Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1883-02-16
SWlNDLE On A BIG SCALE.
Milwaukeans Lose Heavily in a
Chicago Humbug.

Tue fact was developed to day that a
number of innocent Milwaukeeans and
a great many Wisconsin men are VIC
tins of the Investment club" whose
frauds are now being exposed in Chi
cego and creating no little excitement.
The plan of operation was to issue al
Turing pamphlets describing the sys-
TENS of puts and call which enabled the
dealers to combine small investments
and to realize handsome profits for the
investors. The variations of the stock
market furnished the basis for their as
pirations. 1t seems that none of the
funds placed.in the hands of the firms
we're invested at.all. The circulars
state that their senders are commission
merchants, doing an extensive business
on the board of trade. Details of the
plan of operations are given in full, and
statements are made of the monthly
profits on so share, which are alleged
to run all the way from to So per
cent. 1t says that the capital of the
fund is sufficient to operate in from
SO 600 to 100000 bushels of wheat or
corn, on a margin of 10 to 25 per CEN.
or 5000 barrels of pork on a margin Of
81 to SIS per barrel, and yet leave sur
plus. The "club" is composed of
fuckers" who have invested in $40
shares. The managers, every few days
or weeks, make reports that they have
made or lost SO much money, and, if
the former. they return to shareholders
a pretended profit of so much
per cent. No proof is given to
show that the profits or losses they
report have made in any &C tual opera
tons. What money they return as
profits is what their own sweet wills
may suggest as polite in order to in
duce further investments. In some
cases, they have, to small investors, re-
turned as profits fictitious showing of
large percentage of the investment.
The bait rarely fails, and the investors
are beguiled into blowing in larger
amounts, sometim es reaching 81 600 or
more. The names Of the firms are
Flemming & Merriman, R. E. Ken
dali & Co., Chas J. Henri & Co., and
Cudworth & Co. The operations of
the establishments were conducted
mainly through the postofice. Tne
members Of the firm have fled to Can
ada. The postoffieo department has
ordered all money orders for these
persons returned, and among the list
yesterday were letters from Milwaukee
and other parts of Wisconsin. One
delegation from Wisconsin wanted to
know if the justice before whom a
large number of cases had been
brought couldn't issue some sort of an
order compelling the government 10
distribute the money Withheld from the
firms among their creditors. Country
men are arriving in Chicago in great
numbers, and it is estimated that the
uncashed certificates so far exhibited
by unfortunate farmers represent ST.
600 900. One man at Stevens Point,
Wis, holds $50 900 OF worthless paper.
Another arrived in Chicago yesterday
and ]. L. Rowe writes from Hannibal,
NO., that the suckers" in that town |
will send 900 of the scrip, if there is
the slightest chance that the stuff can
be redeemed. The largest number of
claims thus far pres ented come from |
Wisconsin, Ohio and Michigan. It is |
limited 10 Chicago that this vast s. stem |
of ssindle. the largest that has been |
exposed In the northwest for years, VII |
yet afford important developments,
and that men of high standing in that |
community will be found to have been |
substantially interested in the frauds |
MEN, horses, and cattle are crossing |
the Cascade mountains, Washington |
territory, By the Saoquamie pass every |
day. Two droves of cattle went through |