College and became a leading lawyer on the Hawaiian Islands. Long active in efforts to reform the native Hawaiian government, he became a leader after the revolution had overturned the Hawaiian Monarchy (1893) and became the first and only President of the Republic of Hawaii (1894-98). Hawaii was annexed as a U.S. Territory in 1900 and Dole was appointed by President McKinley as the first Territorial Governor (1900-03) and then as judge in the U.S. District Court (1903-15). And yes, he was part of the famous Dole Pineapple family. His cousin, James Dole, founded the Hawaiian Pineapple Company in 1851, now known as Dole Food Company. James created the first successful pineapple growing and canning company. Side note: This is the haole (mainlanders) version of Governor Dole’s life. The Hawaiian version has a very different slant. I guess if somebody overturned your royal monarchy, you might see that person in a different light. In the 1920’s a cigar brand named Governor Dole appeared on the market. Both the cigar band and box label, complete with a picture of the Governor, are sought by collectors of cigar art. THE CHECK COLLECTOR is a quarterly publication of the ASCC. 7 Number 65 THE CHECK COLLECTOR January-March 2003 The Two Cent Revenue Stamped Paper of the United States, 1865-1883 by Ronald Lesher (Part 9) C. AMERICAN PHOTOTYPE COMPANY TYPE C - DAMAGED DIE uj XiThutti'dmutf jlltlls QjsUtblidirii 1832. v>U>ltt.b>llYsov Ufa ys ,, Vs ' ManuCicliircj ol _ 'CujV VUju(M///, (>w// /V COTTON TWINES ilAlTONAL /ay V ///<’ r vV//7y //ll/i... K . C.t* IHiLLAUS $ i | A piece of one of the dies in the bottom center broke off. The same break is shown with and without the instructive clause, demonstrating that the clause was on a separate die, added only when required by the government. [The top check is printed in green. The bottom one is printed on a green background with slightly darker safety lines.] THE CHECK COLLECTOR is a quarterly publication of the ASCC. Number 65 THE CHECK COL LECTOR January-March 2003 C. AMERICAN PHOTOTYPE COMPANY TYPE E - SALESMAN'S SAMPLE AND A BANK DRAFT SAMPLE in Stamp Design American Phototype produced salesman's samples for stationers, like Corlies, Macy & Co. The word SAMPLE in the stamp design permitted production of these checks without charging the two cent tax for the stamps (the checks, of course, would never be used). Bank Draft The fourth two-cent stamp design used for imprinting by the American Phototype Company features Benjamin Franklin. It was introduced in late 1871 and was delivered to check printers for less than a year. [The bottom draft was printed in black and green by the American Bank Note Company.] THE CHECK COLLECTOR is a quarterly publication of the ASCC. 9 Number 65 THE CHECK COLLECTOR January-March 2003 C. AMERICAN PHOTOTYPE COMPANY TYPE E - DIE DAMAGE Upper Left Corner . ir// S/s // IT Sa// /Ae r/ Upper Right Corner M ■if. 9 mMPMiiM* ^ £ Af /v/7 R IW' &AN II.WKTNc, ASSOCIATION As/// /s /A'/s/ s/r/s/yy j / s s •bbb 6 '"MS&k From Position 1 in a Sheet of Four Checks The checks of Lanman & Kemp were printed 4-up. The stamp die used for the check in the top position of the sheet shows damage in the upper right corner, possibly from being dropped. Three of the four dies used to imprint the Lanman & Kemp checks show damage. This damage may have been the reason for the abandonment of this design after less than a year. [The top check is printed in blue on a blue safety-tint paper. The bottom one is printed in violet.) THE CHECK COLLECTOR is a quarterly publication of the ASCC. 10