The Washington herald., 1909-03-13

New York. March 12.-The arrest in
Chicago to-day OF Frederick H Richard
son. president and owner Of the ]. Rich
ardson Company. a shoe corporation Of
Elmira, n. Y, on an indictment for grand
larceny found by the New York County
grand jury last Wednesday, disclosed a
far-reaehing system OF fraud. by which
Richardson had obtained more than $780,
900 from banks. trust companies, and mer-
camille houses in New York City and
elsewhere. More than 80 firms in this
city alone are said to have lost money
credit extended TO Richardson upon false
mercantile statements.
Richardson's corporation, which was
owned almost II not entirely. by himself.
failed in January. 1908, with liabilities
OF 5000. and assets, accruing from the
disposition Of stock ana property, Of about
$4,000.
The Chemung Canal Trust Company. OF
Elmira, which. according TO the statement
issued to-day by the district attorneys
Office. was out $4,000 through Richard
sons transs ctions, became the receiver
for the bankrupt corporation. Richard
son was asked to make an accounting,
but he disappeared.
Prominent Socially.
Richardson had been very prominent
socially in Elmira, and the prestige ac-
quired by his family since the founding
OF the Richardson company, in 1912. made
the local authorities slow TO act All that
time the extent Of his stealing was not
guessed at, and the trust company ap-
parently believed that It could get its
money back Matters dragged along until
last October. when the New York Credit
Mems Association laid the case before
District Attorney Jerome.
The investigation Of Richardson's steal
ings was turned over to Assistant Dis
trict Attorney Bosler, and after six
months work, during which thirty-five
q witnesses were examined, an indictment
for grand larceny was found by the grand
jury last "Wednesday The specific COM
plant charges Richardson with procuring
$500 worth OF leather merchandise from
the Richard Young Company OF Spruce
street, in October, 1907. by means OF A
false mercantile statement" The in
dictment for the comparatively small
amount was brought because the Richard
Young Company's evidence seemed most
favorable for a successful prosecution.
The Principal Loss.
The principal banks and trust COM
panies from which Richardson got money
and the amounts, are as follows
The Lincoln Trust Company. Of New
York. $4,000: National Bank Of North
America. $1,000; Northern Bank Of New
York, New York. $3.50; Importers and
Traders National Bank, New York. ST.
800; Chemung Canal Trust Company. Of
Elmira. $4,000: First National Bank. OF
Corning, n. Y. $4,000.
Merchants National Bank Of Elmfra.
5000; Central National Bank. OF Clevs-
land. Ohio. $500: First National Bank.
Of Parker, s. Oak. $500; National City
Bank. OF Chicago. $3.50; International
Trust Company, Of Boston, IS 900; Miners
National Bank of Blossburg Pa, $500;
Athens National Bank of Athens. $500.
In addition 70 these amounts are $4,000
in notes Of the Elmira Shoe Company.
which obligations were taken over BY the
Richardson company $4,000 which Rich
ardsOn Is said 10 have obtained from shoe
companies In Boston. Philadelphia FL
mira, and Rochester, and the very large
sum which Richardson got from the 80
mercantile firms IN this city.
Richardson at the time OF his arrest
to-day was out on 5000 bail. and fighting |
extraditiOn on a charge Of grand larceny /
made by the Chemung Canal Trust Com
pany last January.