Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-27
FRAUD EXPOSED
GANG OF CHEATS MAKE HALF
MILLION PROFIT.
Eleven Men Under Arrest-Federal
Investigation of Bankruptcies
and Fires.

Attorney General Wickersham intends
to make public late today a statement
regarding the governments action in as
sisting to unearth the gigantic jewelry
fraud, disclosed in New York. from which
merchants Of various cities are said to
have suffered
Investigations made by the Department
of Justice. following representations to II
that certain persons were engaged In
these frauds. were on the basis of a vio
lation of the national bankruptcy law.
Mr.. Wickersham was called to the White
House early In the day, which delayed
the publication of the data on the subject
prepared for him by the bureau of inves-
tigation.
Eleven Men Arrested.
NEW YORK. April 27.-Information
given to the federal authorities by the
jewelers. board Of trade has led to the
arrest of eleven men, supposed 10 be an
organized gang of swindlers, operating in
different towns in Alabama, who have OBJ
tanned fully 100000 within three or four
years by fake bankruptcy proceedings.
OF this amount $4,000 was contribuced
by Maiden Lane jewelry firms, which
shipped diamonds and silverware to new
firms only to lose the goods either III
fires or bankruptcy proceedings.
Seven brothers are under arrest on
charges OF conspiracy to defraud credi-
tors. They are Jesse H., Daniel. A. G.
r. T., James E., Hilliard and George H.
Shreve. John johnson and William
Franklin, negroes; A. F. Micker and sam
uel COPELAND also have been arrested
Investigation by Government.
Several months ago southern members
of the board wrote to headquarters say
ing the Shreve brothers were selling at
prices that were driving competitors into
bankruptcy About the same time jeweiry
stores run by the brothers in different
towns in southern ALABAMA cioseo at.ef
being open only a few months and aftef
having obtained on credit large bills OF
merchandise, none of which could bc
found later
Der of the board urged investigation. say
ing he knew things he could not tell
openly because he would be shot ami
his store would be burned.
These facts were laid before President
Taft Agents of the Department Of JUS
tice for months pursued an investiga-
tion
They found that the Shreve brothers
had obtained large bills OF merchants
from New York firms with which to
open a store at Montgomery. Ala, to bs
called the City Jeweiry Company.
Fire and Bankruptcy.
Twenty thousand dollars worth of dia-
monds and gold watches were shipped
to the store OF one Of the brothers at
Greenville, Ala. for a special sale. This
store was burned last Septembr and sup
posedly the stock also.
AS a matter of fact. 1t is charged the
stock had been shipped to a store
owned by the brothers, AID
from that point they openly disposed OF
the goods.
The City Jewelry Company at Mont
gomery went into bankruptcy after the
fire, the business having shown . net
loss of over $4,000 within few months
Last Friday the evidence WIS laid be-
fore a special district attor1ey Of the
and It was decid{d to arrest
the men. All were arrested ut noon,
Jesse H. and Daniel H. sAteve in San
Antonio. Tex: A. c. Shrevb In Tusca-
loosa and the others at MONTGOMERY. with
the exception Of COPELAND. Eho was ar
rested in ecottsboro. Ala. and Mickler.
who was taken 1t Andamsch