The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-06-05
PAwNBROKERS vICTIMIZED
A PECULIAR INDUsTRF BRoUGHT
TO LIG ut At a TRIAL.

FNNFEN HNAN' NNNtAN
There is a peculiar business carried on In this
city about which the general public knows very
little. Some startling facts concerning 1t were
brought out in the Court Of General Scs-
sions during tho past week at the trial
OF a man who had been indicted on
a charge OF receiving stolen goods. The
goods were diamonds. Several witnesses tes-
tilted that many Maiden lane jewellers did a
wholesale trade with the pawnshops in various
parts of the country, plsdging diamonds for
sums much In advance OF the original cost OF
the jewelry, thus realizing a handsome profit.
Some OF the witnesses who appeared In the trial
said that while they re idcd in east side tene.
ments they carried on q business of six or
seven hundred thousand dollars a year. Ono
man said he lived with his wife and four chill.
dren on the nth floor OF n tenement house on
Essex street. the family occupying two rooms.
Under REORGANIZATION he said that the only
furniture consisted OF beds and bedding, a
wooden table, and three wooden chairs. At
meal times his oldest son sat upon q soap box,
while two of the children stood up. The three
chairs were specially reserved for the father,
mother, and eldest daughter. The witness
added that every night when he returned to
his home he carried a satchel containing dia-
mouds valued at eighty or ninety thousand dol.
ars. On the following day he usually disposed
" P~OO WIN Va JSNNh1t =" ~ " ~
for that day. He usually earned $3.50 a week,
he said. Notwithstanding this fact. the family
managed to get along on 50 n week, and any
amount over that which no earned during the
week was put into a bank. He said that he had
accounts with eleven different banks in this
city, and that he was probably worth, over and
above all his debts, 100000. This witness
said that when business was dull during the
summer months he was in the habit of pawn
ing jewelry ut the rate of raising $1,000 every
week. He often made moro money by pawning
the jewelry than he did by selling 1t.
The majority of the other witnesses testified
that they travelled around the country visiting
the big cities and ~plcdging goods in various
pawnshops. Now and then they made a sale
on a railroad train or In u hotel, but the prin.
cipal part Of their business was to pawn dia-
monds. They were in the habit Of getting the
diamonds on credit from Maiden lane jewellers.
who knew that as soon as the jewelry was
pledged they would realize ready cash from
the men who pledged the goods.
A detective who said he was in the employ OF
the pawnbrokers of this city furnished infor.
nation of a more startling nature. He said
that many diamond dealers engaged In bust
ness in Maiden lane employed women espe.
cially for the purpose of pawnins diamonds.
These women were fashionably dressed and
drove about the city in carriages similar to
those In use by New Tork's wealthiesJ people
They had their coaChmen and footmen in liv-
cry, and some of them travelled about town es-
corted by a maid servant. These women would
visit the Maiden lane jewelry house, and there
bedeck themselves with diamonds. The de-
tective knew Of one woman employ ed In the
pawninE business who would hook a pair Of
81 $500 diamonds in her e0rs. then place n dia-
mond necklace about her throat, put on four or
a. 4 - a. 49,
display Of jowelry with a diamond sunburst or
pendant pinned to her corsage. This woman
usually carried on her person about 800, 900
worth Of jewels.
She would drive to a pawnshop and there tell
q story Of hard luck. She would give the name
and address of some person we'll known in So
ciety, and then ask for a large loan on her
jewels, saying she intended to redeem TIE
jcwelry as soon as she received a remittance
from her attorney. which. she would add, would
be in n few days. The pawnbroker. being IA
miliar with the name given, and knowing tho
jewelry to be of good value, would advance a
the diamonds. After thus disposing OF the
jewelry. this woman would return 10 her en-
ployer in Maiden lane and hand over the
ward sold by agents specially employed for that
purpose. Some Of these, agents were women.
the detective said. but the majority were men.
The women who did this business were known
In the trade as diamond fyers.' Although
| many III INC paw DTOhtIb hUt lHul II Jt"clo
came directly from the wholesale dealer In
Maiden lane, they were willing to advance a
sESO St s s@m S ON 'H Who 5e misEt' b oSSa ahe pa t@gy ti enew
would redeem the goods and pay the interest
on the loan made.
iewciry houses in the New York iewclry dis
Cincinnati. Chicago, and st: Louis. Some of
them went to w lshington, ID. c., where they
made tho acquaintance OF women whose hus-
hOn1a were n1amhRrS Of Thn 6iDlOmntic pOrDS
After making the Acquaintance of the wives
OF foreigners. they would tell their hard luck
fee. They were always willing to have the
diamonds submitted to an appraiser, and the ap-
jewels for a good profit. Then the persons who
had been asked TO buy the goods believed they
were getting bargains.
in this manner, although now thrown on their
own resources, once moved in good society, and
this enabled them TO dispose of paw, tickets for
dwindling fortune, Almost every pSwnbroker
in New York. the d%et~etiye said, bad accepted
pawnbrokers believed that they had been
s ,SaR esSld because sa a SSvn 1h sS M lHsFnsa ,s s1teP PTS 6n5 th AT
army of agents with pecks Of diamonds which
they were willing to dispose of at less than cost
price. This statement was explained by the de-
~tective. further on. when he said that the deal.
crs who pawned their goods for less than cost
( price were carrying on their business on a credit
system, so that a man with a stock OF $500. 900
worth OF goods was only required to pay a per.
centaRe OF what ne owed 10 the persons from
whom he received tho goods. AS long as pay.
ments were kept up regularly The supply Of dia.
monds was kept up, thus enabling tho dealer to
go right on pledging diamonds for sums much
below their cost. Every now and then there
was a business failure in the iewelry trade and
posed OF Mt less than their cost value.
From another witness who testified in the
case It was learned that many of the diamond
dealer, in this city employed policemen and
tiremen in uniform to dispose OF their goods In
pawnshops. A policeman in uniform could
easily obtain II loan of 81, 900 on diamonds that
cost only 81 800. For doing this the police
man received $50 commission. A fireman in
uniform could raise a thousand dollars on jew
elry that originally cost $500. The fireman
jewelry house in the diamond district. He
would tell tho pawnbrokor that he was just on
his way home to dinner and that there was q
death in his family which required him to raise
some ready cash. The pawnbroker would lend
such a man a Gum almost equal to the full value
of the goods. Very often the pawnbroker would
suspect the fireman Ms a diamond flyer" and
then the fireman would have TO 20 TO another
pawnshop. 1t was added that there were about
BOO policemen and fremcn engaged in the dia-
mond pawning business in this city.
One OF the pawnbrOkers who was seen yester-
day by a Sun reporter said that the diamond
pAwninR business had grown to such an extent