New-York tribune., 1907-04-24
0. NJ. DENNETT I'm TOLLS
SEARCH FOR THIRD lIAN.
BeLeUed to Haze Backed Broker IN
Stolen Stock Case.

II was to get information about this man. who
| is said to be better known in Wall Street than
either Douglass bennett. that the arrest OF
the latter which was decided on early yester-
day. was not formally made until nearly
o'clock last night. So far as could be learned.
however. bennett refused to reveal any Of the
\ transactions of the suspected third person
| The formal complaint. signed by Oakeigh
Thorne. president of the trust company. charges
Oliver NJ. bennett with receiving siXty-one
! bonds of the Chicago. Rock Island & Pacific
Railroad par value $1,000 between April 70,
\ 1906. and April 10. 1907 knowing the same TO
have been stolen" These were the Rock Island
; per cent bonds Of the issue OF May /. 1903.
which were first found to be missing.
! 1t was learned last night that the trust COM.
pany now has physical possession Of all the
securities taken by Douglass, SO far as they
have been able to determine by careful ex-
| animation This was done by paying to a
number of brokers. who had innocently received
them as collateral for stock speculation. the
amount OF the losses on those transactions In
a statement given out by ex-Judge Morgan j.
O'Brien. counsel for the company, in the after
noon it was said that the maximum loss Of the
company could not exceed $1400CO- As brokers
usually require surplus Of from 20 to % per
cent in making loans bonds, it is believed
that the securities guaranteeing these losses
must have been valued at nearly S2OOOOO
In addition to these $4,000 in bonds wers
recovered from the mattresses Of the BED IN
the room of bennett at the Manhattan Club on
Monday. and $4,000 worth of securities were
turned over to the trust company by another
| broker. who asked for no reimbursement. Then
it is understood that some of the accounts OK
bennett & Douglass did not show total loss.
THEFTs MAY COVER TWO YEARS.
It is calculated therefore. by persons Of wide
experience in Wall Street that the total value
of bonds taken by Douglass from the trusS
company must have been in the netghDorhoOd
of $500 900. 1t is understood that the assistant
loan clerk who on account of his position could
not appear openly as a speculator, turned over
all the bonds to bennett, who hypOthecated
them and opened speculative accounts with sew
eral brokers. bennett shas been trading TINS
way for about two years. and it is thought that
the thefts of Douglass may have been going ON
for that time. although the complaint against
bennett refers to one year only
The statement which was issued By Mr.
O'Brien following a meeting OF the executive
committee of the trust company said regarding
/ the loss OF the company;
| eff the contention of our counsel is sustained
that the stolen bonds or their proceeds may be
recovered from those TO whom they we're de-
livered the trust company will lose nothing"
This means that whereas the trust company
is now out the $4,000 it was obliged to pay
the brokers to recover physical possession Of the
bonds 1t hopes to be able to recover this amount
by civil suits. There We're lawyers and others
In Wall Street yesterday, however. who We're
inclined 10 think that the innocent holders of
unregistered bonds. such these were. could
not be forced to lose the money thsy had ad-
vanced on them, even il 1t developed later they
had been stolen In any case the litigation for
the recovery OF the money will probably be q
long one.
As the bonds were among those deposited by
customers Of the trust company as collateral on
loans which might be paid at any time and ,Hs
return Of the bonds demanded il was of hrse
Importance that the physical possession Of the
bonds should be regained by the company at
once.
BUSY DAY FOR OFFICIALS.
In the light of yesterdays Developments the
extreme personal activity of OakIeigh Thorne.
president; William H. ChesehroUsh, one Of the
directors. and other directors Of the company
was significant. Since the theft was first dis
covered on Saturday these men have had Hsts
sleep. It seems that Mr.. Thorne joined the Pin
kerton man and Detective Quinn outside the
NIanhst ttan Club on Monday morning and halted
Mr. bennett when he came out.
1t was the president of the trUst company who
assisted the detectives in searching the brokers'
room. There has not been a move made in the
case in which Mr. Thorne has not had a per-
sonal part Yesterday Mr.. ChesebrOugh. after
running around all day between the court and
the lawyers offices, wound up with the warrant
for bennett at the Iatter's Cffice, looking as IL
he had been in a Turkish bath. In spite OF the
fact that both Douglass and bennett were under
arrest. ne looked much worried
1t seems that Dennett had been under sur
veillance since Sunday. After the search OF his
room at the Manhattan Club on Monday morn
ing Pinkerton man attached himself to the
broker who was never out of his sight until the
warrant was served on him last night. He was
told that the detective would allow him perfect
freedom Of movement. but must insist on being
with him every instant They slept together on
Monday night and went To the brokers' Office
together yesterday morning. Incidentally. the
detective tried to learn what he could about Mr..
Dennetts methods of high finance. They had
not been at the Office long when the first detec-
tive was reinforced by another Pinkerton man.
And anxious were the officials OF the trust
company that bennett should not escape that
they called up Police Headquarters at noon and
asked that two Central Office men be sent to
Dennetts office. Detectives DriScON and Nc
Carty from the Wall Street bureau. were sent
around the jump to keep their eye on tbs
man pending the arrival of the warrant
With bennett friend. an expert accounts
ant from Boston. who said he had been asked
bv the broker to come on and look over his
books. He said he had known bennett for
many years and would trust him with any
amount of money. Forbes J. HennesSy. the
brokers' lawyer. came in several times IN tho
course Of the afternoon
Mr. bennett came out and walked down tho
corridor to another office on the same floor four
or five times through the lane OF newspaper
men waiting for the arrival Of the warrant. The