Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-11-25
TEN PER CENT WEEK
Promise Of $40 Per Cent Per
Annum Dividends.
THE FRANKLIN SYNDICATE {,
Head Men Of This Brooklyn Concern
Indicted.
CHARGE or PURPOSE TO DEFRAUD
Bench Warrants for Arrest of the
Einnnciers, But the Latter Have
Raided-Funds Seized.

which has accepted the deposits Of thou
sands OK persons in Brooklyn, under
promise of paying dividends Of 10 per
cent. a week or 52O per cent. per annum,
and Cecil Leslie, his secretary, We're in
dicted by the Kings county grand jury
to-day. Bench warrants were issued for
the arrest Of the two men, but up to
quite a late hour tonight neither had
been found, the police saying that they
had disappeared in the afternoon.
Tonight the police raided the premises
occupied by the Franklin Syndicate, on
Floyd street There was a great crowd OF
people around the building, and the police
surrounded It. Inspector Brennan arrest
ed Louis Miller. brother of the head Of
the syndicate. and cashier Of the con-
Germ, and took possession Of $4,000 i'm
cash. There were forty employees en-
gagged at work in the Offices, and these
were allowed to go.
1t was stated by Louis Miller to the po-
lice that the offices were then in the
hands of ex-sherin Daily. of Richmond,
to whom, he said the concern had as
signed
CONSPIRACY TO DEFRAUD.
The charge upon which Miller was in
dicted was that of conspirng to defraud.
The District Attorneys office in Brook
lyn has been at work on the case for
some weeks, so prominent have Miller's
operations become in that time. Miller
has been engaged for the past two years
In,
people to invest their money for him TO
make use Of but it has been only within
the last month that by extensive adger-
Using, ono way or another, he has man.
aged 10 attract TO his office hundreds OF
people daily, who gathered I'm a long line
or fought with each other for the oppOr
tunity TO hand out their savings. Even
when the place was raided tonight by
tho police a number of those around the
Offices were waiting TO deposit money
with tho Franklin syndicate. The pres
ence Of tho police caused great excite
ment. When they entered the Office they
were informed that at g o'clock TO night
the concern had made an assignment in
tho Borough OF Manhattan TO James
Daily, ex-Sheriff Of Richmond. Chief-Of-
Detectives Reynolds said that the police
were the assignees now, and put Daily
off the premises. Daily has been IN the
employ OF Miller FOR some time past
SEARCH FOR THE CASH.
OF the $4,000 taken possession of by the
police something more than $500 in
cash was found in the Syndicate offices.
From the record which the police had
made OF to-day's deposits it was evil
dent that a portion Of the money had
been removed from the offices. and Louis
Miller, the cashier, who was arrested,
was called upon to make an explanation.
He at first refused, but on being threat
ened by the police. said that Miss Annie
Cory, an employee OF the corporation,
who lived in a house adjoining the Offices.
had been given the possession Of a large
sum Of money in the morning by the head
Of the firm. The police went 10 the
house referred TO- where they placed Miss
Cory under arrest, and after an eX-
tended search they found nearly 5000
concealed in an old lounge in her apart
ments The woman then declared that
she had this money in her possession for
the purpose Of paying the employees Of
the Syndicate. The police, however, took
possession Of the money, and gave Miss
Cory her liberty.
AILLER'S CLAIMS.
William +. Miller began the Franklin
Syndicate IN a very small way. locating
his offices among the poorer classes OF
Brooklyn, and making one feature Of his
business the acceptance Of very small
sums Of money, and the alleged invest
ment Of them for poor people. He claim
ed that by inside tips on the stock mar
ket he was able 10 reap large and quick
profits, Of which he was willing TO pay a
large percentage to his clients. He paid
the interest on the principal each week,
and his business increased Within the
past few months he advertised extensive
~, and I'm all parts Of Brooklyn could be
found men who could tell wonderful
stories Of the weekly dividends ne paid.
Then some OF the official concerns in
New York began 10 look into the business
OF the Franklin syndicate, and not only
did many Of the prominent hnanciers de-
nOunce as prepOsterOus the offer Of 10
per cent. per week interest on money in
vested but some Of the banks refused 10
accept AIillers account, or to 30 business
with him. II Is claimed that Miller was
simply the representative OF a syndicate
OF men who had been engaged in con-
Quoting blind pools for years.
HOW MILLER MADE MONEY
The very fact that the newspapers and
financial circles began to make inyesti-
cations aroused pr bic interest and at
tho same time. in some quarters, public
cupidity 10 such an extent that IL is said
that within the last week Miller has re-
ceived deposits from hundreds Of people
aggregating i'm amount from $50 900 10 So
O0e II is easy 10 see. under these circum-
stances. how the Franklin syndicate could
readily pay 10 per cent. Of this amount
week. and still make money.
Not only were tho people living within
the limits of Greater New York large
depositors with the Franklin syndicate.
but cities all over the country cOntri-
buted the earnings Of scores OF their rasi-
dents 10 swell the wealth Of the syndi-
cate. The mail delivery daily at Miller's
office amounted TO about three wagon
loads. and most of the letters contained
money.
ENDLESS CHAIN SYSTEM
Miller had a faculty for displaying n
large amount OF his wealth. and the Off
GERS on Floyd street were piled high with
greenbacks OF all denominations and
heaps Of gold. This seemed TO lend con-
fdence 10 those who came with their sub
scripti0ns, and IL Is impossible 10 even
estimate where the endless chain"
would have ended. The principle OF the
endless chain. as developed by Miller.
depended upon the fact that his old GUS
toners brought him additional members.
and were allowed a commission OF Per
cent upon all moneys tnus 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
income guaranteed. far surpassed me
widest dreams of the South Sea bubble.
the United States Postal Department had
its trained Investigators at work trying