, 1877-11-11

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! Zeitun3 four new aud distinct forms Of swindle
arc reported They characterize so strikinel.
some OF the conditions Of life in the German,
Capital that we condcuse and reproduce them.
No, is called by the writer "thc swindliue
! practice OF number Of merchants, "a phrasc
! which stamps the affair rs IN extended system,
not an isolated case The legal term which
the Public Prosecutor hopes to aaix to It
is fraudulent bankruptcy.'' The steps in tue
process arc simple enough. Il business firm
procure all the advances possible on their credit
anu ward oil q settlement till the last moment.
When the crisis seems inevitable, they suddenly
register at the Court Of Commerce the dlssolu-
tson Of the firm, at once organize new com-
pany under new name, and with perhaps one
new member, and then tran sfcr to it all the goods
aud other property Of tile old establishment.
Under the Law this property is secure against
the first creditors. When new embarrassment
arises tile same manipulation is repeated, and
tic ingenious ssmerrhauts " thus battle their
creditors inGltnitely. It has at length been dis
covered By the Public Prosecutor that there are
in such transactions two elements OF fraud, -
the transfer Of the goods on the eve OF bank
ruptcy; and the irregular organization Of the
new firm, Accordingly, some Of the parties
will bc tried but the final Interpretation OF tho
law belongs, OF course, to the courts.
The next class OF swind1ers is called "house-
butchers" The term suggests portly persons
whom hungry dogs hare 4 keen affection.
These are species Of butchers. but the house
butchers" " belong to different category.
They are dealers in real estate, aud after
peculiar method. Ono OF them hears Ut house
which stands half vacant, buried under mort
gagcs and taxes. and which the owner Is anxious
to sell on almost any terms, often without any adj
vance, ana on tile promise OF future quarterly
payments. As soon rs the sale Is perfected the
ssbutchcryn begins. The new owner hastens to
etrfF, In II f{tp 4riH
dcrstand that we are speaking of the Conti-
mental apartment houses-of everything Moy-
able, aoors, windows, stoves. bathroom, Gx-
tures, etc., and converts them into money. Next
he procurcs from tenants prepayment Of rent
for half year or more for i large reduction.
Perhaps he is able to make a new loan or two
on the property. But very soon, Of course, the
mortgages become alarmed and proceed to tue
foreclosure. The fortnalities require time, aud
b efore they are completed and the notice served
- II tic "pronrfetnr he transfers the bouse by
y - new sale to somebody else, generally 1 con
1ede1ate. The Judicial proceedings Of the mort !
'gagees are therefore without result. They !
must be renewed against the new owner; but |
his rents in advance, aud otherwise utilizing his
and At the right moment he, too,
Is Sells" THUS the property is tossed about
from hand to hand, md becomes about worth
less BY the time tue mortgages come finally
into possession. This, too, is system perhaps
not peculiar to Berlin, but apparently carried to
greater perfection there than elsewhere.
The third fraud is In the traffic in wOolens-
This Is no insignificant branch Of Berlin trade,
clattgeIy less f1our1shing indeed than in the
distributed clothes all over North Germany; vet
till one Of the industries on which Berlin rests
lcr commercial prosperity. But the army
peeulators and swindlcrs have invaded
njury Of honorable manufacturers and
[eafcrS. One of their tricks is to 1ouhfc {