New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-10-06

RAID ON BROADWAY FIRM
POLICE SAY W. R. vERMILYE & co. RAN
BUCKET SHOP.
PoA1ERoY. THE INK MANUFACTURER THE
COMPLAINANT. DECLARES HE LOST
NEARLY $4,000.

rafd was made early yesterday afternoon
on the brokerage offices of w. r. vermilye &
Co.. at No. 81 Broadway. by Central Office De-
tectives McConville. Savage and Murphy, with
warrants which had been issued by Magistrate
Olmsted at the instance of Charles T. Pomeroy,
the ink and glue manufacturer. of No. 80 Broad
St. Newark, who alleged that he had been de-
frauded out of nearly $4,000 in bogus stock
and cotton transactions. The following
arrested; ]. Edward Carter, of No 20 Morning
side-ave.. and Arthur /. May a clerk, of No. 331
Hudson-st, Hoboken and George F. Newcombe
who was taken into custody at the branch
Office of the firm, in the Criterion Hotel, after
the descent on the downtown offices. A guam
uty Of papers ana account books seized
by the detectives
The prisoners locked up at Police Head
quarters, and effort was made to find
magistrate before whom they might be
raigned. Magistrate Olmsted having closed the
Centre-st- police court by the time the arrests
were made. w. r. Nermilye & Co. mem
bers Of no stock exchange in the city. and do
business through other brokers'.
The firm, the members of which are said TO be
Newcombe, Carter, Washington z. Vermilye and
one other man. formed in March of this
year. Its style at the outset Vermye 81
Co. but, in order TO avoid imminent trouble with
the well known and long established banking
firm Of the same name at No. 16 Nassau-st. it
speedily changed its title to w. r. Vermilye &
Co w R. Vernilye. who is about sixty
years old. is a of the late Colonel Washing
ton R. Fermilye. founder of the Nassau-st bank
ing house of Vermilye & Co. William A. Read
of that firm, said last March, when the new
concern was about TO be started, that the
younger Vermilye had inherited a fortune from
his father. but had spent It all in nine years
and thereafter had received a stipend regularly
al off a< Var Iva L. otr,;r,
not money due him under any trust. According
to the advertisement of w. r. Vermilye & Co..
the firm has branch offices at the Criterion
Hotel and at No 80 West Twenty -third-st.,
New-fork in the Temple Bar Building Brook
lyn: in Boston, Philadelphia, Pittsburg. Will
Transport and Harrisburg. Penn: Hartford,
Conn, and at Salisbury House, London, E. c.,
England. The advertisement carries in large
backaced type this line: Highest banking ref
erences." 1t is said that w r. Vermilye & Co.
had been expecting raid for the last two
weeks. and that in that period a large amount
of business had been done for its account on
the floor of the Consolidated Stock Exchange.
The specific complaint that operating
under the firm name of w. r Vermilye & Co..
they received $500 from Mr.. Pomeroy to pur-
chase January cotton. giving him a slip repre-
senting that the purchase had been made from
Leighton & Foulke. OF No WilIan-st. but
that the transaction did not appear the
books of that firm On August 8 Mr.. Pomeroy
ordered the purchase OF 5000 bales OF cotton.
depositing margin of $1,000 with W. r. ver-
nlilye & Co.. and when his profit amounted to
$4,000 he gave order TO SELL but the brokers
persuaded him to hold on, and few days later
he received word from them that he had been
sold short at alleged loss of his entire
gin. Captain Titus found that the firm had
purchased only 1000 bales of cotton on this
order, and that most of their trades were on
paper.
Captain Titus says that the branch offices
have been investigated and that they merely
fake offices. for the purpose of obtaining VIC
tins, the operators pretending to give confiden-
tial information to Investors, and in reality
working in league with bogus investment com
panies and brokers. The London office Cap
tain Titus says, found TO be other
than the Bankers and Manufa cturers' Mercan-
tile Agency. The London office. Captain Titus
says, Is run by w. c. Hickman, whom Carter
met last August.
Captain Titus says that he believes he
has gathered in some of the holoeat bucket
shop operators in the city. He alleges that they
have swnded hundreds of clients who believed
that they dealing with the old firm of Yer
nlye & Co. Captain Titus has been Informed
that Alfred Gosn is behind this concern, but he
has not verified IL. The firm formerly had its
checks go through the Produce Exchange Bank,
but lately 1t is said 1t has been doing its
| banking with the North American Trust Com
| pany.
At $40 O'Clock last night the three prisoners
| were bailed out by John NJ. Curley, OF No. 41i
| West Seventeenth-st, who Is in the hquor DUST
| ness in the sum of $1,000 each The bail was
| accepted by Magistrate Deuel., who was brought
| to Police Headquarters in cab
|