Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1883-02-22
sWINDLE ON A BIG SCALE.
MIIwaukeans Lose Heavily in a
Chicago Hunbug.
Milwaukee Journal.


Tue fact was developed to-day that a
number of innocent Milwaukeeans and
a great many Wisconsin men are VIC
TINS of the investment club" whose
frauds are now being exposed in Chi
cego and creating no little excitement.
The plan of operation was to issue al
Turing pamphlets describing the sys,
TENS of puts and call which enabled the
dealers to combine small investments
and to realize handsome profits for the
investors. The variations of the stock
market furnished the basis for their as
pirations. 1t seems that none of the
funds placed in the hands of the firms
were invested at.all. The circulars
state that their senders are commission
merchants, doing an extensive business
on the board of trade. Details of the
plan of operations are given in full, and
statements are made of the monthly
profits on s. $40 share, which are alleged
10 run all the way from to IS per
cent. 1t says that the capital of the
fund is sufficient to operate in from
$4,000 to 100000 bushels of wheat or
corn, on margin Of 10 to 25 per cent.
or 5000 barrels of pork on a margin Of
81 to $5 per barrel, and yet leave a sur
plus. The "club" is composed OF
"fuckers" who have invested in SIC
shares. The managers, every few days
or weeks, make reports that they have
made or lost so much money. and, il
the former. they return to shareholders
a pretended profit of so much
per cent. No proof is given to
show that the profits or losses they
report have MADE in any actual opera
tions. What money they return as
profits is what their own sweet wills
may suggest as polite in order to in
duce further investments. In some
cases, they have, to small investors, re-
turned as profits fictitious showing of
a large percentage CT the investment.
The bait rarely fails, and the investors
are beguiled into blowing in larger
amounts, som etim es reaching 81 900 or
more. The names of the firms are
Flemming & Merriman, r. E. Ken
dali l. Co., Chas ]. Henri & Co., and
Cudworth & Co. The operations of
the establishments were conducted
mainly through the postoffce. The
members Of the firm have fed to Can
| aua. 1dS pOolOAiCC uopdEtiuSlb htso
ordered all money orders for these
persons returned, sud among the list
yesterday were letters from Milwaukee
and other parts Of Wisconsin. One
delegation from Wisconsin wanted to
know if the justice before whom a
large number of cases had been
brought couldn't issue some sort of an
order compelling the government to
distribute the money Withheld from the
firms among their creditors. Country
men are arriving IN Chicago in great
numbers, and it is estimated that the
uncsshed certificates SO far exhibited
by unfortunate farmers represent ST.
100000. One mar at Stevens Point,
Wis, holds $50, 900 of worthless paper.
Another arrived in Chicago yeserday
with certificates representing 500, 900,
and J. 7. Rowe Wri.es from Hannibal,
Mo-, that the "suckers" in that town
will send $40, 900 ofthe scrip, if there is
the slightest chance that the stuff can
be redeemed. The largest number of
claims thus far presented come from
| Wisconsin, Ohio and Michigan. It is