New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-27
STOLEN BONDS HIDDEN.
ACCUSED MEN EXAMINED.
EUery Effort to Make bennett and
Douglass GiUe Up.

Officials Of the Trust Company OF America be-
lieve that William 0. Douglass. the assistant loan
clerk of the company. who within year had
taken from its vaults bonds valued at over
10000 and Oliver NJ bennett. the broker. through
whom some OF the securities hypothecated.
have hidden away most of the $4,000 out OF the
$4,000 haul These officials have been trying to
force these to reveal the hiding place. This
is why the company handled the case alone at
first
Douglass and bennett examined by District
Attorney Jerome and his assistant. Mr.. Murphy,
yesterday Following the examination each man
made statements which were taken down by stem
ographers. BENEFITS statement is said to be
complete revelation of the methods OF taking and
dlsposing OF The bonds well as a recital OF
previous ventures in Boston.
How successful the inquisitors in getting
track Of the wherea bouts Of the $4,000 could
not be learned. Oakleigh Thorne. president Of the
company announced that he going TO MS
country place at Milbrook Duchess County, ana
that there would probably be no developments be-
fore his return Monday. District Attorney Jerome
left here about tho same time for Lakeville
1t is said that the District Attorney does not think
he can gey enough evidence against the third man
In Boston to warrant an arrest II was sugges
yesterday that a conspiracy had been formed to
fitch bonds from other institutions 1t was the
aim OF bennett. it is said. to establish connec-
lions with several brokers in this city and in
Boston through whom the securities could be
hypothecated.
Officials OF the Trust Company Of America are
quietly investigating the possibility that Douglass
was aided by othsr employees of the institution
There are those in Wall Street who cannot be-
heve that the operations of Douglass could be coz
cealed for over year without the assistance of
others particularly the State Banking Depart
ment had examined the collateral OF the bank last
November Another investigation by the depart
ment was about to be started when Douglass
operations became known.
Foreseeing this investigation. also that had
already been started by the trust company itself
in view OF the merging with It OF the Colonial
Trust Company, those behind Douglass saw only
two ways OF meeting the coming exposure. At
first. II is suggested the plan was that Douglass
should lay his hand all the securities available
and then disappear. This would have been all right
II the bonds had all been unregistered it would
have been difficult to them. the bank not
knowing the associates OF the assistant loan clerk
Then tho idea Of making big haul and seeking
for immunity thought Of
Ex-Mayor Josiah Quincy of Boston. In that city
yesterday afternoon, said that he was approached
by bennett in regard TO becoming counsel in TAX
ing UP a case of a serious nature" Wednesday.
April Il. which three days before Douglass
carried away from the trust company bundle
containing 10000 in bonds. On the following sat
urday, eX-Mayor Quincy says. he told bennett he
would not accept retainer in the case. but would.
II desired. turn il over 10 Robertson Honey. his
brother-in-law This was done Both interviews
took place the Manhattan Club In this city.
The eX-MayOr must have turned the
Mr. Honey through another lawyer for Mir
Honey in reply 10 questions yesterday, said: Il
nal work. That lawyer was not Mr.. Quincy
When Mr. Honey, who Is acting for Douglass
asked what he meant when he said Tuesday in
speaking OF his client: Perhaps they have not got
error of bookkeeping" This last statement
he would not explain.
What Douglas said. Mr. Honey did not know but
he sure his client had not made any confession
Forbes J. Hennessy. counsel for bennett grew
impatient when he was kept outside Assistant DIS
trict Attorney Murphys room while bennett, his
client, was making his long statement. Il am tired
OF the whole affair he said. 1t seems TO me
n they were trying 10 fasten the whole trouble
my client
President Thorne was present in the morning
when bennett talked 70 the District Attorney, and
later when Douglass brought from the
Tombs. When the prisoners dictated their state
ments, however. they were not guided in any way
by searching questions Neither the District At
torney nor Mr.. Murphy was in the room. except at
intervals.
President Thorne had n brief consultation with
some OF the other officials. He asked IL tho
trust company would let in the prosecution.
mo" he replied. 1T Is all in the hands OF tho
District Attorney now, and he is going right
ahead"
Asked TO state the total amount OF bonds taken
by Douglass at various times he said We don't
is the net loss That in any event VIII not be
than I stated on Tuesday-Sl40.0CO "
The company is out the $1,000 taken to re-
deem the bonds pledged for that amount with brok-
refuses 10 give them up lent 20 bennett $50 900 AS
an investigation Of the institution is now being
made by auditing company employed by PreSi-
dent Thorne the State Banking Department has
J. J. BrIndel. a Brooklyn friend of Douglass.
sought 70 bail him out yesterday, but could not
offer suficient bond