New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-24
HOW THE FIREBUGS WORKED
ASSISTANT DIsTRICT-ATTORNEY DAVIS
TELLS THE STORY.
He SAYS THAT OTHER MEN HIGH IN SOCIETY
AND WITH POLITICAL INFLUENCE ARE
UNDER Observation-Disclosures TO BE
LAID BEFORE THE GRAND

work OF well-organized and dangerous band OF
Hrcbugs. will be laid before the Grand Jury TO-
day. Some of the evidence Will be used 10 pro-
the indictment of George w. Holt Hopper
Friedland and Policeman Charles f. LEM. VINO
were arrested Friday evening and Saturday
morning. and It is probable that the three men
vii, be called TO plead to indictments tomorrow
Friedland and LEM still In the Tombs yester-
day. not having been able 10 secure bail. Hoi'
in Brooklyn. having secured his reiease py
placing $4,000 in the keeping OF the city Cnamoer-
lain security for hr appearance for examna-
ton when called upon. He continued to asser, MS
Innocence and a number OF his associates In the
insurance business declared that they believed he
was being made a victim for spite.
The evidence against the three men has been
furnished by Samuel Mich the self-confessed In
cend.ary. whose confession has been told fully In
Tho Tribune. Holt has admitted being acquainted
with Mich but he denies having had any irregu-
lar transactions with him. M!lch's story or HoI'
completely. however. the police say appears to
be corrobora ted in part by check for 500 which
was drawn to Hollis order by Joseph F. Bear and
Samuel Mich partners in the business OF adjusting
fire losses. on July L. 1894. about the time when
Mich declares he divided the profit on an incen-
diary fire with Holt. The Endorsement OF Holt on
the check shows that he received the money
Holt Is the first regular adjuster for a fire insur-
ance company 10 be implicated by the testimony Of
the flrebugs who have been allowed to save them
selves by becoming witnesses for the state Inc
Grand Jury will soon have evidence 10 show that
a number OF the company adjusters were In the con-
epiracy to rob the companies.
THEIR COOPERATION NECESSARY.
Assistant District-Attorney Davis. who has in his
possession all of the evidence thus far obtained IN
1he arson cases. said yesterday:
1.-THE evidence shows that as the business or
setting incendiary fires was reduced TO system
1t was necessary TO have the aid and cooperation
of men in the employ Of the hre insurance COM
panies and also of men attached TO the Fire Mar
shars Office The leaders In the conspiracy I'M
doubtedly were the so-called public adjusters. who
were supposed TO represent the public as against
the insurance companies. and Mich was one or
them. The adjuster made terms with the people
who wanted TO have fires In their places lie saw
70 getting insurance policies In cases. In order
that sufficient money could be collected from the
COMPANIES after the fires were set. IL was his
business also to procure the services OF the hlreu
tncendie ries who were called mechanics and were
expert In the work starting fires in build
ings. These !ncendares knew how to use benzine
and other highly infammabe materials so as 10
make the flames spread quickly in a building. Ar
rangements were made TO let them have access
20 the buildings at times when the owners or occu
pants away When such fires were started
the holders Of the policies and the fire adjusters
were always at n safe distance. and each was pro-
vided with good aiibi
After the FIRE when the hired ncendiary had
disappeared and the insured persons had made
.oud demonstra tons OF surprise and innocence. It
was necessary TO have the aid OF the adjusters
representing the insurance companies. because in
most cases there was reason for suspicion The
public adiuster who had arranged for the fire.
would consult with the adjuster representing the
companies and they would agree on some figure as
close possible to the total amount of the insur-
ance. Upon the recOmmendatio OF the companies
adjuser. the amount would be paid 10 the adjuster
representing the insured person Then the money
,,h "a
and the adjuster representing the companies would
also receive something from them for his supposed
services.
OTHER MEN SUSPECTED.
"Holt Is the first adjuster representing the COM
panies against whom have been able to secure
evidence. There other men, however, VINO have
been representing companies IN the adjustment OF
fire losses who suspected. and some OF them
have been suspected by the high officials Of the
companies. We expect to lay before the Grand
Jury damaging evidence against those men
Some Of them have been feeling uneasy
lately evidently having learned that were get
ting pretty close to them and they have been try
ing to bring influence to bear upon the Fire Com
missioners to remove Fire Marshal Mitchell from
Office. The high officials of any OF
the fire insurance companies, but some OF them
hold high positions IN society and supposed 10
have considerable political influence as well.
Then It was necessary for the consprators 10
Office keep them posted about the !nvestiga tons
which were made from time to time in cases Of
fres which too suspicious The hired incen-
diaries in used too much explosive AS
In the Gordon fire. and the explosions showed the
character of the fires. LEM acted as the agent OF
the conspirators and also made favorable reports
when possible and he satisfied with small
share of the plumber. Mr. Mitchell suspected LEM
and also Assistant Fire Marshal Frank more than
a year ago. but could get no proof against
them then 1t not until they were forced &c
leave the Office that the evidence began TO come tc
us"
Mr. Davis said he intended the trial o
Louis Gordon Whose factory at No. q Walker-st
burned by the conspirators. as soon as pos
eble Gordon Is under Indictment but out OF
$4,000 bail, awaiting trial. and the evidence agans
him is now believed be complete. The evidence
against Friedland. concerned in the same fire al
an accomplice. is also alleged to be complete. c
Cohen. also interested in the fire, went 4
Europe when he learned that Mich about 4
make q confession. His friends have told MI
Davis that he would return and supply some add
tional documentary evidence against Gordon oil
condition Of being accepted witness for the State
but Mr. Davis has declined 10 promise any i'm
munity for Cohen. Mich was accepted as a Wit
ness for the State because he was In position Il
reveal all OF the workings OF the band Of !ncen
diaries and to furnish evidence against some o
the adjusters who have been representing the In
surance companies, or rather misrepresenting them
in the conspiracy Oirn houses and collect in
surance
KNEW OF THE BANDS EXISTENCE.
Several Of the prominent fire insurance men 0
the city have declared that they were certain 0
the existence OF such a band OF incendiarles. bu
they were oath TO believe that any adjusters en-
ployed by them we're in the conspiracy Holt ha
been adjusting fires for several companies. anon
them the Imperial and Lion. OF London. and tn
Phoenix OF Hartford the agents for which In hi
city are Courtney & McCay. John r. McCay. VIII
lives at the Chelsea in West Twenty-third-st. sal
yesterday that he was greatly astonished at n
charge against Holt, who had been considered
man of Integrity. Holt had adjusted numbe
of losses for the companies represented by Cour
ney x Mc(,ay and in most cases they were losse
by fires In tenement-houses on the east side {
the city. Mr.. McCay said no would not believe IN
charges made against Holt by such a sef-confessc
scoundrel as Mich. unless there was brought fol
ward corroborative evidence OF the strongest cha
acter He would be inclined 10 believe tina
Nich In order 10 keen out OF prison himself, woul