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| The NY Stock Exchange, 1885 (NYPL) |
This is for the
100th COG (Carnival of Genealogy) hosted by Jasia at
Creative Gene; the theme is "There's One In Every Family":
This is what I know so far about my great grandfather's brother-in-law - my great great uncle - Charles W. Morgan, whose second wife was my great grandfather's younger sister Mae (née Mary Ann). I was told as a child that Charles had lost a lot of money in the stock market, and that was all I knew. Well, that wasn't the half of it!
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| Brooklyn Eagle, May 1900: note title of book. |
Charles W. Morgan was born in New York City in April 1864. Charles' first wife Rose Caldwell, whom he married in 1891, died in 1895. The following year, he married Mae Hicks, my great grandfather Charles's younger sister.
He had been in the business of "grocer's sundries" from 1886 to 1892, at 122 Broad Street, New York. In 1892 - I don't know why or how - he joined the New York Consolidated Stock Exchange. Broad Street is near Wall Street, so perhaps he had longed to be a broker from afar. He must have made some money in the sundries business.
But in 1896 he "failed" as a stockbroker, the
Times noted mysteriously in 1900, "on account of about $100." A foreshadowing of failures to come, one might say. He was reinstated - I don't know how or why - about 1899. By 1900, Charles was riding high. He had his own firm, C.W. Morgan and Co., with offices in New York and Philadelphia. He had a house in Bensonhurst, Brooklyn - back then a fancy summer resort - and a forty-foot steam yacht moored at nearby Bath Beach. He was a member of the Gravesend Bay Yacht Club and had been its president for two years in the mid-1890s. The
Brooklyn Eagle noted that
"Charlie," as he was known to nearly everyone, was prominent in social affairs at [Bath Beach and Bensonhurst]
. He had a home on Twentieth Avenue, near Benson, where he lived with his wife, a charming woman...Mr. Morgan owned a beautiful yacht and nearly every fine day he formed a party among the summer guests and took trips to the Highlands. He was a great entertainer and was the most popular man among the summer residents of Bensonhurst.
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| A steam yacht (NYPL) |
The good times came to a crashing stop in October 1900. A man named Henry Johnson was granted a court order to serve a "bill of particulars" upon Morgan for "swindling him out of $2,568." Morgan said that he had been "perfectly honest" and that there was nothing further to disclose. Later that month, three journalists at
The Wall Street Press - John Evans, Leonard Watson and Ferdinand Gardiner - came to Morgan's office and showed him an article they had written about the Johnson case which would "damage Morgan's business and which they threatened to have published in a Wall Street paper if they were not paid some money to suppress the matter." Charles Morgan went to the police "had them arrested [for blackmail], the act being detected by means of a marked five hundred dollar bill."
In December 1900 Charles and his bookkeeper Michael Hart were arrested at the Empire Building in Manhattan, on charges of grand larceny and conspiracy to defraud. Assistant District Attorney Byrne had been investigating Morgan. The police went to his office and seized all of Morgan's books and papers. They also seized the papers of discretionary brokers Lewis E. Van Riper and John B. McKenzie, who were involved with Morgan.
Van Riper and McKenzie were the middlemen. They sent out 100,000 circulars a week throughout the US and Canada, urging people to invest at least $200 ($500 would be even better, the letters said). The client would let Van Riper and McKenzie appoint a broker - they recommended Morgan or another man, Chester B. Lawrence. There were promises that the money would be doubled and then doubled again - but the reality was that the client would never see his or her money again.
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| West End Ave and 85th (NYPL) |
Morgan made $250,000 between 1898 and 1900 from this scheme, the police said. He lived in a luxurious house at West End Avenue and 84th Street (the picture at left shows similar houses at West End and 85th in 1910). He also owned a property at Pleasure Bay in
Long Branch, New Jersey, and spent money "freely" on luxuries - the steam yacht, the houses, the parties.
The police stated that there was no connection between the blackmail case and Morgan's arrest for grand larceny and fraud - although one wonders how they came to that conclusion, because Henry Johnson seems to have been defrauded by Morgan and his accomplices in what one might call the usual way. Assistant District Attorney Byrne said that Watson, Evans and Gardiner of the
Wall Street Press were "thieves" and that "there is a host of thieves down in Wall Street" - which was a reasonable thing to say, given what was going on in Morgan's office.
The news of Morgan's arrest was reported in Boston, Chicago, Hartford, and Atlanta. But seemingly not in Philadelphia, where Morgan kept a branch office in the Drexel Building. Morgan's Philadelphia office manager Albert Booz was very upset and said "It is a thunderbolt out of a clear sky." He had been told nothing, and was unable to reach the New York office. Morgan became silent and invisible. Morgan's bail had been set at $5000, and this was provided by his brother James. When reporters went to Morgan's Manhattan residence at 629 West End Avenue, the door was kept "on the chain" and opened by a woman (possibly Mae, or a housemaid) who said he wasn't there.
In May 1901, Charles was arrested for grand larceny again - same con game, different client. This time the unhappy client was a Mrs. Florence Tobey, who had lost $2000 from the "Tobey estate" in Connecticut. By August 1901, Charles Morgan had declared bankruptcy. A man called Bert Hanson, his assignor, had the unhappy task of going down to Morgan's office to appease the people who had money owed to them - all two hundred of them.
The next year was no better for Charles and Mae - their 3 year old son, William Whitner, named for one of Charles' partners in Philadelphia, died at Rockville Center, Long Island (their only other child, John, died a young man, in the 1930s). In 1910 Charles, Mae and John were living in Queens, and Charles was working as a real estate agent. By 1930, Charles had become an art appraiser (I haven't found them in the 1920 census yet).
SOURCES
From the
New York Times:
"Blackmail Is Charged," Nov. 1, 1900
"Broker Morgan Arrested," Dec. 6, 1900, p. 2.
"Prosecutors Quarrel Over Broker Morgan," Dec. 6, 1900, p. 1.
"The Philadelphia Creditors," Dec. 6, 1900.
"Lien on Morgan's House," Dec. 7, 1900, p. 2.
"Broker Morgan Makes A Statement," Dec. 8, 1900, p. 16.
"The Morgan Assets," Dec. 11, 1900.
"Want C.W. Morgan & Co.'s Books," Dec. 19, 1900.
"Affairs of C.W. Morgan," Aug. 1, 1901, [n.p.]
From the
Brooklyn Daily Eagle:
"Prosecutors Quarrel Over Broker Morgan," Dec. 6, 1900, p.
"Morgan Again Arrested," May 25, 1901, p. 1.
US Census:
Charles Morgan household, 1910 US Census, Queens Ward 4, Queens, NY; TG24, Folio 1065, p. 108.
Charles W. Morgan household, 1930 US Census, Brooklyn, Kings, NY; ED 846, [rest of reference goes here, did not copy properly!]