The New York herald., 1921-02-04
FINANCIAL FIRMS
FENCE SUSPECTS
Tracing of $4,000 Bond
Theft in Brooklyn Points
to Reputable Houses.

Renewed investigation by the police
and Harry E. Lewis. District Attorney of
! Brooklyn, into the theft of $446.000
worth of bonds in front of Igoe
Brothers factory IN metropolitan avenue.
/ Brooklyn, last November may lead to
the disclosure that several financial in
stltutions of high repute have been act
I ing as fences" for the disposal of stolen
! securities. il developed yesterday.
/ Mr.. Lewis and his assistant, Marshall
| Snyder, examined three men connected
with the discovery Wednesday that $780,
! 600 worth OF stolen bonds had reached
K! the Federal Reserve Bank in this, city.
What was learned merely gave an ink
ling into far reaching ramifcations of
bond transactions. Mr. Lewis said. For
that reason he would not disclose in de-
tail what the men told him. but init
mated that within a week an investiga-
| ton woul bring startling disclosures.
The men questioned were James NJ
Price. in charge of Government securi-
ties at the Federal Reserve Bank; John
W. Sheppard. cashier for c. F. Cpilds &
Co.. and Hamilton Fish Kean of Kean,
Taylor & Co. None of these men or
companies is in any way involved. Mr..
Price handled the changing of the $780,
900 worth OF bonds. when presented in
$4,000 and $4,000 denominations. to
bonds Of $1,000 denomination. Mr..
Sheppard related that the bonds changed
had been received from the Childs COM
/ pany's Chicago Office, where. he under
stood, were $4,000 more Of the stolen
bonds.
/ The Let Of s23j.o0O. 20 his knowledge,
was bought ny the Chicago office from
the Union md Planters Bank and Trust
Company o Memchis.S Tenn. A despatch
o fst.s l. lat tAI ft.lt
Chicago office had distributed the $145.-
900 lot in that city. and efforts now are
being made to recall them and return
them to the Memphis bank.
| The local lot of $4,000 is in the
/ hards of the Federal Reserve Bank. It
| developed. that institution having ac-
cepted them when asked TO make
| change" because on their face they were
negotiable securities. The question OF
whether the Federal Reserve will return
them to either kean. Taylor & Co. or to
/ Igoe Brothers, to whom they were con-
/ sigred when stolen. is matter that
may take court action to decide
Inspector Coughlin at Police Head
quarters sent two detectives to Memphis
/ Wednesday night to find out who took
the bonds to that city
Mr.. Lewis was willing 10 d'sclose this
! N uch--that so far as his investigation
las procS eded Il shows the same care
iessness apparently prevails among tn,
tanks and brokerage houses that has
Leen responsible for so many thetts OF
! securit es. The stolen bonds have passed
! through the hands Of many banks ana
financial institutions since last Novem-
bcr. he said. yet apparently no compari-
/ son of their numbers was made with the
| widely published lists of stolen securi-
| ties until they reached the Federal Re-
serve Bank here. and then only after
other bonds had been issued in exchange
| tor them.
MEMPHIS. Tenn. Feb. "a total OF
| s255. 900 of the bonds stolen from kean.
TayloF & Co. New York brokers. In
Brooklyn last November, was sold to the
Union and Planters Bank and Trust
Company by Priddy & Williams local
brokers. police investigation developed
to-day. The bank in turn sold the bonds
to the Chicago Office of c. +. Childs d
Co The bank officials say they never
received a list OF the numbers Of the
bonds stolen in New York. The police
say the same.
Mr. Prddy said he bought the bonds
in two lots. of $65. 900 and 100000. He
said the 100000 lot was offered by a
man representing himself TO be Mr..
/ Cameron. OF Coahoma county, MISS,
who wanted $4,000 cash to cover cot
ton market losses The S65. 900 lot came,
through a local jeweller. from W. l..
Huntley. vice-president of the National
City Bank of Memphis. Mr.. Huntley
said he handled the sale as private
transaction for man named B. Ander-
son. whose address he did not know. and
acted i'm good faith. Tonight he re-
signed his Office. and the directors ac-
cepted IL.
Anderson Is believed by the police "a
be ono OF two New York chauffeurs who
were arrested here January : for pos
session OF a quart OF liquor In their car.
The local man who bailed them out is
said to have interested fiuntlcy in the
bond TRANSACTION. According TO w. T,
Grimm. chief OF tho detectives. an arrest
and the recovery of other lots OF stolen
securities Is imminent.