The Washington herald., 1909-08-17
BROKEI INDICTED
FOR LOAN FRAUDS
A. D. s. Adams Held Jointly
with PerSch.
GRAND LARCENY IS CHARGED
Transaction for Which Spectators
Are Accused Deals with Eclipse
StOcl1S-Shnres Put Up ON Loan
Were Being offered for Sale.

New York. Aug l6.-A. d. S. Adams,
a well-known Boston broker, was indicted
FOR grand larceny by the New York
County grand jury to-day in connection
with the recent loan transaction disclo-
sures. Donald /. Persch. the young curb
broker. who Is now in the Tombs was
indicted jointly 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 detectives
left for Boston to-day TO arrest Adams.
Adams is man Of considerable means.
doing large money lending business.
The transaction for which Adams and
Persch have been jointly indicted was
pulled Off in this city on August l. Cram.
Mulliken & Co. bankers and brokers, Of
us Broadway. had 100000 shares Of Eclipse
Oil stock, valued at $4,000. which they
wanted 70 put up on a loan Of 5000.
They were acting for a Boston client.
Made IA Representation.
Donald L. Persch went 10 them and
represented that ne had a client. Henry
f. Risbrough of Philadelphia. who would
put up the money. Cram. Mulliken &
Co.'S representative met Persch in the
corridor Of the Equitable building. on
August 4, by appointment. With Persch
was a tall. gOod-looking man. said 10 re-
semble Mr.. Adams. OF Boston. The tall
man pulled seven new $1,000 bills from
HIS pocket and handed them TO Persch
Persch turned the 5000 overNto Cram.
Mulliken & cos representative and re-
ceived the Eclipse Oil stock in return
Persch also handed 10 Cram, MuIliken &
Co.'S man stock delivery receipt signed
Henry T. Risbrough." The transaction
was completed AZ about II o'clock in the
morning. and by o'clock in the after
noon Cram, Mulliken & Co heard from
their Boston Office that some Of the iden-
teal shares that they had put up as
collateral were being offered sor sale on
the market.
The New York brokers took legal steps
10 prevent the sale Of the stock. and the
next day Mr.. Adams walked into the
Office of Leonard J. Field & Co. at rs
Broadway. and asked for a loan Of IS. 600
on the 10000 shares Of Eclipse stock.
Nj. Field. who. by the way. supplied the
$4,000 necessary to carry through the
Windsor Trus, Company swindle. accom-
modated Adams. and the stock is now in
Field & Co.'S safe as collateral on the
Adams loan
Connected with Heinze Loans.
Adams name has been mentioned in
connection with one of the Helnze loans.
He loaned S55,OOO on $255.O0O Of Ohio Cop
per Company bonds and threw some of
them on the market The Heinze people
contend that he did this without giving
tnem an opportunity to put up more col
lateral or lift the loan. but he says the
Heinzes failed 20 respond when he made
call.
Adams has accumulated his wealth in
the last two or three years. Five years
ago ne was engaged in unsuccessful ef-
forts 70 float small promotion schemes
here in New York. He went TO Boston
where he began 10 lend money on min
ing stocks and unlisted securities gen
orally. with notes that gave him the
right 10 use the collateral and bound
him only TO replace il with an equal
amount. He would lend on security about
one TO two and protected by his note
would Immediately sell the collateral.
a close study OF the loan market had
convinced Adams. so il was said. that in
about so per cent Of the loans the price
Of the collateral would fall and also that
the average borrower on unlisted Sc
curities defaulted His operations have
extended considerably beyond the pre-
cincts Of Boston and have been pros
porous When in New York he has made
his headquarters at /. J. Field & Co s
Offices at Il Broadway.
The grand jury Investigation into the
Windsor Trust Company deal will go on
tomorrow and there will be more in
dictments. a subpoena duces tecum was
served on L. J. Field to-day. directing
him to produce his bank books and his
firms books at the district attorneys
Cff1cp tO-n1Orro,y