The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-26
SHORTAGE SAID TO BE HEAVY
FIRST REPORTS PLACED 1T BE-
TwEEN $1,000 AND $4,000.
The Accused Man Makes Statement.
Admitting There Is a D~iscrep-
ancy In His Accounts.

the City Club on West Market street. was
arrested yesterday evening at the Denison
Hotel by Detectives Griffin and Fort on the
charge of the embezzlement Of an undete--
mined amount from the Frick Company.
The shortage, ii is said, will be between
5000 and $4,000. 1t was stated that the
company claimed at first and before COM
pleting the investigation made SO far that
the amount might be SIS. 900. 1t was ad-
mitted by Jay to President Samuel Rein
hart. who is here looking after the affairs
of the company, and upon whose complaint
the arrest was made. and to the detectives.
that he was short about $1,000 or $1,000. He
tell the exact sum-.
At police headquarters last night Jay told
the following story of his dealings with
the Frick Company and his shortage which
resulted in his arrest. He said he be-
came connected with the company four
years ago and had since acted as its state
agent, selling thrashing machines, engines
and repairs. The company, he said, had
never required complete Inventories and
when reports were wanted he was called to
the home office where he entered state
ments of the business lone at this point.
During the second year OF his service as
state agent he became interested in a min
ing project in British Columbia and with
out fully investigating the matter invested
at the outset 500. This he claimed was
with money drawn from the funds of the
company n which. from the representa-
tons made as to the condition of the min
ing property, he thought would be replaced
within a few days. Shortly after his in
vestment of 500 was made the affairs OF
the company issuing the mining stock re-
quired the expenditure of more money and
in order to save his 500 he met the addition
al assessments and was in a short time in
volved so deeply that he became alarmed.
The stock he said never paid any dividend
whatever. His shortage had increased, and
his salary. which was sl15 per month. did
not enable him to keep his family and re-
place the money appropriated. In order TO
increase his revenue he became interested
in the establishment of the Oneida bowling
alleys, on South Illinois street, but the in
vestment did not pay as well as he had
expected at the time. and in order" to keep
up he was obliged to use more of the funds
or the Frick company. Whenever he went
to the home office he would issue to them
incomplete statements OF the affairs OF his
office, and. as the company never checked
up closely. his shortage was not discov-
cred. During the present year he became
one of the promoters of the City Club, on
West Market street, one of the finest public
places Of amusement in the city, and for
the starting of this business more OF the
Prick company funds were used.
JAY BECAME ALARMED.
About six months ago the company asked
for an inventory Of stock and promissory
notes. and this was sent by Jay, who
claimed last night that ii was not correct.
Shortly after the request for the inventory
he became alarmed and said he made par
tial arrangements to borrow the money
and repay the unauthorized loans. The
deal was not brought to a head and the
matter rested until a few weeks ago, when
IL became known that Mr. Reinhart, presi-
dent of the company. would be here soon
to check over the accounts. Jays book
keeper, Jacob Levy, he claimed. was in
full knowledge OF his shortage, and to-
gether they agreed hat IL the matter could
be kept secret from President Reinhart
on this trip he would secure the money
and at once make reports of sales and set
Elements which would cover the shortage.
He thought that President Refnhart knew
nothing Of the shortage when he came
AClts Aoo 80
by one of the employees whom he thought
believed he could better his own position
by advising the president of the company
the man whom he thinks told Mr.. Reinhart
of the shortage had some differences,
though he would not tell what they were
He thought If he could secure bond, which
was placed at $4,000. that he could secure
the funds and square his accounts with
the D He was in consulta-
ton with his attorney, Newton Hard
4 f1N -GIA~
he would have no trouble in securing his
release. Jay is connected with some of
the prominent families of the city, and ne
felt positive they would assist him. He
came into prominence several days ago by
making a score of 29 out of a possible 100
at bowling. The account of his feat was
carried by the Associated Press over the
country. In concluding his talk Mr.. Jay
said: Now, for Gods sake, don't get il
that / have gambled this money away, or
nave spent Ii IN drink. / have never gam
bled. and seldom take a drink of anything"
PRESIDENT REMNANTS STATEMENT
President Reinhart, who came here last
Friday, and is at the Denison. corroborat-
e0 such portions of Jays account as he
knew. He admitted having been told of
the matter by one Of the attaches of the
LEGAL office, and through quiet investiga-
ton he became convinced of the truth. at
least in part. of the story. He then asked
Jay for detailed accounts of certain deal
ings, and said that a statement which
had been made and left in the hands of
the b~ookkeeper was changed before being
turned over to him, after he had once seen
IT. Jay had asked him the privilege of
remaining with his family yesterday. and
they agreed TO meet at the room OF Mr..
Reinhart at the Denison. After a short
conversation he approached the sub
ject of the shortage, and Jay. aft
err a slight hesitation. said ne
Thought the amount might be about 2,OO0,
after which. with little urging, admitted
that he was short about 5000 or 5000 and
made no further attempt at concealment.
Mr.. Reinhart said II was not his wish 10
prosecute Jay and hat all the company
wanted was the money which rightfully
belonged 10 IL. He expressed the hope that
Jay would secure bondsnen and that he
might also raise the money or make salts
factory arrangements for the repayment
OF the money. He said the company had
not closely checked Jays accounts for the
reason that his reports made at the home
office had been taken as correct and that
ley was one Of the cOmDany's most trusted