The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-06-03
FRAUDS In TIE FETAL TRADE.
Burglary at the House Of Phelps, Dodge & Co.
Their Secret Correspondence Purloined by q
Rival Marchant-Sases Opened with False
Keys-A Number Of Arrests Made-The
Merchant Steals the Umbrella Of
Mr. VIM E. Dodge and Hides
It Inside Ills Pantaloous.

The facts OF singular burglary have lust been
ventilated, and they are likely to excite great
deal OF interest In commercial circles as one OF
the prisoners is a large metal merchant, who, 1t Is
alleged, iG concerned in the villany and carried it
to successful end for some weeks There are I'm
this city many firms dealing in raw metals who do
many million dollars worth per year, CHIEF
lof which is that OF Phelps, Dodge q
Co., OF No. IL Cllfr street This firm does
ia trade OF about s2,Oo0,ooo per month, and OF
course, has very large and valuable correspond
lence, the possession OF which by rival houses
3enables them to largely affect the market. About
seven months ago the firm discovered that copies
aof their most sacred correspondence, contracts,
! importation bills, sales to retail dealers,
&C., were being purloincd by unknown
parties and their business greatly dam
LACED In consequence. Other houses made
similar discoveries, but unable to detect the
/ guilty parties. Phelps, Dodge & Co., however, de-
I termined to athom the robbery, II possible, and
with view OF starting Alright called in ex-Judgc
Fullerton rs confidential counsel Mr. Fullerton
called to his aid Detective Sampson, o
Wall street, and the work OF ferretlnl
Tout the Offenders was commenced some
weeks ago: Sampson and his assistants
concluded that some OF the employees OF the firm
had been suborned by rival parties In the trade
to secure the information, and acting upon this
theory they Swallowed" the jantor and some OF
the confidential clerks OF the house. IL was dis.
covered that the janitor was in the habit oil
admitting to the office OF the house Abraham
Nelson large metal merchant doing business
Mount Pleasant avenue, Newark. Not wishing to
spring the trap too soon they were not arrested,
but careful watch was kept upon the movements
or the clerks rs well as on Peterson and Nelson.
That resulted, on Saturday night In the arrest by
SIMPSONS men, assisted by Captain Ward, of the
Second precinct OF Peterson and Nelson in the act
cOmDliCitV
in the felony
About hail-past seven on Saturday night Peter
son, the janitor admitted his confederate to the
Office, ana they remained there until hafpast ten
having entered the book safes with false keys and
made copies OF the cable kilograms of Saturday.
AS they emerged from the premises they were ar
rested by the detectives and conveyed to the Beck
man st Get station house, where they searched
on Nelson were found copies OF private letters and
kilograms, stolen articles OF the oice and from one
OF the legs Of his pantaloons the searching officer
pulled out q silk umbrella belonging to william
II. Dodge Of the lirm. There were also found upon
him false keys of the safes, which he had had made
from wax mprcssons taken from the locks. Nelson
ohence, ana the merchant took the detectives to
his office IN Pearl street, and turned over large
box iull Of memorandums, stolen at different times.
From their confessions 1t IL alleged that Nelson
bribed the Janitor and some six weeks ago they
commenced tho work of making impressions of the
locks, and had since been actively en-
ployed In the copying OF the secret papers
Ion The house, which, it is asserted,
business and for the benefit Of other houses I'm the
same trade. The accused were taken before Justice
Bowling yesterday and committed In default of
$4,000 bail each The names of the clerks who are
not however, accused OF burglary, have been re-
ssseryed until further arrests are made, lest
their publication defeat the ends OF Justice.
1t Is charged that some ten fifteen persons
are connected with the fraud, and that some OF
them are prominent business men In other States.
1t is estimated that the loss to Phelps Dodge Co.
alone by the violation OF their secret correspondence
win reach s25oooo or 100000, and they report that
they have instituted civil suit against the father
4 of Nelson, the partner Of the accused merchant
& for $3.50. 900 damages.
The case Is most remarkable one, that affect
the entire metal trade OF the country, and the de
tectves were especially astonished that hithert
q respectable merchant should take a fancy Tor TIL
y umbrella of the phianthropic Dodge while pursu
ling his researches among the archives Of the 0lc
uDF. rt...