St. Landry democrat. (Opelousas, La.) 1878-1894, 1883-02-10
ALLEGED GIGANTIC FRAUDS.


Chicago, to the Department at WASH
ington.
WASHINGTON. January 81.
Following is the report of Special Agent
Ray in the matter of several Chicago firms ex-:
cluded yesterday from the mails, with the in-!
dorsement of the Chief-Inspsetor:
Post-oFFIcE INSPECTORS OFFICE,
CHICAGO, January IS, 1888.
The Hon. David B. Parker, Chief Post-office
Inspector:
The accompanying reports of Inspector Ray
are respectfully referred, with the recon-
mendation that firms named be excluded from
the mails az fraudulent, and that the action Of
the Postmaster General thereon be ilEmedi-
ately teegraphed to the Postmaster at Chi
caso, in advance OF the mail, that the fraud
may be stopped at once, as large amounts by
registered letters and ey-orders are daily
received. }. y. STUART,
Post-otfce Inspector.
RAYS REPORT.
POsT-OFFICE INSPECTORS OFFICE, |
CHICAGO. January 25, 1888
The Hon. ]. E. Stuart, Post-otfice INSPECTOR:
sir: AS you are aware. the magnitude OF the
extensive fraudulent swinding schemes of
the cor Germs styled Fiemming & Merriam, r.
e, Kendall l. CO.. Charles }. Henri y Co. and
Cudworth q Co has long been subject of in
reputation is in almost every case smirched
by previous disreputable transactions. have
reached point which is perfectly astonish-
ing. The receipts of the firm of tlemming g.
Merriam are simply enormous, as will be seen
by reference to the statements appended here
to. 1t is est mated. think with approximate
CUkIcCluesa. tudL iHG TCCCiplo VI tAC loAh CC.f-
Germs named above have had an aggregate
average daily for the last sixty days of not
less than $4,000, Including what they have re-
firm of Flemming Y Merriam have, in the
SsFy lsss receIzed til thr s,sst. he 3lt
tiers. None of these registered letters
contained less than $l0 and very many of them
contained amounts varying from 500 to $500.
They have in the same time received abouts2J
money-orders, aggregating S2U,416 1t is 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 lastwee
over $1,000 by express It is presumed that
were not less than $4,000. Aggregatiag the
receipts from these sources it would appear
that they have received in the neighborhood of
$1,000 since January I. In the same period of
twenty days the firm of r. D, Kendall 4 Go.
have had caShed about 6a5 money orders, for
the sum Of sl5s67 This latter firm has also re-
containing Tess than $40, and many from sl00
to $500. Estimating the business OF r. q. Ken
dali s. Co. at two,thirds that Of Flem m ns,
in thirty days. The other two hrms. Charles
j.. Henri & Co. and Cudworth & Co.. do
smaller buslne $, the two probably aggregatng
about S50,0eO in money received in the same
t me. Now as to the character of the business
done by these firms, I 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
commissions busine IS and now operates a little
for some f w customers. The principal feat
ure of their fraud is this: They pretend to
conduct what is termed by them :" Mutual
Fund.- composed of the money of
I "suckers' / and " greenhorns,' who buy
shares at $40 per share and take the chances
funds subscribed by the shareholders in spec
nlAting in gram, stocks, etc. The managers
every few days or weeks make reports show
lnig that they have lost or made SO mSch
money; and, if the latter, they return to share
holders d pretended profit OF so much per
cent. Theycan show that they have ever
made the prohts or losses they report by any
reputable PROOF. What money they fe.urn as I,
profits is solely just what they choose. and
they choose to return Just what tney THINK VIII
In some cases they have, to sms.ll investors
returned as profits a nctltious showing OF q
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 q tatter.iig return, mis-
.caisd profits to invest $780, 200, and in
many cases within my knowledge as high
ever get is just what the sweet will OF the fell
lows who run the concern are disposed to
send them. That they are scoundreis and
ought to be in the penitentiary may be judged
by the anteeedentS of some of them. John
'Flemm ing, of Flemming Merriam. was q
partner in Detroit of Mckinney. Mckinney
is now serving term in the Mich gan State
Prison for sfencing'' stolen goods. Flemming
himself was arrested in Eetroit for fraud and
exposed by the M,ct.iqan Fafmer The notori-
GUS BENJAMIN Buckwalter, of New York, now
a fugitive flom justice, is understood 10 have
been a moving spirit in the organizing OF the
swindles in Chicago. Frank s. Waiers and
nc,, oY.iy, nf mi ap hav
ton, either open or secret, with Flemming u
Merriam ana II. E. Randall s. Co. Waters is a
bgpther-in-lew of Kendall Waters and loring
were in the Preside Friend lottery sW.ndle 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
Bfadstreet's Commercial Agency, Mr.. Turn
bull, who has q better knowledge of the stand
Ing and reputation of men of business in Chi
cago, has peremptorily 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
D.Colvin, ex-Mayor Of Chicago now Manager
ofthe United States Express Company. assures
me- of his Willingness and desire to break up
these monstrous schemes and prom ses to act
simultaneously with the Pcst-office Depart
ment in refusing to deliver any remit tances 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-
utabie and unlawful character of the scheme.
tE-GOSeTItDI .uutudus SullUi VI tHc NHitstHo
.7DDTnal the Hon. p. Nixon. Manager of the
Chicago Inter-Dcedf,, the manager OF the fest
eir Rurnl, and others present certificates to
which invite respectful attent on stating that
these seoundrels print and scatter broadcast
their circulars and advert sements. which pur-
port to be copies OF editorial endorsements from
reputable newspapers, of their frauds. These
cert ficates show that the notices copied by
them were paid advertisements, written by
themselves and then copied for their own
purposes. Hardly a business-hOuse in Chicago
but is flooded with letters of inquiry and COM
about one or other of these firms. They en-
pty large numbers Of employees in addressing
ans; mailing their glazing circulars to remote
pa is of the Union, getting the names OF work
men in factories. coa-mines, iron works, etc.