The Mankato free press., 1899-12-01
TOOK IN MILLIONS
Franklyn Syndicate of New
York Broken Up by Po-
lice Authorities.
Promised Ten Per Cent a Week
to Investors and People
Bit by Hundreds.
MONEY JUST POURED Il
Employees Used Barrels to
Store 1t in for Lack of
Other Facilities.
Prom oterS of the Scheme ES.
cape and Undoubtedly
Took the Cash.

NEW DIRK, NOV. S0.-Wlll1am Il.
Miller, head of the Franklyn Syndicate,
which has accepted the deposits OF
thousands of persons in Brooklyn under
promises of paying dividends of 10 per
cent a week or $50 per cent per annum,
and Cecil Leslie, his secretary, were
indicted by the Kings county grand
jury during the day. Bench warrants
were issued for the arrest of these two
men, but up to late hour neither had
been found, the police saying they had
disappeared in the afternoon. The
chief specification on which Miller was
indicted was conspiracy to defraud.
During the afternoon the police
raided the premises occupied by the
Franklyn Syndicate on Floyd street.
There was a great crowd gathered
around the building and the police sur.
rounded it. Inspector Brennan ar.
rested Louis Miller, brother of the head
of the syndicate and the cashier Of the
concern, and took possession of some
$4,000 in cash. There were 40 EN-,
ployes engaged at work in the offices
and these were allowed to go.
His Plan of Operations
William F. Miller began the Frank.
lyn Syndicate in a very small way, 10,
eating his Office among the poorer
classes in the borough of Brooklyn and
making one feature of his business the
acceptance of very small sums Of
money and the alleged investment Of
them for the poor people. He claimed
that by inside tips on the stock market
he was able to 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 unit
he was taking in fully $4,000 pei
day. Not only were the people living
large depositors with the Franklyr
Syndicate, but cities all over the coun
try contributed the earnings of scores
of their residents to swell the wealth O
the syndicate. The mail delivery daily
at MiEer's Office amounted to abou
three wagon loads and most of the let
ters contained money.
Reinvested the Interest.
Ten per cent a week or $50 per cen
per annum guaranteed by Miller die
not begin to express the liabilities in
Cured by the head of the Frankly1
Syndicate. The rate of $50 per cent ;
year is estimated on basis of simple
interest only. But nine-tenths of hi
patrons, affected by the moneymakin.
fever, were in the habit of turning
around and reinvesting the 10 per cen
interest, or, in other words, pyramidinl
tion from the field of simple interest t.
the realm of compound interest. On
of the police captains in Brooklyn sait
he knew of one family consisting of 4
members who had 500 invested fo
each member of the family, with inter
est paid on each of the original invest
ments each week.
Miller claimed to have made hi
money in speculating on Wall street
though no evidence is forthcoming u
to the present time to show that b
ever speculated in stocks to any extent
Had barrels of Money.
The confidential agent of one of tn
banks, who visited Miller's Office tn
early part of the week, said he neve
saw so much money scattered aroun'
loose in his life. He said that it re
minded one of the tales of Monte Crist
and Monte Carlo com bined, but as a
absolute fact he did not have facilitie
for taking care of all the gold and green
backs which poured in upon him an
empty barrels were brought up fron
the basement of the building in whlc
he operated and thousands and tens @
thousands of dollars were dumped int
these barrels by the employees and clerk
employed by Miller in his establish
ment.
One of Miller's trusted employees
authority for the statement that tn
Franklyn syndicate had taken in owe
$4, 900, 900. 1t is known that he with
drew $15O,OOO from the Wells Farg
bank. His counsel, Colonel Rober
Ammon, claims that Miller in all of hi
methods has proceeded along line
strictly legitimate.
Detroit Street Railway Strike Likely.
DETROIT, Mich, Nov. 25.-After
meeting lasting four hours the stree