The New York herald., 1922-10-21
CHARGES GIRL HID
BROKER STRONG BOX
Muriel Jensen Worked for
McKenna Firm. Failed
for Millions.
CONTEMPT is ALLEGED
Robert b. Holmes Also Must
Face Judge, Accused of
Helping Her.
DISCREPANCIES APPEAR
Conflicting Stories Told Of
What Happened on Day
of Crash.
DISCREPANCIES APPEAR

telephone operator for the uptown
branch OF William II. McKenna & Co.,
bankrupt stock brokers. and Robert
3. Holmes, Ill East Thirty fifth street,
formerly a customers man for J. G.
Rabiner & Co., bankrupt stock brokers,
We're charged yesterday with contempt
in writ signed by Judge Learned
Hand of the United States District
Court
The basis OF the charge is that on
October 6. the day Of the McKenna
failure. they secreted the strong box
containing securities from the uptown
branch, at 20 West Forty third street,
took it to Newark. where they opened
II, and did not deliver It to Receiver
John r. Lyttle until October 10. They
will appear before Judge Hand next
Monday TO show cause why they should
not be punished.
Liabilities Now S1,OOO,OOO.
The failure OF McKenna & Co., whose
main Offices were at 20 Broad street, at
a;rst announced as a matter of $500, 200
liabilities and $500, 900 assets, is now
estimated by Arthur L. Ross, attorney
for the receiver. as entailing liabilities
OF at least $1,000, 900. The assets are
$4,000 in cash and $500, 900 in more or
less uncertain debts.
Since the failure William II. Nc
kenna has been Indicted for grand
larceny.
The eeeiver has hardly begun to dig
Int +f,a
engaged exclusively in ferreting out the
curious activities since the failure OF
number of persons and concerns con-
nected with or who formerly did busi-
ness with the bankrupt. The story of
what happened to the strong box Of the
uptown branch was pieced together after
mass OF contradictory testimony and
confessions" of four or five persons In
volved. Many details are not yet clear
Tie latest sworn testimony, some of 1t
repudiating testimony OF three days ago.
gives the following outline:
When news that the firm had failed
reached the uptown Office Mrs. Jensen,
who Is only c5 years old and beautiful.
removed the strong box, containing Sc
curities In the custody of the uptown
office, TO the Office OF the Hercules
Cement Company, having an Office on
the same fioor---the sixth-with Nc
left il there without seeing any one she
knew. she retracted yesterday and said
she left il in the room used by Edward
Goode OF the cement company, whom
she knew.
That evening she went to dinner with
John A. Pothoff, manager OF the up
town branch and Miss Ethel Dunbar.
the uptown office stenogra pher. who
lives In Argyle road. Brooklyn After
GiOnar cha M
bar on the subway to go TO her home
and. she admitted yesterday she and
Pothon went back to the uptown Of
fices. though she previously had denied
seeing Pothoff again.
The netx day. Saturday, October {.
about noon. however. Mrs. Jensen went
back 20 the office OF the Hercules Ce-
ment Company. saw Goode and. called
for tho strong box and also a suitca sc
which 1t appears she had left there.
Previously she had testified nothing
about the suitcase and declared she car
rted the strong box out alone She
amended her story yesterday to say tha:
she had telephoned to c. r. Hulser, a
friend. with an office in the Woolwortli
Building. and asked him to meet her a,
the Hercules offices. which he did. She
testified she then arranged for him ia
carry the strong box down and put II
near Seventh avenue. She joined him Q
rev minutes later with the suitcase.
From there they drove TO the Wool
worth Building and left the strong boz
and suitcase in Hulser's office. The,
had tea or dinner in q restaurant in Tho
Woolworth Building. after which they
were met by Holmes, an acquaintanc,
OF few weeks OF Mrs. Jensen. Holmes
she said. brought his own automobil,
ehd t-t~ fr,,@ rr,.t.
Locksmith Opens strong Box.
The stories of both Holmes and Mr.
Jensen agree that they put the strona
box andxihe suitcase, which Mrs. Jen.
sen said contained only personal effects
in Holiness automobile, left Hulser, and
drove TO Newark.
In Newark they visited "A loclssmit;i.
whose name they could not recall and
had him pick the lock OF the strong
box. Next they took the strong box tc
Mrs. Jensen's home and went carefully
over the contents They testified that
the contents were mostly low priced for
eign securities and blank checks and
that they removed nothing from the box
After making their inventory OF tha
strong box they put Il back into the
automobile and went 10 restaurant
IN Broad street, Sewark. and ate. They
then partc1 and Holmes returned e
New York, bringing the strong box with
him.
What happened 70 the strong boa
sunday and Monday morning has no,
been made clear. Sometime Monday,
how ever. Holmes took the box to az
office Of the Western Union Telegraph
Company. near the uptown offices OF
McKcnna Il Co.. and left Instructions
that Il BE- delivered ON the following
Day 20 the receiver. On Tuesday morn
ibg messenger boy staggered into the
Office with the box.
poihom swore that tho last foul
months Of McSenna g. Co. saw the big
: Test volume os business IN the history
Of the concern
lie said he had bought an automobil,
olt OF his salary. and argued that 81, o0C
of the purchase price which he obtained
lrcm Brown was back salary. Wher
sympellcd TO admit that his salary wal
paid each week regularly. he admitted
that Il was loan. but contendcd NJ
had an agreement whereby his salary
reduced from $3.50 a week to 5000. wa!
60 have been restored and. therefore, h'
did not pay the loan and did not owe II
Mrs Jensen refused repeatedly &
answer questions on the ground OF hci
constitutional rights.
The hearings win continue next FRI
day.