The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-28
bennett Expected Douglas to
Steal That Sum.
BROKERS STILL HOLD BONDS
Dennett's Lawyer Intimafes That
Immunity Has Been Promised Him.
Sensational Development Expected
Monday When jerome Returns
from His Summer Home.


statements from both William o. Douglas
and Oliver NJ. bennett, the first charged
with the peculation of over $506,0O0 in
bonds from the Trust Company of
America. and the latter with receiving
the bonds When he returns to town
Monday morning sensational develop
ments are confidently expected.
Jerome viii compare the two state
ments. the result Of many tedious hours
OF sweating of the two men. with that
made by Josiah Quincy, former mayor
OF Boston and Democratic leader in Mas
sachusetts. Quincy is the man who was
asked by bennett to act as attorney for
"a friend who had become involved ia
peculations amounting to $l.000GJ0.
bennett told Quincy the statement says,
that S1.000000 worth of bonds had been
stolen. From this it would appear that
Douglas had intended to make of with
that amount but had not been able TO
get his hands on it. It is now thought
that the object in swelling the amount
TO such large figures was TO hold the hid
den loot as club over the head Of the
trust company to make them abandon
prosecution.
Brokers Hold stolen Securities.
That the large amount of securities
stolen from the trust company by Doug
las has been distributed rather generally
among banking and brokerage houses in
the financial district became known to-
day. These various Institutions still have
the securities and propose 10 hold on 10
them, so it was stated.
Redmond q Co.. bankers, at 80 Pine
street. have some of them, as have the
firm of Carpenter, Baggett & Co, Of Is
William street. Several other we'll
known houses also have a quantity of
the collateral, Just what ", O. Douglas
and his partner in the scheme Of getting
away with the securities. oliver II. Dem
nett, have done with the funds they real
lied on the securities, is still mystery.
Lawyer William F. Sheehan, represent
ing the Trust Company of America, de-
clared to-day that he knew nothing Of
the whereabouts Of the money that Doug
las and bennett are supposed to have
gathered through the sale of the securi-
ties. President Oakleigh ThOrne. OF the
trust company, went TO New Jersey on
nshing trip to-day, saying he was tired
out through the exertions he had made
in the last week in connection with the
robbery of his concern.
IntimHtes Immunity for bennett.
District Attorney Jerome and Assistant
District Attorney Murphy are both at
Mr.. JeTomes country place at Lakeville.
Conn. As a result of their absence,
neither Douglas nor bennett was sub
jected to further examination to-day. and
the pair spent the time quietly in their
cells in the Tombs. Forbes J. Hennessy,
counsel for bennett, visited his client in
the TOmbs during the morning As he
left the prison, Lawyer Hennessy was
asked concerning the long statement that
bennett had made in the once Of AS
sistant District Attorney Murphy on Fri
day. He said that he advised his client
10 make this statement Asked II Den
nett had been promised immunity for
making this statement, Mr.. Hennessy
said.
well, when / was in the district at
tOrney's Office some years ago as an as
sstant immunity was often granted
suppose the immunity proposition is still
in vogue"
Just what statements bennett made
could not be learned. II was said on very
good authority that he had not impli-
Gated third person.
Trying III Find the Money.
II is now known that Douglas got
away with a total Of little over 100000
worth Of securities. He was short be
tween $4,000 and $4,000 through market
speculation with bennett, and on Friday
he got away with about $4,000 worth
more. The next day, Saturday, he made
away with $4,000 worth additional What
is puzzling the district attorney and the
trust company officials is. What did the
pair do with the funds they realized
through placing these securities on
the market? It is said that neither
Douglas nor bennett in their statements
made to the district attorney has re-
Vealed the hiding place Of this amount OF
money
Pinkerton detectives are guarding the
two small rooms on the Ninth floor. at p
Wall street. where bennett had his bank
ing and brokerage offices. The two rooms
are being guarded night and day. The
offices We're searched on Tuesday follow
ing the arrest OF bennett. but the money
was not found
Former Assistant District Attorney
Robertson Honey, who is the counsel for
Douglas, was not to be found today. At
his office It was said that he was out of
the city. II is thought that Honey went
TO Boston to confer with Josiah Quincy.
The latter is Mr.. HOney's brother-in-Iaw.
and il was Quincy who recommended
Honey to bennett as a criminal lawyer
after bennett had offered Quincy re-
tainer 10 look after the case OF his
friend, who had stolen "a million dollars
worth Of securities"
Banks Must BeeOme Strieter.
State Bank Examiner a. C. Judson ex-
pressed the opinion to-day that one re-
suit of the case would be stricter vigil
ance on the part of trust company en-
ployers over their men. Mr.. Judson
thinks that there will be a general move /
ment among the heads Of such companies
70 change things so that low-salaried
clerks cannot have such easy access to
billions in securities.
The State banking department has NOT
as Yet made any examination into the af-
fairs of the Trust Company of America. /
and will not do so until the present ex-
animation being conducted by an audit
company, under orders Of the trustees, /
is completed. Examiner Juds0n says that /
the department wishes to do nothing that
would annoy the company at present. or
conflict with the investigation that is
going on. Mr.. Judson made an examina- |
ton Of the concern only last January, |
and found everything all right. This |
shows that Douglas stealing did not be
gin until after that time. Mr.. JudsOn
said he would probably make an examina-
tion of the trust company next month.
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