The Montgomery advertiser., 1903-02-15
RAIDS IN NEW YORK.
Police Place Three Men Under Ar.
 rest--How Scheme Worked.

Police Place Three Men under Ar rest--How Scheme Worked.
 New York, Feb. 14.--Three men said to ] be combination workers in progressive turf speculation" utfder the firm name of Crawford and Co., turf correspondents and metropolitan turf commissioners. were arrested today by city detectives. through the cognizance and desire of postoff1ce inspectors, for alleged improp- CT use of the mails.
 Oflces at go Nassau Street and at 115 Nassau Street were searched. At 115 Nassau Street, which is said to be the main office, the detectives arrested Charles B. Goodrich a clerk. At the other office they arrested Henry G. Cart wright, alias Crawford, a broker living in Brooklyn, and William Treadwell alias George F. Stone, a broker, also living in Brooklyn.
 Some time ago Inspector Brooks re- ceived a letter from a Mrs. Gilroy of Montclair, N. J., complaining that she had sent money to this firm for specula- ton and had received no return or reply in spite of numerous letters. The detec- tives investigated the matter and today interrogated Cartwright. He said he had been selling puts and calls under the firm name of Crawford and Co. They did a turf business but had stopped handling accounts about a month ago when they returned to the people all money due them. After the arrests the place was thoroughly examined. Literature, which would fill at least 100 mail bags, was found. Besides this thirty more mail bags full were taken to police headquarters.
 The circulars explained the three-horse and the one-norse wire systems. The police say that the system of the firm lwas to send out ads particularly in country papers. In return many answers would be received asking for informa- ton. A reply would then be sent, it is said, by the men Cartwright and Tread well, under their own names, explaining the scheme and referring to the Craw- ford Company and George F. Stone for references A speciality of cAents was made in professional men, especially physiclans Six books were found in the offices of Crawford and Company, which contained the names of none but physi- clans.
 On the cover of each of the books was the word Done" Inside there was a check at the side of each name, showing that the person had either been a client" or had been communicated with.
 There are dozens of complaints in addi- ton to that of Mrs Gilroy.
 ESCCOTUln6 IO ltlG pJllSC, NSdA lWA lives tn expensive seyle at his home in Union Street, Brooklyn. He is said to have a large house and to be an art connolsseur witiI a fine collection.
 Treadwell. the police say. fs also a man CT comfortable means and lives ex- travagantly.
 The police aver that nothing under $25 was received as a working capital and there are many accounts of from $1O0 to $500 From these amounts the police, in a rough estimate, figure that the profits of the collections must have been large.
 With one of the circulars was printed slip leaving blank space for the amount of money the person desired to invest.
 It read: "I herewith send you (s-) to be used for buying and selling stock on the New York Exchange for my account"
 The slip further said that a person signing gave full power and authority to the broker to use the money according to his best judgment The contract con- tained the following agreement regard ing the amount of money the broker was to receive:
 T agree to allow you the following com mission for handling my account. Until the profits are equal to the original in- vestment. no commission will be paid"
 After that the slip goes on to say that per cent commission will be paid on the next $500 after the profits have reached the original investment. Ten per cent is to be paid on all profits after that.