New-York tribune., 1896-09-02
DUPED BY AN EMPLOYE.
JULIUS NJ. LYON, A DIAMOND DEALER.
SWINDLED OF THOUSANDS
OF DOLLARS.
HIS FAILURE CAUSED BY THE DEFALcATIoNs OF
JULIUS sTEIN-THE LATTER CoNFEssEs. AND
Is IN CUSTODY. WITH THE RE-

JULIUS srEIN-THE LATTER coNFEssEs. AND
is IN CUSTODY WITH THE RE-
cEIvER OF THE STOLEN GOODS.
When the jewery firm OF julius NJ Lyon, OF No.
y Maiden Lane. failed last week. 1t was said that 1t
had gone under because OF the wVngdoinss of
clerk In the employ of the firm. who was cousin OF
Mr. Lyon. This man has been run down by the police
and Is now In cell at Police Headquarters. He IL
Julius Stein. twenty-six years old. of No 3Sl East
/ Seventy nlnth-st. lie was a trusted man. having
had more confidence placed in him by Mr.. Lyon than
any other man in the In two years his
be7zlements which he has confessed. amounted to
more than $2ooCoi lie arrested at Prncest. and
Broadway on Sunday by Detectives Valley and J.
O'Connel
Stein confessed his peculations and made a clean
I breast of tie matter to Mr.. Lyon lie SAID that he
had in every instancc sold the goods to Joseph
| 1.obnson. a jeweller. Of No II Santon-st. lie had
always taken diamonds. Upon STEMS stating this
! 10 Magistrate Crane the latter issued warrant
! for Robinson. and the latter also arrested.
Stein entered tic employ Of julius Lyon when ten
years old In ter years he had become the mos'
| trusted man in the store. He became. according to
! his own story. infatuated with a fast iife.. and
needed money. For years he s~indled Mr..
Lyon right and left. and finally caused that mans
ruin
! The strait into which ne had beer dragged was
| made known to Mr. Lyon only by chance
week ago Monday J. w. Block. Of No Maiden
Lane. called at the Lyon establishment ana asked
| TO see some diamonds lie selected several. but
| expressed wish to procure finer ones. when MT.
! Lyon told him that he had already purchased two
very fine stones among a lot he had selected the
day before. Block seemed surprised by the state
ment and asked Lyon what he meant Lyon told
1 l. Il h,Cl.S frnn
for 900 worth of di. monds Block deried all knowl-
edge OF any such transaction. and also denied that
! he had ordered the stones from Stein. when Lyon
| told him of it,
MIR. LYONS Suspicious AROUSED
! This incident led Mfr Lyon TO do little investi-
eating. He went to the store OF Schulz q
Rudolph Of No Is John-st. Mr. Lyon said that
| they were charged his books with owing him
SO Op) for diamonds bought at various times. This
statement upset the Schulz & Rudolph establish
ment for a few minutes. The firm members re-
| pudiated the charge and declared emphatically
that not one cent due Lyon from them.
! LYON went further. He called on William 5.
| Todses OF No Maiden Lane and asked him II
! he could pay the $500 Hedges owed him. Hedges
WAS as,ounded BY the request and denied owing
| LYON "A penny. lie proved II 20 him according TO
his own books and Mr.. Lyon fant-heartedly left
| the store 70 go the jewelry house OF J. Lew
| kowitz in Grand-st Mr. Lyon said he had Dill
Of $40 GO against him and Lewkovi'z said 1t was
not true lie dd not owe Lyon a cent.
| H. D. Belas, Of jonn-st.; j. +. Saunders OF
| Maiden Lane; H. T. HARDY Co. OF Maiden Lane.
ard Alexander I.ntmcr. OF No. ~ Nhssau-st-. were
| all successively visited py Mr.. Lyon. he having
| accounts on his books against them. hut All de-
| r,od that they owed him for any goods whatever.
Ia then looked over his ledger carefully. and saw
| thu, there was more than $1,000 outstanding.
T.lliuy no one the store Of what he had
| 1.e,ned LYON asked Sicin into hts private Once
| and charged him with defrauding him stein.
u,,bou, any hesitation. confessed to the "mbczzie-
y, r,a and told his employer what he had done
ui,b The diamonds had taken.
| ue said that his method was 10 let II seem tha,
| o,, had purchased large hill OF diamonds Then
/ -, a., tho stone to the amount of the purchase
| ~, ii, .beu to Robinson a reduco-. In every
au NJ from - TO 20 cent. To throw OF -us-
c,en hon paid over par o' the proceeds OF his
pc'u' - nc arm and kept the remaindcT Stein gen
rpo,' ,oe about s. zoo worth or stones He placed
eiaS o,edI, of lyon such transactions. a.rhsps
- ~ 80 a hind In this way he swin1ed the nrm
~ ,,,,,o more than years ont ~ about $1,000
~ No., ,h.t Robinson got about $1,000 out OF
! this sum
STEMS EMBEZILEMENTS.
c,o,r asserts that he has paid back 10 the hrr' as
,,,nds nearly 10000. alleging that he has spent
Ntr Ivan N. has