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copyright by Cornell University Library
1994.THE CASE OF
BENJAMIN RATHBUN
This Remarkable Financier's Own Statement of
His Operations in Buffalo and Niagara
Falls, Culminating in Forgery
and Imprisonment.
Now first published from his own manuscript written in jail.THE CASE OF BENJ. RATHBUN1
THE STORY OF A FAMOUS BUILDER OF BUFFALO, WHO
SERVED FIVE YEARS IN STATE’S PRISON FOR
FORGERY, AS TOLD BY HIMSELF.
It is generally known in Buffalo that my business trans-
actions have been of an immense amount and various in
their character.
Extensively engaged in the building business in all its
various branches, the improving of real estate, merchandis-
ing on a corresponding scale, dealing in lands, manufac-
turing railroad cars, post coaches and pleasure carriages in
all their variety, running various lines of stages and
omnibuses and many other minor branches of business, it
became absolutely necessary to appoint an agent or over-
seer to each respective department, my own time being
continually occupied in devising and carrying out extended
i. Readers of volume sixteen of these Publications may recall that a
chapter entitled “A Builder of Buffalo” was devoted to the building and finan-
cial operations of Benjamin Rathbun. At the close of the chapter (p. 103)
reference wa® made to a curious manuscript by Mr. Rathbun, owned by the
Buffalo Historical Society. “Its importance,” it was there stated, “as a chapter
of Buffalo history, entitles it to publication in full, to which end it is destined,
in a succeeding volume of these Publications.”
This is the document here printed. It has never been published, so far as
known. The little that can be told about it is that prior to 1872 it was in the
keeping of the Young Men’s Association of Buffalo. On January 5th of the
year named it was turned over to the Buffalo Historical Society. It consisted
of 68 foolscap pages, but the first page is lost, and the second page bears two
captions, not in Rathbun’s writing:	“Confession of Benj. Rathbun”; and,
more accurately, “Statement of Benj. Rathbun’s affairs, by himself.” The
statement is wholly in Mr. Rathbun’s peculiar and often difficult handwriting;
229230
THE CASE OF BENJ. RATH BUN.
plans of improvement and superintending the various works
I had in progress.
My financial operations were of necessity constant and
heavy in their amount, and being so constantly employed
both in body and mind in my out-door operations, it neces-
sarily forced the entire management of all my pecuniary
transactions into the hands of another.
For some years, my only brother, Lyman Rathbun, has
been my confidential agent and cashier. From his long
experience in that branch of my business the skill and
management he had exercised in conducting it in all its
varieties through the changes and pressures of times had
not only gained my entire confidence, but I have reasons to
believe he had the confidence of all those who have moneyed
transactions with him, that he possessed extraordinary
financial powers.
So confident was I of his superior ability to myself in
the management of that part of the concern that I had for a
long period of time given up the entire direction, control
and management of all my finances to him. I never inter-
fered with his management and for a long time have not
written any letters to my agents on money matters but what
were dictated by him, and in all such cases have followed
and although great care has been taken in copying, it is possible that our
transcript has now and then gone astray. Countless errors of spelling and
phraseology in the original have been corrected. That Mr. Rathbun wrote this
statement in jail, between the time of his arrest (Aug. 3, 1836) and his convic-
tion and removal to Auburn prison, September, 1838, is proved by numerous
allusions in the text. The loss of the first page breaks a preliminary statement,
which does not appear at all essential. Our text begins with what was the
author’s real beginning, on page two.
That this statement is important, in the documentary history of Buffalo,
needs no assertion. Read in connection with the accounts of the Rathbun
enterprises and forgeries above referred to, and elsewhere in these volumes, if
offers to the future historian fuller data than have been heretofore available,
for an intelligent and unbiased record of this remarkable man’s part in the
history of Buffalo.THE CASE OF BENJ. RATHBUN.
231
his advice and direction, for he had so entirely the control
of that part of the business that I seldom knew when,
where, or how funds were raised, and never when payments
were due, but from him.
I furnished him my signature in blank on notes, drafts
and checks, in all the variety of forms both as drawer and
endorser, and in addition to which he had a full power of
attorney to sign my name and transact all manner of busi-
ness for me.
He had in his employment and under his immediate and
exclusive control his two nephews, Rathbun Allen and
Lyman Rathbun Howlet,1 both of whom were hired by him,
and by his particular request were taken under his immedi-
ate and exclusive control. These two young men were
constantly in his employ, while other clerks were sometimes
called to his aid in many of his out-door money transactions,
my name being furnished in blank in all the variety of forms
necessary for his use. He in all instances procured the
necessary endorsements. I left the entire management to
him. So completely had he the control of all my financial
concerns, as well as of my confidence, that I did not know
anything in detail or the amount of my liabilities until since
the failure, nor do I even now know the full extent, having
no opportunity of getting at the facts.
The management of the other branches of my business
was also entrusted to agents of respectability and in whom
I had the most entire confidence.
James DeLong was my general agent in all out-door
operations, to make contracts, collect the payments on con-
tracts, and a general superintendent of all out-door affairs.
Samuel Haines, a general agent and overseer of the
i. This name often occurs as “Howlett,” but Mr. Rathbun; always wrote it
“Howlet,” and so it appears in the Buffalo Directory of 1836.232
THE CASE OF BENJ. RATHBUN.
mechanical part of the building operations, each branch
having its respective foreman.
W. S. Gardner and J. W. Thwaites, architects.
W. F. Wright, A. Hemstreet, O. Stickney, W. W.
Mason, J. Phelps, C. Talmage and A. Phelps, foremen
carpenters.
A. Loomis, C. G. Howel, T. Young, W. Brewster, A.
Sweet, G. Williams, W. B. Olmstead, B. Hopkins, S.
Hobert and C. M. Russell, foremen joiners.
D.	Canfield, superintendent of mason work.
R. Demsey, T. Demsey, F. Singer, R. Sour, foremen
stone masons.
G. Phillips, N. Jones, H. Rumrill, R. Gorham, S.
Gorham, B. Gorham, T. B. Tilden, D. Moon, T. Phillips
and H. Cummings, foremen brick masons.
J. Mantling, superintendent of flagging and paving.
J. Scott, overseer and head foreman of plastering and
stucco corniching in all its various branches.
W. Creery, foreman plastering and corniching.
E.	Lee, overseer and head foreman of the stone cutting
business in all its various branches—contractor and meas-
urer of cut stone, etc.
J. McEntire, foreman of stone-cutters’ shop.
R. G. Buchanan, overseer and head foreman of house
painting and glazing, with other foremen under him.
A. Gardner, superintendent of steam engine and fore-
man at machinery.	ft
G.	W. Platt, foreman tinning roofs, copper gutters, con-
ductors, etc.
H.	S. Chamberlain and J. Fairchild, foremen black-
smiths.
T. S. Rainey, foreman of all horse shoeing.
A. Hawkins, foreman boat builder.THE CASE OF BENJ. RATH BUN.
233
O. H. Willis, agent for purchase of lumber, superin-
tendent of lumber yard, receiver of lumber from vessels,
boats, etc.
N. R. Woodruff, measurer of lumber.
J. M. Rease, superintendent of canal and river boats and
delivering building materials to the different foremen.
L. Kimball, purchaser of lumber at stores and in streets
as it comes to market.
> B. Smith, superintendent the delivery of supplies to the
various foremen of the different branches—receiver and
measurer of building stone, etc., , etc.
E. J. Weeks, warehouse clerk.
R.	H. Best, general overseer of all the teaming depart-
ment in all its varieties.
S.	Holden, overseer of brick yards.
Geo. Martin Rose, superintendent of stone quarry and
general overseer of all the laborers.
Nicholas Ketz, Francis Safford and Lawrence Young,
foremen laborers.
J. E. Haddock, clerk to take amount of all laborers’ time
every day and give each a certificate of their time every
week, which certificate was presented to the paymaster and
entered in a pass book, one of which was required to be
kept by each and every mechanic and laborer, in which was
entered his debit and credit every week. That book always
showing the balance (if any) due the holder, and that book
was a sufficient order and authority for any clerk to pay
goods to the amount due the owner. (The cash always paid
by the paymaster.) These books were very important, as
they served as a check to overdrawing and in fact as im-
portant to both parties as a bank book is for the customer
of a bank where frequent deposits are made.234
THE CASE OF BENJ. RATHBUN.
Each and every of the above named foremen and over-
seers had a number of men under them.
It was the duty of every foreman or overseer to render
an account to the bookkeeper or paymaster every week, the
number of men under him, the number of days each worked,
and the price of each man’s work, by giving a certificate to
each (having printed blanks for that purpose). The
amount of such certificate was required to be entered in a
pass-book by the bookkeeper as before mentioned, and
every person was paid a part or all his wages once a week
by the paymaster, who received his funds in all cases from
L. Rathbun, the cashier and sole manager of all the financial
matters.
The amount of the building operations alone were heavy.
The contracts entered into for others, and buildings com-
menced on my own lots for the year 1836, amounted to
more than one million dollars, notwithstanding I had cau-
tioned my general agent, DeLong, to hold back and try to
curtail my building operations and if possible reduce the
demand for money.
A. S. Merrill, general agent and overseer of the several
branches of business, including the building of railroad
cars, post coaches and pleasure carriages of all descriptions,
each branch having their respective foremen, viz.:
Wm. Brown, foreman of building railroad cars.
S.	A. Sayre and W. C. Palmer, foremen of the wood
work of post coaches.
T.	Armstrong, foreman of wood work of pleasure car-
riages.
G. Singer and J. Davis, wheelwrights.
Geo. Hogg, foreman ironing post coaches.
A. Waddell, foreman ironing pleasure carriages.THE CASE OF BENJ. RATHBUN.
235
J. Van Evern, foreman painter of post coaches and
pleasure carriages.
S.	C. Smith, foreman trimmers of railroad cars and post
coaches.
T.	T. Laing, foreman trimmers of pleasure carriages.
All persons connected with these branches of the estab-
lishment received their pay from A. S. Merrill and he
received his funds from L. Rathbun and deposited all his
receipts for work sold (whether in cash or notes) with L.
Rathbun as the proper person to take charge of all receipts,
as all disbursements were made by him through the author-
ized paymasters or agents.
Edwin Smith, general agent and superintendent of
stores, teams, purchase of building materials, and paymaster
at Niagara Falls.
J. W. Colie, general agent, architect and superintendent
of all the different branches of mechanical operations at
Niagara Falls with foremen under him for all the different
mechanical departments, viz.: stone cutters, stone masons,
brick masons, plasterers, carpenters, joiners, millwrights,
painters and glaziers, stone quarries, brick yards, etc., etc.
Much of the business at Niagara Falls required and re-
ceived a share of my personal attention, as it was the com-
mencement of operations, consequently plans had to be
formed and systems adopted that would unite in carrying
out the general arrangements for future improvements,
which were commenced on a magnificent scale.
Z. Sleeper, agent and clerk at Cattaraugus Falls, where
I have a store of goods and mills for sawing lumber which
was a heavy and very important item in my building
operations.
E. L. Stevenson, head clerk and bookkeeper in general
stage office.236	THE CASE OF BENJ. RATHBUN.
S. Hemenway, agent and superintendent of coaches and
horses at Buffalo for all the different lines running out of
Buffalo.
J. T. Hathaway, general traveling agent and superin-
tendent on all the different lines of stages, which, if in a
single line, would amount to more than five hundred miles
a day.
I also run a splendid line of omnibuses the entire length
of Main street.
Thomas G. Perkins, agent for purchase of dry goods and
head clerk of the dry goods stores in Buffalo.
The Feeny1 dry goods store, No. 230 Main street, was
under his entire control and management as were the clerks
employed in said store.
The carpet store, 308 Main street, was managed by Geo.
Clark.
Wm. F. Holmes, head clerk in the large and principal
dry goods store 306 Main street with 6 or 8 other clerks.
Wm. Kortz, head clerk in the large and principal grocery,
provision and hardware store 306 Main street, with 6 or
8 other clerks.
Albert Smith, agent located at stores for the receipt
and payment of various building materials, superintending
the receiving of all kinds of goods at warehouse, etc.
G. K. Coates, paymaster and bookkeeper of the me-
chanics and laborers who always received his funds for said
payments of L. Rathbun.
J. R. Beals, bookkeeper and agent for the collection, of
all money due on leases of houses, stores, shops, lots, etc.,
etc., and when collected his deposits were always made with
L. Rathbun.
1. The Buffalo directories of the ’3o’s do not contain this name, but so it
appears to be in the Rathbun MS.THE CASE OF BENJ. RATHBUN.
237
Jas. Dickson, bookkeeper.
Henry Seymour, teller, for redeeming engraved notes,
and checks which were issued as money, the funds for
which he always received from L. Rathbun and rendered
all his accounts to L. Rathbun for everything done in money
matters.
The head clerks in each and every store were required
to deposit all the receipts of the stores with L. Rathbun,
and all the funds for payments of every kind, whether in
cash or notes, checks or drafts, were always drawn from
him.
In all these several branches it will readily be seen that
a large amount of money was daily required to carry them
all on in the prompt and vigorous manner they were prose-
cuted. The daily disbursements were not less than $10,000.
The number of men actually employed in all the different
branches of this establishment were not less than 2000 at
the time of the failure (although the numbers had been
much reduced since the first of June), and to this number
add a low estimate for those who had families and there
were not less than 5000 persons dependent upon the em-
ployment by this establishment for their subsistence.
My time was occupied in the general supervision of all
the different branches heretofore mentioned, but more par-
ticularly in devising plans for the out-door and mechanical
operations. With all these cares, it was impossible to
devote a great deal of time to any one of them. Therefore,
entrusted most to those who were the most competent to
take charge and carry on the particular branches under their
immediate control.
The purchase of goods had got to be a very important
matter and as it was not possible for me to give the neces-
sary time and attention to it I employed Mr. Horace Janes238
THE CASE OF BENJ. RATHBUN.
of New York as a General Agent for the purchase of goods
in New York, authorized him to hire an office with an
adjoining room for packing goods, &c., which he estab-
lished at No. 8 Liberty street in the month of March last.
He had not occupied this station long before my brother
Lyman told me his money matters were heavy in New York,
as all notes had to be made payable there whether dis-
counted at any bank or sold to brokers. Consequently they
were all to be provided for in New York, and wished to
know if Mr. Janes could be spared from my other employ-
ment for that purpose.
Considering the money business the most important of
all, I considered that Mr. Janes might attend to such money
matters in New York, as my brother should wish and direct.
He accordingly sent funds to Mr. Janes to pay notes as
they fell due and such other business connected with his
money transactions as was necessary.
L. Rathbun told me there would be a large amount due
in New York on the 17 & 19 March and that he had sent
R. Allen with some funds to assist Mr. Janes in providing
for those heavy payments and said R. Allen had got rather
slack; he had urged him so strong and so often that it had
got to be rather an old story for him to urge Allen and
wished me to write him, for he said my letters would have
a great deal more influence with Allen than his. He said I
must write him strong letters and urge him with strong
language to do his utmost to provide for the paper falling
due the 17th and 19th and such other matters as he wished
him to attend to—dictating to me what to write. I accord-
ingly wrote him several letters while in New York in
March, all of which were dictated by L. Rathbun as he
understood and had the entire management of all that
matter.THE CASE OF BENJ RATH BUN.	239
Mr. Janes continued and took the entire management of
money matters in New York, and R. Allen returned in the
month of April. Soon after Mr. Janes took hold of money
matters in New York I learned from my brother that he
should have so much for Mr. Janes to do in that business
that he'd have but little time to buy goods.
Having some other business in New York I started
myself for New York on the 4th April and took with me
Mr. Thos. G. Perkins, who purchased most of the goods for
all the stores in the spring of 1836, for most of my time
was taken up in other matters and as I had purchased most
of the stock of the Patterson Bank some time was necessary
to examine the affairs of the bank, generally, prepare for
the annual election of officers, etc., etc.
Having a large interest in the Granville Bank, Ohio, I
attended to the completion of the engraving of plates for
the large bills, post notes, etc., for that bank.
Engaged my plates for the Commercial Bank of Fort
Erie and got the engraving under way.
Employed R. M. Blatchford, Esq., attorney at law, as
my legal counsel and attorney, in all legal matters both for
myself in person and for Mr. Janes, and the first act was
to draw a general and full Power of Attorney for Horace
Janes to transact any business for me and in my name. My
own time was so wholly taken up in other matters while in
New York I could not get time to settle the bills for goods
purchased by Mr. Perkins. I therefore left my signature
in blank with Mr. Janes for him to fill up notes for the dif-
ferent amounts of the respective bills of goods purchased
by Mr. Perkins, and before I left New York I furnished
Mr. Janes with my signature on blank notes and checks for
him to fill up and use whenever it became necessary in the
transaction of his money matters as he should be directed240
THE CASE OF BENJ. RATHBUN.
by L. Rathbun. Mr. Janes took hold of this branch of the
business with a spirit and will and firmness seldom if ever
equaled by men. Too much credit cannot be given him for
his untiring exertions and uniform devotion to my interest.
Whatever effect my failure may have upon his pecuniary
interest, he has one consolation that his conduct in my busi-
ness, as laborious, various and trying as it was both to
body and mind, he never lost sight of the strictest integrity
and that high sense of honor which so ennobles the man. and
raises him above the censures of the world.
I returned to Buffalo in April; nothing of any import-
ance occurred to my knowledge in money matters until
about the 18th May, when a large amount of my paper fell
due in New York, and for some reason (not in my pos-
session) my brother could not get the necessary funds to
Mr. Janes in time to prevent a large amount of paper of
various amounts and in various forms being protested.1
This created quite an uneasiness with my brother, staggered
Mr. Janes—created some timidity in the mind of my newly
appointed cashier of the Patterson Bank, and for a time
shook the confidence of my New York friends. I discov-
ered my brother was laboring under intense anxiety and
appeared to be alarmed, fearing so much paper being pro-
tested at once would shake the confidence of endorsers and
he should be troubled to get them to continue their endorse- ■
ments (as he said to me). He told me that among the
papers protested were a number of notes endorsed by D.
E. Evans of Batavia, and he said he thought I had more
influence^ with Mr. Evans than he had; he wished I would
write to Mr. Evans and explain the facts which he said
were that he had sent a messenger to New York with funds
i. Compare Thos. Farnham’s account, Pubs., Buf. Hist. Sac., val. xvi,
pp. 79-81.THE CASE OF BENJ. RATHBUN.	241
to enable Mr. Janes to provide for all that paper, but for
some reason did not arrive at New York in time to save
protest, but that the paper would all be taken up without
delay. I granted his request and followed his directions.
I asked him how he would get along with the great
number of endorsers in Buffalo who had received notices
of protest. He said he would take that upon himself to
see them in person, each and every individual. He felt
confident he could explain the matter to their satisfaction;
as he had got their endorsements he thought he could get
along with them quite as well as I could, and as it was his
neglect not sending funds in time he’d take that upon him-
self and not trouble me any further than write Mr. Evans.
But if any [of] these endorsers should call on me he wish’d
me to state to them as he had requested me to state to Mr.
Evans. I heard nothing from any of the Buffalo endorsers,
none of them called on me, and after some days I enquired
of my brother how he got along with those gentlemen. He
said he believed they were all satisfied with the explana-
tions. Thus it passed off and I came to this conclusion in
my own mind that he (my brother Lyman Rathbun) had
more influence with these gentlemen than I had, and as he
had the entire control and management of all the money
matters I felt it a great relief that he was so perfectly master
of his business that he had such influence with that class of
men to whom I felt under so much obligation for their
assistance. At the same time I supposed they felt that in
assisting me they were assisting themselves to a certain
extent for they were sensible that the improvements I was
making benefited every individual owning real estate in
Buffalo.
There were many strong and powerful reasons why I
supposed those gentlemen were really and actually my242
THE CASE OF BENJ. RATH BUN.
endorsers. What stronger proof could I have that they
were and that my brother had a perfect understanding with
them, than the circumstance just mentioned.
With this entire confidence of my brother’s ability to
manage the branch under his control, the understanding and
influence I supposed he had with the endorsers, I rested
perfectly satisfied he could get along with the financial part
of the concern far better than I could, even if I had no other
business to occupy my time.
The supervision of my many other important operations
commanded my whole time both night and day. My land
operations in Buffalo and Niagara Falls were important and
occupied a portion of my time. Much more of my time was
necessarily taken up in attention to strangers from New
York and elsewhere who were daily referred to me for
information on subjects of improvements, worth of lots,
cost of blocks of buildings, etc., all of which I felt a deep
interest in, as I held so much real estate; and although my
own business was pressing upon me there were cases of
this kind I could not consistently shake off and have any
regard to common civility.
Thus the business went on without the least apprehension
that anything was wrong until the 14th of June last. A
friend and highly respectable gentleman of this city men-
tioned to me in the street (apparently confidential) that
from some intimations he had from New York he “was
afraid there was something going on wrong in my money
matters that I knew nothing about.” I immediately made
some indirect inquiring of my brother, but getting no direct
or satisfactory answer I made up my mind to go immedi-
ately to New York where the error was supposed to exist,
and accordingly made my arrangements in my out-door
business affairs as speedily as possible and in as quiet aTHE CASE OF BENJ. RATHBUN.
243
manner as I could consistently (being in the midst of build-
ing operations) and started for New York on the morning
of 20th June to ascertain if possible where the alleged
“wrong” existed, and from all I was able to learn without
creating alarm was that my paper was out for a much
greater amount than I had any previous knowledge of.
In going to New York as I did with a supposition there
was something wrong in the money matters in New York
I had reason to suppose if there was anything wrong any-
where it originated there, consequently was (or intended to
be) extremely cautious in my examination, and although I
learned that a very large amount of my paper was out, more
than I had any knowledge of, yet I was perfectly satisfied
that everything under Mr. Janes’ management had been
perfectly correct and if any “wrong” existed it was else-
where.
It is due Mr. Janes to state here I have the most entire
confidence in his honesty and strict integrity. Through the
whole of this unfortunate transaction (whatever is said of
others) Mr. Janes has proved by many visible acts to my
satisfaction that he is in every respect an honest man, pos-
sessing that high sense of honor that raises him above the
slightest censure.
I found from the great amount of my paper afloat (the
increase having been caused by enormous shaves1) that
increased exertion was absolutely necessary and a resort to
-a heavy loan then seemed to be the most desirable. My
first effort for relief was to apply to Richard M. Blatch-
ford Esq. of New York City (who had from the month of
April preceding been employed by me as my own legal
i. The practice of note-shaving—the buying of notes at a discount, or the
taking of interest on them in excess of legal rates, developed into a somewhat
formidable profession, in the early days of private banks, State banks and wild-
cat finances generally. Mr. Rathbun alludes to it more than once in his narra-
tive, and evidently regarded it as one of the causes contributory to his downfall.244
THE CASE OF BENJ. RATHBUN.
adviser in New York and as general counsel for my agent
H. Janes), to effect a loan for some period of time for a
large amount. My agent had recommended Mr. Blatch-
ford to me as a man yrho in addition to his legal experience
and ability had an extensive acquaintance with moneyed
men and an intimate knowledge of the money market and
in whose transactions I might fully confide.
The sum of five hundred thousand dollars was required
by me for one year. After several lengthy and confidential
interviews with Mr. Blatchford he gave me his opinion the
money could be obtained if I could furnish adequate
security for its repayment, and even if necessary that double
that amount might be had. The security required was to be
a bond signed by myself and a sufficient number of wealthy
persons in Buffalo, to the satisfaction of Mr. Blatchford.
I desired Mr. Blatchford to make arrangements for the
loan with the least possible delay and come immediately to
Buffalo where I was to furnish the necessary bond agreeing
to pay him all his expenses and a liberal compensation for
his time and trouble.
Previous to this period I had in contemplation and had
made most [of] my arrangements to establish a bank at
Fort Erie, U. C., from which I expected great assistance and
facilities in carrying on my business operations. Feeling
the importance of immediate and increased exertions in my
preparations to put that bank into operation on the most
permanent and favorable basis for a safe and successful
business, I proceeded from New York directly to Montreal
to make the necessary arrangements for drawing drafts and
providing other facilities which the contemplated bank
might require.
My arrangements in Montreal were very satisfactory,
my plans were so laid and matured that I had every confi-THE CASE OF BENJ. RATHBUN.	245 '
dence I could put the bank in operation under the most
favorable prospects of success and the facilities I could have
obtained from it would have been very valuable in my
mechanical operations.
I had already purchased nearly the whole of the stock
of the Patterson Bank of New Jersey which was in good
repute, doing a safe business on a bona fide cash capital,
conducted by experienced officers under the advice and
counsel of a judicious direction. The bank was doing a
very respectable and profitable business from which I
expected to receive accommodations as far as would be
perfectly safe and for the interest of the bank.
I had also purchased the majority of the stock of the
Granville Bank, Ohio, from which I expected to realize
great facilities in my business operations.
Located as these three banking institutions were in the
three different directions and a distance from each other,
the facility with which I could in my business put the paper
into a most favorable circulation had given me the greatest
confidence in being able to make those banks useful to me
and at the same time make the stock more productive than
ordinary banks. From the sale of my Niagara Falls prop-
erty I expected to receive considerable means to the extent
of at least $300,000. From all these means and facilities
together with the contemplated loan of $500,000 (a million
if wanted) which I had great faith in obtaining, I had fully
persuaded myself that I could extricate my affairs from
their embarrassed situation.
I returned from Montreal to Buffalo on the evening of
the 8th July. On the 9th I received a letter from David
E. Evans Esq. of Batavia, and on the 10th while in the act
of answering Mr. Evans’ letters he called in person on me
at my dwelling house in Buffalo.246
THE CASE OF BENJ. RATHBUN.
In this interview with Mr. Evans, he informed me his
name had been forged as endorser of a $5,000 note owned
by William R. Givin of Medina, Orleans County, and which
Mr. Evans said he had in his possession—took it out and
showed it to me.
At this information I was perfectly confounded, it being
the first knowledge I had of the fact that forgeries had
been committed on any of my paper.
I enquired of Mr. Evans where Mr. Givin got the note.
He said that Mr. Givin received it from his flour agent in
New York.
In further conversation with Mr. Evans, I enquired if
he knew, or had reason to suppose, there were any other
notes of a similar kind in circulation. He said from letters
he had received from Albany he had reason to suppose
there were others of the same sort in Albany and that he
should pass through Albany soon oh his way to Phila-
delphia. On his saying this, my first impression was I
would go to Albany with Mr. Evans and there ascertain
the facts. I so expressed myself to Mr. Evans. But when
I reflected I had been absent some time and just returned
I did not know as it would be possible for me to leave my
business long enough to go to Albany. Mr. Evans said he
should leave Batavia for Philadelphia the morning of the
13th. I told him I would meet him in Albany if possible,
at all events I would write him on the 12th, which I did (as
I could not leave so long as to go to Albany) and requested
him to make a thorough examination of my paper in Albany
and write me frankly the true state of the matter and result
of his investigation.
Accordingly Mr. Evans wrote me from Albany on the
17th July and went on his journey to Philadelphia. In the
course of this interview with Mr. Evans, on the 10th, heTHE CASE OF BENJ. RATH BUN.
247
proposed I should give him $5000 in cash and take up the
note.
I sent to my brother and got the money and took up the
note although it had more time to run, without letting my
brother know what use I wanted it for, only sent that I
wanted it for an important use.
This information from Mr. Evans was astounding to
me. To what extent this business had been carried on was
impossible to imagine. Now what to do—what course to
take—or what was my duty to do—was a very important
matter. Here was a struggle indescribable. None ever
equaled it in the whole period of my life. I have had
many, very many, hard and severe struggles in my busi-
ness operations, but nothing ever presented itself in this
shape.
I finally concluded to be silent on this subject, keep the
contents of this interview with Mr. Evans entirely to myself
until I should get Mr. Evans’ letter from Albany and then
act upon the information I should receive from him.
In the mean time I wrote Mr. Blatchford urging him to
make all haste in coming to Buffalo and completing the
arrangements for the loan I desired. In reply to my com-
munication Mr. Blatchford wrote me from Albany stating
he had started for Buffalo, but on arriving there had been
informed that Mr. Evans had just passed through that city
to New York, and believing from the friendly feeling he
knew existed between Mr. Evans and myself that his
presence might be required in Buffalo to complete the
arrangement for the loan of $500,000, he had determined to
return to New York in hopes of inducing Mr. Evans to
come to Buffalo with him.
The next letter from Mr. Blatchford, written at New
York, apprised me that he had found Mr. Evans in Phila-248
THE CASE OF BENJ. RATHBUN.
delphia on his way south and had induced him to change
his mind and return with him to Buffalo.
On the 30th of July, Mr. Blatchford came to Buffalo (in
the afternoon) and immediately called to inform me of his
arrival and that he had completed his arrangement for the
loan of $500,000 which was ready whenever the security
was made satisfactory. He also informed me that Mr.
Evans would be at Buffalo the next day. Mr. Blatchford
had previously apprised me by letter from New York that
Mr. Evans had generously loaned his note of $50,000 for
my benefit upon the application of my agent H. Janes and
without my knowledge, and eulogizing the deep and devoted
interest Mr. Evans had expressed and shown for my wel-
fare. This letter with the subsequent arrival in Buffalo of
Mr. Evans announced by Mr. Blatchford, ensured my
unlimited confidence in all his future statements.
In this interview Mr. Blatchford enquired who I should
propose to offer as security on the proposed bond Jor the
loan. I named some [of] the gentlemen I supposed I could
get by giving satisfactory security. Mr. Blatchford called on
me again on the morning of the 31st July. He said he had
seen some [of those gentlemen I had named to him. He
thought there would be no difficulty in arranging the matter
perfectly satisfactory, providing I could make the security
satisfactory to those gentlemen, and for the purpose of
showing those gentlemen what security I could give them
he proposed I should make out a statement of all my real
estate and its encumbrances with an estimate of my personal
property. I proceeded with diligence to comply with Mr.
Blatchford’s request and in the afternoon had prepared
and delivered to him for examination the schedule which
became subsequently attached to my assignment and marked
schedule A. On inspecting it he expressed very great sur-THE CASE OF BENJ. RATH BUN.
249
prise at the extent and value of my estate and spoke in
unmeasured terms of the perfect facility and readiness with
which this matter would be accomplished, and took the
schedule to show to those gentlemen who I supposed were
to unite in the security for the loan. On the morning of
the first of August, Mr. Evans called on me and exhibited
a statement of his loans and liabilities for me and desired
me to give him a judgment for the amount. I objected to
doing anything of that line, saying I feared it would inter-
fere with the loan which we were then making our arrange-
ments for, and should rather not do anything without seeing
the gentlemen that were to be interested.
Mr. Evans replied that he had conversed with some of
the gentlemen alluded to and that they made no objection
to his having the first lien as his claim was for his paper
advanced without any profit to him, but merely for my
accommodation, and he then took out his bond and warrant
of attorney. I saw it was filled up in the handwriting of
one of the gentlemen I had supposed would be engaged in
procuring the loan,^which satisfied me of the fact and I
accordingly executed the papers, which gave Mr. Evans a
judgment of eighty thousand dollars.
Shortly after this was done, Mr. Evans called on me
again and said Mr. Blatchford wished to see me in some
private room. I accordingly went with Mr, Evans to my
dwelling house,1 where we met Mr. Blatchford and D. H.
Chandler, Esq., of Batavia, who appeared as Mr. Evans'
counsel. I supposed Mr. Evans had brought Mr. Chandler
(his counsel) with him to see that the papers for the loan
and those, to secure it were properly and legally made and
i. Thomas Farnham, in his account of Rathbun published in the preceding
volume of this series, says he lived in 1836 at the northeast corner of Main
and Eagle streets (p. 78). The Buffalo Directory for 1836 records his residence
as “267 Main, cor. North Division.”250	THE CASE OF BENJ. RATHBUN.
supposing Mr. Evans the most important individual in the
accomplishment of this object I went into a private room
with those three gentlemen, viz. Mr. Evans, Mr. Chandler
and Mr. Blatchford, to talk over and devise the most fit
and proper security (as I supposed) for the all important
loan.
Here Mr. Blatchford was principal speaker, which I con-
sidered proper, as he was the most important personage in
this matter, as the security for the loan had to be made
satisfactory to him.
Mr. Blatchford gave me fully to understand the con-
templated loan could be effected upon my executing the
necessary transfer of my estate as security to those who
were to sign the bond. He also intimated that the knowl-
edge of extensive forgeries of their names had come to
these gentlemen and that they were unwilling to sign the
bond and take the transfer of my property unless the paper
or instrument by which I conveyed it contained powers
adequate to enable them to make a final settlement of my
estate in the event of its being necessary.
He also promised the whole matter should be kept secret
and indeed spoke of it—and regarded it—merely as a pre-
cautionary measure on my part to serve in the contingency
of my not being able to settle my own affairs, that then
those persons who were to become my security should have
full power to settle it.
Believing from Mr. Blatehford’s representations that
Mr. Evans had been fully apprised of the understanding
between Mr. Blatchford and myself and confiding as I have
before stated in the integrity of Mr. Blatchford and his
exclusive devotion to my interest, and relying on the friend-
ship and sound judgment of Mr. Evans, whose presence I
construed as an approval of all that was done, I yieldedTHE CASE OF BENJ. RATHBUN.
251
more freely to the suggestions of Mr. Blatchford and con-
sented to execute the paper he then prepared.
When the assignment was prepared by Mr. Blatchford I
told him I was ignorant of the nature and effect of such an
instrument and desired to know if the paper he wished me
to sign contained all the powers and provisions requisite
to carry into effect our previous understanding. He replied
distinctly it did. Mr. Blatchford seemed to be very anxious
to have the business speedily done. My mind was exceed-
ingly agitated and although a subject of great importance
it was hurried on and the whole matter completed in a few
hours and without leaving the presence of those three gen-
tlemen for a moment from the time the subject of an assign-
ment was named until it was signed.
Immediately after the assignment was signed, Mr.
Blatchford requested me to get together my deeds and other
evidences of title and go with him to the dwelling house of
H. Pratt,1 Esq., (where he said the assignees were assem-
bled) which I accordingly did, where I found all my
assignees, Mr. Evans and Mr. Chandler, this being the first
interview I had with the assignees.
From what Mr. Blatchford had ysaid I supposed these
deeds and other titles were wanted to be used as security
for the proposed loan.
But the time seemed so short for an investigation of that
matter it was agreed to postpone it until after the sale at
the Falls of Niagara, which had been extensively adver-
tised to take place the next day. It was therefore distinctly
and positively agreed that nothing would be said of what
had been done until we should all get together again and
consummate the arrangements—which pledge was most
i. On Swan street at Elm.
/252	THE CASE OF BENJ. RATH BUN.
sacredly fulfilled on my part—not even giving the least
intimation to L. Rathbun, my clerk. It was there agreed we
should all go to Niagara Falls the next day and attend the
sale of the immense property I had advertised to take place
there, and to continue there until the sale should be closed
and then return to Buffalo and hold a meeting where it
should be agreed on distinctly what course should be pur-
sued in this matter and settle the final arrangements (as I
was induced to suppose) for the loan of the $500,000. One
important reason for deferring it until the sales were closed
at Niagara Falls [was] a large amount of the best kind of
security was supposed would be available from that sale.
I would here remark (since much has been said of the
limited provisions of my assignment) that I regret the
assignment does not make more general provisions for pro-
tecting the interest and more advantageously settling the
estate by providing for finishing building contracts, paying
liens, on real estate, etc.
Being ignorant myself of the form on necessary pro-
visions of such instrument, the hurried manner in which it
was done, and the confidence I placed in others to do it
right, is my only apology for its being as it is.
It is due to my assignees here to state that however
deficient the assignment may be in its provisions for pro-
tecting the interest on the speedy and advantageous settle-
ment of the estate, it is no fault of theirs, for I.did not see
either of them myself on the subject until after the assign-
ment was signed.
If there was any error it was in the speedy manner so
important a paper was drawn up (if it was supposed it
would be used in the settlement of the estate). The reason
why I did not look into it more particularly myself is, I
did not suppose it would be necessary to use it, having myTHE CASE OF BENJ. RATH BUN.
253
whole mind intent upon the loan and in case that was
obtained I did not suppose the assignment would be used.
I now regret as deeply as any one that it does not possess
all the powers and provisions so desirable for the conveni-
ence of the assignees and interest of creditors. Such as it
is, I executed it in good faith to enable my assignees to
settle my estate in case it became necessary; and from the
legal course taken with me, it became absolutely necessary
for the assignees to take charge of the property, and I have
the faith to believe they have done the very best they could
do under the provisions of the assignment. If this subject
had been named to me in the first place, in a different
manner, an assignment with very different provisions might
have been drawn. I should in that case have taken more
time, for I knew the settlement of that estate was a very
important and laborious business.
The greatest error in making the assignment was a want
of frankness on the part of those proposing an assignment
should be made. Had it been told me at once frankly that
there was no probability of obtaining a loan, I should at once
[have] set about making an assignment as the all-important
instrument to settle the immense estate and not made it in
haste or as a “contingency.” But [I] should have aban-
doned the sales at Niagara Falls and at once set about the
important instrument with the best advice Buffalo afforded,
and when done should have then had the opportunity of
proclaiming the failure and the causes of it to the public
myself.
The following day, being 2nd August, I went early to the
Falls and all my assignees (except Mr. Love), together
with Mr. Evans, Mr. Chandler and Mr. Blatchford were
there in the course of the day. The sales proceeded as I
had reason to expect and I had no reasons to suspect that254
THE CASE OF BENJ. RATHBUN.
anything was in contemplation (or that anything would
interfere to defeat the project of the loan) or that there
would be anything different from the understanding with
Mr. Blatchford until some time in the forenoon of the
second day of the sale. Mr. Chandler called on me, saying
Mr. Evans, Mr. Blatchford and himself were about to pro-
ceed at once to Buffalo. I immediately became alarmed at
this intelligence and began to fear that some breach of faith
with me was intended, and requested Mr. Chandler to
inform Mr. Evans and Mr. Blatchford that I wished to see
them immediately. They came to me, when I reiterated
the understanding I had on this subject and they then
agreed that our meeting should take place at H. Pratt’s
house in Buffalo, at 7 o’clock that evening, 3rd August. I
also stated in this interview that unless the loan was accom-
plished that night I should stop business and that my doors
would close that night for the last time, should that be the
result, and thus terminate and bring to a final close this
immense business on which the employment and prospects
of so many depended. I wished to be distinctly understood
that I claimed the privilege of announcing the fact of my
failure to the public myself through the next morning’s
papers, and state the cause of my closing my doors, which
was, that I was informed my own notes were afloat with
forged endorsements to a large amount and that I could not
consent to the business continuing another day; that as
soon as I ascertained the facts and important particulars of
this unfortunate matter I should state them to the public.
Could I have had the privilege of making such a. statement
to the public myself in the first place, it would have put the
whole of this unfortunate subject in a very different shape
from that credited by all the variety of whims, views, and
imagination circulated by rumor.THE CASE OF BENJ. RATH BUN.
255
Before leaving the Falls as well as on my way to Buf-
falo, I was advised and urged by those I had reason to
believe were my friends, not to return to Buffalo—that my
personal safety was in jeopardy and that my only safety
was immediate flight. This advice I knew was from those
who could know nothing of the facts and who then supposed
I was more implicated in the transactions than I really was.
I knew my own case better than they could. Therefore,
regardless of all consequences, I determined to return to
Buffalo and if possible yet effect the loan. But in the course
of that day it had become quite public in Buffalo, through
the imprudence of one of the gentlemen who made the
pledge, that I had made an assignment, and before night it
was rumored that there was forged endorsements on my
paper, and before I arrived in Buffalo my brother Lyman
was arrested and in prison.
I was arrested immediately on my arrival at my office
door and imprisoned without going to my dwelling house or
entering any of my premises.
This hasty and unfortunate termination prevented the
opportunity and deprived me of the privilege of making
the statement before mentioned, for when I arrived at
Buffalo the rumor of the failure and the unfortunate cir-
cumstances which caused it were many miles on their way
in every direction—and in all the variety of forms that
could be imagined by an excited community.
After being arrested and in prison, the first and what
seemed to me to be a very important move, was to settle
the estate in the most speedy manner that prudence would
admit of, and from the immense amount and the great
variety of the business matters, I knew it was a very labori-
ous and difficult task, and more especially for those who256
THE CASE OF BENJ RATHBUN.
had not been engaged in or had immediate connection with,
the detail of the business.
From the knowledge I had of, and the experience I had
in, the supervision of these several branches, I felt that I
could be very useful in the arrangement and settlement of
these various matters, and for that reason had a great desire
to be bailed out of prison that I might be useful in the
speedy settlement of the estate, and had I been bailed in the
first instance I have the vanity to suppose and the faith to
believe a very different state of things would have been pro-
duced. But finding my application for bail opposed and
every exertion useless, I issued a circular on the 31st
August last to all my creditors, hoping they’d unite in the
adoption of some plan and take the property for a more
speedy settlement of the estate than could be done under
the assignment with its limited provisions. The effect of
this circular was to call a meeting of my New York credit-
ors, who appointed a committee, which committee came to
Buffalo and through their influence and assistance I was
bailed out of prison on $60,000 bonds.
But I was no sooner out than measures were on foot to
put me back, which was effected in precisely one week from
my liberation, where I have been since in very close confine-
ment, and although I am conscious I have never given the
least occasion for suspicion that I had any desire to
escape, stfll I am watched with more jealousy and con-
fined in a close cell more rigidly than any other prisoner
in this jail.
I don’t mean to speak of this as complaining, but simply
to state facts and to show I have no possible chance of
assisting in the settlement of the estate.
Immediately after my imprisonment I set about the
enquiring into the real state of facts in regard to all, thisTHE CASE OF BENJ. RATHBUN.
257
mysterious business of alleged forgeries. These enquiries
for a time seemed to be nearly useless, as they were an-
swered (if at all) with such caution and in such a guarded
manner that it always gave me pain to broach the subject,
seeing it caused such painful feelings in others. Conse-
quently I did not press the subject until it seemed that the
wishes of the public and interest of our citizens absolutely
required a public explanation. For this reason I pressed
my brother to make up his mind to this disagreeable, yet all
important, duty, and at once commence the task.
I waited, and again urged him—waited and again pressed
him. But it seemed that when his mind was called to the
subject that the horror pierced his very soul.
Thus it passed on until he was bailed out, when I had
but little opportunity of seeing him, for he came to the
prison but seldom. I suppose those visits were less frequent
in consequence of my constantly urging him to make the
statement, whenever I saw him.
Finding the prospect of his making the statement lessen-
ing and the desires of the public to have it increasing, I set
about enquiring of him from time to time into some of the
important matters, and although his visits to the prison were
seldom, and the interviews very short; owing probably to
the unpleasantness of the subject to him, still I did get from
him, what I consider some very important facts. Many
more might have been got had he not answered most of my
questions with such reluctance. I was induced at times to
desist for a while, hoping to remove that restraint which
seemed to govern all his answers.
This is a heart-rending duty for me and those in the
greatest possession of the finer feelings of our nature can be
the better judges of mine when called on by the wishes of
[the] community and the deep interest of our most worthy258
THE CASE OF BENJ. RATHBUN.
citizens to state facts that under ordinary circumstances my
heart would fail me and my pen refuse its duty.
My brother was a man, and although constrained to say
it myself, he was a very extraordinary man, possessing
very extraordinary powers in many branches; but more
especially in financial matters. It is but justice here to
remark that whatever he has done, I have faith to believe,
and it's the strong conviction of my heart, that he never
intended wrong to any one, or that any person should suffer
in consequence of (what he considered) the necessity of his
imprudence, and as a very strong proof of his views in this
matter he was very particular and took unwearied pains to
keep all his transactions from my knowledge, which as he
has often since the failure said, gave him more trouble than
to keep it from any one else.
He had got his two nephews into this unfortunate'busi-
ness (as he said) from necessity as the business had so
increased on his hands it was impossible to manage it with-
out assistance and that of talent and the most trusty; he
had promised them protection from harm should any diffi-
culty arise and as a proof of his intention to fulfill that
pledge his first move, after his arrest was to send a messen-
ger after Allen who was then west, apprising him of the
failure and advising him to take care of himself. His next
move was to send L. R. Howlet away out of the country
unbeknown to anybody when or where he was sent.
I should have given what information I have obtained
from him to the public before, but was frequently told that
Lyman Rathbun would be brought back, and learning that
very great exertions were making and frequent letters
received from his pursuers stating the favorable prospect
of overtaking, I was induced to suppose it possible that he
would be brought back, and should he return I supposedTHE CASE OF BENJ. RATH BUN.
259
he would be induced to make the public statement I so often
urged him to do, which would be more full, distinct and
satisfying to the public than to get it second-handed and in
the limited manner I am in possession of what I can state.
This business commenced, as I learn from him, in a
very small w;ay at a time while I was absent, when assist-
ance was not at his control, to save the protest of some
important paper at a time when some timidity existed as to
my ability to meet my engagements; he said he feared if
that note should be protested that it might at that time be
the cause of much trouble and possibly the means of a
failure, and as he had the charge of the financial department
he felt a very weighty responsibility on him although the
money matters of the concern at that time was light com-
pared with subsequent periods. This first offence he said
was by extending a check (as he termed it) ; this process
I do not understand, therefore cannot explain it. This
check he says he took up and everything got along with
smooth, so that whenever he got cornered for funds he
resorted to a similar proceeding, sometimes making checks
and sometimes endorsing them. These acts at different
periods were resorted to for a considerable length of time.
Sometimes quite an amount would be in the brokers’ offices
and at other periods it would be all taken up. Thus it ran
on, he says, for some time before he would make any use
of notes.
The detail of this matter I am not in possession of, for
want of time to get it during the limited interviews I had
with him on this disagreeable subject; considering it most
important to [the] community that the main facts should be
got first, supposing then I should have time and opportunity
to get hold of the smaller matters in their turn.
On my enquiring of L. Rathbun who had done the writ-260	THE CASE OF BENJ. RATHBUN.
ing, in reply h;e said, when this first commenced he was
alone in it and when it had increased beyond his ability to
manage it in all its different movements he took Rathbun
Allen into his private room and after a long and strong talk
telling him it had become absolutely necessary for him to
have some assistance, that he had got into that business,
there was no other way but to go through with it and get
out of it soon as possible.
But to do it and not let me know how the paper was
situated he must have some assistance and he dare not trust
any other clerk, therefore he must take hold and help him
to carry it through; then went on and repeated to Allen
some part of the strong impressions I had made on his
mind when he first commenced the control and management
of the financial department, of the importance of his task,
that I had told him that everything depended on the correct,
prompt and thorough attention to all payments, that every
part of the immense business depended on the financial part
being properly managed, that he had told me he would take
that part upon himself and if any body could do it he could,
that he took not only a great interest, but a pride, to carry
it through, but found it impossible to do it without assist-
ance. He said he talked with Allen until he consented to
take hold, supposing they should soon be able to get it in a
more prudent situation. After Allen had enlisted and got
his feelings into the business Lyman said it became very
necessary for Allen to do a considerable of the writing.1
After Lyman Rathbun Howlet came to Buffalo, by the
special arrangement of Lyman Rathbun and without my
knowledge, he was taken by L. Rathbun into his business
i. Mr. Rathbun evidently strove in this statement to avoid use of the
word “forgery,” but he came to it before he got through; though always
ascribing the actual act to others. That this did not clear him of guilt, the
sequel proved. See Gov. Seward’s decision, as quoted in vol. xvi, p. 99.THE CASE OF BENL RATHBUN.
261
and under his immediate and special charge, direction and
control. I did not see him until he had been in L. Rathbun’s
business for a number of days and then it was by his coming
to my dwelling house on an errand for his uncle Lyman.
L. Rathbun first put him to drawing amounts1 (?) in his
moneyed arrangements, but soon after he came into L.
Rathbun’s employment L. R. had occasion to send R. Allen
away for some days after money, and in his absence at some
time he (L. R’n) said it became absolutely necessary to let
L. R. H. into his secret, and not long after he tried his skill
at writing L. R’n said the boy took hold of that part with
the most astonishing skill; he said he was at the time per-
fectly astonished himself at the boy’s skill and ability in
imitation, and L. Rathbun told me that Lyman Rathbun
Howlet had done the most of the writing latterly.
Why, says he, that is the most extraordinary young man
that he ever knew or heard of. He said that he would
imitate any man’s handwriting and in some instances where
he was familiar with the hand he could imitate it so exactly
that it would be extremely difficult if not impossible for the
person whose writing it resembled to detect it himself.
This would seem very improbable was it not known that he
can and has imitated eleven different signatures as endorsers
so exact that they were not detected by good judges, as I
am informed and believe to be true.
It has been noticed and remarked that he was a very
remarkable, smart, active young man, and had distinguished
himself in financial operations, but I presume no one had
mistrusted he was ever engaged in any such transactions,
for certainly I had not the least suspicion of him until after
he was sent away by L. R. I then learned it from L. R’n
i. Original manuscript very obscure-, but so it appears to read.262
THE CASE OF BENJ. RATHBUN.
who replied when I was enquiring after the young man and
where he had gone, for I wanted him as a witness. L. R.
said I could not get him; when I repeated with earnestness
that I must have him, he replied that I could not have him
for he had taken care that L. R. Howlet was safe. On
enquiring what he meant, he gave me an intimation at that
time the reason and subsequently gave me a full history of
what the young man had done under his charge and al-
though he said everything had been done in good faith and
with the most entire confidence that a large loan would be
obtained and the paper taken up as it fell due. He had so
encouraged both the young men and he believed they had
the most entire confidence that it would all come out right.
But nobody knew the vast amount accumulated by the
immense shaves.
Some time in the spring of 1836 Lyman Rathbun came
to me and enquired what security I had given those eleven
gentlemen for endorsing three notes of $5,000 each. I told
him they had a judgment of $15,000 (being the amount of
the notes) and an assignment of the Main-street front of
the Kremlin block. After a few moments reflection, he
said, those endorsers were so much benefited by my im-
provements (as most of them were largely interested in real
estate) that he was very certain they would be willing to
endorse more for me if they were applied to, at any rate
he said they would not hesitate to endorse the amount of
their security, which as he then estimated it would be
$60,000. He said the Kremlin was worth $45,000 and the
judgment $15,000 would make the $60,000, and said if I
had no objection he would see them and had great confi-
dence in getting their endorsements, for he said he knew
they were all very sensible of the importance my exertions
and improvements were to them as well as all Buffalo. HeTHE CASE OF BENJ. RATHBUN.
263
wished me to fill up more notes and he would see more of
them the first favorable opportunity. He said he wanted I
should fill up the notes with my own hand, as that, he said,
would be sufficient guarantee that he had my approbation
for calling on them.
I asked him how he’d get Mr. Love’s1 endorsement, as
he was in Washington. He said he’d get a line from Mr.
L. F. Allen, as he had in former cases, saying it was all
right and send the notes to Mr. Love by mail. I accordingly
filled up more notes (the number of which is impossible to
say), but I think it was either six or nine of $5,000 each,
and I think the date was left blank.
As Lyman Rathbun had the entire charge of all that
branch of the business, I did not interfere. Several days
passed without seeing him, which was not uncommon as
my business was at that season of the year wholly out of
doors. When I did see him, he spoke of the subject, said
he had seen some of those gentlemen—they had not decided,
but from what they said he thought they would consent to
endorse them. The next time he spoke about them he said
he had got them all endorsed and had sent them to Wash-
ington for Mr. Love’s endorsement.
Some time after the notes had been returned, he showed
me the wrapper that (he said) the notes were enclosed and
returned in from Mr. Love. That wrapper I have now in
my possession and it is evidently franked by Thos. C. Love.
I had no suspicion of anything being wrong in his busi-
ness, consequently had no reason for any in this case, as I
supposed the security in the hands of the endorsers was
perfectly good for the amount. At all events I considered
myself good for all the paper I had out.
1. Thomas C. Love represented Erie County in the House of Representa-
tives from March, 1835, to March, 1837.264
THE CASE OF BENJ. RATHBUN.
Lyman Rathbun now tells me that those endorsements
were all made by Lyman Rathbun Howlet, but it was abso-
lutely necessary for him to deceive me in all this matter, or
he would have never got along at all.
He now says that wrapper he showed me franked by
Thos. C. Love as enclosing the notes from Mr. Love, con-
tained some public documents, that it was a mere chance
circumstance (and as he thought) well calculated to deceive
me, at any rate, it answered the purpose. He also tells me
that all notes of that description used since are endorsed by
L. R. Howlet and filled up by him so exactly imitating my
hand that he dont believe they would ever be detected. He
also states that all endorsements on those $5,000 notes of
eleven endorsers each, excepting those paid and provided
for, were forged endorsements. The names purporting to
be on said notes are as follows: Lewis F. Allen, Hiram
Pratt, Joseph Clary, Ira A. Blossom, Thomas C. Love, John
W. Clark, Charles Townsend, Sheldon Thompson, Ebenezer
Johnson, Henry Morris and Joseph Dart, Jr.
Lyman Rathbun states in the most positive terms that
neither [\yic] of the above names are actually on my paper
for a dollar (except such as has been paid or provided for).
That wherever their names appear on my notes of $5,000
each they have been forged. That on most of said $5,000
notes Noyes Darrpw’s name has been used instead of Henry
Morris; that wherever N. Darrow’s endorsement appears
on said described notes with the other above named endorse-
ments, it is forged.
N. Darrow has endorsed none of my paper but L. Rath-
bun says he has given him a copy of all the notes he endorsed
and has also referred to bill book. Lyman Rathbun further
states that Joseph Clary, Potter & Babcock, Townsend &
Coit or Townsend, Coit & Co. are not actually endorsers onTHE CASE OF BENT. RATHBUN.	265
my paper for a dollar, although their endorsements (or
some of them) appear for a large amount—he says they are
all forged.
There may be others whose names have been used that
are not actually endorsers for anything at the present time.
This is one of the important facts—I regret I did not get
a positive statement from him.
Another important fact I regret is not in my possession
to state for want of the facts from L. R. He told me that a
number of citizens’ names had been used and some of them
for a large amount, although actual endorsers, but for a
small amount compared with the amount their names
appear on.
The only decision I got of him in such cases was a ref-
erence to his bill book, which is a book I have never seen,
consequently am unable to describe either the actual or
forged endorsements, although he said there was a private
mark by which he could decide the actual signatures from
the others. But without much reference he said he could
not tell himself even in cases where he was quite familiar
with the signatures, for such was the skill with which that
young man imitated that it may be very difficult to even get
at some, to the entire satisfaction of all parties. In that
matter I can give very little information. L. R. gave me
several names which he said had been used, some of which
were used for large amounts, but I am not able to designate
from the information he gave me, and there may be other
names that have been used and he omitted to give them
to me.
I here insert those he gave me as having been used, but
said at the same time he could not state which were actual
endorsements or how much their names had been used
(without their knowledge) without seeing the bill book and266
THE CASE OF BENJ. RATHBUN.
that, he said, he was informed was in possession of the
District Attorney. Some are used as drawers of notes, etc.
The names [are] as follows: David Burt, H. H. Sizer,
Thomas Day, Johnson Hodge & Co., Daniel Grider, S.
Mathews, N. Darrow, S. Wilkeson, Martin Daley, C.
Taintor & Co., A. Palmer, N. K. Hall, Sam’l H. Macy, Wm.
Forsyth, B. Humphrey, Goodrich & Stebbins, I. W. Skin-
ner, Kimball & Haddock, Josiah Trowbridge, Gardner &
Patterson, Orlando Allen, Williams & Baldwin.
Most of these names have been so exactly imitated that
it’s extremely difficult to detect them and in some instances
it would be impossible for others to detect or distinguish
the true from the spurious.
My own signature and general handwriting has been so
exactly imitated that it would be impossible in many in-
stances for others to detect it, for I know there are some
instances where it’s impossible for me to decide myself.
In my enquiry of Lyman Rathbun how it was possible
he could have carried on the business in the manner it was
represented, he replied that no one knew the amount of his
labors, the constant care and anxiety night and day, and
then said with all his cares he had more trouble to keep the
situation of the paper from my knowledge than all others.
He said Lyman Rathbun Howlet was worth six men to him.
He said he never knew him to make but one mistake and
that was with me. He said he had used so many notes with
the eleven endorsers filled up by L. R. Howlet appearing
to be my hand and as he said so good an imitation that they
had never been detected; that it became necessary to get
me to fill up some for fear I should find out that my filling
up had been imitated and as he said he must have some true
or the imitation would be detected. So he said to L. R.THE CASE OF BENJ. RATHBUN.
267
Howlet a few days before the failure, he must go over to
my house and ask me to fill up more notes for eleven
endorsers to renew some that would fall due on the 15-18
August in New York. L. R. Howlet made this mistake:
instead of coming to me to fill up more notes for eleven
endorsers he brought me some notes to fill up with eleven
endorsers already on the notes.
As he handed the notes to me, he said:
“Uncle Lyman wants you to fill up these notes $5,000
each, to renew some, same kind, that will fall due in New
York 15-18 August.”
As I took the blanks I saw they were endorsed. I said:
“Lyman, what does this mean?”
I looked him full in the face and saw (for the first time)
he was a little flushed, for he evidently saw he had made a
mistake. He then proposed to take the blanks back to his
uncle Lyman.
“No, sir, you can’t take these to your Uncle Lyman.
But do you go to your Uncle Lyman and tell him distinctly
that I say there must not be any more notes used with these
endorsers. If the notes due 15-18 August cannot be paid,
they must be protested.”
I put the blanks into a small portfolio and locked them
up in my desk at the house until I should have an oppor-
tunity of an interview with my brother and get an explana-
tion and a full investigation of the whole affair.
But as this was but a few days before Mr. Blatchford
came to Buffalo, no opportunity offered until long after the
failure, and even until after L. R. Howlet had left the
country did I know the true state of the case.
All this has been a wonderful mysterious business, and
it’s not at all surprising the public should be perfectly268
THE CASE OF BENJ. RATHBUN.
astounded at the facts, and what is more astonishing that
it should have been carried on to such an extent in the
manner it was under the sole management of a single indi-
vidual and that in the face and eyes of some of our sharpest
and most scrutinizing brokers and bank officers.
It’s unparalleled in history.
His financial powers are unequaled and his skill in keep-
ing the situation of the paper from my knowledge is a
sufficient proof to me of his ability to keep it from others,
although many of those who were in the daily and hourly
habit of transacting business with him had a far greater
opportunity of suspecting wrong than I had. Still, from
what knowledge I have of the ability and the adroitness of
his plans (none of which he explained in the recent inter-
views) I am perfectly satisfied that no censure should rest
on others for any knowledge of the situation of the paper
previous to the failure.
It is but proper here to state that in one of the last
interviews I had with him, he declared in the most positive
terms (what I had never doubted) that he never intended
wrong, nor for a moment supposed or feared that every
[ ? any] person would even suffer one dollar.
But before he was aware of it, the amount thus used got
beyond his control. The situation of the paper compelled
him to pay or renew it when due at whatever interest the
holders were disposed to ask. Money getting scarcer,
higher interest was paid until the amount had got to be
alarming. Still, he said he saw no other way but to go
onward, for he said he saw distinctly that one step back-
ward was ruin. He frequently spoke to me of the necessity
of a large loan. I encouraged him in the belief the loan
would be obtained and felt that I had good ground for that/
THE CASE OF BENJ. RATHBUN.	269
belief, and as a proof of his determination to keep the busi-
ness agoing so that no one should suffer, he sent $56,000
to New York in bank paper on the evening of 31st July
and on the 1st August he sent a considerable more to take
up all paper as it fell due.
However strong and just the censures may be for the im-
prudence of the course or the criminality of the act, I have
the most entire confidence in the man’s intentions and belief
that such paper would all be taken up, and even under any
circumstances, he said he supposed there was property
enough to do it.
Yet the amount had accumulated so fast for the last few
months, from the immense interest paid on so large amount,
that I doubt whether he had even time to foot up the
amount of indebtedness, only from day to day as payments
fell due, for his labors were immense, separate from that
of managing so much spurious paper in all its variety of
forms, amounts and use. The best proofs of his being an
extraordinary manager, are the facts that there was an
immense amount of this spurious paper in our own city, in
every bank and broker’s office, and most of it renewable on
short date. It would take volumes to explain all his plans,
skill, management, adroitness and deception, which he said
he had to make daily and hourly use of to deceive me and
others.
In some one of these last interviews with L. Rathbun I
enquired what amount he had probably paid for shaves.
He replied, it was probably the amount of the forgeries.
That was as near as he could get at it, and then remarked
with a great deal of feeling, “If there had never been any
shaving there would have never been any forging,” then
continued to remark (more coolly) that he had the most270
THE CASE OF BENJ. RATHBUN.
entire confidence—this business of improvements, merchan-
dising, etc., as extensive as it was, could and would have
been carried through, successful and profitable, if money
could have been hired at seven pr. cent., for every branch
was so systematized that it could hereafter be conducted
with much greater economy than in the commencement.