Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1883-02-15
ALLEGED GIGANTIC FRAUDS.

| dorsement of tn, Chef-inspector:
l PoST-oFFICE INSPECTORS OFFICE,
CHICAGO, January rs. 1883
| The Hon. David B. Parker, Cher Postofhce
| The accompanying reports of Inspector Ray
1 ,,re respectfully referred, with the recon-
/ ,nendation that firms named be excluded from
| the Postmaster General thereon be immedi-
j ately telegraphed to the Postmaster at Chi.
| may be stopped at once, as large amounts by
| registered letters and money orders are daily
| received. EVA y. u. STUART,
| Post-otfice Inspector.
| RAYS REPORT.
| PosT-oFFICE INsPECToR's oFrIcE,
| CHICAGO. January 70, lSSo. \
| The Hon. J.sE. Stuart, Post-ofhce lnsf eetor:
sir: AS you are aware. the magnitude of the
| extensive fraudulent swindling schemes OF
| the co, Germs styled FIemminy * Merriam, Il:
! Il. Kendall Co.. Charles j. denfl 90. ana
| Cudworth & Co. has long been subject OF IN.
| 1u by me. These schemes, of men whose
reputation is in almost every case smiched
| by previous disreputable transactions. have
| ing The receipts OF the firm of tlemmin@ "
| Merriam are simply enormous, as VIII o, seen
| by reference TO the statements appended mere
| to. 1t is est mated, think with approximate
| correctness that the eipts OF the four con-
| Germs named above have had an aggregate
average duly for the last sixty days or not
less than S0.9JJ, Including what they have re-
ceved by the various exp.ess companies The
firm of Eieaiming y Merriam have, in the
twenty days from january l.. $685. u Jam
lary 20, ;, sS, received through the
ters None OF these. 80 regisfsred letters
contained less than sic, and very many OF them
conta ned amounts var ing from SlQoto 200.
They have in the same time received about so
money Orders, argresatng s2o4I6. It is of
course impossible to state accurately the
amo mt received by them by the several eX-
press companies; but, judging from state
1nent made by one in position to know some
over Slo,o00 by express. 1t is presumed that
their receipts by express Tor the twenty DAYS
were not less than $50, 600. Agarega,iag the
receipts from these sources it would appear
that they have received in the neighborhood of
$4,000 since January J. In the same period OF
twenty days the firm of Il. Il. Kendall d 20.
have had cashed about $50 money-orders, for
the sum of Sl5si7. This latter firm has also re-
ceived that lime 53l registered letters, none
containing less than $40, and many from 800
to $3.50. EstimatlTg the business OF K. 4. Ken
dali & CO. at two thirds that of Flemming
in thirty days. The other two firms. Oh ,rles
j. Henri & Co. and Cudworth s. Co, do a
about $4,000 in money rtce.ved in the same
tine. Now as to the character of the business
the ceptifi ate OF the Ghief Grain Inspector.
that, none of these firms are known TO the
State Inspection Department las warehouse
mcn, grain receivers, 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 of them has done a little
commission busin SIS and now operateS a little
for some W custo ners. The principal feat
ure of their fraud is this: They pref nd to
conduct what is termed 5 5y them o Mutual
suckers and '.grcenhorns," who buy
shares at $lo per share and take the chances
funds subscribed By the shareholders in spec
ulating in gram, stocks, etc., The managers
1ns that they have lost or made so much
money: and, if the latter, they return to share
cent cent They cannot show that they have ever
made the prouts or losses they report by any
reputable proc, What money they mas as
they choose to return Just what they think will
induce the shareholder to invest more largely.
IN some cases they have, to smsll investors.
returned rs profits fictitious showing OF a
large percentage of the investment. The re-
suit has been that such investors, mostly from
a 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 tlattering return. mis-
called profits. TO invest 800, 200, and in
many eases within my knowledge as high
ever get is Just what the sweet will of the fei-
lows who run tie concern are disposed to
ought to be in the penitentiary may be judged
by the antecedents of some of them. John
partner in Detroit of McKinney. Mckinney
IS now serving n term in the Michigan State
tris sd,f for "fenclng stolen goods, Flemming
exposed by the Michigan FIrnler. The notori-
Gus Benjamin Buckvalter. of New York, now
fugitive from justice, is understood to have
been a moving spirit in the Organizing of the
swndles in Chicago. Frank S. Wa,ers and
Dan Loring. of Chicago, have some connec-
Merriam and r. E. Randall & Co Waters is =
were in the Preside Friend lottery swf1idlc ana
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
bull, Who has better knowledge of the stand
ing and reputation of men of business in Chi
Of the firms named to become suSseribers n to
the agency, and denominates them frauds and
D. Colvin, ex-Mayor of Chicago now Manaaer
of the United States Express Company. assures
me of his willingness and desire to bre,k up
these monstrous schemes, and promises to act
simultaneously with the Post-offce Depart
ment in refusing to deliver any remittances to
them. Mr. Sea10n, 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.
journal. the Hon. w. T. Nixon. Manager of the
Chicago Iater-llcenn, the manag T of the Vest
which invite respectful attention stating that
1hese scoundrcls print and scatter broadcast
port to be copies OF editorial Endorsements from
newspapers, Of their frauds These
cert fcates show that the notices copied 10y
them were paid advertisements, written by
themselves, and then copied for their own
purposes. Hardly "A husiness-house in Chicago
hut is Hooded with letters of inquiry. and
plants from people all over the Unit d states
about one or other of these firms. They en-
pioy 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 la tori s, coa-mines. iron works, etc,
and alsof rving to induce postmasters TO serve
as their 'sents and to invest with them. de-
sire the apartment to take the earliest possible
moment ard exclude these conce rms by name
from the priv lege of receiving money riers
md registered letters at the Chicago Post-of-
lice. append my own affidavit 10 my belief
as to the facts. Very respectfully.
ID. A. RAY. Post-oiiice Inspector.
AFFIDAVIT.
STATE OF ILLINOIS, Sc
county OF Cook, 80
Daniel a. Ray, being duly sworn. doth de-
pc &c and say that from careful examination
he is led to bel eve and does believe the firms
styled Flemming s. Merriam, II. E. Kendall q
Co., Charles J. Henri & Co. and Cudwnrth &
Co., of Chicago, ILL.,. are engaged in conducting
schemes by the use of the United
states mails. DANIEL A. RAY.
Sworn to before me this 24th day of january
1852. +. c. TURNER, POST Office Inspector
= - A SAMPLE BLANK.
for shares in the Mutual Coon
eratiNe Cub, Bennett. Hoffman s. Co.
Managers. 15o and ISL East WASHINGTON
Street. Chicago, Ill.
Geflttcnten Please find herewith inclosed
F.. for which forward to my address
shares in the Mutual Cooperative Club.