Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1880-02-13
Exposure Of One of the Worst Swim.
dies on Record,

Exposure OF One of the Worst Swim.
dies on Record.
The Tribune publishes some startling
disclosures respecting the extent to
which the public outside New York has
been fieeced by bogus dealers in stocks.
The Stock Exchange has been trying to
break up the businessifor year or two
past and now has achieved great
stroke. A large bus mess lie done in
buying and selling stocks in New York
on orders fer out Of town customers.
The readiness OF small investors to
partake OF the profits from specula-
tion has given rise to a class of
fraudulent dealers, who regularly
pocket the entire remittance without
even the form of an actual investment.
Some of these dealers assume names
either closely resembling the names of
reputable dealers, or even in some cases
identical with them. Among those
were Lawrence & Co., Heath L. Co.,
Thatcher, Belmont Il Co., and others.
The Stock Exchange has made a strong
movement against them of late, and
called in the services of Anthony Com
stock. and has now made q complete ex-
posure. He has obtained in thu past
two weeks such additional evidence as
will result in the complete overthrow
OF the fraudulent system. An order will
be issued by the Postmaster General
to-day forbidding the delivery OF letters
and money orders to eight different
concerns, the order being based upon
pTIIf.nna apho,itfo1 ~ fIa lano ~, mt
Various devices in the copy of the
circulars, advertising, etc., are used to
beguile foolish people.
1t Is said that almost no business is
done over the counter by these firms,
but they do everything through the
mails, and none of the money received
is actually invested. The profits from
this kind Of business have been enor-
nous. Comstock has obtained copies
OF agreements aud partnership articles
based upon the actual business done
and transcripts of books that show it
beyond question that four of these firms
ale practically under one management.
There are Lawrence & Co., Adams,
Brown IL Co., Allan, Jordan & Co., and
Barnes, Garrison Il Co. Prior to Sep.
TENDER l, 1879, Benjamin r. Buckwalter
was owner of the first two concerns and
half owner in the other two. At that
time he sold out his interest in the four
firms to two men. The details of the
agreement between them and Mr.. Buck
walter are significant, not only as show
ing his relation to the business, but as
indicating previous profits from the
concerns, the agreement being based
upon the profits of the three months
preceding its execution. For the bust
ness Of Lawrence u Co., they paid
Buckwalter 81 andexecuted sixty prom
issory notes of even dates, payable
monthly, for five years, of $4,000
each, and agreed to execute at the end
of that period sixty other notes, SINH
larly payable, of $4,000 each. For the
business of Adams, Brown IL Co., sixty
notes were given of $S,333 33 each,
with sixty notes to follow OF SO 1888 each.
For the concerns of Allen, Jordan &
Co., and Barnes, Garrison Il Co., 240
similar notes were given, of $1,000
each, All these notes were with inter-
8 and without grace. In case of de-
fault on any one note for thirty days,
all the notes given for the concern,
whether due or not, were to become
due and payable. but were to be sur
rendered to the makers, who in turn
were to give up the business and its re-
ceipts to Buckwalter. His total monthly
income from these four concerns, so long
as they tlourished as they had been
tourishing, was thus to be 500 1888 33
for five years, and for the second period
Of five years $40, 1888 each month, MAX
ing total in ten years of 81, 9S9, 1898 60,
exclusive of interest.
The books of Lawrence Il Co., tran.
scripts of which are in the possession of
Mr.. Comstock, show the receipts of this
firm ut one time, from March to No
vember, 1879, to have been $205 800 80.
In the month OF October the receipts
were S29, 4S4 Oh, of which amount $15,.
600 went for expenses, probably in
Guiding advertising, and there was de-
posted to the account of Buckwalter
SIT ,451 43, the excess of these sums
over the receipts OF profits representing
the money on hand.
There are other concerns whose
methods of doing business is not SO
we'll known as yet, but concerning
whom sufficient evidence has been laid
before the Postotfice Department at
Washington to have them included in
the order to be issued tomorrow Tues
day., Withholding their mails. In one
of these firms, that of Charles Foxwell
4 Co., the same Buckwalter is said to
be interested. Another of them is
Simpson u Co. The profits of this con-
Germ, as we'll as those of all previously
mentioned, Comstock intimates, upon
evidence he has, to be fully equal to
those of Lawrence & Co., as given
above. He says that nearly the entire
business has been transacted through
the mail, and that the coming order re-
speeding the delivery of letters and the
payment of money orders will surely
break up the business of the eight
firms named in it. These are as fol-
lows: Thatcher, Belmont & Co ; Chas.
Foxwell Il Co; Adams, Brown Il Co.;
Allen, Jordan Il Co.; Simpson IL Co.;
Lawrence X Co., and Heath & Co. The
two firms last named as doing business
are to be distinguished from other firms
OF the same name, who are well known
and respected.-Cincinaati Gazette.
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