The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-28
HOPES TO STAMP OUT
FAKE BANKRUPTCIES
L. s. Attorney Marshall Prom
Uses Vigorous Action in
His Crusade.
NAY ASK FOR A BUREAU
FavOrs Systematic Study by
Government Of Fraudu-
lent Failures.

"There is scarcely n business man in
this city who has not been compelled in
the last four or five years to mark off his
books as a loss money due him by
some tricky business man that went into
bankruptcy. These fraudulent bankrupt
cies are a very. very serious matter TO
the business community. and IL there was
any way Of computing the annual loss
due to them II would he found that the
total is enormous
Such was the emphatic statement OF
United States Attorney II. Snowden Mar
shall on his return from Washington yes
terday. Mr.. Marshall not only verified
the stories printed In THE Sun concerning
the crusade which he Is making against
the INSCRIPTIONS lawyers who aid crooked
business men In cheating their creditors
but added additional details.
Mr. Marshall said that he has n staff
OF assistants. aided by expert accountants.
Government investigators and detectives,
investigating at least twenty-five bank
ruptcy cases where there has been al
legged concealment of assets: that he in
tends II necessary to ask the Federal
Government to establish In this city a
bureau FOR the study OF fraudulent bank
ruptcv cases.
Mr.. Marshall is deeply concerned over
the development OF fraudulent cases in
recent years. He Is determined to dc
everything within his power to stamp /,
ont not only by prosecutions but by q
thorough study of cases. He hopes e
show crooked business men that 1t M
longer is safe to attempt TO defraud theii
creditors.
More Indirt me nts in Prospect.
Out of the cases that he has under
scrutiny many more indictments are eX-
peCtcd 20 come The Grand Jury. which
on Monday voted AZ least ten indictments
in the case of Jacob Stein a. Co.. proba hi
will return those indictments in few
days and then take up another case IN
which the assets dwindled in six months
from NOR. than $500, 000 TO about $40, 600
In the latter case four or five indictments
are expected.
Three women SAID to have been con.
cerncd in aiding the conCealment of assets
Of the firm will receive the attention q,
the Grand Jury. one of the women 1.
said to be wealthy and live In Contra
Park West. 4 lawyer also is said to b,
involved.
While Mr.. Marshall declined to discuss
indictments, he did not deny that in few
days there might be startling and mpor-
tart DEVELOPMENTS.
I'VE have gone into n number of cases
thoroughly" said Mr., Marshall "Whil.
II cannot be said that We are CONDUCTING
a John Doe inquiry. We are making a
| thorough investigation into the methods
followed by bankrupts and certain law.
yers who have figured in several or more
suspicious cases in the last year or more
| II necessary We have followed cases back
| for four or five years.
I've have found that the same method.
have been used In different bankruptc,
| cases. and the striking thing is that the
| same lawyer figures In each case. Severa
other lawyers have employed the same
| methods. While am not inclined TO think
| there is ring, there are men who make
! II IA practice. and have done so for years
of teaching their clients how TO hide as
sets