The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-30
ELEVEN INDICTED IN
STEIN BANKRUPTCY
Two Lawyers and Firm Of Bonis
4 Co. Accused With Fur
riers Who Failed.
ASSETS ARE ALL TRACED
Girl Accused Of Contempt
Changes Mind and Testifies
in Samuels Case.

Eleven indictments were handed down
yesterday by the Federal Grand Jury
charging conspiracy tn conceal the as
sets Of Jacob Stein a. Sons, fur dealers OF
% West Twenty sixth street. who were
put into bankruptcy several weeks ago.
Among the defendants are two lawyers.
at least one Of whom Is accused of hav
ing been active in advising the members
OF the firm how to dispose Of assets with
the Aim Of cheating the creditors.
These indictments, which were voted
on Monday, as already told in THE Sun,
are the first Of a series expected within
a few days as the result OF the investi-
CATION being carried on by United States
Attorney II. Snowden Marshall into the
methods Of lawyers and tricky business
men aimed to defraud creditors by fake
bankruptcies.
The charge is that the defendants
sought to conceal furs amounting to al
most $4,000. Only two members OF
Stein Sons were indicted. They are
Jacob stein and his son. Phelps Stein.
Another son. Herman. now returning to
this country from Europe, is not in
volved. Four members OF the firm OF
Bonis q Co. fur Dealers are named as
defendants. The firm is charged with
receiving furs amounting to $4,000. for
which they paid $4,000. from Stein &
Sons Just before the petition in invol-
untary bankruptcy was filed.
The men indicted are Henry NJ. Bonis
and Samuel Bonis. Isaac Weinstein and
Samuel y. Samuels. Louis A. Malvin
Of the fur firm of Malvin & Co. which
has failed. also was made defendant
Solomon Papert. employed by Stein
Sons and a son-in-law OF Jacob Stein.
ana Philip Fishkin. furrier OF 100
West Twenty-ninth street, another SON.
u-law Of Stein. are two more defend
ants.
Two Lawyers Accused.
The two lawyers named IN the indict-
ments are Henry KuntZ OF SO Park Row,
counsel TO the Stems, and Alexander
Bloch OF 346 Broadway. said to be a
relative OF the Stems and also OF wealthy
persons to whom the Stems owed money.
Bloch insists he had nothing more to do
with the case except to look after the
interests of certain friends.
Kuntz has figured IN number Of
bankruptcy cases in the last three or
four wears. He Is described as an ex-
tremely pleasing man. intelligent and
highly versed IN the bankruptcy law.
The indictments were handed in TO
Judge Killits in the Criminal Branch OF
i>the Federal Court about o'clock yes
returned TO their room to take up con-
sideratlon Of the case OF Samuels Co.
another big failure
The defendants had been held Tor an
examination before United States COM
mi ssioner Shields NJ . o'clock and they
were referred by him to the Criminal
Branch All We're present except kuntz
and Malvin. Their attorney promised they
would lie in court to-day. Bail for Mai
win was fixed at $4,000 and Judge Killts
agreed that the amount Of bail in which
.; the other defendants had been held should
remain unchanged.
Fur Association Began inquiry.
The Investigation into the Stein case
was caused by Stephen Brooks Rosenthal
| Of Rosenthal & IIeermsnce attorneys for
! the Fur Merchants Credit Association.
! Mr. Rosenthai. working In tine interest Of
| the association. already has caused ar
| rests In three or four alleged fraudu'en;
| bankruptcies, brought about the conv!c-
| ton OF one lawyer and Of several business
men and also started an investigation by
| the District Attorneys Office into still!
| another case.
The investigation into the Stein failure
| by the Federal authorities brought on,
! testimony that on the Sunday before
| the bankruptcy proceedings were started
the Stems were in their place of business
and that Jacob Stein teiephoned TO Max
| Berman, n creditor 10 come over to see
him. Stein is alleged to have said: Come
over al once We are going 20 fail and
! want 60 take care OF you"
| herman went to the shop with Louis
| MaEnevitz. Neither OF these has been in
| dicted. The elder Stein. il Is charged
| explained that Bonis 4 60. were WILLING
to pay $4,000 for some furs worth a
great deal more, anu he wanted herman
| to outbid Bonis & Co, explaining that the
furs would more than cover the other in
| debtedness. herman telephoned to his
| lawyer and was advised against the trans
| action.
Meantime. It is alleged kun,z had gone
| to tho Hoffman House. where he engagcd
| a room. and from there called numbe,
! OF persons on the telephone. the record
OF which the prosecution now has. one
| of these Is said to have been Henry Silver
who fi!ed the first petition in involuntar,
bankruptcy. Presently the Stems. the
! Bonises and several other defendants APP
peared with Mannewitz and herman
| The charge is that in that meeting the
plans for hiding the assets were dis
cussed fully. Kuntz Is alleged to have
taken an active part in this meeting.
arguing both with the members OF Ronis
& co. and with Berman. while Bloch sat
| silent.
Liabilities Were &I7S,OOO.
The liabilities of the company wer,
found by the receiver to be about SIf5.-
600 and only between $4,000 and $4,000
| In assets were recovered. Investigation
it is said, showed that nineteen bundles OF
furs worth about $4,000 went 20 Bon,s
| Co. There were twenty-nine other
! bundles or cases which the receiver To-
Gated. Fishkin got two cases. il is said
| Papcrt. eleven cases or boxes Mannevitz
! a herman, 1--WE cases. All of this
. property has been returned 10 the re-
! ceiver.
! A number of bundles were traced 10
! the Custom House 1t is charged tina,
/ Phelps Stein went to the Custom Housa
and to brokers and tried to get possession
| OF these furs.
The Grand Jury will continue Its IN