Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-08-30
A CHARGE OF FRAUD
Local Brokerage Firm. Accused ofIm.
proper Practices.
WI. VAN SEaDEE A SILENT PARTNER
Formerly Private. Secretary Of the
Secretary of the Treasury.
HEAVY BAIL DEM DED

Herman W. Van Sender. who during the
administration of President Cleveland was
private secretary to Secretary Of the
Treasury Carlisle, and Dennis J. Canty.
a former clerk in the Office of the in
terstate commerce commission, were
arrested about noon today by Detec-
tives Boyd and Carter on the charge
of embezzling s4.ss75O from Joseph Wilkins
and Frederick w. Emerich, trading as Will
kins Co. CAVITY and Van Sender were
also charged, on the oath of Mr.. Enrich,
with setting up gaming table at No. 1881
F street northwest. They were each held
in $4,000 bail.
The accused refused to make any state
ment at this time, but the compliments
say that the firm of Canty & Co., of which
Van Sender was the company" has been
from time to time fntrusted by them with
considerable sums of money for the pur-
pose of specializing in stocks for Messrs.
Wilkins and Enrich. 1t Is further stated
that there likely to be several other
charges filed against both defendants, and
that the total amount involved will be
about $4,000.
Partnership Formed.
1t is understood that shortly after Sec
rotary Carlisle retired from office last
March a partnership was formed between
Canty and Van Sender, for the purpose
of carrying the stock brokerage bust
ness, under the firm name of Canty &
Co, the business Office being at No. 1881 F
street northwest.
Among their customers were MeSsrS. Jos.
Wilkins, Frederick W. Emerich, DR.. Nc
Murty and others, whose names had not
up to late hour been filed at the detective
bureau. 1t was especially understood,
Messrs. Wilkins and Emerich said, that
CAVITY & Co. were acting as agents for
them and that the funds intrusted to the
firm were to remain the separate property
of the investors. Instead. however. of re-
garding the matter in that light, Canty &
Co, it is alleged, put the funds referred to
in bank to their own credit, and drew upon
the account for their own use. Wednesday
last the firm made an assignment to
MeSSrS. Wolf and Cohen.
Immediately following the assignment
demand for the amount of the sum alleged
to have been intrusted to CAVITY & Co. was
made by Messrs. Wilkins & Co., and 20
their establishment they received the reply
that there were no funds. Thereupon the
warrant was sworn out which specifics that
the sum named therein. $4.SS1.50, was en-
beZZled by the accused from the COM
plainants August II, 1897, and today the
prisoners were taken into custody.
Merely Silent Partner.
While neither of the accused would con-
sent to make a statement, Mr.. Van Sender
told a friend that he was simply a silent
partner in the firm Of Canty & Co., and had
no part in managing the business of the
concern. having he said, been absent in
Kentucky almost from the time the COM
pany was formed ahtil a few days ago,
when he returned to- Washington Mr.. Van
Sender said further that, having been sew
eral months ago appointed state agent for
Kentucky of a life Insurance company, he
had since that date devoted all his time to
the pushing Of that enterprise 1t is eX-
pected that Messrs. Canty and Van Sender
viii be released on bail during the after
noon for a hearing later.
The Allegations.
Messrs Joseph Wilkins and F. W. EN-
rich, the prosecutors in two of the cases,
said this afternoon that they were dealing
with Canty & Co. Wilkins & Co., ana
that they had no connection with the in
corporated concern of Wilkins & Co. which
does business on 9th street opposite the
Center market
The prosecutors refuse to give for pub
lication a statement of the affair today.
saying they will do SC later. They state
however that Canty & Co. have been do
ing business for a long time the firm form
erly having been composed of Canty and
Joseph Hickey. Shortly after the 4th of
March, they allege, MIR Van Sender bought
the interest of Mr.. Hickey. paying 81 900
for it. In addition. he put $4,000 cash into
the business. 1t is limited that Mr.. CAVITY
had little money
Accommodations of Profits.
Messrs wilkins & Co. say they did bust
ness with the new company until the 18th
of August, when the firm notified them
that II had suspended business They al
lege that their profits on different stocks
had accumulated until it reached $500 or
the day of suspension. They allege that
the day previous to the suspension of bust
ness of Canty & Co., the firm received
from Willard & Co., their correspondents
in New York, the sum of 50, 1922. CAVITY
& Co. deposited this with Crane & Parish,
having an amount already on deposit there
sufficient to make a total of $14, 400
The morning after the money was de-
posted. it is alleged, and the same day
the customers were notified of a suspen--
sion of business. this amount was drawn
out of bank, Mr.. CAVITY getting S. 900
of it, and Mr.. Van Sender the remainder
an amount sufficient to reimburse him for
what he had put in and to give him So, 200
besides.
Previously Paid Promptly
The prosecutors say that Mr.. Van Sender
told them they would be paid every cent
due them. but did not specify time. They
admit, however. that there was some talk
of paying them in four, eight and twelve
months.
1t is stated by the prosecutors that I'D to
the time of the dissolution Of CAVITY e. Co
the firm had paid all profits promptly
The Silent Partnership.
1t has been generally supposed in Wash
ington that Mr.. VanSenden was in Ken
lucky in the insurance business. Imme-
diately after the new administration came
In he sent in his resignation, and it was
announced that he had accepted the state
agency for Kentucky of the Equitable Life
insurance Company at salary far larger
than the one he had been receiving. AS
sociated with him there was Mr. Dillday.
the firm name being VaaSenden & Co. The
firm still existaI
10 statement that Mr.. Van Sender was
silent partner efnthe concern, Messrs.
Wilkins and Emricfbsmile They saw nost-
lively that he has heen an active member.
taking part personally in nearly all the
TRANSACTIONS, and being on hand almost
constantly. >
During the Cleveland administrator AIR
Van Sender Was a ixnan of considerable in
fuence. He IWas qtrusted by Secretary
Carlisle to great extent. He secured a
number of appointments for friends and
made himself Ia part of the administers
ton.
Mr. Meyer CSheniioof counsel for the ac-
cused men, staNed TO a Star reporter that
the whole affair is simply a business trans
action, and that his, clients win be shown
to be wholly ihnocent of the charge made