The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1883-02-10

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The Hon David d. Parker cher 20 t-oiico
The accowpauying reports of Inspector Ray
are respectfully referred, with tine recou-
incubation that fir ms named bc excluded from
w nols es lraulu'cnL ana az IA" action of
the Postmaster General thereon b. iinme Ii
atey tclcgr1phcd to the Postmostc- at Chi
cago, in advance OF the mail, tuat the fraud
may be stopped at once, as larxe amounts hv
regis cred letters and mOncy-ordcrs are daily
received. d. e. STUART,
Post-olhcc Inspector.
RAYS REPORT.
POST-oFFICE Inspectors OFFICE,
CHICAGO, January %, 1883
The Hon. J. Z. stuart, Post-ufiCe lus' cctor:
"W: As you are aware. the magnitude ct the
extensive fraudulent swindliuu schemes of
the COZ Germs styled Ficmming 4 Merriam. r.
E. kendal & CO.. Chailys >. uenr q Co. and
Cudworth Co. has long been u subject OF in
Qui y by me. These schemes, of men whose
reputation is in almost every case smirched
by previous disrcputahlo transactions, have
reached point which is perfectly astunish-
ing The receipts of the firm OF tlamuu Y y
Merriam are simply enormous, as Will b seen
10y reference TO the statements appended here
TO. 10 is est mated, think with approximate
correctness. that the receipts OF the four con-
Germs named above have had an aggregate
average duly for the last sixty days of not
less than SlUOh, including what they have re-
ceiVcd by the various express comp mics. The
firm of Flemming Merriam have, in the
twenty days from January l, lssi, q jan
uury 20 rSl received through the
Chicago POstoitc1 40 registered let
ters None of these registered letters
Contained amounts VARYING from 500 to 800.
y hey have in the same time received about $50
money-orders, aggregadng S2O4l6. It il of
course Impossible to state accurately the
amount received by them by the several ex-
press companies but, Judging from state
ment made by one in position to know some
thing OF their business. they received Mstweek
over $1,000 by express. 1t is presumed that
their receipts by express Tor The twenty days
were not less than SO ono. Aggregdtiig the
receipts from these sources it would appear
that they have received in the neighborhood Of
SNO.lOj since January L In the same period of
twenty days the frm of X. L. Kendall x Co
have hud cashcd about 65 mouey-orders, for
the sum of Sl5S7. This latter firm has also re-
ceiNei n that Time 81 registered letters, none
containing less than SO, and many from 500
to 500. Estimating the business of r. +. Ken
dali & Co. at twothirds that of Flcmming
Norman. ii would aggregate about S5LO00
in thirty days The other two firms, Charles
j. Henri " Co. and Cudworth & Co., do
smaller buslne S, tn two probably aggpgating
about $4,000 i'm money rece we'd in the same
me. Now. as 70 the character Of the business
done by these firms append to this report
the certificate of the Chief Grain Inspector,
that none of these firms are known to the
State Inspection Department las warehouse
men, nrtin receivers, or shippers, nor in any
way connected with the actual grain trade"
The pretenSe in their circulars that they are
commission merchants is fictitious, except to
the extent that one of them has done little
commission busin' IS and now operates little
Tor some W customers. The prime p lhfcat-
ure Of their fraud is this: They pref nd to
conduct what is termed by them II " Mutual
Investment Club or Mutual Operative
Fund Fund composed of the ;, money of
shal es at $40 per share and take the chances
that the managers use the aggregate
funds subscribed by the shareholders in 8 iec-
ulating in gram, stocks, etc. The MANAGERS
every few days or weeks make reports show
ing that they have lost or made so much
money; and, if the latter, they return to share
holders u pretended profit of SO much per
cont They cannot show that they have ever
reputable proof. What money they I q urn "a
profits is solely just what they choose. and
lhey choose TO return just what they think will
induce the shareholder to invest more largely.
in some cases they have, to SIN II investors,
returned rs profits Il fictitious showing OF a
llrge percentage of the investment The re-
suit has been that such investors. mostly from
. remote place and in distant states have
been induced to invest large amounts anew.
Men starting in with $40 or so have been in
duced, by receiving a iiatterinr return, mis-
called profits" to invest 500, POO, and in
many cases within my knowledge as high
as $1,000 to Sl,bOO. The sole return they can
ever get is Just what the sweet will OF the fell
lows who run the concern are disposed to
send them. That they are scounircs and
ought to he in the penitentiary may be Judged
by the antecedents of some of them John
Flemming, Of Flemming * Merriam, was n
partner in Detroit of Mckinney. Mckinney
IS now serving term in the Mich gan State
Prison for Fencing stolen goods Flemming
himself was arrested in Detroit Tor fraud, and
exposed by the hicithdlt FWnier The notori-
GUS Benjamin BuckwHlter, of New Orlx, now
a fugitive from Justice, Is understood TO have
been moving spirit in the organizing of the
swlndles in Chicago. Frank $. Waters and
Dan Loring, of Chicago, have some cunnec-
ton, either open or secret with tlemning AZ
Merriam and II. E. Randall & Co. Waters is n
brother-in-law of Kendall Waters and oring
were i'm the Fr'Sde hricHd lottery swsndle and
newspaper fraud a few years ago, and both
have run as closely to the limits OF criminal
interference rs they dared ami are known
rs suspicious and crooked men in minor
transactions heretofore. The mnpager of
Bradstreets Commercial Agency Mr. Turn
bull. who has better knowledge OF the stand
ing and reputation of men of business in Chi
caro-, has DgromptOrilV refused a allow tit no
of the firms named to become subscribers TO
the agency, and denoudnates them frauds and
swinders of the worst sort. The Hon Harvey
d. Colvin, eX-Mayor Of Chicago. now Manager
of the United ates Express Company. assures
me OF his Willingness and desire to break up
these monstrUus schemes, and prOms es 10 act
simultaneously with the P0stonice Depart
ment in refusing to deliver any remittances to
them. Mr.. ScatOn, Manager of the American
Express Company in this city, will do the same
thing, and says he has no doubt of the dsrep-
utable and unlawful character Of the scheme
Ex-Governor Shuman, editor Of the Chicago
Jou nal, the Hon. w. Il. Nixon, Manager Of the
Chicago lttcr-Ocedn, the mauag o. the Vest
CW hudi, and others present certificates to
which invite respectful attention stating that
these scOundrclS print and scatter broadcast
their circulars and advert sements, which pur-
port TO be copies OF editor, al Inducements from
reputable newspapers, OF their frauds These
cert ieates show that tho notices copied 10y
them were paid advertisements, written by
themselves, and then copied for their own
purposes. Hardly Il husincss-house in Chicago
but is Hooded with leners of inquiry and COM
pldlllS from people III over lht 4 mt a states
about one or other of these firms. They en-
plOy large numbers OF employees in addressing
ana mailing their glarng circulars to remote
pa Is OF the Union, getting The names OF work
men in factOri 5, cOalmines, iron works, etc.
and also trying to induce postmasters to serve
as their agents and 10 invest with them. de-
sire the department to take the earliest possible
moment and exclude these concerns by name
from the privilege of receiving money riders
and registered letters at the Chicago Post-of-
fee. append my own affidavit 10 my belief
as TO the facts. Very respectfully,
ID. A. RAY, Postoifice Inspector
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