New-York tribune., 1909-06-06
WAY OF BANKRUPT
HARD THESE DAYS
NO LONGER PATH TO EASY
WEALTH.
,fsrcbants' ProtectiUe Association
Has Made Business of Failing
a Hazardous One.

a Hazardous One.
z,srs has become the lot Of fraudulent bankrupts
- York within the five years that the Mer-
".s, Protective Association has camped on their
- The business Of getting rich by falling every
-. while has become TOO hazardous Not so
H. H.. dealers in merchandise. poetically minded.
,rrrr,r 10 themselves:
To san or not TO fail: that is the question
Whether It's better 70 he schedule
:. creditors fnsataJe. Lose the books,
fe TO foreign shores or stay and face the music
Grange hardship imposed by the association IN
- latter years is denial Of the bankrupts privi
- n hlacken his own character. When man
,sc+ed of having concealed his assets was eX-
.,.a before a referee and asked what he did
- s1n aa0 in TWO weeks It used to be a
.,,snt explanation for him to plead a dissipated
"a en immoral character The money was spent
- .bo-r,s eirss. champagne and gambling. Bank
-,+s of venerable mien, whose faces showed no
.Lsr vice than cupidity. professed 10 be gay old
sass -akes and spendtlrifts- They avowed their
80 and extensive habits with the assurance OK
bsrsc-ers in French comedies Rarely was there
modest seeming hesitation or painful shrinking
q ,be confession The average lawyer for the
--e5i-o-s was often stumped by the witnesses self
villhcation-
rlesding Vickedness.
,-vor ssv yau are gambler thunders the as
sortsrior LAWYER. vel. What is the diner
.roa between q fun hand and a straight flush?
All yoa merely played the ponies Tell me
,,rs+ racetrack you visited and how you got there
What was the name Of the horse you lost
srn or? You can't remember. eh? What were
the o5ss2 Your memory fails there. Are you sure
the rscetrack was open that day? Yes It was
probably another day, if at all Now. Mr
Y Asive We viii take up your other vices in
detail and consider how. after fortyseven years Of
q. exemplary life. as you have testified, You came
q 70 plunge suddenly into maelstrom Of evil ten
ssvs before your BANKRUPTCY. I'm from Missouri
5or't ieieve you're he bad man that you repre-
sent yourself to be. Why do you have this unnatu-
raj desire 10 defame yourself and put blot upon
your children"
Tbe unfortunate witness is bound to contradict
himself lie may be even brought TO confess that
his dssipations are all imaginary and 10 tell the
Whereabouts q The hidden assets.
There are ffty-three large wholesalers in the
Merchants Protective Association. Of which Ed
ward D. Page Is president The object OF the as
sociation is 10 protect the membership from cheats
and 20 avert disastrous bankruptcies where posi-
be The aw firm OF James. Schel & Eikus is re-
tained TO take any necessary action in bankruptcy
cases 4 member Of the firm. Abram I Elkus. has
been appointed 4 special United States District At
torney which gives him entry 10 the federal grand
fury and facilitates prosecution Of dishonest con-
Germs Many fraudulent bankrupts have been in
dcte5 and jailed through The efforts Of the asso-
ciation-
DEVIOUS WAYS OF THE BANKRUPT.
scne of the devious ways Of bankrupts were e.
70 the writer the other day by Nathaniel Wal.
who is connected with the law firm There vas
for example, a cIoak and suit concern in Houston
street that failed last year just before the failure
eghf cases Of goods. worth $1,000 were shipped 10
ran IN Brooklyn. The Brooklyn man promptly
rssspQed them 10 Newark; FIVE cases 10 one ad-
6rezs and three cases TO another The Pennsyi-
vsnia Railroad gave notice to the apparent con-
signoe market street merchant, who may be
called Cetur. As a matter q fact, the goods were
not intended FOR Mr.. Getum; that name was chosen
as convenient one by the swinoier who forWafdeo
tie cases lie expected 10 call for them himself
But Mr.. Getum sent his tTuckman for the cases.
When lie opened them and saw the array Of costly
silks and veivcts. he became frightened lie was
IN the clothing line and just preparing for coup
in bankruptcy himself. guilty conscience caused
him &c fear that some one was trying 10 JOB
him" He tod the police that the cases DID not
belong 10 him Meanwhile the other three cases
arrived at the station and the railroad officials be-
coming suspicious sent them TO a warehouse 10
await z solution OF the mystery Two railroad de-
tectives took the tags from the cases. brought
them 10 New York and chanced to take them 10
the very commission house which had soid ihe
original goods and knew Of the disappearance Of
the bankrupt Arms assets. An association delec-
tive went 10 Newark and the head OF the
bankrupt firm and his Brooklyn accompllce can al
lie railroad oce for the eight cases OF goods ol
the return Of the pair New York the bankrupt
was arrested On an order q a federal judge ana
taken 10 court for examination. HIS accoLlpiloe'
who was not under arrest, was foolish enough 10
go along Bota men were examined, but IN sepa-
rate rooms. They coutradicted each other, we're
Indicted for conspiracy, and pleaded guilty Inc
fraudulent bankrupt was imprisoned TOT He"''
While his aid got zIne month in jail
4 chId's bed was partly the undoing OF shi'
Iaaaufa cture- who. on tie of his failure for
saet last year. shipped several cases Of gooos 10
q warehouse under an assumed name Inc DeA
vas evidently sentimental relic II had been
KEPT in the manufacturers place of business ana
was Grated and shipped with the other goods An
empoye Of the warehouse informed the lawyers
about the cases When the man was examined
before the commissioner of bankruptcy he denied
that he had shipped away any property He was
ihcletec for perjury and tried before a 'urY Inc
prosecution made a telling point against the de-
fences theory Of forsetfulness and inadveTtence by
SAYING that the man must have known what ne
was doing when he sent away an object Of cher
saeo sentiment, TIE chiid's bed. The jury con-
Nelsd and The bankrupt was sentenced TO year
OF BlacaweTs Island
New Yorker. who may be called Jones. went
mo partnership with named Smith 1t
vas cloak and sun business. Jones admired the
fesouroefu methods Of his partner. concerning
HA9n he knew little. Whenever goods were
heeaeo. Smith went right out and got them with
ost any formalities Of notes cash. You leave
&i &c ne" he told Jones. with smile i have
way CT getting goods Al last this Aladdin
Sie OF procedure caused unrest in the conserva-
.s bosom q Jones EIe could not rise TO the pos
'Ales OF high finance. Something must be
Nioae He conaded the mystery to his lawyer, who,
e7ahs an attorney Of the Merchants Association
saiy repeated the tale. The latter sent a man
:. - 2 fhe establishment 70 investigate the sources
:. aladdin wealth II surmised. indeed. by
AEyer that he the tran Of some goods
- member q q firm that had disappeared
s1'sneously before the failure Of manufactur-
s eshcsra IN another city This surmise proved
oe correct The tags showed that the goods
ine RON tie other city. and Smith was identified