The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-11
TIE UP HGIGHT & FREESE CASH
IESTERDAY'S MAIL. THOUGH, cor
AWAY FROM RECEIVERS.

The Haight & Freess Company Of 90
Broadway. whose pretended transa ctions
In buying and selling stocks and bonds
we're held recently by Supreme Court
Justice Bowling to I've mere bookkeeping
entries. got into more trouble yesterday
A receiver appointed by tho Federal
courts 81 Pennsylvania took possession OF
ir- large ofiice in the BourBe Building In
Philadelphia, and simultaneously In this
cItv. Boston and Philadelphia counsel for
the receivers and creditors began a search
for the assets, employing Pinkerton de-
icctives In Philadelphia the concern be-
gan at o'clock to pay on dcpositors. They
kept vnying for an hour and then an
nounccd that they had received word from
the New York officers to stop payments.
According 10 the counsel for the re-
ceivers. the daily receipts OF tho othces
have bcen as much as 500 900 day. Roger
Poster and W. p. Malouey, the counsel
for the receivers, believe that large sums
+ money have been deposited In safe de-
post vaults in tho three cities in the names
# rncInhers o. the concern. Turner and
Illis. the chief members, 1t was said came
bore Yesterday, hut they couldn't be found.
In an three cities copies Of the injunction
order tvinc up the assets were served on
practically every safo deposit company.
Mr. Maluney said in the afternoon that
teCOnOO had been found In one safe deposit
concern ia Philadelphia. Copies Of tho
Injunction were served hero on tho Hanover
Bank. the Colonial Bank the Columbia
Rank the Bankers Trust Company the
Nat ioual Park Bank and the Senboard
Bank II was said that no money was
I1und at most Of these banks. At tho
ScHboard the concern recently had $4,000.
yesterday only 81 900 was found there.
Al the Colonial Bank 1900 was found,
II was also found, the leaders said, that
members OF the concern had several checks
certified at the latter bank yesterday be-
fore the injunction was served. Mr.. Foster
said TINT he understood that a stop order
had been put on the checks II was re-
ported that the concern had 500 900 in
the Long Island Trust Company, and a
law clerk hustled over there in an auto
mobile and tied up whatever thoro was.
An attempt 20 vacate the receivership
here was made before Justice Lacombe
Yesterday bv Franklin Bien representing
the company. Justice Lacombe refused
10 grant any Of MIR. Bens motions. but
gave him leave to renew them on Friday
on the argument over permanent re-
ownership,
Charles H. A. Dougherty custom house
broker. Of 6s Wall st rect through James c.
1enny filed petition In involuntary hank
ruptcy against the company, stating that
he was a creditor for 81 $50 and alleging
on informatio ion and belief that the creditors
of the company were less than twelve IN
number. II they are more than twelve
IN number more than one must petition.
Counsel for the receiver say they don't
believe the application will be granted.
According to the testimony Of Charles
G. Turner In the Haight suit upon which
Justice Bowling decided that the concern
was bucketshOp the Haight& Freese Com
pdny has been doing business with several
New York Stock Exchange houses, Turner
refused to name these, giving as his reason
that the company was really dong business
as a competitor Of the New York Stock
Exchange and that he didn't want TO get
the firms into trouble with the exchange.
Justice Bowling, however, compelled him
10 name the Stock Exchange firms. and he
testified that in 1902 when Hlight had his
account with the company, the company
did business with Beers i Owens, w. L.
Stow d Co, Cohen, Green & Co., 5. V. White,
Hunter q Schumacher and George l.
I.andon Co. Several Of these concerns
have either gone out Of business OF re-
organized sinFe 1902 Yesterday the law
yers for the receiver served copies Of the
Injunction on Beers Owens and ". l..
Stow 4 Co. Beers & Owens admitted that
the company had an account with them
now and said they would have state
Iuent Of it prepared. W. l.. Stow Il Co.,
which is a reorganization Of the firm Of
f0J2 denied ever having done business
for the company.
4 FTeese Company took margin as low
as SO 10 buy 10 shares. majority OF its
customers we're trldesmen and mechanics
VINO had saved up few hundred dollars
Claims from such persons aggregaung
$4,000 have been filed with Mr.. Nlaloney.
In doing business with these clients the
company had them sign contract read
ing
When stocks are purchased. this order
may DO executed in any city or place.
whether on any exchange. through a member
thereof and subject 20 it, rules anu Clstoihi
or by private purchase, a. the Halght .
,lient OF the llaight 4 Frees Company may |
he Tie seller But the Haight 4 Frecse Com .
nany is not 70 be Obliged 20 disclose the name
Of any client in any event. The purchase
Tie Haght \ Freese Company may nledee
for any amount the securitie-, when bought, {
mingled with the securities OF other custom !
srs or brokers themselves, and may loan
any stock giving borrowers the right 20 sell /
and to return certificate. aud may. WITHOUT
any demand Of, or notice 70 me MnsteNeI'
and on any exchange. or by private SAFE,
close out all transactions or margin, a. 70 !
securities, whenever margin IL less than one
half al one per cent.
MIR. Maloney said yesterday that the ad-
vices he had received from different cities
indicated that the total Of customers de-
posts was more than 81 100000.
According 10 Roger Foster, members OF
the company were receiving mail yester-
day at the New York Post Ohice. No mail 4
at all came to the Office at So Broadway, |
where tho receiver il in charge. Mr.. Foster |
said that he had served the superintendent /
81 mails with n copy Of the injunction, but /
that the latter required an order Of the |
receiver. Mr. Edmonds, the receiver, was /
taken in yesterday, and this order couldn't /
obtained, 10 that the mail hadn't been |
,.ed up up 10 last night. Beverley X. Rob
ln-on was substituted for Mr.. Edmonds as
receiver In the afternoon.
PHILADELPHIA May iO.-J. Hector /
McNeal. who is receiver for the Con eX- I
change and for the Provident Investment .
Bureau, one OF Frank Marrin's get-rich- I
quick concerns, was also made receiver 4
for Haight Freese. The main office was
az 4i5-li7 Walnut street. The subsidiary I
one was at 7O7 Betz Building McNeal ,
and his people had a straight tip that there ,
was 500 900 in the safe at the former place, |
20 while they raided the two simultaneously 1
the receiver and a bigger party swooped /
down Walnut street The place was pretty /
full In a flying wedge the receivers |
party made for the back OF the room. Men !
\tned TO throw them, struck at them and !
- HsNN q ka4r not 81