New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-08
ROIDNESS OF BOGUS LLOYDS.
r1-RrHER INVESTIGATION INTO INsUR-
ANCE SWINDLES.


CONCERN - DIAMOND MERCHANTS
WHO WERE IN REALITY CLERKS.
Although the police failed to find the men who
are said TO be under Indictment for insurance
frauds the probing int the peculiar methods Of
the irresponsible Lloyds was continued in Pine-st
and elsewhere by tho State and county authori-
ties yesterday. and instances of daring crooked
ness recorded which present remarkable features
OF cupidty and grim humor.
Several men under suspicion are miles away
from Newly ork it is nov believed by the police
and the destruction Of the ninety-fve bogus con-
Germs among the l2O Lloyds rests on the evidence
which detectives obtaining in a daily search
into the responsibility Of the suspected Lloyds
which are receiving money, but paying no in
surance
The facts brought to light regarding the forg-
ing Of the papers which gave life TO the fra udu-
lent underwriters weaving web around
many concerns. In the desperate game to come
within the pale of the law which exempts Lloyds
established in 1892 from State inspection those
who established concerns after that date and
over-rea ched themselves by writing 1892" on
their papers Of organization. already in the
shadow Of the court walls. and list Of indict-
ments is expected soon from the Grand Jury.
HOW ONE CONCERN WAS STARTED.
In the New-York and Erie Lloyds. with It's
shingle the building No IS Liberty-st.. is an
instance OF how one concern came into existence
Established on the second floor, In a small room
containing two desks and counter, Mayer
Co., the alleged attorneys Of the concern, began
business by issuing through the mails the usual
preliminary circular. in which the following in
formation was graciously accorded to the insur-
ance world:
THE undersigned beg leave to inform you that
they are now prepared TO write liberal lines on
approved mercantile and manufacturing risks
The commercial standing Of subscribers GER
family warrants a share Of your surplus bust
ness"
Accompanying the circular was a printed list
OF ten names purporting TO be those OF sub
scribers.
Desiring to learn something more definite about
the commercial standing Of the subscribers than
that vouchsafed in the circular. caller inquired
for information. and this is the answer Of Mark
Mayer. the head and front Of the concern
"Our ten subscribers have each deposited IS, 900
IN cash, and responsible for three times that
amount in addition. We write $500 lines on
mercantile and special hazards and $500 on
eprinkled risks. Our first policy was issued Oc-
tober l. 1895 l do not care 10 give the name Of
my partner He is only a silent partner. and for
business reasons l decline TO publish his name.
All Of subscribers men of high financial
credit and 1 propose adding fifteen more to our
list within a few days"
CLERK REPRESENTED AS DIAMOND
MERCHANT.
printed list Of the subscribers produced
and Mayer was asked TO tell what he knew about
the high financial credit OF each Of them. He
described one. Gus J. Fleischmann as rnem-
Der Of the firm. of 5. +. Myers d Co.; another,
Daniel Kemberger. "a diamond merchant in
Maiden Lane" anc d thrd, john e. Dram. as
Officially connected with the Brooklyn Park De-
partment."
At the Office Of s. F. Myers & Co.. the head OF
the firm. In which Mark Mayer alleged that Gus
j. Fleischmann was a member. made this state
ment:
only that CT empoye in charge OF one OF It's
departments. He is young man of excellent
character, and he occupies 4 position or trust,
but he is not a man or means. and could nor
meet financial obligations amounting 10 d con-
siderable sum Of money.
Daniel tlemberger, the subscriber whom
Marx Maytr described "a diamond merchant
IN Maiden Lane was also Identified by Mr.
Myers as young man employed by MIN
'Klembergers financial responsibility is about
equal TO that of Fleischmanns said Mr.. Myers
land / cannot imagine why these young men are
In any Lloyds associations"
Mr.. Klemberger admitted that he was sub
scriber TO the New-York and Erie Lloyds. He
knew very little about It. he said. and refused 10
say whether or not deposit had been made by
him as a subscribe Mr. Fleischmann said that
he had never made such 4 deposit but liable.
according to his understanding Of the business.
for amount not to exceed in any contingency
$500 II deposit were called Tor, he not
sure that he would make il He said ne knew
Mark Mayer only slightly. bat believed he was
formerly in the mems furnishing business and
related TO L. Mayer the importer of linens also
listed a subscriber.
THAT PARK OFFICIAL
A visit to the office Of the Brooklyn Park De-
partment was made TO verify Mark Mayors de-
scription Of John Z. Dram. the other subscriber.
This subscriber not known personally by the
Park officials. An inspection Of the books OF the
Department, however. disclosed the fact that
there John Z. Dram employed in the Park
as a laborer. After search Of two hours In
Brookyns expansive park. the inquirer at last
found one of the ten financial props Of the New
York and Erie Lloyds in the person of Dram,
laborer. who. with broom and wheelbarrow, and
for the modest wages of 81 80 day. was care
fully gathering and removing 10 their final rest
Ing place the crop Of fallen leaves.
According to the records Of the Park Depart
ment John Z. Dram. labOrer. discharged
two weeks before for characterization. but he
was put back to work again. his foreman said
because he had expressed contrition for his way
wardness and pleaded that he solely de-
pendent his pay as a park laborer for live
iihood.
New-York and Erie Lloyds. but when his name
en- the printed list OF subscribers shown to
him he said: THAT Lloyds must be the one my
friend George X. Kesner. asked 10 use my name
for one rainy day was downtown. You see. sir.
we emit work here rainy days. Kesner said he
wanted TO use my name. and he wrote 1t down in
a book / allowed him 10 do II merely TO oblige
him 7 signed no papers books or documents
whatever. nor did l make any deposit Of money.
nor would If could"
George r. Kesne-. mentioned by the PARK
sweeper is the one figuring as attorney for the
Brooklyn Lloyds. the concern described in The
Tribune yesterday Kesner is affiliated with
Frank w Anthony the Guttenbcrg booKmaKer
for whom the police Sui LOOKING
OLD FACES IN NEW PLACES.
OF the bogus Lloyd concerns which have passed
away. it has been learned In the ofnciai inVesu-