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 Gire Up.

Officials of the Trust Company OF America be-
lieve that William o. Douglass the assistant loan
clerk of the company, who within a year had
taken from it's vaults bonds valued at over
10000 and Oliver NJ. bennett. the broker through
whom 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 men to reveal the hiding place This
is why the company handled the case alone at
first
Douglass and bennett were examined by District
Attorney Jerome and his assistant Mr.. Murphy,
Yesterday. Following the examination each man
made statements which were taken down by stem
osrephers. BENEFITS statement is said to be
complete revelation of the methods OF taking ana
disposing OF the bonds as well a recital OF
previous ventures in Boston
How successful the inquisitors in getting
any track OF the whereabouts Of the $4,000 couid
not be learned. Oakleigh ThOrne president of the
company announced that he going TO his
country place At Milbrook, Duchess County. and
that there would probably be no developments De-
FORE his return Monday. District Attorney Jerome
left here about tho time for Lakeviie.
II is said that the District Attorney does not think
he &c; enough evidence against the third man.
in Boston to warran: arrest. II suggested
yesterday that q conspiracy had been formed TO
filch bonds from other institutions. 1t was the
aim OF bennett. it is said, to establish connec-
tions with several brokers this city and in
Boston through whom the securities could be
hypothecated.
Officials Of the Trust Company of America
quietly investigating the possibility that Douglass
was aided by other employees of the institution
There are those in Wall Street who cannot De-
lieve that the operations Of Douglass could be COY
cealed for over year without the assistance OF
others. particularly as 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 1t OF the Colonial
Trust Company, those behind Douglass saw only
two ways OF meeting the coming exposure. At
first. II is suggested, the plan that Douglass
should lay his hand all the securities available
and then disappear This would have been all right
If the bonds had all been unregistered. it would
have been difficult TO tracS them. the bank not
knowing the associates OF the assistant loan clerk.
Then the idea of making a big haul and seeking
for immunity thought OF.
Ex-Mayor Josiah Quincy of Boston I'm that city
yesterday afternoon. said that he was approached
by bennett in regard 10 becoming counsel in TAX
ing up case of serious nature Wednesday.
April Il. which three days before Douglass
carried away from the trust company bundle
containing $40oGoO in bonds. on the following sat
urday, eX-Mayor Quincy says. he told bennett he
would not accept retainer in the case. but would,
If desired. turn it Robertson Honey. his
brother-in-law. This was Both interviews
ne hd1a fR n this this Sy
TO Mr.. Honey through another lawyer, for MIR.
Honey in reply 10 questions yesterday, said: Il
retained by lawyer who does not take crimi-
nal work. That lawyer Mi 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 explain.
What Douglas said. Mr. Honey did not know but
he sure his client had made any confession.
Forbes J. Hennessy. counsel for bennett. grew
impatient when he kept outside Assistant DIS
tTict Attorney Murphy's room while bennett. his
client, making his long statement. Il am tired
OF the whole affair he said. 1t
II they were trying to fasten the whole trouble
my client
President Thorne was present in the morning
when bennett talked TO the District Attorney, and
later when Douglass brought from the
Tomhs. When the prisoners dictated their state
ments. however. they were not guided In any way
by searching questions. Neither tho District At
torney nor Mr. Murphy was IN the room. except al
intervals.
President Thorne had n brief consultation with
some Of the other officials. He asked II tho
trust company would let up in the prosecution,
"No." he replied. 1T is all In the hands OF tho
District Attorney now, and he is going right
ahead"
by Douglass al various times. he said: We don't
know. We interested only In net Fesults-that
is the net loss. That, in any event. VIII not be
more than I stated on Tuesday-Slfo 600.
The company IS the $1,000 taken to
deem the bonds pledged for that amount with brok-
ers and the bonds which another broker. who
refuses give them up, lent 20 bennett 49, AS
an investigation Of the institution is now being
made by a auditing company employed by Presi-
not vet started a separate inquiry
]. J. BFndel Brooklyn friend of Douglass.
sought to bail him out yesterday. but could not
offer SUFFICIENT bond.