New-York tribune., 1911-09-27
HEAR FROM MISS RUSSE
FIagg'S Secretary Expected at
Federal Building To-day.
FATHER SPEAKS FOR HER
Says She Hasn't Been Spirited
Away and Isn't in Love
with Employer.

Madeline Russo, the nineteen-year-O I'D
confidential secretary Of Jared Flagg, the
So per cent broker, disappointed District
Attorney Wise yesterday by staying away
from the federal building She was want
ed 10 give verbal corroboration Of an affi-
davit which she Is said to have made 20
the government shortly before the raid on
F1aggs offices last Saturday. Soon after
the grand jury adjourned the postoffice
inspectors got a telephone message say
ing that the girl would appear this after
noon. Marshal Henkel has a warrant for
the arrest Of Miss Russo
\. 3. Russo. Of White Plains father OF
the girl said yesterday his daughter was
not eluding the government officers, as she
had no reason 70 run away. He added:
My wife told the inspectors she would
have my daughter present whenever they
desire Madeline has gone on a two weeks
vacation in the Allegheny Mountains I
don't know the name Of the place where
she Is but she IS with a friend. This story
about my daughter being spirited away or
being in love with Flagg is all rot l
don't believe. either. that she wrote the
letter to Flagg which, It is said, was found
in his desk. l feel sure that there was
nothing wrong between Madeline and
Flagg She was simply an employe, and
he paid her we'll for her work. l know
nothing bad against Flagg. and these stories
about her being the master mind Of the
Flasg concern are malicious. A lawyer is
Looking after her interests"
According to an acquaintance Of Madeline
Russo. she met Flagg about a year ago in
The cafe Beaux Arts After that II Is said,
Miss Russo was a frequent guest there and
at dinners in Flagg's apartments in River
side Drive
Jared Flagg, smoking a long black cigar
paced the office Of Alvin VI. Higgins. the
hroker-lawyer. at No. 600 Broadway, late
in the afternoon He was awaiting the
coming Of the girl, too.
Her affidavit won't be for the govern
ment on. no. That affidavit involves cer-
tain joint affidavts, and will be taken for
me. and not for Mr.. Wise" he said, with a
flourish
Federal action in the case was held up
yesterday by an order of Judge Lacombe,
or the Circuit Court. citing the Assistant
District Attorney and Marshal Henkel 10
show cause why they should not be COM
PEELED to give up Flagg's books and ac-
7
Wise told Judge Lacomhe at the hearing
that the books and papers were in the pos
session of the postofice inspectors. Judge
Lacombe said he couldn't order any one
To give up what he didn't have, so the
matter was dismissed.
Robert c. Beatty. counsel for Flagg. said
last evening that a writ Of replevin would
be applied for to-day, and that as soon as
the accounts were restored they would he
opened to public inspection, and competent
certified accountants would BE engaged to
make a complete report on them. Nhlle
Flag has been striving 10 regain his books
the postofice inspectors have been hustling
aIong transcription Of the evidence. This
should be completed by noon to-day.
Five of FlagE's customers. including a
husband and wife. have retained John J.
Gushing. Of No. 20 Wall street. 10 bring
suit against Jared Flagg to recover 5000.
Mr. Cushing said lie had analyzed the
brokers' contracts and found that no lesiu-
mate profits could be made under them.
The scheme. he said, was Ike the John j.
Ryan racetrack tipping-playing one set OF
clients against the other and pocketne the
commissions. Flagg charged double COM
mission where he made transactions direct.
The lawyer also points out that F1agS
couldn't dispose Of a customers securities
without profit. which gave an almost end
less period before his client could recover
his fun investment.
Cushing said he had a list Of stocks plr-
chased by Flags customers NJ prices Tar
above those M which they mad since been
quoted The brokers' contract didn't re-
ouire him to sell the stocks until the Sc
curitics had fully recovered. Neither was
Flags compelled to account for profits,
Gushing pointed olt. No profits We're
shown in the statements sent TO cushing's
clients.
The brokers' brother, Ernest Fagg. de-
sisner Of the Singer Building, said yester-
dav that he and other members OF the
family of Flagg were proud TO claim rela-
tionship with Jared Flacg. They were not