New-York tribune., 1909-10-08
HELD In BANK SWINDLE
THREE -1RRESTED FOR
I DEAL IN STOCKS.
Rrobrr's Office and Retired Mer-
chant SAID TO Hare Been Used
TO Dupe State Bank.

charged with the larceny Of S65OO from the
gate Bank at No. $40 Grand street. Jacob
s,eruglanz retired merchant, who lives at No.
,eg- Union avenue The Bronx. : arraigned
,.e,-e Magistrate Steinert. in the Tombs police
c,.rt yesterday complaint Of Albert L
,-,,-ris. the hanks cashier. The prisoner was
,sis in 5000 bail
Accused Of aiding in the alleged swinde. Ran
s,,nh 4 Foote. a stock broker. with Offices at
No = Broadway. who lives at No. 204 West
1gss street. and Ernest V Reiss. also broker.
l,,4ng 81 No 264 18th street, Brooklyn, were
,sken 70 Police Headquarters last night. 10 be
e--sirned in court to-day.
In the arrest Of the men the police say a plot
% p-ocure loans on non-assented stock certih-
Gates issued by the Northern Pacific Railway
c-npany' has been uncovered. A fourth man.
s.s 10 be the originator Of the alleged swindle
now beng sought
The arrests were brought about through the
erorts 4 William J. Kronke. the banks mes
seBrer. who had been detailed 10 investigate the
sroek certificates offered as security for loans
amounting 10 several thousand dollars. Al
though according 70 the police careful plans
Lad been laid 10 dupe the banks employees by
layfnc the transactions take place in bro
keraee Office in lower Broadway. whose owners
voare man says he discovered that his en-
ueges were receiving practically worthless
Iarer.
Incidentally it was shown. according TO the
re.fe- r.at The man who laid out the plans 10
svnd- .ne bank had used the retired merchant
Z. turn tIa stocks into cash. For years Stern
garz had dealings with the State Bank, and
when h- reopened an account there was no ques-
ton as T. his responsibility.
Several months ago. the police say. the old
nan called on the cashier Of the bank and told
lr that "a brokerage firm. with Offices in Broad
street. had lent him s2.4O0 and held as security
ih.rts shares of Northern Pacific Railway stock
which be- said were valued at $3.50 each. Then
he asked the cashier 70 buy up the debt of the
brokerage frm take over the securities and on
the strength OF his credit lend him $500 addi-
ilogaL
Kroake. the messenger. was sent to investi-
eatc The stock and close the deal. The mes
senser took the shares which were placed in
the banks vaults while s.. 800 il is said by the
police. was credited to sternglanz's account
TIE deal which led TO the arrest of the three
mer opened on Friday OF last week. when Stern
CLAM the police say. again called on the cashier
Of the state Bank and informed him that an
or er brokerage firm had lent him $500 on one
hundred shares Of Union Pacific stock valued
81 $50 each This time, the police say, Stern
ganz asked the cashier TO lend him $500 ad-
6f,ionaI on the strength Of the shares.
Tie messenger was once more sent out 20 com
pete Tie negotiations. and. according 10 the
detectives he accompanied SternglGnz TO the
Offices ~ the brokerage firm. where the stocks
were n he turned over. Here. according 10 the
messenger. he was introduced TO Reiss. who
joined tie TWO men in the customers room of
tHe brokerage Office.
While the men were watching the ticker, which
quoted The stocks as high as 155. they were
joued bv F3ota. who il is alleged. ushered the
party into private ROOM where the one hun
d-el shares of stock were turned over 10 the
messenger tr consideration for $500 on ac-
count
With these stocks and the stocks received
earlier tha police say that Kronke started his
inscst.cariau. calling AT the Offices OF the
Norhern Peeihc Railway. he was told that the
certificates were not drawing dividends He at
once informed The assistant cashier 10 whom the
stocks bad been made sIF Then he again Wis
ltal the i're..d office and told that the en-
t-e baton ef certificates was not worth more
tlsu $-G. He was also Informed, the police
add than the certificates were relics Of the old
Northern Pac-ac Company.
After the arrest OF Sternglsnz. according 10
ihe police De- said ne was asked 10 act as an
agent n getting the loans and that he believed
ile papers were genuine.
Albert T. Toorhis cashier Of the bank. said
as Hisar thar The banks loss did not exceed
500