Midnight in the New York Block: A Creditor Catches a Stock Shuffle

An application by the Rocaford Watch Company, a creditor of Mayer and Rumpf, for appointment of a receiver for Mayer's stock in the New York block brought out a revelation in Judge Langley's court yesterday. William Harris, who had attached Mayer's stock and realized on a note against the firm, was unwilling to make an affidavit but willing to testify. Samuel H. Piles related what Harris would swear to.

Rumpf & Mayer owed William Harris $1,450, for which he held their promissory note. Harris was working for J. K. Basye & Co. and noticed Basye and Mayer in close, private conversation for several days. Harris asked Cline, a member of the firm, whether Rumpf & Mayer were in financial difficulty, and Cline said they were not. That evening Harris learned that Cline or Basye had told a clerk to have the store unlocked at 12 that night, when goods would be brought there.

After dark Harris saw Basye and Cline go by a roundabout way to Mayer's place in the New York block. Harris came to Piles's office wanting to swear out an attachment, but could not find friends at that hour to go on his bond. Piles told him to have men watch the building and, if goods were moved, to expose the attempt and demand his money. Harris employed two men. At 11 o'clock, while Harris crouched in the alley, he saw men coming out of the rear entrance. A German stranger took him for a burglar and approached with a heavy cane, but Harris explained and the two watched together. Goods were carried along the alley from Mayer's place into Rumpf's place by a back entrance.

Harris walked into Rumpf's place and found Rumpf, Cline, Mayer, and Mayer's brother taking care of the goods. He said: "Ah, ha, gentlemen, so this is the kind of a fraud you are perpetrating, is it? I'll now go to Mayer's store and see what is being done there." Cline ran ahead to Mayer's place and tried to slam the door, but Harris put his foot in the crack and forced his way in. Inside were Mayer and Basye fixing goods to be carried over. Harris warned them all he would hold them responsible for the fraud. Later he found Basye, Cline, and Rumpf changing the combination on the safe and again warned them.

Harris sent a carriage to Piles's home, and at 4 o'clock in the morning attachments were levied on both Rumpf's and Mayer's places. The next morning Harris met the parties on the street and again warned them. This was before banking hours, and Basye had time to stop payment on the $5,000 check he says he gave Rumpf for the latter's goods. Cline told Harris: "Harris, you must excuse me for not telling you Rumpf and Mayer were in trouble. I was pledged to secrecy." Mayer, finding his property attached, got money and paid Harris the $1,450 he owed. Piles said he had no doubt they could prove this money came out of the $5,000 check given by Basye to Rumpf, and that all the parties named except Harris were in a conspiracy to defraud creditors.