The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-24

New York. April 2s.-Late this afternoon
Oliver NJ. bennett, a broker, of q Wall
street. was arrested on the charge Of
having been the receiver Of a part of
the bonds stolen from the Trust Com
pany Of America by the assistant bond
clerk Of the company W. O. Douglass,
who was lodged in prison early Sunday
morning. After the arrest of bennett,
who had not been out of sight of q
Pinkerton detective from the time $4,000
worth of the stolen bonds were found
between the mattress of his bed, IN the
Manhattan Club, Monday afternoon, u
director Of the trust company admitted
that It is the belief OF the heads of the
company that the man who stood behind
the bond clerk and the broker, and who
engineered the systematic footing of the
trust c0mpany's vaults for collateral to
back loans on the market had yet to be
brought 70 earth.
Thefts Cover Long Period.
To-day's proceedings IN the bond rob
berry all pointed to the confirmation Of
the officials admission In the warrant for
Dement'S arrest. sworn TO by President
Thorne. Of the Trust Company of Amer
lea, it is set forth that the accused had
been guilty of receiving stolen bonds be
tween April l9 1895. and April 49, 1907, an
indication that the trust company did
not admit The fun truth on Sunday last
when it was stated that Douglass had
made his only theft on the Friday pre-
viOus.
Another significant fact in to-days pro-
cetdings was that bennett was kept an
day In his Office voluntary prisoner
under the eyes of two Pinkerton and two
wall street bureau detectives before the
warrant for his arrest was forthcoming.
and that before swearing 10 the warrant
President Thorne, Of the trust company,
was IN consultation with Douglass. the
eeiaiter. and Douglass attorney for an
hour.
II was learned to-day from a reliable
authority that the Trust Company of
america has actual physical and legal
possession OF all the bonds which had
hetn stolen from It's vaults To this
statement was added the fact that the
trust company had been put 70 a loss of
$4,000 in recovering the bonds.
Innocent Brokers Reimbursed.
In explanation Of this loss # was said
that all Of the bonds stolen from the Of
fee Of the trust company. except those
which had been found in benefits bed at
the Manhattan Club. had been placed
with various brokers about Wall street,
innocent parties TO the transactions. as
guarantees on marginal stock transac-
tions- In order to recover the original
bonds IL was necessary to get orders from
bennett and Douglas to call back all the
collateral and TO reimburse the brokers
holding such bonds for the loss entailed
TO them by such action The total amount
OF this reimbursement was $4,000
Since an the most favorable terms $40
coo must represent hypCthecated bonds to-
falling a considerably larger figure, and
S-u00 worth of the stolen bonds were
recovered from Dennetrs apartments in
the Manhattan Club without expense 10
the trust company. il is apparent that the
total amount Of the defalcation from the
trust company was in excess Of SEQ. 000
On Sunday last President Throne put the
total amount Of the defalc5tion at $4,000.
and Monday Vice President Dowd said
that the total OF the stock of the bonds
might exceed that figure
Douglass case comes up in court to-
morrow