Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-27
TEN INDICTED IN
BANKRUPTCY WAR
Lawyers in Net of Federal
Grand Jury5Stein Makes
Confession.

NEW YORK, Jan. 27.-Ten indict-
ments were voted yesterday by the
Federal Grand Jury, and more will
come within a few days, as the re-
suit of the energetic campaign
being made by United States Attor-
ney II. Snowden Marshall to end the
activities of INSCRIPTIONS lawyers
and business men who seek to de-
fraud creditors by fraudulent bank
ruptcy cases.
The indictments, which probably
will be handed down today, are re-
ported to be against persons con-
nected with Stein & Co.'S recent fall
ure and with the bankruptcy OF
three other fur concerns. Two of the
men are said to be lawyers, who are
accused of having aided the members
of the bankrupt firms in hiding va
vious assets.
The indictments probably will not
include Jacob Stein, senior member of
the firm of Stein g. Co., because he
offered himself yesterday as witness
for the government, saying he wished
to tell eevrything he knew.
The aged Stein, weak and trem-
bling, had just been released in $4,000
bail after being in the Tombs for
several days on a charge of con-
spiracy He was hurried to the room
OF Mr.. Sarfaty, where he was closet
ed with the assistant United States
attorney and Stephen Brooks Rosen-
thai, attorney for the Fur Dealers
Credit Association, whose activity
was largely responsible for the reve-
lations concerning the firm.
stein Fears His Own Family.
Stein was asked if he wished coun-
sci, and was told that anything he
Iao mead n GA n Of him
He threw aside such suggestions, but
said he was in great fear of MEM
Der of his family; that he wished alb
solute secrecy, saying that a certain
person had attacked him and knocked
out his front teeth, and that more
harm would come to him if his talk
with the United States attorney be-
| came known. He threw himself alb
solutely on Mr.. Sarfaty's mercy.
The conference was interrupted by
| the abrupt appearance Of Phelps
| Stein, son of Jacob.
Nov, you've spoiled it ALL said
stein, all a-tremble. He was quoted
and taken into the United States at
| torneys private room, Mr. Marshall
being in Washington, where for two
| hours he talked in detail to Mr.. Sar-
! fatty and Mr.. Rosenthal. He gave lit
tie information that the authorities
] did not possess, however, as two men
! who were close to the dealings of
! Stein 6, Co, and who attended meet
/ ings prior to the filing of the bank
! ruptcy petitions, had told practically
/ everything that Stein had to say. II
| is hoped he may add more to his
story.
Isaac Levy, attorney for several
members Of the fur firm of Bonis &
! Co. who are under arrest, hurried tc
the court where Judge Mayer was
sitting and made a charge that the
United States attorneys office was
holding Stein in duress The judge
thereupon summoned Stein, Sarfaty
Assistant United States Attorney
BOYLE and Mr.. Rosenthal before him
Mr.. Levy made speech, Mr.. SarfatS
explained the situation fully, but
Judge Mayer insisted that this Is
not the country where a man can be-
questioned without being warned o.
his rights"
!, Judge Mayer called Stein to hin
and talked with him. He then an
nounced that he would not permit
Stein to be questioned by O represen
tative of the United States attorney:
office except when accompanied b.
counsel. He appointed Leon Lauter
stein. a friend, who happened to be il
, court, to act without compensation
Z in the interest of Stein.
: Such action" protested Mr.. Boyle
, may be construed as a reflection OIL
, the United States attorneys office"
: you do not understand the stu
/ alton" replied the judge, land NJ
such inference can properly be drawn
l will not permit this thing, however
IN 20 on | want this man to haV
something to eat and then have a res
before he is questioned further, be
cause If the case came before me
could not accept the statements o
this man made under such circum
stances"
The witness, accordingly, was take
to a restaurant, it being then nearl
o'clock, and received food. He the
went to his home, and no further in
formation was obtained from him.
Meantime, however, other assistan
district attorneys, who were workin
on other phases of the bankruptc
casa had taken witnesses before TIL