New-York tribune., 1910-04-27
RUN DOWN
FRAUDS IN ALABAMA
With Aid of Taft and Wicker
sham, Break Up Alleged Gang
of Fraudulent Bankrupts.
ARSON ONE OF THE CHARGES
Arrest of the Seven Shreve
Brothers Said to Mean Capture
of Gang That Has Victim
lied Wholesalers.


Taft and Attorney General wickersham.
enlisted for them by Ludwig Nissen. as
chairman of a special COMMITTEES, the
Jewellers Board cf Trade announced
yesterday that a campaign against
fraudulent bankruptcy in Alabama had
been brought to the point where they
were able TO land in Jail the seven
Shreve brothers. of Montgomery. to-
gether with one Samuel COplan and two
negroes. John Johnson and VIII Frank
lin. all charged with conspiracy to de-
fraud
Back Of the sensational arrest of the
ten men now in custody. according TO
the announcement made yesterday by VI.
d. ROthschild. president of the jewellers
board. lies story of arson. insurance
frauds and intimidating of witnesses
such as is seldom heard OF in any bank
ruptcy case.
The specific matter on which the ar
rests were made was S2O.OIo failure
OF the City Jewelry Company. in Mont
gOmery. Ala. but the departments
agents estimate that the total sum OBJ
tanned by the gang will run up close 10
100000 The local board sent an in
vestigator down South on the S2O.OoD
case. and the synopsis of his report
stirred up the trade here to such an ex-
tent that Mr.. Nissen, with Henry Cutler.
of Providence. and Alfred Krower. oc
the Maiden Lane firm Of Albert LOsch
g. Co.. were designated as a COMMITTEES
to put the matter before the Department.
Of Justice in Washington
Gustave F. Mertins conducted the first
investigation of the failure of the CITY
Jewelry Company. of Montgomery. which
went into bankruptcy on October l. 1909
In his report TO Mr.. ROthschild Mr.
Mertins said that the failure Of the city
JeweIry Company. of Montgomery. was
closely connected with the failure OF the
firm of J. II. Shreve of Greenville. Ala.
and the failure of the Union Mercantile
Company. also Of Greenville- j. r.
shreve. he reported. was president OF the
Union Mercantile Company and also the
active head OF the city Jewelry Com
pany.
Activities of the Shrsves.
The full roster of the Shreve family.
Mr. Mertins reported. comprised Jesse
H. Daniel H. A G.. R. t. James l..
billiard and George II. Shreve. the last
named being a lawyer. The Shreves.
said Mr.. Mertins. had been engage in
various other lines of business in numer-
Gus towns and cities of the state. includ-
ing the drygoods and general mercantile
lines. and they conducted tobacco stores
and small chain of shops handling no
tfons and fancy goods modelled on the
plans of the ) and 10 cent stores
They had been in and out of half a
dozen different stands within the last
two years. he reported. In the first in
stance their stocks were insured. and
after the removal of the bulk of the
stocks So insured the stores had been
subject 70 fires. but this method had
been made improbable because the fire
insurance companies finally refused 10
take anv risks on stores in which any
man by the name Of Shreve was inter-
ested.
When the insurance companies became
wary. MIR. Mertins continued. the
brothers turned To the bankruptcy
courts. and. going through the same
stems of removing the stocks beforehand.
came before their creditors with the
statement that they were devoid OF as
sets. because they had been unable TO in
sure their stocks
Nertins estimated the total loss %
commercial wholesalers in the several
lines within the last two years at about
SJO0OOO.
The CITY JeveIry Company. Of Mont
eornerv. he found. had been organized in
the spring of 1899. but the owners said
they had moved the stock 20 the store of
J. Fl. Shreve. in Greenville. in Septen-
ber. 1919 ON September 20. 1909. this
store was burned. and as there was no
Insurance both the City Jewelry Com
panv and ]. r. Shreve we're forced into
bankruptcy on October I. 1893.
Then il appeared that the Union Mer-
camille Company. also of Greenvilie. had
been forced into bankruptcy at the same
time. because having a small store. IL
had been in the habit of keeping its
stock of goods in the larger store owned
bv ]. n. Shreve. which was burned.
without insurance. on September %. All
three concerns reported 10 the referee N
bankruptcy that they had no assets
Some Of Burned" Stock Traced.
Mertins reported that he had traced
some of the supposedly burned stock TO
the store occupied by concern known
as the Trade supply Company. at An
dulasia. Ala in which the Shreves again
q appeared as owners. According 10 bis
report the Shreves. in their Andulasis
store. were cutting prices on the goods
displayed 10 such an extent that the
other merchants of that town were being
driven out of business. and further. that
his investigation showed the Shreves had
always teen able mysteriOusiy 20 UNDER
sell all competitors wherever they had
ged in business.
Civil suits To recover losses. he said.
would be useless. because the Shreves
were rich. influential and powerful po-
liticGily. and had teen I'm other similar
instances desperate enough To intimidats
prospective witnesses To such an extent
that they were driven out of the state
With this information. Ludwig Nissen.
with his committee. went 10 Washing
ton in the middle Of March. and after a
talk with the President obtained his rec
ommendatiOn 20 Attorney General Wick
ersham Mr. Wickersham detailed T. :