Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1899-11-25

livery daily at MilIer,s office amounted to
about three wagonloads ard-rnost of the
letters contained money. Miller had
faculty OF displaying large amount OF
his wealth. and the Offices on Floyd street
were piled high with greenbacks OF alii
denominations and heaps of gold
This seemed to lend confidence to those
who came with their subscriptions. ana
IL is impossible to even estimate where
Ihe"endless chain would have ended. The
principle Of the endless chain as developed
by Miller depended upon the fact that his
old customers brought him additional mem
bers and were allowed a commission OF .
per cent upon all moneys thus invested
Those who were drawing this income OF .
per cent became walking advertisements
for the Franklin syndicate.
For weeks before the bursting OF this
bubble which, in rate OF dividends and IN
come guaranteed. far surpassed the Wild
est dreams of the South Sea bubble, the
United States postofiice department has
had its trained investigators, its very best
secret service men at work trying to catch
Miller and his associates, but all in vain.
Rev. D. Meredith. of Brooklyn, former
pastor of Millers, complained 10 the
BROOKLYN police that the man was running
half of the young men OF his congreSa-
ton Miller was formerly a member of Dr.
Meredith's church, and, in this way, be-
came acquainted with men belonging to
the Sunday school and congregation The
police official TO whom DR.. Meredith COM
planned is said to have told the reporters
Investigating Miller and his operations:
If you can catch Miller you will De the
ssmoothest men in this town. l never saw
anything like il. have investigated the
complaint made by Miller's former pastor,
for Miller had been expelled from the
church to which he belonged. and find that
his statement that half Of the young men
and half of the young women in the con-
gregation are investing in the Franklin
syndicate is true. But not one can find
who is willing to make complaint against
the man or his method Would YOU make
complaint yourself, If you were getting
the 10 per cent week, for Miller certain
iy pays it out every week, according to the
promise contained in his order.
Besides continued the police official,
Il don't know that I would be able to
bring about the arrest OF the man. pro-
vided l did get a complaint. Most of my
patrolmen, my inspectors and detectives
seem to be in it-and / am thinking seri-
ousIy Of going in it next week myself"
The ~ per cent week, or SO per cent
year, of interest guaranteed by Miller did
not begin, in reality, to represent the OBJ
legations incurred by the head of the
Franklin syndicate. The rate OF 40 per
cent a year is estimated on basis of
simple interest only; but nine-tenths of his
patrons affected by the money making
fever were in the habit of turning around
and re-investing the 10 per cent interest,
or. in other words. pyramiding their gains.
This removed their operations from the
compound interest.
One Of Millers patrons who invested sfe0
Immediately turned around and re-invested
the 10 per cent allowed him at the end
of the first week making balance of Sll0
to his credit. The next week he received
Interest on both principal and interest, thus
giving him balance to his credit OF slZl-
At the end Of twenty-five weeks. or a
little less than six months he found him.
self with q credit in the Franklin syndicate
of 81 G29 all this from the original in
yestment of sl01. Inasmuch as Miller alb
solutely refused to carry accounts of more
than $l.V00 this customer was compelled 10
re-invest in the names of other members
of his family. At the time of Miller's ar
rest he said that he had over 5000 in the
syndicate. all from the original investment
of sI0J. This policy of re-fnvesting in the
name of other members of the family was
carried on TO a large extent among the
poorer class in Brooklyn One OF the
police captains in BROOKLYN said that he
knew OF 4 family consisting of sixteen
members which had 800 invested for each
member of the family and the interest was
paid On all OF the sixteen Claims reguidri!
every week
Miller claims to make his abnormal
profits through speculation in Wall street
though no evidence is forthcoming up TO
the present time 10 show that he ever
speculate1 in stocks to any extent. HIS
clerks and employees from time TO time
threw. out vague hints of inside mforma-
tfon which Miller. they alleged. possessed
For instance at the outbreak of the Span
ish-Amerfcan war, II was claimed that
Miller made immense profits out of the Gu
d.
bonds have been anything except a favor
ite,s form of investment with fnanciers
giacs-that- time. they succeeded in making
thousaRdssof OF poor people in Brooklyn be,
I.eve the story Later. il was announced
that Miller. was in with a senatorial clique
atsW Washington. from whom he received
tips son The market and that he used, this
advance information for the benefit of his
syndicate. Still another story extensively
circulated was the statement that he had
reeently made . per cent profit in single
taT
uation-
On Tuesday of this week, Just before
charges of libel were preferred against
Miller. he is said to have taken in $ss. 900
and paid out $1,000. The confidential rep
resentatfve Of one Of the banks who visited
Milier's Office about this time said that he
loose in his life. He said that it reminded
one of the tales of Monte Cristo and Monte
Carlo combined, but that. as an absolute
fact. Miller did not have facilities for tax
ing. care OF all of the gold and greenbacks
which poured in upon him. and empty bar
rels We're brought up from the basement of
the building in which he operated. and
thousands and tens of thousands Of dollars
were dumped into these barrels by the en-
p!Syes and clerks employed by Miller in
his establishment.
Brooklyn had in Mr.. Miller and his syndi-
cate. tonight. even after Miller had been
denounced in the most unmeasured terms,
crowd Of probably 2.05o people were gath
cred about the building about s O'Clock
The doors of the office had been closed at :
o'clock. but business was resumed a few
minutes before s. The would-be depositors
We're formed in line by the police, reach
ing down the high stoop and fully $50 feet
into the street Business was carried on
for thirty minutes During that time fifty
persons deposited money and not one drew
out. This showed the confidence of Mr..
Miller's public in his rocket, although at
that very moment the stick was in the act
OF falling. Up to a late hour tonight
Miller had not been found.
One of Millers trusted employees is re-
sponsible for the statement that the-Frank-
lin syndicate man had taken in over Si,eJ9,-
Oc1 It is known that when the banks shut
down on him yesterday and refused to ac-
cept his deposits any longer, he withdrew
$150oe0 in the Welis-Fargo bank. 1t is
asserted tonight that Miller deposited
S100.00e with the German consul.
Miller. who Is a very young man, short,
slight and insignificant in appearance. pos
sesses two positive characteristics, his per-
sonal magnetism and his frozen calmness
During the last two or three DAYS. when
his every movement has been watched by
detectives and reporters when crowd after
crowd Of eager depositors fiocked to his
establishment despite newspaper exposures,
he never for one moment lost his quiet
ways or became angry. He spent few
years with Heverin & CO.. Wall street