Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-06-24
BOUND BY 0ATHS.
Gang of Incendiaries That Has
Operated in New York.
A Gigantic Conspiracy--Made
Pure Business Transaction.
Some Drummed Up Trade, Others Did Job
Insurance Men Implicated.

New York, June 23-The arrest Of Po-
nceman Lenz and Insurance Adjustcr
Holt brings out the fact that rs the result
OF Investigations made during the last few
weeks much evidence has been accumu-
lated In the district attorneys office tend
ing to show the existence Of gigantic
conspiracy to burn houses, to defraud in
surance companies and to divide the in.
surance money
On the confession OF Adjus:cr Mich,
corroboratcd by documentary and other
evidence, it would appear that for fivc
years or more u combination OF fire insur-
ance adjusters, public fire adjusters, a
policeman, attaches m the fire marshnl's
office, attaches of the district attorneys
Office and hired incendiaries have made a
business of setting fires and have thriven
on the proceeds
They did not content themselves with
setting such fires as came IN their way
One or more N their men drummed up
trade, as commercial travellers would
They went 10 merchants In this city and
Brooklyn, coolly set forth the advantages
of u fire, and offered for signature a con
money which they should receive for their
trouble.
It Il Confessed
that as the direct result OF the operations
of these conspirators IS fires have been do
liberately set within the last two years
and the insurance companies have thereby
been swindlcd ont OF nearly 81, 100000 On
one fire 1894. 900 wns received in insurance
and on another, $4,000 was paid.
The incendiaries used fluid consisting
of gasoline, benzine and naptha. This was
smearod on thc stock and a candle was left
burning. When tho candle burned down
there was an explosion followed by roar.
ing flames.
Samuel Mi lch, who nlaIlo the confession
says 1t was his duty to mako contracts for
the burning Of houses and stores, and to
hire men to burn them
The insurance money was divided be-
tween the fire insurance company adjust.
ers. the fire Inarshnl's men and tho in.
surcd. The man who SGT the fire got a
fixed sum, s25, 80, or $500, according to
the magnitude OF tho JOB. The eonspirn-
tors were oathbounM and
Had symbols and Passwords.
Mich goes into details in regard to four
OF the inccndiary fires in which he was con
cerned One WAS at Louis Gordon's shirt
factory at 81 Walker street, July "a, 1894
Gordon had an insurance of SO, 900, and he
signed a contract to pay the conspirators
per cent Of the amount recovered from
the companies. He also paid 1880 in fees
and rewards to different members OF the
gang. The fire took place according to
uDrpnmpnt hut tho v,in
picious, and did not pay tho insurance
money. Gordon Ia now under indictment
for this fro
shirt factory, 1e White street on Jan ~,
1894. Cohen & Co. got SOS, 900 from the in
surance companies, and Mich says they
paid the gang 5000. Warrants are out
for the arrest Of Henry Cohen and Koppcl
Fricdland, the members Of this firm.
Another fire was in 6story tenement
at 80 Willet street, In July, 1893. The
house was crowded with sleeping men,
women and children.
Lives Were Endangered
with this fire, and the insurance money
was only 800.
The fourth fire was in the tenement
house pa East Thirty third street, In July
1894. The conspirators got $3.50 insurance
for this fire, but the tenant whom they had
insured was less tractable than others, and
they had to pay him 800, much larger
percentage than usual.
According to the confession In the hands
of the district attorney, the public adjust
ers who We're in the conspiracy were Max
F. Grauer, now in state prison; Adolpb
Hirschkopf who has confessed and disap-
pearcd; Morris Schocnholz, now in the
Tombs awaiting trial, and Louis Grauer,
a fugitive.
In addition to the central office dctec-
tives, Detective Scrgeants Jacob, McMa-
nus O'Brien and McAvley have been set
to work to follow up further clews.
According to Mich, the real heads,
those who profited by the work Of the I'M
derlings, were men in the employ of the
insurance companies-salaried officials.
who in order to grow rich rapidly, proved
false to their trusts He has furnished
the names Of all these men to the district
attorney, and IL Is expected every one, pro-
vided he does not flee, will be behind the
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