The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-22
EIGHT ARRESTED IN
SALESMAN SWINDLE
Business Houses Said to Have
Been Ruined by Men Taken
by L. s. Officers.
ARREST OTHERS TO-DAY

An alleged swindle Of huge propor
tlons, through which several small firms
have been forced into bankruptcy. was
revealed yesterday when post office in.
spectors arrested eight men on tho
charge of using the mails to defrauc.
More than a score Of other arrests are
expected to-day.
The arrest last week Of Leon Bam-
berger, 60, who has served terms In jail
here and In London. II Is alleged. on
charges of commercial swindling. re-
suited in the disclosure. ENidenc"
brought out Yesterday before the Federal
Grand Jury by Frank VI. Roosa. ASSIST
ant United states District Attorney re-
vcaled instead of proof OF the activities
of one man the outline of "A large COM
LInation which had been in prosperous
operation for several years.
Tho men arrested yesterday were later
prraigncd before United states Commits
sloner Clarence :. IIoughton. Bail rang
Ing from $500 to $1,000 was given by
lack Levy, said to have been The hus-
band of the late Della Fox, the actress .
Joseph 3. Schwartzberger, a lawyer :
Henri T.. NleXanucr, an opticiail. pr.
Francis l.. smith of 3t7 Fifth avenue
Sigmund Weitzenblum. "A collector Her.
man Roth. u lawyer: Harry :. Goldman,
q lawyer, II Charles W. Scherer, a
zeal estate dealer. who is said to nave
an office at "a Broadway.
The first move in each OF the numer'
GUS swindles, according to Post ONCE In.
spector Barber. was the application OF
Leon Bamberger to some small firm al
yertislng for a salesman. Bambergei
would convince. the members of the firm
that he was an Al salesman, and would
tell them hat he knew 200 reliable Gus
toners who would give the firm theii
patronage II Bdmberger was on thei!
selling force. These tactics usually wor
a Job for Hamburger, who always stipu
lated that he get II drawing account ano
BE- paid on a commission basis.
For a few days after the engagement
Of the new salesman business perked W
and orders from the new customers
rolled In. Eager to please their new
business acquaintance, and urged on b!
Bamberger, orders were made up with
great promptness and shipped TO tn,
customers. who were alleged to be en-
tirely trustworthy AMI quick to pa,
their bills. With equal CELEBRITY BAN
berger would collect the commission:
due him.
When the game was about played on
with that particular firm Hamburger.
ia alleged. wou.d disappear. and thu
merchants employing him would neveI
recover their shipments 10 the trust
worthy customers who disposed o
them ut II sacrifice at the earliest op
portunity.
According to Assistant District At
torney Frank NJ. isoosa, more than
hundred firms nave been worked In thi
manner by Bambcrger in the last hv'
or six years. The Federal authorize
have already come In contact with mer
chants who have lost upward of 100000
The orders. Mr.. Roosa declares, "wer
usually below $1,000, for firms wcult
not generally be willing to ship good
Of higher value to a customer on thei
new salesman's say So. II the good
were sent c. q. ID. to Bamberger's con
1ederates they would be refused. Firm
dealing in all sorts OF merchandise wer
duped IN this manner. Mr.. Rosa says
When Jack Levy was arraigned be
fore United states Commissioner Hough
ton, he waived examination. His baI
was fixed at $1,000. He said he in
tended TO pay Edward ]. Murray.
tailor of li3 East Twenty-third stree
the cost If the goods sent to hir
through Bamberger's order.
lie later was hailed out by a suret
company after Naleska Surratt, tn
cctress, had guaranteed the compan
from loss,