The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-25
SHADY TRANSACTIONS
PROMINENT PEOPLE LOSERS by A
SLICK SCHEME.
worthless Checks to the Extent OF
$1,000 Cashed I'm the Cfty-How
the scheme Was Worked.

gigantic swindle. but is claimed by its man.
ipulators to be simply business transac-
ton, which. to say the least of it, is quite
shady. has just come to light in this city.
For boldness of inception and execution it
ranks any transaction of recent years.
Through its operations business men of this
city are out to the extent of about 81 900.
most of it in amounts ranging from 800 to
$500. Among those who are lamenting the
loss are attorney F. w. Cady, who was
caught to the extent of $500; County Clerk
Fesler, S175; the Journal, 1858; Edward st.
George Rogers, amount unknown; Joseph
Whelden, $129; the American Express Com
pany, s2o5; the Bates House, $113; Frank
Samuels. of the Postal Telegraph Company,
M29.5O; Merchants National Bank, $151.20
The last four named, except Samuels, have
received property which makes them even
on the transaction, and Samuels has re-
ceived almost half of his loss. The gamers
by these transactions is the Plymouth Rock
Pants Company, of Boston.
The Plymouth Rock Pants Company is
concern engaged chiefly in the manufacture
Of pants. It's business is transacted through
fifty-six branch stores. located in various
prominent cities throughout the country
Heretofore it has been rated with good
credit by the mercantile agencies, and is
quoted as being worth over 100000. For a
number of years it has maintained branch
store in this city, which at the present time
is under the management of 0. p. Lee. Mr..
Lee, however, is as much amazed at the
recent developments concerning the company
which employs him as are those who are
lamenting the loss of the money. However
shady the transactions may be, Mr.. Lee is
in no wise connected with them, they being
done entirely through the company's travel
ing men and the head office.
To look after these branch stores the COM
pany employs twelve inspectors, whose duty
it is to make periodical visits to the various
branches and check up the business. Two
weeks ago to-day w. c. Prouty. one of
the inspectors, came here in his usual bus
mess rounds. Among other duties was the
settlement OF number of accounts against
the firm at this place. He went to attorney
F. w. Cady, who has transacted their legal
business at this point, and in payment for
his services rendered him check the
Beacon Trust Company, of Boston, for an
amount considerable above Mr.. Cadys BILL
Mr.. Cady paid the difference in cash and
took the check. AS Mr.. Prouty said he
needed more money he got Mr.. Cady to
introduce him at one of the banks and in
dorse other checks for him, also one in
payment of small purchase at the New
York store, In all Mr.. Cady Endorsed for
about $500. Mr.. Prouty then paid a num-
Der of other bills. including one to the
Journal for advertising. charges at the
graph tolls hotel bills, ETC., in every case
rendering. a check and receiving cash in
change. 1t is not known now just how
many persons advanced money in this way,
put the total tai amount which Mr. Prouty re-
ceived IN this city i is supposed to be in the
A week ago last Saturday some of the
checks We're returned to the local banks
this state of affairs became known, and the
extent of the dealings reached Mr.. Cady's
ears, he went to Boston to make in
vestigation. On his arrival there he found
five other attorneys from various parts of
the country who had suffered by similar
transactions. All of these attorneys had
been the local representatives of the COM
pany in their respective cities, and, Of
course, had been the first one to be ap-
preached by the inspector with his pocket
full of checks. On inquiry. at the trust
Jan. 49, the date of the checks cashed here,
the company had funds deposit. In
Massachusetts the drawing of a check with
no funds in the bank at the time it is
drawn is made felony, punishable by five
10 fourteen years in the penitentiary. Mr..
that these transactions come under the
statute.
Plymouth Rock Pants Company and was
net by the treasurer of the company, who
did not seem surprised at the visit. Mr..
Cady there learned that, the inspectors We're
given these checks and instructed to col
lect them wherever possible and remit the
money to Boston by telegraph. Through
these transactions the company has re-
ceived during the last few weeks over s27,-
Very much surprised at the frankness with
which the treasurer admitted the trans
actions. Mr. Cady asked him what r., he
checks to be cashed promiscuously, and re-
ceived the reply: oh; that is Just one way
the concern did not look upon the transac-
lions as anything but legitimate, and ex-
The winter season being on, with dull trade.
they ran behind in cash. and by securing
money, in this way they were enabled to
cashed would be Immediately available for
use cash. on account of having the
themselves would not turn up for several
days or a week. and by that time, the COM
This may be a legitimate way of doing
business in Boston, but the people here
have no recourse except the small stock of
goods on hand in the branch store in this
city. look upon the matter az nothing less
had no intention Of doing anything that
in attachment against the company and
hs Sy the oe Thee meeting
yesterday in Mr.. Cady's office of the credi-
to ask Mr.. Fesier to release his attach
ment receiver could be appointed for
the local DranCn ana InuS pfOlecI ali the
creditors, which will probably be done this
morning. The stock of goods in this city
is valued at about $1,000, and so far as
known the indebtedness Is only $1,60C. 1t Is
possible, however, that when this becomes
known there may be others who will pre-
sent similar claims. When Mr.. Prouty was
here he offered check of $i03 to Horace
Woods for a livery bill: but Mr.. Woods
was either suspicious of the check or
didn't happen to have sufficient money
about him. and refused to cash it, AS the
transactions, so far as known, include even
small furnishing store, it may be that
others will turn up.
Lee Nixon, city clerk, narrowly missed
being among the losers. A week ago last
Friday Prouty, with whom Mr.. Nixon is
we'll acquainted, came into his office in
somewhat of hurry and asked il he could
cash a check for $125. Deputy Clerk Carter
had just gone to the bank with the days
| collections. and there was not enough money
| in the office. otherwise the check would
| have been cashed. Mr.. Nixon suggested
| that Prouty go to the City Comptroller, and
would probably have gone with him to in
| troduce him If some enc had not come into
| the Office about that time and demanded his
| attention. AS 1t was Prouty went off, say
| ing he would get the money down town
| some place.
Last Wednesday the Boston courts APP
| pointed a receiver for the company. Its
| liabilities We're placed at 100000 with assets
| at $4,000.
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