St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-04
The METHODS OF MENACE.
HOW THE SNAPSHOT F1NANcfER
RAISED MONEY.
ISSUING BLOCKS OF NOTES.

Decoy Lists Sent to Eastern Money
Marts Followed With Spurious
Paper-Sample Letters Show
ing the Mode Of Operation
Grand Jury Likely to Report
Today.
In its researches into the mysterious
methods of Menage. the expert ICON"
man, note manipulation and what may
be termed snapshot financier, the grand
jury has dug out great many facts
hitherto concealed, and especially is
this so with regard to the manner in
which he juggled worthless paper.
When Menage found himself hard
pressed for cash ne would take a block
of notes signed in blank. and bearing a
vague signature. These would be filed
out in sums to meet the financial eX
igency, when several shares of stock
would be attached as collateral. after
which the note riders" would be filed
out by the clerks. The stamp of the
company would them be placed on the
back of the notes. and after being signed
they were ready for the market, the
principal aids to the transaction being
II. K. Cole and w. S. Streeter.
The game was then ready to be sprung
on the market, and decoy letter would
be sent TO bankers throughout the
Eastern cities. These letters were very
plausible. and calculated to deceive the
oldest experts. They called attention
to a list of short-time loans held by the
company and sample notes were in
closed. The notes listed. as rule. bore
the names of reputable men Of good
financial standing, and such as invest
ors would be glad to secure. The bait
generally caught, and when the orders
were received another letter would be
sent. explaining that the list in question
bad been sold, bat that the company
was in receipt of other choice notes
which were forwarded on approval.
The latter were of course worthless, but
they usually succeeded in landing the
sucker. The following sample letters
will explain the mode Of operation more
fully:
MINNEAPoLIs, Jan. u, 1866. W.
Cook. Cashier Dillsburg National Bank,
Dillsburg, Pa.-Dear Sir: We have &C.
casionally called your attention to the
short-time cOmmercial-paper business
which this corporation has conducted
successfully for many years. The rate
OF discount at this season of the year is
very favorable, cousidering,the quality
of the paper we offer. We inclOSe
herein list of some loans on hand to-
day, and a sample note giving you the
main features of our business. The
paper is payable in New York, is fully
collaterated. and payment at maturity
guaranteed by this company. You can
refer, if you wish, to the following
banks in your state that have had eX-
tensiYe dealings with: The National
Bank of Brookville, First National of
Merchandising, Miners National of
Pillston. Citizens of Towanda. and
First National of Sharon. We will be
pleased to consign notes on approval,
net proceeds, If discounted, to be placed
with our Eastern correspondents. Very
truly yours, TX. COLE, Treasurer.
When the replies came letters like the
following would be sent:
q. w. Cook, Esq, Cashier Dillsburg
National Bank-Dear Sir: We thank
you for your telegram Of this date, or
dering short time paper to the amount
of 81. 100. The list from which you Or
dered vas issued some time ago and the
pieces you select have been sold. We
take liberty of submitting two choice
notes on approval aggregaung So.UOO,
and trust they will prove acceptable as
paper you mention. Kindly deposit
proceeds at American Exchange Ma
tiOnal bank. New 7 ork, for our credit,
return sale statement to US direct. Hop
ing that our business relations will be
mutually pleasant and profitable. and
soliciting your further favors, to which
we promise careful attention, we are
very truly yours.
W. S. STREETER, Vice President.
The grand jury has had batch of
correspondence similar to the above,
and it is expected that its final report
will be made today, when doubtless a
number of additional indictments will
be returned. some of which may startIe
the community.
Among the important witnesses be-
fore the jury yesterday was NJ. ID. Ken
yon, the state bank examiner.