Morning journal and courier., 1886-03-05
A CUNNING SYSTEM OF FRAUD.

Jordan, Marsh x Co. Made the vic- tims of a Trusted Clerks COlIusfon n With Another Firm.
 NEW YORK, March 4.-Summary proceed
 ings were taken this afternoon, in behalf of
 Jordan, Marsh & Go. of Boston, against
 Albert Friedlander of the firm of A. Fried
 lander & Co.,, 337 Broadway, for whose ar
 rest an order was issued by Judge Allen of
 the Court of Common Pleas. MT. Friedlan-
 der surrendered himself at the sheriff's
 office and gave bail in s2O, 900, his bondsmen
 being Isaac s. Plant, of Plant & Goldsmith,
 manufacturers of lace cloaks, 388 Broadway,
 and Edward Marks, of Marks 6 Co.,, dealers
 in ladies' hats, No. 80 Green street. The
 case is one of special interest to the dry
 goods trade. It involves the alleged loss of
 over $56, GOO which the plaintiffs charge was
 fraudently obtained from them by Friedlan-
 der In corrupt collusion with one of their
 trusted clerks and renews the business
 scandal between these two firms which is
 still pending in the courts. In that former
 case, which is now awaiting trial in the
 United States court, A. Friedlander & Co.,, who are manufacturers and dealers in ladies' cIoaks and suits, brought an action against Jordan, Marsh & Go. for $3O, ,OOO for goods claimed to have been shipped to and received by them and pay ment for which had been refused on the ground of alleged fraud and deceit, which is made the cause in the present case. Instead of admitting the liability for which Fried lander & O.. had brought suit, Jordan, Marsh & Co. now turn round and bring a counter claim for over $56, 900. The complaint and afida- wits, which are quite voluminous, containsthe detailed account of the system on which the business of Jordan Marsh & Co., is conducted and of how the clerk who is accused as an accompIice carried on his part of the arrangement in order to show the close connection and continuous conspiracy be- tween him and Friedlander. From the sworn confession of this clerk John H. Hewes, who was at suit sui dep department T of 'u the biz lo''A Boston on house and had been in their employ for ten years, it seems that early in 1883, or before the present firm of A. Friedlander &z Co., was formed in January, 1884, he entered into corrupt and fraudulent arrangement with AL bert Friedlander by which he was enabled by cunning system of devices to continue purchasing more goods than his employers wanted and selling others at a sacrifice and that finally by means of fictitious bills, blank billheads having been furnished, he caused this large amount of money to be paid to Friedlander chiefly or wholly for goods which Jordan, Marsh & Go. had not received. The Boston merchants remained in bissfui ignorance of this underhanded business during the two years of it's continuance and till the importunities of Friedlander for money and the approaching departure of Hewes for Europe on business for his em- ployers led to the discovery of double deal ing and the subsequent revelations, It is un- derstood that orders will be issued for the arrest of other persons upon similar accusa- tions. Stern and Meyers appeared as attor- news for the plaintiffs