New-York tribune., 1871-04-22
An OPEN SPINDLE.
THE MERCHANTS AND MANUFACTURERS
COOPERATIVE DISTRIBUTION.

THE MERCHANTS AND MANUFACTURERS
COOPERATIVE DISTRIBUTION.
WHO ARE THE PROPRIEToRs AND MANAGERS
HOW THE swINDLE IS PERPETRATED-FIC-
TITIOUs DRAWERS OF PRIzES-A THOROUGH
EXPOSURE.
There is in many, and perhaps most per-
sons vein OF gulliblity which no amount OF expert
ence seems sufficient 10 eradicate. 1t Is, therefore, an
almost thankless task expose the various mposture
daily practiced upon the public; Tor WIN h@rdly an
alteration IN their conditions they are almost certain to
he resuscitated and to find another or the same great
army OF dupes ready TO be deceived by them IL Is on
this welgrounded belief in human creduity, that the
principals In the Merchants and Manufacturers 10
lucrative Distribution have started this their latest
and most audaciOus swindle; and SO many perSohs-
confessedly vlctims-have written to TIE TRIBUNE
alout the concern that IL determined TO investigate
the matter From character of their occupation some
diiculty was experienced in finding out who the prin-
cipas I'm this business are although one OF them had
made partial confession at the TomDs Poiice court
few days previous. But after much research inc io'
lowing facts were developed
Ellis H. Elias who may properly be called the Orig
nator and proprietor OF the Distribution sWinde Is In
many ways remarkable man. II zone half OF the cur
rent stories concerning him be true, he must be gifted
with wonderful fertility OF resource 1t is certainly
known during the past four years he has conceived
and successfully carried out, more than dozen different
schemes for cheating the public No sooner has one de-
vice worn itself out than another fully matured has
taken its place. "Alumnum Jewelry," "Fiye-Dollar
Sewing Machines" "Spansh Lotteries, Consumption
Powders" and Counterfeit Greenbacks" have followed
one after another ia rapid succesOn and at the c0ncu
sion OF each enterprise the versatile Elias has been able
to ofecitate himself upon extensive addition to his
bank account, and renewed proof OF the correctness
OF his theory Of human creduty Connected with this
man by ties business well relationship are his
three brothers, named John, Henry and Richard and
brother nlaw. commonly known as TIP, all OF whom
either execute superntend the various schemes when
his master spirit devises At present in addition to the
Merchants and Manufacturers Concern, this happy
family are running the Dollar Store at the
Winter Garden. and another much-advertlsed
scheme known as the Milton Gold Jewery Company.
At both of the latter concerns the purchaser really
receives some return for the money he invests; "A
fact strangely inconsistent with the traditions of the
family, and showing that certain amount OF honesty
sometimes pays But this tring exception cannot
be made IN favor OF the % a ana a, h mat bare
faced deceptons ever attempted on the public An & ae
count OF the building, and the manner IN which the
drawing takes place has already been published in THE
TRIBUNE, and Is now only necessary TO describe the
are able to select the persons to whom they would award
the prizes and by whom they are very certain never 10
IT may be well to state that the drawings take place at
intervals OF about half an hour and that ct each draw
ing there are gonefay 81 OF Tre h AFTER fwo or
three days OF observation the reporter convinced
that tbey were invariably drawn By one OF about per-
sons. both men and WOMEN who regularly drew prizes
whenever they went to the wheel audable CURIOSITY
prompted him to follow several OF them after they ad
drawn their prizes and received their orders. In one
case a who drew a prize in this manner led the
reporter up and down Broadway for nearly two hours
Al another tiue the chase" who evidently an Old
hand at the business. turned when In the center ,
%ish OiSSd 1d '"1 out '' whether any one % was fol
lowing him, and another was followed IN the
horse-cars up Eighth-ave. almost to Central PARK.
Rutin I'm watched,
thought they had eude pursuit, Invariably came Daek
Depository where the drawing had taken place This
alone would have been evidence enough that the anar
seen 10 draw additional prizes; but the reporter sue
ceeded in making the acquaintance OF man s Sno
and , obtaining some additional facts From him
he learned that Ellis II. Elias Is the pfoprlnetor no
tribuion; but 1t is managed by Mr.. Marsh formerly
in the hoop-skirt business The przedrawers are reg
uary hired as are, also the furniture. pictures with
which the Depository is filed In no case has person
been known to draw prize who was not iii some way
connected with the establishment The men employed
are as general thing among the worst characters OF
the city. Many OF them were employees IN the VARIOUS
Neither Ellis H. Elias nor any of his brothers takes an
active part i'll the business but they usually visit the
Almost complete description of the proceedings was,
however obtained from one Of the men who had been
employed by Messrs Elias to act the part OF prize
drawer or capper as they are called TINS person
said that the different men and women employed TO
draw prizes are paid salary i'll accordance with the
stylc of their dress and their aptitude in the business
They are under the charge Of man named Frank Myers
whose office is at No 500 Broadway NEARLY opposite the
depository. This gentleman has served a long appren-
in what is known as the sawdust dodge" II is his
junction in connection with the business to atet 10
make up characersat time to produce fascinating
young lady and at another, 10 produce an old wonan
gentleman. mechanic whichever the exieeneies OF
the demand. -,
The character having been more less successfully
produced, Its actor ls supplied with ticket necessary
specimens have been obtained. dier from those oriin
rIly sold, in having stamped on the back the name ol
which Elias il known Supplied with this ticket, the
capper leaves the office. and after short promenade
up Broadway he stros eisurely into the Depository
and Joins the crowd OF persons waiting TO descend into
the where the drawing takes place In going down
the leading to this the "capper doubles up
his ticket such that the man stationed there
tearing of the coupon attached 10 the ticket cannot
avoid seeing the stamp and thus being made aware OF
the presence OF "prze-drawer." When ne has drawn,
therefore, a prGarranged prize is announced, and
the ofice to re gster his and get receipt for no
prizes delivered until the cath OF the month But
the natural honesty of man IL sueh that the poor
capper." In his attempts to appear Jubih generaiy
makes very sorry failure aud II conscious OF this
he leaves however, the prize is publicly announced and
IN short time pacar bearing name + patSa s naa uoa
As to the "capper after leaving the Depository he Is
possible to OF the three places OF rendezvous ana
prepare for another attempt The whole arrangements
OF this deception, shown by this recital are so open
and agrant that does not possible that any one
would he deceived by hem or having once beeh uupeu
would venture to repeat the experiment. put tne
facts OF the point the other way ana snow ,at, TN ~
some instances from so 10 $40 have been lost In TINS
manner by men whose position In life Is such that the
loss was very heavily felt. Perhaps nothing
is more remarkable In the whole affair than
the hardihood exhibited by these uccessfu tswnders
From one point another they have gone on III her
career at each enterprise growing boder un
now they throw OFF almost every disguise During tae
past four years It is estimated that they have made
nearly 81 eDOOO and ths too, IN ways That nave ex'
hlbed an amount OF Ingenuity and foreth0usht uuy
marvellous. Prompt action should be taken by the
District Attorney for tho Immediate suppression OF TINS
gigantic swndle and IL s proprietor cannot be made 10
disgorre his m gotten wealth, he ana hts aS~ociates
should be prevented from troubling the public again for
sOmo wears ut least