The sun., 1908-02-10
BOSS OF THE BARGAIN HOUSE
n. MARGOLIESs ARRESTED, SAID
TO BE THE MISSING "ROSS."

The Mushroom store IN POughkeepsIe with
It's Fences Elsewhere Is Believed TO
Have Robbed Wholesalers OT Over
800 J0O0-Thls 10 the Second Arrest.
Edward Margolies. formerly a dealer in
fur and silk goods at 20 East Ninth street,
was locked up at Police Headquarters last
night on a charge Of grand larceny in the
second degree. The arrest IL the result.
according to Assistant District Attorney e.
Crosby Kindleberger. OF Margolies's con-
nection with the Poughkeepsie Bargain
House. whose operations were partially
exposed in the newspapers OF January Q
last.
While $4,000 worth of goods are known
to have been obtained unpaid for by the
Bargain House, its total OF profits is be-
lieved to run over SlOO,OOO and to take in
Jersey City. Boston. Hartford and other
cities besides New York and Poug ghk eepsie.
Two men who gave their names as Morris
Ross and Isador Lewis appeared in Pough-
keepsie in September 1907, and opened a
retail dry goods store called the Pough-
keepsis Bargain House Ross apparently
was the leader in the enterprise. The
store did good business on the main street
Of the city and at the end of the month
Ross and Lewis were able to make q state
ment TO the CONNIE rcial agencies of $500
assets and $500 in bills mot yet due" which
secured them good rating and credit.
The Bargain House became an extraOr-
dinarily busy place for a small store from
then on. Il was learned later that Ross
and Lewis went down to New York. made a
tour Of the wholesale goods houses and Sc
cured from 800 TO $500 worth of goods
from each Of more than hundred Of them.
These goods were all shipped TO the
POughx eepsie Bargain House on sixty
days credit. The records Of various car
riers show that from six to twelve cOnsign-
ments Of goods arrived for the Bargain
House almost every day. were taken in
and turned around and sent right out again.
Many of the lots. indeed. never went to the
Bargain House before being shipped on
their way.
An Investigation conducted by Assistant
District Attorney Kindleberger has dis
closed that several stores In several cities
were operated as practical fences for all
this stun. A store on Broadway, according
to Mr.. Kindleberger, was the principal one
Of these. A store in West Fourteenth street
and the shop OF Margolies in Fast Ninth
street, il Ia alleged, were other New York
sales depots, either on an auction basis or
with some other method Of quick sale.
womens waist concern in Washington
street in BOstOn received and sold part OF
these goods. Other fences in Hartford
and Jersey City had the goods shipped to
them as soon as received from New York
aud sold them as quickly as possible to make
room for more. All in all Il rushing busi-
ness was done by Ross and Lewis and their
friends right up to the last day Of the sixty
days OF credit
This term elapsed. on November - the
Poughkeepsie Bargain House closed up
and Ross and Lewis disappeared without
even bOthering to go into bankruptcy
The main New York store also closed about
this time. The West Fourteenth street
shop closed, MargOlies went into bank
rIlptcy, and no trace is left of the places in
Boston. Hartford or Jersey City
Among the Wholesale houses in New York
which had been stunR were Benjamin
Dsutsch, shirt waists; Meyer Bros. Carl
Light Kantorf Wolkind and the Kramer Fur
Company, all located in the wholesale dis
trict between Broome and Eighteenth
streets. The total of their shipments grows
larger and larger under investigation, until
now it Is known to be at least $40 900 and
il believed to be between $1,000 and
SIPS 900.
julius Kramer OF the Kramer Fur Com
pany. IL East Sixteenth street, got hot
under the collar at the way in which the
two Poughkeepsie customers had done busi-
ness and com )la ned TO Dstr ct Attorney
Hart of Duchess county. Mr. Kindle-
berger later took up the case. Mr.. Kinde-
berger said Yesterday that from five to ten
men were concerned in the conspiracy
altogether-he could not tell just how many
because every participant apparently had
used at least one false name and sometimes
two or three.
Detectives Russo and Kesselmark Of the
Central on co on January arrested Abra-
ham s. Goldsmith Of 2s5 Brook avenue,
The Bronx, on a charge of conspiracy, on
which he later was released under 81 900
bail. Goldsmith was identified by Mrs.
Mollie Baxter, formerly bookkeeper in the
Bargain House, as one OF the principal
managers Of the store whom she had known
as Mr. Seamon. Detective Russo yesterday
arrested Margolies. who is believed by Mr..
Kindleberger TO be Ross OF the Bargain
House and one OF the leaders Of the whole
enterprise.
Margolies at first would not give his name.
Letters found on his person, however, dis
closed his identity and he gave his name
as Edward Margolies for entry on the blotter
at Headquarters. Employees OF the Bar
gain House will be brought down to Identify
him to-day.