New-York tribune., 1911-03-21
LITTLE BOARD FAILURE
Frederick slmmonds Said to Owe
Customers 100000.
PETITIONS BY CREDITORS
r,it of Checks to the Order Of
government Agent Concerned
in Bucket Shop Raids.

49,
-. The liabilities are said 70 be about
,.,ra vtth visible assets of less tnan
!. ,v r. f,r ire greater part Of the firm
.,assteaness Is said 10 ts customers oo-
...,.5 -h-ough Tvs correspondents in nine
s-~s-snt cities anI towns IN this state and
IN Philadelphia
- involuntary petitions IN bankruptcy
-. sled yesterday against the rrr In
~. r-riteA States District Court. Arthur
friend. a LAWYER. OF No. io Broadway.
- va, formerly counsel for Simmonds,
- Two other creditors. with claims aggre-
--,,z = 50. fled the first petition Later
..s 6sv three upstate creditors-H. oil
-. ,tahsn. of Norwich. y !, Wells ~
lana. OF Glens Fans. and Earl r
- Of -charnton--fled an involun-
., ret,f!on for claims fer money loaned
.-...,,..~r - S6.5oo The second petition
:. 4led AGAINST Frederick Smmonds and
-, Archester. as co-partners IN the
f-oksrsge business.
.~-rss-sr does not appear as member
....A 1-n on the records a the Consoh-
.-..4 rvchance Frederick Simmonds has
s,s, member os the exchange since 30
...-,ss- o. -sea and conducted business
..-4sr his name Anchester. 0'o 0aS tors
-..-.,. connected with g. y. Shetteis & Co.
So. .ssr closely associated with Slmmcnds
,,s,,sss fcr some time r. was said The
.,ss NJ me exchange do not allow any
+o do business as a menber ~ a nrm
.-,sss 10 IS duly registered and known a.
,rct at The eNchsnge
Efforts for Settlement.
?, erreafcd Yesterday that ten of the
-. ,orrespondents from various cities up
,,s,s Including Albany syracuse. Utica,
p,r,e Norwich Glens Falls, Binghamton.
,.rrs,or and Gloversville had been in the
30. f,r tr. last few days endeavoring 20
e-. settlement with tho firm which
u,.,is avert Bankruptcy proceedings. some
.t,be local creditors stole march on them
-,l fled an involuntary petition Yesterday
,,o-,,oe which fingered some Of the UP
,.,,, men 20 vas said.
Albert r Davidson. Of 80. ,f William
,.-.., ID. counsel for the correspondents.
:. ,.ss minated yesterday that an investi-
-, of certain alleged irregularities in
-. tr.,res. methods of the firm we're be
,,s Investigated which might lead 10 the
...e,,s-ior ~ tie case 10 the District At
to-ueys Office
The name of -o-erument officer who
,ro. prominent part in the federal raids
q, bgckotshors last summer was mentioned
,-.r-.-5sv ,r connection with the failure OF
.1. e~-r several checks maze out IN favor
sf.-a government officer drawn on the sea
t,sr8 National Sank and signed 10y sim
nor5. o~ S.umonds and Anchester jointly.
na
f-n,'s uaoer= one check. IL was said, was
f1r SSs+--. drawn IN october. 1910, an
~ber fer 5000. drawn last December. and
others fo~ smaller amounts. The purpose
af these payments 70 "a governmen, officer
vas natter which Mr.. Davidson and his
tents we're ondeaHorinE ~ determine II
,ss SAID
one of these checks recently disappeared
| r,r trs Office of the firm if was said. End
're incident I'D 20 differences between sim
-5r6s and J j Roach. who vas employed
,- .er-.nes. cetter" by tho firm. A.
result Roach left the FIRM and took the
..rt. rs rad obtained with him. gripping
e. fr1, e.--.d4rably. It vas said
resct uro lives A. No 643 - Mark
--rs RrocII,n. said last night that while
s vas err0.'red by the firm. tVo mon re-
--a- came 90 him. rurport'ug 10 represent
-,e~s.r, which ~ ere seriously affected BY
rs fesereI raid. last summer. and offered
s~s large SOM ~ money if he would pro
-,rs ono NJ -re rrecks made out hv The sim
monde frr, 90 tho government Officer lie
promptly punched ono Of the men making
'rs pferosuor and subsequently laid the
-s-ar hefore lIr Suurnonds he said
r-ser minated that 10 did not belie'e
c-- ,f ,he checks vere missing
Arrests Avoided bv Payment
o1 oor.rla,a' Of Roscl vsTsnt Uas
n,.s3 rr Jre-..e NsddoN ~ Brookl'n. last
rfgrsss- for trs arrest of Simmouds and
Arhssts- in ar action for conversion
rcs.h ss- thar the matter involved two
c-sess amounting to about s. .2-@. and that
r7s- -=,t-o '- llu Including counsel and
s-e-.t tae- after ths var~srt0 were served
m Tho defendants
1@rs.s n tre Consolidated stock Ia
] -s-se SAID -esterday that Roach sp-
re',s< te.r- rs~4nt'~ as one of the com
! tsns-'- fhs' t-e SlnronGs firm was m
;,,e-.
C---s.r matters 7er4 brought 20 the #
's-f-. 40 trs exchange trc latter part -
aT reeh -sstrE 1o.nt or the -oi"en"r ~
L Hr~ James p L-ncn. secretary Of the
-,tc.1- Exchange. said yesterds
A. res'earon was ttereupon nsti-
-'s4 rs ih- re-lt 90 which tre commit
-' 7r..- -e7or-'si tho ir~estiEation dc
l-st 'as- PIC cmmonds hrm vas insci-
's---
A41s -s.< -rst -re COMMITTEES found ro
.'fr.. '-4- t.- 0rm rao oeeu dc,ns 9rV
''ks's-oa business t1t had executed sll
l H c-.. orders PROPERLY IN rhe floor of
70 Exchange
/ sfss tc- tr4 Tinted states ristrior
| .r appointed Thcma- T. H-7-irt ot
Ht..- street. - receiver to, the
| 't'1 e. HeVl'' rersr an examination
1 - '-r hooks yesterday and said ~
| i 's he t.- -o- he he'd found 40 asset.
l 'f- ne -N= furniture and feP
+'. 7-.l gat tctal S-,s"
'e-- O., Frederick 6immcu5s rh@
mas de - 81 oTereXtension or
l -'a''s 3, e-'a-nsh.rg h-anch oftices V'ith-
re-- capital llr Simmonds de-
N 10 m-s- 10r stster1eut resferdsy in
'e r-e trm assets tut sad ne
nr'csr.r 'ssue z statement soon ln
o. rne ~neck inCi.srt
il~ had "a branch ofice n this city
-sa,a avenue and 5sth street SIN
"ss '@legraph operator foi tie
'n Ia..- Companv and was for q time
-aIse Of fhe company branch Once
c1escldstsd stock Excbaneo Buiid-
r'i"e rs entered ths brokerage husi-
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"!tRSTATE BOARD S WARNING