New-York tribune., 1918-04-25
Private Detective
Accused of Asking
$4,000 Blackl1,ail
Ralph A. Stemm Said to
Have Confessed Plot to
Fleece Stock Broker

Ralph A. Stemm, private detective
oi ~ broadway, was arrested yester
day in District Attorney Swann's Office
ne is charged with attempting to OBJ
tain $4,000 from Ernest H. Clarke. ,
stockbroker, of 27 William Street. O,
ehe pretence that he would have 6
grand jury investigation of Clarke:
connection with the Barnet Oil ane
Gas Company Of West Virginia
stopped According to the Distric,
Attorney, Stemm admitted after his
arrest that he alone had conceived the
scheme to "hold up" Clarke.
Assistant District Attorney Edward
). Brogan, in charge of the investiea.
ton of fake stockholders and "bluo
skv' Oil and mining concerns that has
been going on for several weeks. re-
ceived information a few days ago that
certain brokers had been advised bv
letter that they were being investi.
gated and that the District Attornev's
office could be "fxed." He was rn,-
nlng the stories down last Tuesday
"nen former Senator James A. O'Gor-
man inquired whether he; had received
any complaints against the Barnet Oil
ana aI @ Gas company of West Virginia.
Mr; Brogan said he had not.
~! have reason to believe that vo,
VIII receive such a complaint. and that
VII be some sort of frama-up." ;"
SAID the former Senator, whereupon hc
handed to Mr.. Brogan several lctters
which Mr. Clarke, his client. had ras .
celved. Stemm identified them all ves.
terday and said he wrote them himself
otemm admitted to me,' said Dis
Irlct Attorney Swami last night, chat
me nag toid Clarke he had occasion to
Gently, end while there he looked over
the shoulder of one Of the assistants
ana saw Clarke's name on naner
lying on his desk He said he told
Clarke he believed q serious charoa
soon would be lodged against him and
ADVISED Clarke to. retain him to fnd
out what 1t was all about. He agreed
TO take the case for a $500 retainer
ana Nlarxe sent him check for that
amount on April 12.
Stemm said he then made severa,
reports to Clarke, and finally ranorted
was the Barnet Oil and Gas C,onna.'
and that it would soon be placed ha,
fore tho grand jury. w.
IN the next report, he said, he in
formed Clarke that the specific charge
against him was that he and othcrs
had rugged the market and by means
OF wash sales had jumped the stock Of
that concern up from 60 cents a share
TO 81, and had also circulated false
reports about a dividend that was
about to be declared. When the diyi-
oend was passed the stock dropped to
oo cents share, Stemm said.
I'm his last report, Stemm said he
had stayed up until midnight with the
man who had charge of Clarke's case
and mad arranged with him to have the
asn,V1estlgatjon Nv stopped, but it would cost
$4,000. Stemm said he told Clarke
mat the deal would have to be mt
tihrough quickly, and asked him to send
the cash to him in an envelope. Stemm
SAID ne warned Clarke always to use use
an outside telephone in ccmmun;cat-
ing with him about the matter and ai-
ways to refer to himself as 'Mr. Har-
Stemm formerly was a publ;, $40.
ton; He admitted he had not been In IN
me District Attorneys office for nearly
two years. "s"A'y