The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1909-08-20
INDICTMENTS ARE
RETURNED AGAINST
PERSCH AND ADAMS
NEW YORK GRAND JURY ORDERS
FiNANcIERS INTO
COURT.
CROOKEDNESS is ALLEGED
Duo of Smooth Ones Played the
Game by Using other Peoples
coIIateraI-Had Accumulated Much
Wealth.

NEW YORK. Aug. IA. D. S
Adams, a well-known Boston broker
was indicted for grand larceny by the
New York county grand jury Monday
in connection with the recent loar
transaction disclosures. Donald L.
Persch, the young curb broker, who is
row in the Tombs, was indicted joint
ly with Adams for his part in the
Eclipse Oil stock deal and again for
grand larceny in the Windsor Trust
Company loan transaction.
One of the district attorneys detec-
tives left for Boston to arrest Adams.
Adams is a man of considerable
smeans, doing large money lending
business.
The transaction for which Adams
and Persch have been jointly indicted
was pulled off in this city Aug. 4.
Cram, Milliken & Company, bankers
and brokers of lis Broadway, had
100000 shares of Eclipse Oil stock,
valued at $4,000, which they wanted
to put up on loan of $1,000. They
were acting for Boston client, Henry
F. Risbrough of Philadelphia, who
would put up the money. Cram, Mil
liken & Company's representative met
Persch in the corridor of the Equita-
BILE building on Aug. by appointment.
With Persch was tall, good-looking
man. said to resemble Adams of Bos-
ton. The tall man pulled seven new
81 900 bills from his pocket and hand
ed them to Persch.
Persch turned the $1,000 over to
Cram, Milliken & Company's repre-
sentative and received the Eclipse Oil
stock in return. Persch also handed
to Cram, Milliken & Company's man a
stock delivery receipt signed Henry
F. Risbrough" The transaction was
completed at about IL o'clock in the
morning and 4 o'clock in the after
noon Cram, Milliken & Company
heard from their Boston Office that
some of the identical shares that they
had put up as collateral were being
offered for sale on the market. The
New York brokers took legal steps to |
prevent the sale of the stock, and the |
next day Mr.. Adams walked into the
Office of L. j. Field & Company at lis |
Broadway and asked for loan of S.
900 on the 100000 shares of Eclipse |
Oil stock. Mr.. Field, who by the way |
supplied the $4,000 necessary to carry |
through the Windsor Trust Company |
swindle, Accommodated Adams and the
stock is now in Field & Company's
safe as collateral on the Adams loan.
Adams name has been mentioned
in connection with one of the Helnze
loans He loaned $155,000 on $255,000
of Ohio Copper Company bonds and
threw some Of them on the market.
The Heinze people contend that he
did this without giving them an oppor-
tunity to put up more collateral or
lift the loan, but he says the Heinzes
failed to respond when he made call
Adams has accumulated wealth in
the last two or three years. Five
years ago he was engaged in unsuc-
cessful efforts to float small promotion
schemes here in New York. He went
hA IN 1
money on mining stocks and unlisted {
securities generally, with notes that
gave him the right to use the collat- !,
eral and bound him only TO replace
it with an equal amount. He would
lend on security about ! to ana pro-
tected by his note would Immediately
sell the collateral. A close study OF
the market had convinced Adams, so 7
It was said, that in about 80 per cent
Of the loans the price of the collat'
eral would fall and also that the
average borrower on unlisted securi-
lies defaulted His operations have
extended considerably beyond the pre- Z
cincts of Boston and have been pros Il
porous. When IN New York he has
made his headquarters at L. ]. Field b
& Company's offices, IA Broadway. IL
The grand jury investigation into n
he Windsor Trust Company deal will
go on and there will be more indict. y
ments Subpoena duces tecum was b
served on L. J. Field directing him to n
produce his bank books and his firms Il
book at the district attorneys office. g
rhe district attorney wants to find out b
rom them the history of the $4,000 4
hat L. j. Field loaned to John F. {
his former clerk, for the [
use in the Windsor Trust Company
transaction.
The district attorney wants to find c