The evening world., 1911-03-24

tSNtCu Wv ~ urn VI - y I N
Company. which was raided by Scar
barough. the special agent had n
''ffouse account with the slmnonds
firm. In the course. OF the evidence John
j. Roche. formerly an employee OF the
frm, No. 633 st. Marks place, Brooklyn.
swore that he was offered $1,000 TO take
the check paid Scarborough as a result
OF his trades out OF the Office m give 1t
TO two men. He said John II. Reilly,
bookkeeper for the Arm. had opened his
eyss to tho conditions existing In the
firm prior to his own refusal to continue
with II.
Calls Them Both Crooks.
80 Reilly opened your eyes TO It,"
asked the lawyer for Simmonds.
Eyes. Reilly opened my eyes to 81:
that they are both crooks. not merely
bucket shop operators. but crooks. both
Of them"
Asked about a visit to his home a
short time ago. Reilly replied.
RED Letter sullivan came 20 my
home with Pete Clark who had been
introduced to me as n reputable mem
OF the Consolidated Stock Ex-
%'eS, b's h'h' NV tlti they fD-
resented Mckay. the bucketshop that
was closed in Chicago; Celia Brothers
and George Graham Rice. They asked
mo II / would take the scarborough
check out of the ONCE ana give II to
them they would give me $50, 900. I
punched Clark In the mouth and hit
Red Letter sullivan. telling them
thst ! never did that sort OF busl-
nees.''
Anchester Tcils Of Joint Account.
Henry Anchester. n member OF the
nrm' testified that he had put money
into an account run under his own
name and that of Scarborough.
Scsrborough was present at the OPEN
ing OF the session In the Post Once
Building under. the impression, whicn
proved erroneous. that he was wanted
as q witness.
He discussed his transactions and his
removal FROM Office by the Department
or Justice after tho discovery of his
stock trades. He said:
Z never received any favors from
Mr.. simmonds. Ny trading was open
and above board and perfectly legiti-
mate. The Arm did not do 4 buckle,
shop business
Built Up Slick Wire System.
Anchester proved n hostile witnes.
when Receiver Werblln sought to ex.
amin him. He said that the amour,
he put In the NEUTRALITY-SUSPICIOUS.
account, indicating that the Govern
ment agent was trading in conjunction
with the former Scheftels man, amounte,
TO 300 at the closing OF the account
He did not say how much IL had beef
during the life OF the account Whel
he was asked what he did while EN-
pioycd by Simmonds. he said.
Built up the slickes, wire system yo
ever saw In six months"
He said that he often loaned none
to Simrnonds, and n hooked" h,
diamonds for $3.50 10 make a loan white
Simmonds paid later.
After Anchester's testimony the atto1
neys went on a fishing expedition wit
Frederick simmouds IN the chair 20 a.,
cover what had been don with the Al
sets OF the firm, Simmonds said that 81
did not consider himself insolyent nov
lie said that Anchester n himse
had agreed TO furnish equal amounts
capital and TO share equally In q
profits.
Tells OF Scarborough Account.
The Investigation pulled from Sir
o the fact that the account carr,
in the name OF George $. S~carbo-,ou.
was a "house account 4 house a
count" is understood generally IN O.
financial district to means an accou
carried by the members Of the fir
themselves for which the firm me,
hers. and not rhe person I'm whose mar
the account Is carried, puts up :
margin.
This Is the common acceptance Of Z
term as used in the street
Such an account is used where Z
purpose Of the firm Is 60 give anotl
the benefits Of pending trades witho
attaching 10 the person any liability
losses that may accrue.
Simmonds TESTIFIED that the house p
four joint accounts known as the I
sany, being the phouetics FOR the i
tails Of The tNaln, the f. and H.,
Jordan and the Connolly accounts,
What other house accounts did y
have?" asked Mr., Werblin.
"Anchester and Scarborough" he
piled.
This statement. with the Arches
statement, made II appear hat the
count OF the Governments special AK,
was carried as a house account, coup
in the running with that OF the W
navel. who had been among IA,
pr1tent when the old Scheftels PAol