The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-07-12
District Attorney Is Investi-
eating Affairs of c. E..
Herrick & Co.
FRAUD REVEALED
IN FIRMS ACCOUNTS
Made No Entries of Sales nor Wrote
Checks by Company-Heads Of the
Ridiculous Gains.

NEW YORK, July l2-Acting on the
complaint of Mrs Alice Sheffield, wild
ow, Twenty ninth street and Third ave-
nue., College Point, who visited the Office
of District Attorney Swami last week to
| tell how she lost Sl,625 as the result of
transaction involving the purchase of
$500 shares of Big Diamond Oil Refining
stock, John T. Dooling, assistant district
attorney, began an investigation into the
affairs of c. F. Herrck & Co., a stock
brokerage firm at 81 Exchange place
He started by telephoning the Office
of the concern last Thursday afternoon,
but failing to get any information that
way, he later paid visit to the Herriek
offices, on the llth floor OF that address
accompanied by Detective Stanley Cor
man and a process server. None of the
heads of the concern were in the place at
the time, and two employees left in charge
gave up whatever books and records the
assistant prosecutor desired to take with
him.
These records, said Mr. Dooling, con
sisted of ledger, cash books, advertis
ing matter and what purported to be a
blotter His examination of these, he de
elared last night, showed that the firm
made no entries of any sales He haC
been unable, he added, to locate any checl
book which might aid in showing how dis
bursements were made by the concern
i While he has been conducting his exam
nation of the firms records and iookin:
into further complaints, Mr. Dooling sale
he made efforts to get its heads before
him, but until yesterday he bad been abb,
to interview for a brief space but on,
of the four men he is anxious to question
regarding its recent activities
This man. Frank Holiday, A. years old
who, according to Dooling, served two
year term in the federal penitentiary sev
eral years ago following his conviction il
st. Paul on a charge of using the mail
to deffaud, came to his Office voluntarily
: yesterday and gave just an inkling of Ill
c formation concerning his connection wit
the brokerage firm Holiday said he ha
been receiving 500 a week to prepare tn
literature sent ont to prospective custom
ers.
n He said he had resigned June % becaus
he has found<it increasingly difficult t
Eget results in his line of endeavor sine
q 1.-THE district attorney, by his activitie
V against stock brokers, has taken the hear
o out of most of the specializing public
3 | Promising to tell much more about tn
brokers who are under inquiry, Hollida
!, asked to be excused until after he ha
\ mnched. He also desired, he said,
!. step out and get certain papers whic
would establish his responsibility. NJ
T Dooling was still awaiting his return
. late hour yesterday evening.
- The others sought by Dooling al
= Charles E. Herrick, president: Albert ID
Witt Blum, treasurer, and Frederick
. Griesheimer, the former husband of i
:. liam Lorraine, the actress Herrick. a
! cOrding to DOOling, is merely the dur
. my" head of the concern, while Blum al
= Griesheimer are the real directors.
!. AIR. Dooling said employees of Herrit
70 & Co told him most of the money tax,
~ in by the concern went into the priva
bank account of Blum, and that som
- times it was drawn to the order of OIL
- of the clerks ON whose Endorsement it W
:. then deposited to the account at Blum
o :, bank These employees were unable
u tell how it was that no records of sal
:. or other transactions were kept by t
~ firm
as The Big Diamond Oil Refining c
81 whose stock was made the subject of t
alluring advertisements and fold'
- turned out by Holiday, appears, fro
!, ao what Mr. Dooling has thus far been al
ne to learn, to be Delaware corporate
Sc capitalized at 100000, supposed to ha
g property in the Burke Burnett fields
ne Texas The circulars and letters ma
ny much of man named Bradstreet, vi
~, as chairman of the Big Diamond board
III directors, is by inference associated W
II; the Bradstreet Familiarity known throu
II ont the commercial world. Mr., Dool
IN says that his information is that t
Bradstreet of the Big Diamond oil conn
nj ton used to be mechanic in a cl'
ere factory in Connecticut. Prospective
MS vestors are informed through the adv
len Using circulars that $4,000 can easily
I'M made to grow into 10000"
Mr.. Dooling says that according to
indications more than $4,000 has b
an lost by customers of Herrick ( Co.
ger visible assets, so far as he has been q