Evening star., 1932-04-29
SENATE WITNESS
SUSPENDED BY u. S.
Tariff Commission Learns
Edward P. Knight Was
Arrested in 1929.

The Tariff Commission said todav
that Edward p. Knight, an employe of
the commission in New York and a
recent Senate stock market investiga-
ton witness, has been suspended be-
cause Of his arrest in 1929 for alleged
juggling Of accounts of a brokerage
house and also for failure to make a
statement as requested by the commits
sion.
His application did not state that he
had been accused of a grand larceny
offense. the fact of which was learned
by the commission since Knight testi-
fed before the Senate Committee. The
ment and when he failed to do so,
suspended him.
Work Ends Next Month.
At the commission. it was said
Knights services probably would have
terminated next month when the valu-
alton work upon which he was engaged
would have been completed. Each
applicant for q commission position is
required to state whether he has ever
been convicted or accused of a crime
or misdemeanor.
Whether knights suspension will
finally result in his loss Of job. will
depend on action taken when and if
he files the statement sought Tie
commission said the suspension had
nothing to do with the stock market
investigation.
According to the New York Herald
Tribune, knight was arrested two years
ago for juggling accounts of the broker
age house Of Dean. Onativta & Co.. and
pleaded guilty to f1rst-degree grand lar
ceny.
Placed on Probation
Knight, employed since November 13
as an accountant in the New York Office
Of the Tariff Commission, at the Gus
tom House, received a suspended SEN
tence for his offense from Judge Max
s. Levine in General Sessions and was
placed on probation for three years. He
was suspended Thursday from his po-
Sition with the Tariff Commission, and
confided to associates at the Custom
house that the commotion he created by
his testimony In Washington probably
was the cause.
1t was understood that his suspension
was ordered by the commissions head
quarters in Washington. The Senate
committee, it was said. summoned him
to testify on the strength Of letter
which he wrote to the Investigators Of
the Stock Exchange, indicating that he
had many years Of experience in Wall
Street and could give ennghtening in
formation.
knight testified that in recent pool
organizations It always had been con-
sidered best to have the specialist in
the pool"
Senator Brookhart, Republican. Of
Iowa, put this question to him: When
a specialist of that character turns in
formation as to orders on his books over
to men operating pools, that is q
betrayal Of his customers interest,
isn't it?"
"Yes. SIR" Knight replied.
Knight is 80 years old and lives with
his wife and 11-year-old son in Rich
mond Hill, Queens.
His employment record indicates he
has drifted from one brokerage house
to another. Explaining his employment
with the Government, Henry H. Waters,
chief OF the New York branch Of the
Tariff Commission, said that Knight
had filed his application with the ma
tional offices at Washington and that
he had been assigned to the local ofice
around November 13 last for accounting
work.
knight told a reporter for the New
York Herald Tribune: "I must decline
to reply to any questions, because the
Senate committee has placed seal Of
silence upon my lips. I can, therefore,
tell you nothing either about myself
or about my appearance at Washing
ton"
AT the time of his testimony vir-
tually nothing OF Knights qualifica-
tions or identity was vouchsafed either
by the Senate committee or the Tariff
Commission beyond the fact that he
was an expert Of seven years. expert
ence in Wall Street. The Tariff Com
mission declined to make public any
information, saying the personnel files
were confidential
The court records on the case show
that Knight, q margin clerk, and other
men had engaged in q scheme to steal
large sums Of money from the frm
by juggling customers accounts. The
scheme consisted Of credittng the Gus
toner with much more money than he
had on deposit with the firm and per-
mitting him TO draw on the increased
account, splitting the extra sums with
those In the plot.
Richard H. Gibbs, the assistant dis
trict Attorney, who prosecuted the
case. produced evidence showing that
the boosting of four such accounts
resulted In the theft Of more than
S26, 900, and that Knights share was
5000. The peculations, however, we're
not discovered until August IL. 1927.
when auditors were going over the
books of the company in preparation
for q liquidation of the firms assets.
When asked on various occasions
what he did with his $4,000 share
Knight said, according to the records,
that he spent it in speakeasies and for
liquors.
He was tried with his confederates
on February IS, 1890, before Judge
Cornelius F. Collins in General Ses-
sions, the trial resulting In q disagree
ment. He subsequently pleaded guilty.