The times., 1899-11-30

tended Tor the concern l5 Del-5 --t-.-- --t.-
TO the scnders by The postomce authorities,
and the once busy omee IS deserted II
Is alleged that he firm was the local rep
reseutative of she Franblia asnti te. and
its collapse simultaneous with the Brook
Ivn concern. lends color TO this statement,
but nc one OF the former employees Of the
firm knows II this was the case. or, in
fact. anything regarding its hackers or
outside connections.
Little is known Of Herbert & Co in
business circles in this city. The concern
did all its business with outside investors,
largely from Maryland and Virginia and
refused 10 take any money, 1t is said,
from residents in Washington. For this
reason il was little heard of here, even
among the speculative community, and the
news Of its collapse viii be the first inu-
nation TO many that such a concern has
existed It IS known. however, that its
deposits were heavy, certainly in excess
of 200. and that a long list Of deposl-
tors were notified. it is said by Mr. Her
bert. before he left the city, that their
money was gone and would never come
back
Herbert d Co. began business last May.
The otiice was opened at the rooms 1T the
corner CT Pennsylvania Avenue and Ninth
Street and a campaign was begun imme-
diately for investors. Circulars much like
those OF the Franklin Syndicate were sent
broadcast over Virginia and Maryland,
telling Of the immense profits that the con-
cern would win in the stock market.
Promises Of enormous profits and dividends
were made TO all who would invest in the
concern.
a Prosperous Business.
The business grew rapidly, and in the
course Of Two or three months a staff Of ten
or more clerks, mostly girls. was employed
10 open mail count money, answer letters,
and send out dividends. Il is alleged that
the firm paid large dividends every month
ia the same way that the Franklin Syndi-
cate did. On. several occasions the monthly
payments were. il is said, as high as p
per cent, and they were never less than 10
per cent Nothing can be learned OF the
methods Of the firm or OF its investments, if
il made any Il is understood that it had
10 Geographic connection with New York.
There was however. a ticker" in the Of
fee giving the quotations on the stocks
dealt 10 on the New York Stock Exchange
An empioye OF the firm stated last night
that all cle money collected was turned
over every month TO an unknown man who
came 10 the Office regularly on a certain
date. This leads to the suppositiou that
rhe concern was only q branch office Of
some outside hacker.
Herbert. the head and apparently the
only responsible party connected with the
establishment. is described as a man about
lfty-ywo years of age. looking younger than
that Of short, stout build and ruddy com
pleEiCn. He was always al the office and
supervised all the business that be did not
60 himself He interviewed all intending
dGpCzitors who called in persons and die
tated al LISTERS. He disappeared from his
Office last Monday, and has not been seen
since then.
Miss Fanny i. Perry. the private secre-
tary and stzEoErapher Of Herbert, and the
empIoye VINO knows most about his busi-
ness was seen last night by a reporter
for The Times. She stated that she was
willing TO tell al she knew Of the affairs
OF The company prefacing her remarks with
The assertion that she believed the business
80 have been strictly legitimate one and
is failure due simply 10 the misfortune Of
bad investments.
Clerks Statement.
"Mr Herbert has had a large business. %
she said, and he has paid out immense
dividends. The deposits from the time Of
the opening Of the ofice were about $50
uso. ] believe. ] know that at least 500.
COO was paid cut in dividends and with
oraHals oE original deposits Every depost-
Tor drew dividends regularly from the be-
ginning I do DOt know what the nature
ot llr. HeTberL's investments were He did
not tell me OF anyone else IN the Office All
mat we knew Of this end Cf the business
was That gentleman came to the Office
every month and took away the balance
between the receipts and the dividends
paid out"
Miss Perry stated that Herbert refused to
receive Investments from Washingtcu. Peo-
pie and thar the firm owes no one ID this
city to- money deposited or for dividends.
Sle SAID thar on several occasions intend
ing investors came 10 the office but that
they were always told by Herbert OF the
IIe thal only uon-resideurs were allowed
DO participate iu the benefits OF the busi-
ness.
Herbert on last Monday sent out 10 an
hls investors circular letter making the
short statement that be had lost heavily I'm
Wall Street and that he would be Obliged
10 close up business. He stated 10 this
letter That DE could not pay anything 10
tnFe5. ors either on principal or interest ac-
count Az The close Of business thar day
he left sufficient money with Miss Perry 10
pay OF AL his clerks and then Ieft the
omce. telling no one waere he was going
or what his future plans were. letter
addressed to The Postmaster. Washing
1Cu E4s found en- his desk on TUESDAY
morning 70 which i- was requested that all
mau received FOR the firm should be sent
back 70 the Writers. The clerks all arrived
a- the office as usual on Tuesday and were
al paid oil and told that their service.
would not longer be regulrei.
Large Qnaati5ics OF Mail.
Enquiry al the postoGee last night re-
vealed the fact that an immense amount
a. mail has been received since that tim,
and that r has an been returned 10 tht
seudl1s. Hundreds of letters have becI
received every day many of them containing
money Ger Investment il the concern. The
mail 0t he firm has been growing constant
ly tor months past. but lt is only recently
shat d. has attained such gigantic proper
llOus
Herbert took an The books Cf the con.
Germ uilh him when he left. lie wen
away In a carriage taking in 81 everything
ihat would have shed any light on ia,
number 0f the depositgrs with the firm
and also all his private correspondence
The Office. wei furnished and spacious
thaf he occupied with his clerks, is aXcep
fcr mis- very nearly as it was during hi
occupancy. Several desks for bookkeeper
cashier and other clerks ln addition 4,
his owu. arc sta iu the rooms. An en-
closed space Wlth glass partitions aepa
rated some of thesc from The main office
one room rented b. him was never occu
pied. and contained no furniture, and p-o