New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-10
LAWYER UNDER ARREST
GRAND LARCENY CHARGE.
Michael Jacobs accused of Figuring
IN Cobalt Note Deal.

N,chaA, Jacobs a LAWYER with offices at No a.
West sith street against whom charges are penang
in connection with case against Frank T. heinn'
charged with larceny of certain notes from 'he
Blue Ridge Enamel Brick Company, of Newark.
was arrested in his Office yesterday by Detecti'e
Nelson on charge of grand larceny in the nrst
degree
The arrest followed visit Of John F. DouthltI
81 decorator and art dealer, of No west -olh
street. the District Attorneys office "here ne
told OF an alleged note transaction by which ne
saws he was sHindled cut of $4,000 Deputy AS
sstant District Attorney z. Crosby hahuieoeisel
esked for Jacobss arrest after Douthit' han 'ii'u
affidavit to the following story;
In September. 1906. Douthtt. who was 1hen i
business at No 27s Fifth avenue became Interested
with Thomas A. Brush. of No 100 ocean avenue
Brooklyn in cobalt properties at Cobalt Naiiaua
ard obtained an option on a mine. He was en-
deavoriag to get money develop the properties
and offered for discount fifteen notes for sSV each
Frederick II. wilmont. broker at No Sil Lex
ineton avenue. offered TO see that the hO'es wee
discounted Douthitt said. telling him that ne iau
a friend in Duluth, MINI, who could discount 'heii
as proof of his financial standing Nhmohl toIu
Io,thitt the latter says that he had an option 10
furnish the woloott Hotel at No. west Slst street.
and also referred him [DouthitD 10 JACOBS ior lui
Their recommendation
An agreement was reached between Douthitt and
wilraont on September q. 1908 according TO Dou-
rhitt's affidavit by which wilmont was 20 have the
total Of $4,000 in notes discounted by the Dulu'h
man Douthitt to take $50 500 half the value OF
me notes at once and Wilmont TO retain the re-
rnainder for four months. paying the usual amount
of interest. The usual percentage for discount was
10 be deducted from the total amount given TO
Douthitt The $3.50 10 be paid 10 Douthitt
within four days, or on September 25 after VIII
mont made trip 10 Duluth.
At the time the money was to be delivered, Dou-
thjtt saws he was visited by Jacobs, who showed
him a telegram purporting 10 come from Wilmont,
in which the said that because Of his Duluth
friend being out Of the city temporarily he was
unable TO pull the deal through at the time
pected but would have the money ready in a few
DAYS Here is where Douthitts troubles began
He claims TO have made repeated demands for
the money and disappointed each time.
Finally he says Jacobs offered TO get $4,000 on
the notes upor cash payment Of $1,000. Under
this arrangement Douthitt procured $4,000 he
saws but was enable 10 get the remaining $4,000
Meanwhile judgments had piled up him for
the remaining S25OOo in notes which were over
due Persons who innocently held the notes al
legged to have beer unlawfully manipulated were
suing Douthitt for cash settlements
Douthitt said that the investigation proved
that wilmont had been Duluth at the
time stated and that the telegram shown TO him
that wilmont had not had option for the fur
nishng Of the Wolcott Hotel. Jacobs was locked
up at Police Headquarters At the time OF his
arrest he was under bail on similar charge, the
police say.