The Washington herald., 1908-02-10

New York. Feb. edward Margolies,
former merchant Of fur and silk goods
at 49 East Ninth street. was locked up
at police headquarters tonight on a
charge OF grand larceny in the second
/ degree.
The arrest Of Margolies is the result. ac-
cording to Assistant District Attorney
z. Crosby KindIeberger, Of his part.cpa-
ton IN one Of the greatest commercial
swindling schemes thar has cropped up
in New York for long time
While $4,000 worth of goods are known
20 have been obtained without being paid
for, in It's operation the total profits OF
! the scheme are believed 10 run upward
of $4,000, and to take in Jersey City. Bos-
/ ton. Hartford. and other cities besides
New York and Poughkeepsie. where the
/ principal transactions took place
Credit Established In POughkeepsie.
| Two men. who gave their names as
/ Norris Ross and Isad0r Lewis. came to
! P0ughkeepsie during tie latter part Of
! September, 1907. and opened retail dry
goods store. called the POughkeepsie Bar
/ gain House. The men resembled each
other. The store did good business.
/ The firm soon obtained a good rating
I from commercial agencies.
/ The Poughkeepsie Bargain House he
! came an extraordinarily busy place for
a small store from then on.
II was learned that later Ross and
/ Lewis went down to New Yoork. made a
tour Of the wholesale houses. and pro-
cured from 500 70 500 worth Of goods
/ from more than lcl of them This they
were easily able to do on their showing
with the commercial agencies. These
goods We're al shipped 90 the Poughkecp-
/ sic Bargain House on sixty days credit.
/ an accommodation which the wholesalers
( we're glad 10 extend
Goods Reshipped on Arrival.
I The records OF the American Exprc-s
Company. the New York Central Rail-
road. and the other express and tfauseor-
tation companies carving goods out Of
Poughkeepsie show that from six TO
| twelve consignmeHts OF goods. which ar
rived for the bargain house every day.
/ were taken I'm and turned around and sent
right ont again. Many lots never went
/ TO the bargain house before being ship
/ ped on their way.
/ The investigation conducted by Assist
ant District Attorney Kindleberger dis
closed that several stores IN several cities
were operated as practical fences Tor
Tan this stuff. Charles Levy & Co. Of 6Sl
Broadway according to Eindieberger,
was the principal one Of these
A store iH West Fourteenth street and
the shop Of MargoHes. in East Ninth
street We're other New York sales depots.
either on an auction basis or at some other
method OF quick sale a ladies' waist
concern on Washington street. in Boston.
received and sold part OF these goods.
other fences set up in Hartford and
Jersey City had the goods shipped TO
them as soon as received from New York
and sold them as quickly as possible to
make room for more.
DO Business Tp IN Last Moment.
All IN all. a most rushing business was
done by Ross & Lewis and their friends
right up TO the last day Of the term Of
credit on which they invariably bought
their goods
On November q the Poughkeepsie Bar
gain House closed. Ross and Lewis
skipped. When the goods were traced it
was found Charles Levy & Co. had also
closed and neither Levy nor the company
could be found. Kiudleberger said to-
day.
The West Fourteenth street shop has
closed Margolies went into bankruptcy
No trace has been left Of the places in
Boston, Hartford or Jersey City to dis
close anything except that they once
existed, and did a rushing business.
Investigation shows that all the more
valuable Of the bargain house stock had
also been shipped out and sold before
Ross and Lewis gave up the ship.
Among the one hundred OF more whole
sale houses in New York who had been
stung We're several weI-known firms
Julius Kramer. Of the Kramer Fur
Company. l3 East Sixteenth street. one.
Of the firms victimized complained to
District Attorney Hart, of Dutchess
County. Assistant District Attorney Kin
dleberger. Of New York County. later
took up the case, after Hart could find
no trace Of the men there.
Kindleberger said to-day that from five
to ten men We're concerned in the CON
spiracy altogether