Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-04-15
a story WIN . MORAL.

formation to the effect that OF the
numerous victims Of that notorious
stock swindling concern, the Il. s.
Dean Company Of New York City,
whose stealings probably exceeded two
millions OF dollars, nearly two thirds
are residents of this State and the
Delaware Peninsula. A letter from
our correspondent at Ssaford, printed on
another page of this issue, gives soma
Interesting details Of the operations OF
the concern in Kent and Sussex coun-
ties
The story of how this combination of
sharpers succeeded in duping SO many
people forms most interesting chapter.
The original concern, known as L. s.
Dean a. Co., was established by a
young man who did not know anything
about stocks in general, but did know
few good points about gambling in
wheat margins. He started the bust
ness of soliciting consignments of capt.
tai for stock margin ventures, under
promise of generous returna and strict
compliance with the wishes of his cor
respondents as 10 the stocks to be in
vested In. But, no mattes what stocks
his customers suggested, this bold
operator confined himself exclusively
to wheat ventures, in which he was
enormously successful. He gave his
patrons dividends amounting to from
forty to sixt, per cent, and at the same
time cleared for himself profits fire.
quently as high as 120 per cent. And
in his returns to customers he made
bogus statements as though he had in
veHted their money in the stocka Of
their selection and realized their profits
from these sources.
OF course, the phenomenal SUCCESS
that attended his operations gave him
great prestige. Those who dealt with
him told their friends, and the busi.
ness continued to grow with mighty
strides. Investors to whom no mailed
good checks on account Of profits re-
fused to accept the money and sent ii
back for reinvestment. Finally, this
bold operator, who had enjoyed such
phenomenal run of luck in the right
direction, became frightened at tho
amount of money that was pouring into
his concern, and gave up the business
to those who eventually brought about
the smash. The latter changed the
frm name to the d. S. Dean Co., and
continued tho business. But they did
not con6ne their operations to wheat
futures, nor did they have the wonder
full good fortune Of their predecessor.
They lost heavily. Still they continued
to buoy up their customer with checks
OF liberal amounts on account Of profits
but these dividends, however, were
taken from the principal contributed
by their customers. To this kind OF
business there was but one end, and it
has been reached by the exposure of
the swindling concern and the great
losses imposed upon the credulous adj
herents.
The moral of this story is plain, II
is that people cannot depend upon con.
Germs that promise them an abnormal
returns for their money. In legitimate
business 1t is frequently bard to make
both ends meet, and seldom are profits
greater than the legal rate OF interest.
six per cent. When, therefore, concerns
promise investors profits OF twenty per
cent or more, the offer should DO taken
for what it simply is. fraud upon its
face. In not more than one instance in
million will the concerns have tbe
phenomenal SUCCESS that attended the
originator Of the E. S. Dean Co., and
be able to deal honestly with their Gus.
toners. Even the occasional payment
OF large profits to investors is but a
bait to retain their confidence and draw
more money from them. These fiatter-
ing dividends are but portion of the
original capital invested, which, in the
end, is swallowed up in the fraud,
together with what other money NAV be
sent after it.
These lessons are costly, but it is
only by such dear experiences that some
people Will learn wisdom. They furnish
proof that offers of abnormal profits
mean fraud. They show how people are
swindled out of large sums of money by
means of alluring promises of great
gains. They point the moral TO ayoic
gambling in any form, and, above all,
to refrain from placing good money il
the hands OF unknown persons, to b,
Invested" in glittering schemes whict
almost invariably prove to be frauds o.
the fret water. If these lessons h,
taken to heart, the Dean fiasco, despit,
the great Losses involved, may prove I
blessing in the end.
President Mckinley has appointed ,
Monetary Commission, composed O
General Charles Jackson Payne o
Massachusetts, Senator u. o. WoIcot
OF Colorado, and former WIGS. Presiden
Adlai L. Stevenson. Tayue Is a lawye
and a bimetallist with gold inclinations
and the other TWO arc also lawyers anC
incorporating advocates of the fire.
and unlimited coinage of silver at tn,
ratio of lG to /. Not fiuancier o
business man among them. Thei
efforts, from the frat will t,e ,];ra,f.,