The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1883-02-09


Ray IN the matter of several Chicago firms ex-
eluded yesterday from the mails, with the in.
dorsement of the Chlef-Inspector:
POSI-OFFICE INSPECTORS OFFICE,
CHICAGO, January 25, 1883.
The Hon. David B. Parker, Chief Post-office
Inspector:
The aecompanying reports of Inspector Ray
are respectfully Referred, with the reeom-
nendatlon that firms named be excluded from
the mails as fraudulent, and that the action of
the Postmaster-Ge General thereon be immedi-
aCely telegraphed to the Postmaster at Chi
cago, In advance of the mail, that the fraud
may be stopped at once, as large amounts by
registered letters and money-Orders are daily
received. j. Il. STUART,
Post-ofice Inspector
RAYS REPORT
POsT-OFFICE INSPECTORS OFFICE
CHICAGO. January %, 1888 (
Inc Hon. j. e. Stuart, Post-office Inspector:
nT: AS you are aware. the magnitude of the
extensive fraudulent sWindIing schemes of
the concerns styled Flemming 6 Merriam, R.
z. Kendall IL Co., Charles j. Henri & Co. and
Cudworth & Co. has long been a subject of in
quiry by me. These schemes, of men whose
reputation is in almost every case smirched
Dy previous d1sreputable transactions have
reached point which is perfectly astonish-
Ing The receipts of the firm of Flemming g.
Merriam are simply enormous, as will be seen
to. Iii estimated, think with approximate
correctness, that the receipts of the four con-
Germs named above have had an aggregate
ave average daily for the last sixty days of not
less than $4,000, including what they have re-
celVed by the various express companies The
firm OF Flemming & Merriam have, in the
twenty @ days 5 from January l., 1883, to Jam
Chicago Post-ofice rvs registered let
ters. None of these registered letters
contained less than $40, and very many of them
contained amounts varying from 500 to $500.
They have in the same time received about $50
money-orders, aggregating $40, 416. 1t is of
course impossible to state accurately the
amount received by them by the several ex-
COmDani9S: a
ment made by one in position to know some
thing OF their business, they received last week
over SlOUO0 by express. 1t is presumed that
their receipts by express for the twenty days
were not less than $4,000 Aggregating the
receipts from these sources it would appear
that they have received in the neighborhood of
$o0,OO0 since January l, In the same period of
twenty days the firm of r. e, Kendall & Co.
have had cashed about 635 money-orders, for
the sum of $15,867. This latter firm has also re-
ce1ved IN that time 531 registered letters none
containing less than $40, and many from 500
to 500. Estimating the business of r. E. Ken
Gal! u Co. at two-thirds that of Flemming
d Merriam, it would aggregate about $53,000
in thirty days The other two firms, Charles
j. Henri & Co.. and Cudworth & Co., do
smaller business, the two probably aggregating
about $4,000 in money received in the same
Tune. Now, as to 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 ''as warehouse
men, grain 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 busine ss and now operates little
for some few customers. The principal feat /.
ure of their fraud is this: They pretend to
conduct what is termed by them " Mutual
Investment Club or Mutual Operative
Eu una ars composed aIS Of the money of
shares at $40 per share and take the chances
that the managers use the aggregate
funds subscribed by the shareholders in spec
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
I holders pretended profit of so much per
cent. They cannot show that they have ever
made the profits or losses they report by any
reputable proof. What money they return as
profits is solely just what they choose, and
they choose to return just what they think will
induce the shareholder to invest more largely
In some cases they have, to small investors,
returned as profits a fictitious showing of
large 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 $40 have been in
duced, by receiving fattering return, mis-
called profits to invest $780, 200 and in
many cases within my knowledge as high
as $1,000 to $780,. 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 scoundrels and
ought to be in the penitentiary may be judged
by the antecedents of some of them. John
Flemming, of Flemming & Merrian8. was a
partner in Detroit of Mckinney. Mckinney
is now serving term in the Michigan State
Prison for ''fencng" stolen goods. Flemmtng
himself was arrested in netroitfor fraud and
exposed by the Michigan Farmer. The notori-
GUS Benjamin Buckwalter, of New York, now
fugitive from justice, is.understOod to have
been moving spirit in the organizing of the
swindles in Chicago. Frank S. Waters and
Dan Loring, of Chicago, have some connec-
ton, either open or secret with Flemming &
Merriam and r. p. Randall & Co. Waters is a
brother-in-law ofKendalL Waters and Lorfng
were in the FiTeside Friend lottery swindle and
newspaper fraud a few years ago, and both
have run as closely to the limits of criminal
interference as they dared, and are known
as suspicious and crooked men in minor
transactions heretofore. The manager of
Bradstreets Commercial Agency, Mr.. Turn
bull, who has better knowledge of the stand
ing and reputation of men of business in Chi
cago. has peremptortly refused to allow either
of the firms named to become subscribers to
the agency, and denominates. them frauds and
Swindlers of the worst sort. The Hon. Harvey
ID. Colvin, ex-Mayor of Chicago, now Manager
of the United States Express Company, assures
me of his willingness and desire to break up
these monstrous schemes, and promises to act
simultaneously with the Postofce Depart
ment in refusing to deliver any remittances to
them. Mr.. SeatOn, Manager OF. the American
Express Company in this city Will do the same
thing, and says he has no doubt of the disrep-
utable and unlaWful character of the scheme.
Journal, the Hon. W. p. Nixon, Manager of the
Chicago Inter-OceGn, the manager of the Vest.
ern Rural, and others present certificates to
which invite respectful attention stating that
these scoundrels print and scatter broadcast
their circulars and advertisements, which pur-
port to be copies OF editorial Endorsements from
reputable newspapers, of their frauds. These
certificates show that the notices copied by
them were paid advertisements, written by
themselves, and then copied fer their own
purposes. Hardly business-house in Chicago
ia ORG of
plants from people all over the United States
about one or other of these firms. They en-
pOy large numbers of employees in addressing
and mailing their glaring circulars to remote
parts of the Union, getting the names of work
men in factories, coalmines, iron works, etc.,
and also trying to induce postmasters to serve
as their agents, and to 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-orders
and registered letters at the Chicago Post-of-
flee. append my own affidavit TO my belief
as to the facts. Very respectfully,
d. A. RAY, Post-office Inspector.
AFFIDAVIT.
STATE OF ILLINOIS, &C
County of Cook, 60
Daniel A. Ray, being duly sworn, doth de-
pose and saw that from careful examination
he is led to believe and does believe the firms
styled Flemming & Merriam, r. E. Kendall &
Co., Charles j. Henri & Co. and Cudworth &
Co., of Chicago, ILL.,, are engaged in conducting
fraudulent schemes by the use of the United
States mails. DANIEL A. RAY.
Sworn to before me this oath day of January,
1888. E. C. TURNER, Post-Ofice Inspector.
A SAMPLE BLANK.
0rdeT-blank for shares in the Mutual Coop
erative Club, Bennett, Hoffman & Co.,
Managers, 155 and 157 East Washington
Street, Chicago, ILL.,
Gentlemen: Please find herewith inclosed
s., for which forward to my address
shares in the Mutual Cooperative Club.
If you have not our large circular of ex-
PLANTATION send for it. Write name and adj
dress plainly. Town ---, County ---,
State -.
Sign name.
Case No. Special
D. A. RAY, Inspector
ANOTHER FIRM.
PosT-OFFICE INSPECTORS OFFICE,
CHICAGO, January rs, 1883. (
The Hon. ]. 3. Stuart, Post-office. Inspector.
Sir: 1t has come to my knowledge that a
concern styled Bennett, Hoffman s. Co., man.
ayers of Mutual Cooperative Club at 1856 and
l57 East Washington street, Chicago, has re-
Gently commenced a new scheme to defraud
using the mails therefor, exactly similar to
those of Flemming, Merriam s. Co., r. E. Ken.
dali & Co., Charles ]. Henri s. Co., and Cud-
worth & Co., which schemes / have in my re-
port of this date on cases 21.794 c, and No
q, 1853 c, fully exposed: 1 recommend in this
case that the Postmaster at Chicago De direct