The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-11-25
BIG FRAUD UN[ARTH[D.
SYNDICATE IN BROOKLYN OFFER.
ED TO PAY $40 PER CENT.
ON That Basis-MOney Poured I'm
Faster Than It Could he Handled
STORY Reads Like Dream.

NEW YORK, Nov. A-wiiiiam F. MIL
Ter. head Of the Franklin syndicate. which
has accepted the deposits OF thousands Of
persons In Brooklyn, under promise OF
paying dividends Of 10 per cent. a week,
or $50 per cent. per annum. ard Cecil Les
lie. his secretary. were indicted by the
Kings county grand jury Bench warrants
were Issued for the arrest OF these two
men. but, UP TO late hour tonight, neither
had been found. the police saying that
they had disappeared in the afternoon. To-
night the police raided the premises occu-
pied by the Franklin syndicate, on Floyd
street. There was great crowd Of people
around the building and the police sur
rounded 1t. Inspector Brennan arrested
Louis Miller, brother OF the head of the
syndicate. and the cashier OF the concern,
and took possession of $4,000 in cash. There
were forty employees engaged at work In
the offices and these were allowed TO 60.
The charge upon which Miller was In
dicted was that of conspiring TO defraud
The district attorneys office. In Brooklyn.
has been at work on the case for some
weeks. so prominent have become Miller's
operations In that time.
Miller's Fake Stories.
Miller claims to make his abnormal
profits through speculation In Wall street,
though no evidence Is forthcoming up to
the present to show that he ever specu-
lated in stocks to any extent. His clerks
and employees from time to time threw
out vague hints of inside information
which Miller, they alleged. possessed. For
instance. at the outbreak Of the Spanish
American war 1t was claimed that Miller
made an immense profit from Cuban
bonds. and despite the fact that these
bonds have been anything except favor
lite form Of investment with financiers
rsr st,.t T. - L..
ing thousands of people in Brooklyn be-
lierc the story.
Later IL was announced that Miller was
in with a senatorial clique at Washington
from whom he received tips on the mar
ket. and that he used this information
for the benefit of his syndicate. Still an
other story extensively circulated was
the statement that he had recently made
% per cent. profit In single day In a
transcontinental railway stock specuia-
ton: this despite the fact that since Mil
Ter commenced his operations no trans
continental railway stock has moved I'D
or down . points
Monte Carlo Surpassed.
On Tuesday Of this week Miller Is said
TO have taken in $500 and paid out ssi-
900. The confidential representative OF one
OF the banks who visited Miler's office
about this time said that he never saw SO
muE0 money scattered around loose IN his
life, He said that Il remained one Of the
tales OF Monte Christie and Monte Carlo
combined, but that. as an absolute fact.
Miller did not have facilities for taking
care Of all Of the gold and greenhacks
which poured in upon him, and empty bar
rels were brought up from the basement
OF the building In which he operated and
thousands and tens Of thousands OF dol
lars were dumped into these barrels by
the employees and clerks employed by Nil
Ter in his establishment.
Says Business Was Legal.
One OF Miiier's trusted employees is re-
sponslble for the statement that the
Franklin syndicate man had taken In
over $4,e0.10 II Is known that when the
bank shut down on him yesterday, and
refused to accept his deposits any longer,
he withdrew siso.eo In the Wells Fargo
bank. IL is asserted tonight that Miller
deposited $4,000 with the German con-
sui
Miller. who Is very young man. short,
slight and insignificant In appearance,
possesses two positive characteristics. his
personal magnetism and his frozen calm
ness.
His counsel. Col Robert Ammnn claims
that Miller. in all of his methods, has
proceeded along lines strictly legitimate