The evening times., 1898-10-06
Hold Up Their Victims With
Alluring Advertisements.
RUN TO EARTH BY POLICE
Alleged Bogus Brokers Promise
Great Profits on Speculation I'm
Wheat and Ask for Partners With
Some Cash-It Is Claimed Many
Persons Have Been SwindIed.

has been fleeing hundreds Of persons
throughout the East. The detectives de-
clare that the alleged swindlers operated
somewhat after the manner OF Valentine
| and Mclaughlin, whose career of wide
spread fraud was brought to an end last
year.
1t is not known yet how extensive the
operations of the prisoners have been.
Capt. McClusky. however, has evidence
that convinces him that they We're wide
spread in pile of letters a foot high
| taken from the office of Norman Spencer
& Co., of the Bowling Green Building.
They are from persons who wrote to the
| firm asking why they had not received re-
mittances for their profits from wheat
deals for which they had furnished funds.
| The police believe the men made at least
$50, 600 during the short time they had
been operating.
So far these men have been arrested on
a charge swindling: Charles c. Spear,
| twenty-seven years old, of No. l5i West
Fifteenth Street; Joseph b. Hart, alias
Benjamin, of No 1863 West Forty-second
eight years old, residence refused. and
| Stephen T. Moen, thirty-one years old oil
No. 52s West 1S2d Street.
Many complaints were made recently to
Capt. McClusky by persons who said they
had been swindled by firm of brokers
who advertised in a morning newspaper
for partners to go into business with them.
The advertisement set forth that any man
who had $3.50 TO invest could easily make
from slO0 to $500 weekly and run no chance
Of losing his money. The firm did business
under the name of the Manhattan Bust
! ness and Realty Exchange. at No II
Broadway.
were sent to make an investigations They
visited the office and there met man
who called himself L. NJ Marks Detec-
tive Mcconnell says he told Marks that
he had N,OoO to invest, and asked for
some particulars as to the manner in
which the company did business
Marks, the detectives say, gave them
glowing accounts of how he stood in
with big real estate dealers and also big
brokers in wheat. The detectives pre-
tended TO be impressed by all his stories
of tips" that Marks said he got on all
big deals in the real estate and whea [
exchanges, and said they were inclined
10 invest. They asked for references be-
| fore doing so. and declare Marks referred
them TO Alexander c. McCaully, broker -
of the st. James Building, Twenty-sixth
Street and Broadway.
McCaully told the detectives that Marks
was a man of the most scrupulous hon
esty. incidentally, they say he also in
vited them TO try a flyer" in wheat and
| recommended the firm of Norman Spencer
& Co, in the Bowling Green Building
McCaully said they could double their
money. they assert. as the firm of Nor
man Spencer & Co. had inside" inScrma-
tion on the wheat market.
Charles c. Spear gave the detectives cir,
culars, they say, setting forth how the
firm he represented made hundreds of
thousands of dollars on their exclusive
tips on wheat deals. These, he said.
Were mailed all over the country TO pros
pective investors. One of the circulars in
the hands of the police guaranteed the in
vestor absolutely against loss. and set
forth that he was sure of big profits with
out running any risk.
Another of the circulars was made up
of a reproduction of fake" clippings
| from various newspapers in this city. and
| almost all of the large cities In the East
! ern, Western and Southern States These
associated Norman Spencer & Co. with
| the big wheat spectators in Chicago.
| Here is the way in which one of the clip
pings referred to Norman Spencer & Co.:
Now that Mr.. Letter has been taken
under the wing of Mr.. Armour, the specu-
| lative public will doubtless hear from the
| combination which has recently been
| formed, including Messrs. Armour, Lett
| err Piilsbury and Peary.
| Norman Spencer & Co.. who conducted
the New York end of the Letter opera
tions. it is understood. will be intrusted
with the handling of the affairs in New
| York for the newly formed combination.
.'It is believed that these geneltmen
| have not gotten together for their health,
| and from what Information can be OBJ
tanned there will doubtless be manipu-
lation in a future in wheat which will
| make the Letter transactions pale into in
significance"
| The detectives expressed themselves as
| highly pleased with the manner in which
| they say Spear explained to them how
| Norman Spencer & Co. did business. They
| did not invest. though, but promised to
| do so at some future time. They contin-
ued their Investigations, with the result
| that they concluded that they mad un-
| earthed a band of swindlers.
| They arrested Spear a this office yes
terday and seized all his papers. Among
! his effects were hundreds of letters from
| persons in various parts OF the country
! They all contained the same complain
| and bemoaned the fact that they had no'
| received profits they were entitled TO or
| their wheat investments. Some OF the
| writers threatened suits If their none!
| was not forthcoming.
| Among those who have had unfortu-
nate dealings with the alleged members
| nf the hand are H H. Reiner & Co., OF
\
East Twenty-eighth Street; Louis l.. Da-
vidson of No 2S Beekman Street, and
Frederick c. Truman, of No. 51 Sulli-
van Street.
! can't. McClusky said that McCaully
| bought a cafe at No. 116 Broadway re-
Gently, and gave in payment for 1t notes
| of Norman Spencer & Co., which were
| indorsed by Stephen T. Moen. These are
| declared by the police to be worthless
To stock the place McCaully obtained
81. 200 worth of liquors, and borrowed $3.50
| in cash from H. H Reiner. For these
| goods he gave notes that are also de-
clared to be worthless
! Mr.. Truhan declares he answered an
| advertisement that McCaully inserted fol-
a cashier for his cafe, and deposited with
| him $500 as a guarantee of honesty. He
did not get the position, he declares, or
his $500.
Davidson asserts that he had real es-
| tate transaction with McCaully, and was
| given fraudulent check for $50.
| Capt McClusky charged Spear, Hart
| McCaully and Moen in the Center Street
/ Police Court with conspiracy TO defraud
! Magistrate Cornell committed them to
| the Tombs.
| "I expect to arrest Others" said
| Capt McClusky. land disclose a great
! swindling scheme. These men must have
swindled thousands of victims. 1 have
| all the papers, and have no doubt I can