The record-union., 1899-11-25
The President and Secretary Indicted for
Conspiracy to Dsfraud.
Did a Thriving Business, Thou
sands Of People Being Lured to
Depositing Their Money in the
Concern Through Advertise
ments Guaranteeing Ten Per
Cent. Interest Per Week.

which has accepted the deposits OF
thousands of persons in Brooklyn un-
der promise of paying dividends or ~
FER cent. week, or 52O per cent. per
annum and Cecil Leslie, his Secre-
tary, were indicted by the Kings Coun-
ty Grand Jury to-day. Bench warrants
were issued for the arrest OF these two
men, but up to quite late hour 10
night neither had been found, the police
saying that they had disappeared IN the
afternoon.
Tonight the police raided the I1em-
ises occupied by the Franklin syndl-
cate on Floyd street. There was
great crowd of people around the build
ing, and the police surrounded II. IN
sIxctor 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 above
to go.
The charge upon which Miller was
indicted was that of conspiring to Ge-
! fraud. The District Attorneys office
| in Brooklyn has been at work on the
case for some weeks, SO prominent have
Miller has been engaged for the last
two years or sc in offering his glitter
ing inducements to the people 10 IN
est their money for him TO MAKE use
/ of. but it is only within the last montn
by extensive advertising in one way
| or another he has managed to attract 10
his office hundreds of people daily 'Vho
gathered in a long line, or fought With
each other for the opportunity 10 hand
out their savings.
Even when the place was ra1ueu TO-
night by the police a number OF those
around the offices were waiting to de-
posit money with the Franklin syndl-
cate. The presence of the police caused
great excitement. When they entered
the office they were informed that at
6 o'clock tonight the concern had made
an assignment in the Borough OF Man
haitian to James Daily, ex-Sheriff Of
Richmond. Chief of Detectives Rey-
nolds said that the police were the as
signees now, and put Daily off the
premises. Daily has been in the en-
ploy of Miller for some time past.
OF the S15. 900 taken possession Of by
the police, something more than fo,ooo
in cash was found in the syndicate ofl-
oes. From the record which the ponce
had made of to-day's deposits, 1t was
evident that portion of the money hao
been removed from the offices, ana
Louis Miller, the cashier, who was ar
rested. was called upon to make an
explanation On being threatened by
the police, he said that Miss ANNE
Cory. an employe of the concern, VINO
lived in a house adjoining the OFFICES
had been given the possession OF large
sum of money in the morning by the
head of the firm The police Went 10
the adjoining house, where they placed
Miss Cory under arrest, and alter an
extended search they found nearly
50 900 concealed in an old lounge IN
her apartments. The woman then oe-
clared that she had this money in her
possession for the purpose of paying the
employees of rhe syndicate. The police
however, took possession OF the money
and gave Miss Cory her liberty
William F. Miller began the Franklin
syndicate in a very small way. ocat-
ing his office among the poorer Glasses
in the Borough of Brooklyn, and max
ing one feature of his business . az
ceptance of very small sums of money
and the alleged investment OF tiial loi
the poor people. He claimed tIldl Wy
inside tips on the stock market ne Vas
able to reap large and quick profits ol
which he was willing to pay larse
percentage to his clients, He palo ,ne
interest on the principal each' Weeh'
and his business increased. Wltnlh
the past few months he advertised eA-
tensively and in all parts OIL 6rooAisii
%~11 vrrrrl II q -.
could be found men who toid Woiluei-
full stories of the weekly dlvldenuS.
The newspapers and financial circles
recently began to make Investigations
of the concern. 1t is said that WITHIN
the last week Miller has received de-
posits of hundreds of people, aggregat-
ing daily amount of from S3oooo TO
$40. 600. 1t is easy to see, under these
circumstances, how the Franklin syn
dicate could readily pay out ~ per
cent of this amount a week, and still
make money.
Not only were the people living with
in the limits of Greater New York large
depositors with the Franklin synd cate,
but cities all over the country contrib
uted the earnings of scores of their
residents to swell the wealth of the
syndicate. The mail delivery daily at
Miller's office amounted to about three
wagon-loads, and most OF the letters
contained money. Miller had fac
ulty of displaying large amount OF
his wealth, and the offices on Floyd
street were piled high with greenbacks
of all denominations and heaps of gold.
This seemed to lend confidence to
those who came with their subscrip-
tions. and it is impossible to even esti-
mate where the endless chain" would
have ended. The principle of the end
less chain as developed by Miller de-
pended upon the fact that his old GUS
toners brought him additional men,
bers, and were allowed a commission of
5 per cent upon all moneys thus in
vested. Those who were drawing this
income of 5 per cent. became walking
advertisements for the Franklin syn
dicate.
For weeks before the bursting Of this
bubble, which, in rate of dividends and
income guaranteed, far surpassed the
widest dreams of the South Sea bub-
BILE, the United States Postoffice has
had it's trained investigators, its very
best secret service men, at work. try
ing to catch Miller and his associates,
but all in vain.
Rev Dr. Meredith of Brooklyn, a
former pastor of Miller's, complained
to the Brooklyn police that the man
was running half the young men Of his