New-York tribune., 1879-12-30

n-c,h N, m, business Of fraudulent dealers, who
transact business largely through the mails have
resulted in an exposure of several concerns, ana IN
closing the mails to eight firms engaged in bogus
,,ock transactions. The profits from this kind OF
business as revealed BY the discoveries Of Anthony
Comstock. are shown to be surprisingly large
Full DETAILS OF THE CHEATING.
A large business is done III buying ana
selling stocks IN NewYork.o on orders for ou0f-town
customers readiness OF small investors to partake
OF the profits from kind OF speculation has given rise
OF late 20 GLASS OF fraudulent dealers who
have pursued systematic course that has
resulted in to.a loss to tho customers ana
clear profit TO the dealers OF the enre remittance wtn-
out even the form OF actual investment some OF
these dealers assumed names either closely resembling
the names Of reputable dealers even In sene cases
identical with them. Among these were Lawrence q
Co. Heath & Co.. Thatcher. Belmont Co.. ana others.
TINS gave much annoyance TO the respectable houses
whose Good names were in danger from the oeaihSs to
ferred 70, that OF them have seVern
times published cards to the public I'm their
own defence aud IN November, 1879
the Law Committee OF the stOck Exchange formally
authorized Ralph Oakley, of the firm OF oudln q OAK
lev TO collect all the information possible concerning
the firms that were using the mails and the press 10
defraud the public Of bogus transactions IN
stocks and to all legal means to secure the convic
rion of the offending parties"
Mr. Oakley at once advertised for communications
from
with Lawrence Co.. of the Arms In question: snd
from them obtained much evidence In the shape
N the corrcspIndenee Of that firm. When that
norton Of the had been sufficiently covered the
services OF Antho1y Comstock were obtained for the
further prosecution of the matter, ana MS kno"eoHe
and expe rence class Of fraud through the mails
have enabled him, past two weeks. TO obtain such
additional evidence as will result In The complete over
throw OF tho fraudulent sysem An order VIII DC issueu
bv the Postmaster General to-day foroddinG the dey
sry of letters aud moneyorders to eight different con-
cerns order being based upon the evidence suoi
ted 10 the Department
HOW THE swINDLINe is DONE.
The pa pursued by persons to cheat the eager
peculaor may learned from the papers In one case
which Il a specimen Of all the cases In WHOA hVe
letters or circulars sued to transfer from SO to SlOO
fo The pocket Of the customer 10 the pocket or Law
-.rce A. Co An advertise ment setting forth the
advantages OF dealing with this firm Is inserted In the
papers and those who respond TO receive first pros
uecfus in which fully discussed the opportunities
Tor making money" methods OF dealing IN
New-York." vast profit. already paid" unerring
all iudicating that the stock market s
bonanza To sl who deal with Lawrence GO. tetiets
arc added frVn custOers, ackn0wiegus me recepl v
prots RENTED vita enclosures for further operatlons
snd the circular concludes with derlng notices OF the
press, most OF when prove on invest stgaYh 70 uc pn
sbnsiness notices " in widely circulated respectable
Journals The prospectus Ia adorned with picture on
the Drcxcl Buildng upon tae sIe oi ~"SI h y ~, s
il sent stock letter. thographed enalsing upon INC
il the bait Upon the receipt OF these. the person
In question remittance OF go i0r investment
Which be ~ told E" We will not send you certificate
have Won In crested L. not yet flied that there was
going Ia he decided move N certain stCch. wIlcn
alone would show profit and Offering 10 send hhn
certdcate TOR fifty shares IN the combination n which
the orders were pooo receipt Of an additional go
ms margin mnI the profits should be declared, of
whch should have S Sensst on 'g Letter. fn1re de @
tcal in all eases The customer responded
received printed certificate, upon whch IL was spu.
lated rha' no profits or capital were 10 ne
In anomt week he received circular stallHs tht
proft Of ia per cent, being equivalent TO $50 Proat
each 100 shares or stoch NJ -, b-it", ,.
until the CLOSE" The vicm Endorsed this paper Rss
he csTea toe grand ait,matum' IN Witch in
formed turn mad resulted 10 the entire
r,ber or ' Win tho profits that We had already
made" but enceuraging hm 10 fsirdsVe ,hd .a uns
i,,snr,n@ the customer TO invest further hat letter
after Ieter Is sent telling OF the activity Of GER
tain stocks evading the inquiries prompted 10y MS ss
Stock Exchange. which they tell him Is .,,. IN
necessary for large buyers and not to their
advantage II. the other hand the customer makes
an Original investment Of 800 or oter Larger sum,
psrlicusr goose II Is said that almost business
The counter by these firms ont tnat they con
ments. to those 10 whom they send circulars rom
thousands. None OF the money received IL aethay H.
vested.
PROFITS OF HE FRAUD.
The profits from Kind OF business have been enor
pous MI Comsock has obtained copies OF agreements
aud partnership articles. hascd upon actual business
done which indicate thIs fact and be has transcripts
OF books tlat show t beyond question -Four Of these
arms are practically under management These are
Lawrence Il Co.. Nos 10 and 21 Broad-st and Nos 90
and 81 Excaarge-piace Adams, Brown & Co., Nos. 26
and 2s Broad-sti Allen. Jordan Co., No 81 Wal-st;
and Bnrnes Garrison & Cor Nos. and ii
Broadst Prior 70 September 1, 1879. Benja-
min K Bnckwaier was OF the nrst TWO concerns.
md haf owner in the other two At thar time he sold
cut his interest IN the four firms 20 two men, one OF
whom had half owner with him 10 two or them,
who to become partners and manage the four con
cerne . ,,. 49,. ., ,,,.
walter sigucant, not only showing his relation
TO the business but indicating the previous profits
profts OF the three ecedng It's execution For
business of Lawrence 60. they paid Buck walter 81,
ble monthly for Ave years 500 each and sgreed
execute at the end OF that peioi sky other notes.
similarly payable OF 5000 each For the husiless OF
Adams. Brown Co.. sixty notes o. seS53 %
each with sixty notes 70 follow OF 80 33 each For to
& Co. hundred and forty similar notes were gwen
900 each. All these notes were with interest and
for thirty days all the notes gwen for the
same concern whether due or not, were to become
que and payable, but were 20 he surrendered 10 TIE
uakers who I'm turn give NJ the business and
It's receipts Buckwaer. The purchasers also .execu
cd a confession Of Judgment with costs end interest,"
10 be filed upon their defanlting or payment on any
note. All the money received. after dedueting what
Sepos,ted every week IN BueAwalters bank
TO his credit. AID applied on Tie notes, or,
due. Buckwater's confidential were the
Offices ard the mail matter, placed Ia locked boxes by
one OF the together having kew to OF the
two locks upon the boxes. In other ways the II.
monthly income ON these sonr concerts long they
ourished they had beeu dogrishnr was thus TO be