Evening journal., 1897-04-09
HUNDREDS OF VICTIMS.
Dean Financial Scheme Caught
Many People.
EOT THE ENTERPRISE WORKED

crnmcnt Issues Fraud orders.
New York, April 0.-The Dean fail
ure' as each day brings fresh details TO
The surface promises to become one of
The mcst monumental mixtures of Gu
pidity and rascality, of simplicity and
less in hlstory-gigantic in its dimen-
sions and covering the entire country
in It's consequences.
The crash came through a double
reason a big hit had been made in the
wheat pit, and detectives were just
about to close IN on the concern as a
fraud Of the first water
The detectives were H. B. King and
W. Il. Bishop, being employed by the
Civic federation of Chicago. This is
citizen body intended to purge the city
Of its rascality and Messrs. King and
Bishop were specially detailed on the
grain bucket shops.
The work accomplished has been
commended by all familiar with the
board Of trade and its operations. It
was about three weeks ago that Mr.
Bishop came to New York to continue
his work. He had been in correspond
ence with all the discretionary pool
shops and the other allUrng dens of
speculation.
on the first day after his arrival
word was passed that Bishop was n
town." and detectives were put on his
steps He stopped at the Imperial ho-
tel, and its lcbbies We're visited by ev-
cry bucket shop keeper in town, All
anxious to get a glimpse of the little
follow who was feared so much The
pedigree Of the Dean firm from the
notebook OF the man who has valise
fun of documentary evidences against
them is a very interesting one.
THE firm" he said. was originally
+ S. Dean & Co.. and was started
about Il months ago with Offices at s5
broadway. 1t was made up of J. 3.
Kellogg and Mrs. T. s. Dean, a woman
who is now out of sight
Was Woman In the Firm9
she has been located in an uptown
resort under another name. The talk
about Dean being a partner of old
Hutch is all rubbish The firm gathered
in great deal Of money but on Sept
20. 1886 the new corporation of the +. s.
Dean company was formed in New
Jersey. The originators were G. NJ
Ebermann. who was formerly a clerk
Of c. F. Van Winkle of Chicago. for
whom a warrant is out. and who is
carrying on bucket shop at Johannes
burg, Africa Samuel Keller. who is a
broiher-in-law of Myron l.. Bernard the
man who was put in as president, and
Charles S. Wenmann. former mem
Der Of the Consolidated Exchange.
THE nominal capital was n million,
but the paid up capital was 1000.
There is a contradiction here, for the
Bernard so shares Jacob Lamberg 90
shares and Leopold Balbach s shares
This makes Sl0,500 actual capital The
last five shares are nominaily in the
hands of q Jerseyman. for Baibach was
given a pretended residence in Jersey
and a few shares to make the concern
5 locally legal
'It was formed for commission sell
ing of grain. stocks. food products and
was permitted to deal in same for it.
self
Bernard was made president and T.
T. l'arrand. who has membership for
the Produce Exchange. was made sec
retary and treasurer The real runner
of the concern was Samuel Keller, who
IS an old character in Wall street.
"'The plan was very simple. Batches
Of 100000 circulars We're contracted foi
and addresses bought of the Trow Di-
rectOry company covering various To-
oalties and professions all over this
country. AS soon as gullible customer
was struck in a town he was made ar
agent and a special commission paid
him to send on other peoples money.
First Victim Made Agent.
In scores Of cases the agents entir,
deposit was sent back and he was tolC
shat he had a heavy working balanc,
Invested. In some of the cities the firm
name was used. and the agents becam,
managers
There were such in Boston, Phila
delphia. Baltimore. Pittsburg. Detroit
Cleveland. st. Louis, indianapolis, Gin
cinnati Louisville, Memphis and New
Orleans. no wires were used, and tn
mail was depended upon entirely. Whei
pretended profits were paid, they wer
in checks.
These Were drawn by the E. S. Dear
company on the f. S. Dean company
bankers, and paid by them after com
ing through the banking channels. A
one time the concern had branch il
the Rialto building, in Chicago but lef
there early in 1896 with two months un
paid rent. The Civic federation was a
up TO a fortnight ago the stub re
ceipts sent for money received, an,
which were numbered oonsecutively
showed that about 26,00O separat
sums Of money had been received.
"The sum called for in the advertise
mcnts was SlOO. and on this 400 per cen
was promised This would show tha
at least s2.6OO. 900 has been taken in. an
from those in a position to know IA
results Of their advertising this is
conservative estimate
when a customer appeared doubtful
he was referred to the Investors an
Merchants Business Guarantee oo,n
pany, which was a high sounding of
shoot Of the company. and at once
strosg commendation Of the +, s. Dea
company was sent in.
'Whsn profits had been sent a victim
circular was sent pointing out tn
benefits of the 'compounding prol
system. and this rarely failed to brln
back nll the cash and more too
Irc.aent TO the collapse of the De4
cor,pany the postoShce inspectors ,
;EX cEy have recommended thar frau
Ia iee4taH etoppIpo the Fslftratl