Evening star., 1916-02-13
NOT ON THE BALTIC,
BUT IN WASHINGTON
DR.. J. Grant Lyman, Wanted
for SWind|ing, Seen Here
Thursday.
REPORTED ON THE WAY
TO EUROPE AS FUGITIVE
Louis B. Thornet, His Alleged Part
ner in Mining Stock Frauds.
Arrested in New York.

NEW YORK, February 12.-Louis B.
Thornet. who is accused with DR.. j.
Grant Lyman, convicted swindler, of
operating the defunct brokerage firm
of John H. Putnam & Co, as a
a scheme to defraud mining stock In
vestors. furnished $4,000 bail in the
federal court today. and his examina-
tion was fixed for February II. Thor
net, who acted as manager OF the COM
pany. was arrested yesterday.
Lyman, who the federal authorities
say Jumped bail after conviction for
mail swindles in Los Angeles in 1914,
was at first believed to be on his way
to Europe aboard the steamship Bal
tic but assistant United States District
Attorney Stanton received Information
to the effect that Lyman was seen In
Washington, D. c., after the departure
of the steamer Thursday.
Frauds Amount to $500 900.
Mr.. Stanton. in asking that heavy
bail be fixed for Thornet. said that the
alleged frauds perpetrated by the Put
nam company amounted to between
100000 and 100000. Thornet. de-
claring his innocence, said that the
conspiracy charged against him began
December 1, 1915, according to the
complaint and that he could not nave
been a party to it because he did not
arrived in New York until January ~.
He said further the Charge was predi-
Gated on the fact that he had helped DR..
Lyman escape from Jail in California,
for which he has already served
prison term.
The complaint alleges that John H.
Putnam''-in reality DR.. .Lyman-falsely
represented to a would-be investor in
oil shares that because of the fact
that Charles S. Hardness. his business
associate" was a member of family
who owned S70,000,000 of Standard OIL
stocks he would be able to give him
advance information as to the rise and
fall in oil securities.
Says He Was Only Clerk.
Questioned before United States Com
missioner Houghton today by John J.
Lyttle. receiver for John H. Putnam &
Co., Thornet said that he was a ma
chinist by trade, denied that he was
manager of the concern and said that
his duties were purely of clerical ma
ture. DR.. Lyman, Thornet said. opened
the mail and was secretive about the
way the business was conducted
A few days ago. Thornet continued,
DR.. Lyman informed him that his part
nor, "HarkneSs," was in town and was
displeased at the way the company's
business was expanding. because he
had a largo sum invested in it and had
suggested more conservative methods
Of investment During the first three
days of this week, Thornet said. DR..
Lyman drew s6s.000 of the firms
money from banks. and also tried to
get a check for $500 cashed. but
could not get it honored. Thornet
added that he had trouble locating DR..
Lyman. because the latter spent much
of his time automobiling about the
city with a woman companion. He
turned over to the receiver a gold
watch and a diamond pin, which. he
man had given him in order to make
a good appearance at the office"
Thornet also furnished the receiver
with list of all the brokerage firms
the concern had transacted business
with, together with banking institu-
tions with which it had deposits.
Here Under Different Name.
1t is stated that a man answering
DIR. Lyman's description was seen in
this city Thursday. He was here un-
der q different name. however. although
the police are reasonably certain of
his identity. He was not here when
message came from New York Friday
morning asking for his arrest, 1t is
stated, or he was under cover SO well
that the police were unable to get the
slightest trace of him.
DR. Lyman is man who weighs con-
siderably more than 200 pounds, it is
stated, and can easily be identified. A
likeness of the alleged swindler is in
possession OF the local police.