The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-02-27
Hawks and Doves.

Auent the war being waged by the Chi
cago Board OF Trade and other legitimate
business organizations upon the "bucket
shops" the New York Journal Of Com
merce contains the following timely article.
1t may, we doubt not, be read and digest
cd with profit in this State:
II is very doubtful IL the extent OF hui
man credulity is even yet thoroughly un-
derstood, though swindlers have made II
the subject OF study and practice for thou
sands OF years. Confidence men have pro-
baby always leaned TO the side OF timid-
ity and modesty in their operations. Ger
tainIy il has always happened that the
boldest OF them-those who put the guilt
bility OF mankind to the severest strain
have been the most successful. The "old,
old story - is now told again, with Chicago
as the centre and the great West as the
principal scene OF a very productive iraud.
The germinal idea OF conildcnce-gameS
il never new. The theme is the same, and
only the variations differ. In the case now
under notice it took the sonOrous name OF
the "Mutual-Inyestment Club" or the
" Cooperative Fund" The same thing IS
not unknown in New York, with stock
speculation as its lure. Out West, grain,
pork, and lard-the great staples OF Chi
ca0o gambling were the substitutes
for Wall-street shares. The swinders
pretended to operate OIL the Board OF
Trade by a club system, in the "protits
of which everybody could partake by
the depOsit OF ten dollars and upward.
The circulars, giving plausible eXplana-
tiOns of the cooperative SYSTEM" were
oil
Europe. Figures were tabulated to show
that the monthly profits to subscribers
ranged anywhere from 8 to 80 per cent.
Instances were mentioned IN which SUD-
scriptions had been paid back out CT earn
ings eight times over within year. 1 ne
result OF this broadcast sowing was golden
harvest for the knaves. Ignorant and
greedy people bolted the bait, hook and all.
II they had taken the slightest trouble to
inq,lire OF responsible citizens OF Chicago,
they would have discovered that the
"bankers and brokers'" who transacted
this cooperative business were wholly un-
known on 'Cbange, as also were the
firms to which they referred for
moral character and financial stand
ing. But in their frantic haste to
Join the clubs that promised such great
things the innOcents neglected all precaC-
tions which common sense would teach.
For two months prior to their exposure
and the official seizure OF their mails these
Chicago operators were raking IN SlO,OO0
dav. They are known to have received
about 100000 in the first three weeks OF
January alone. At the time when the
Chicago postmaster pounccd on their mai,
by order from Washington, moi less than
$4,000 in registered letters and money
orders addressed to them awaited delivery.
This seizure was the first warning given 10
the thousands of dupes, and it startled the
West like meteOrite from clear SKY
scattering its red-hot fragments far ana
near.
II then became known that every village
and cross-road for hundreds OF miles
around Chicago had its quota OF victims.
The outlying sphere OF penumbra OF the
gigantic fraud reached as far away rs New
York and Yankocland. Canadians ana
Englishmen, and actually one Scotehman,
had made permanent investments III the CO.
operative funds. So complete was the de-
lusion under which many OF these persons
labored that they were highly indignant
because the Post-Oflice Department had
interfered with their mOney-maklng. These
were the subscribers who had been sweet
ened with small dividends out OF their own
dollars. They were prepared TO believe
even more than the high-fown circulars
claimed.
The little village Of Darlington, Wiscon-
sin, with population OF only l,3OO, ailords
an average example OF the virulent effects
OF the cooperative" epidemic IN many,
small places of the West. The sum total
of its losses is about $4,000. The inyes'
tors were lawyers C), clergymen q u
county officials, school teachers, farmers,
laboring men, female servants, and chll'
dren. Widows and orphans out there are
mourning over their vanished savings
banks deposits. One man sold out his
| liyery-stable and put the entire proceeds al
the disposal of the Chicago sharper'. a
farmer with a local reputation for shrewd
ness. who had been waiting in VAN iol
higher prices for his hogs, thought 1t
good opportunity TO sell out and JON
:. co0peratiye" pork pool "iust forming
rs per circular. Amid the general de
pression Of the dupes few are congrattl
iatinp their good fortune because the.
are out OF the tolls so cheaply. Inc.
declare that the lesson they have learned
well worth the cost. They ilatter them
selves that they will not again be caugh
with chat. We hope not. But there Is NJ
danger that confidence men will starye 10
lack of fresh prey. Frauds like these nov
brought TO light at the West ought to serv
as monition TO mankind. But we do nc
sunpose that the folly OF speculation wi
Iong be restrained at the West or elsewher
by such developments, however starting