The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-25


cities all over the country contributed the
earnings of scores of their residents TO
swell the wealth of the syndicate The mail
delivery daily at Millers Office amounted TO
about three wagonloads and most of the
letters contained money. Miller had a fac
ulty Of displaying a large amount of his
wealth and the offices in Floyd street were
piled high with greenbacks of all denomi-
nations and heaps of gold. This seemed to
lend confidence to those who came with
their subscriptions and it is impossible to
even estimate where the endless chain"
would have ended.
The principle Of the endless chain as de-
veloped by Miller depended upon the fact
that his old customers brought him addi-
tional members and were allowed a COM
mission of . per cent. upon all moneys
thus invested. Those who were drawing this
income OF per cent became walking ad-
vertisements for the Franklin syndicate.
POSTOFFICE SLEUTHS' FAILURE.
For weeks before The bursting of this
bubble, which in rate Of dividends and in
come guaranteed, far surpassed widest
dreams Of the South sea bubble, the United
States Postal Department had had it's
trained Investigators, its very best secret
service at work trying to catch Miller and
his associates, but all in vain. Rev. DIR.
Meredith, of Brooklyn, a former pastor of
Miller's complained to the Brooklyn police
that the man was running half of the young
men of his congregation. Miller was former
~ member of the DIR. Meredith Church
and in this way became acquainted with
many of the men belonging to the Sunday
school and congregation.
The police official to whom DR.. Meredith
complained is said TO have told the repo. tiers
investigating Miller and his operations: If
you catch Miller YOU will be the smoothest
man in this town. 1 never saw anything
like it. i have investigated the COMP amt
made by Millers 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 congregation are in the
Franklin syndicate is true. But not one can
/ find who is willing to make a complaint
against the man or his method. Would you
make a complaint yourself If you were get
ting the 10 per cent a week, for Miller GER
tainly pays it out every week, according to
the promise contained in his contract? Be-
Sides" continued the police official. ''I don't
know that / would be able to bring about
the arrest of the man provided / did get a
complaint. Most of my patrolmen, my in
spectors and detectives seem to be in it,
and 1 am thinking seriously Of going in it
next week myself he concluded, with a
laugh.
The 10 per cent. week, or $40 per cent
a year, of interest guaranteed by Miller did
not begin, in reality, to represent the obli-
cations incurred by the head OF the Frank
lin syndicate. The rate Of $40 per cent. a
year is estimated on a basis of simple in
terest only, but nife-tenths of his patrons
affected by the money-making fever were
in the habit of turning around and REIN
vesting the 10 per cent. interest, or, in other
words, pyramiding their gains. This re-
moved their operation from the field Of sim
pie interest to the realm of compound in
terest.
GETTING RICH QUICK.
One of Millers patrons who invested $1O0
Immediately turned around and reinvested
the 10 per cent allowed him at the end
of the first week, making a balance Of $40
to his credit. The next week he received
interest on both principal and interest. thus
giving him balance TO his credit OF $l2l
AT the end of twenty-five weeks, or a little
less than six months, he found himself
with a credit in the Franklin syndicate of
Of $780, Inasmuch as Miller absolutely re-
| fused to carry accounts of more than 81 COO
this customer was compelled to reinvest
| in the names of other members Of his
| family. At the time of Miller's arrest he
said that he had over 5000 in the syndi-
| cate, all from the original investment Of
| 500. This policy of reinvesting in the names
of other members of the family was car
he
| er classes in Brooklyn. One of the police
captains in Brooklyn said that he knew
| of a family consisting of sixteen members
which had 500 invested for each member
| OF the family and the interest was paid
| on all of the sixteen claims regularly every
| week.
profits through speculation in Wall street,
though no evidence is forthcoming up to
the present time to show that he ever
| speculated in stocks TO any extent. His
| clerks and employees from time to time
| threw out vague hints of inside informa-
ton which Miller. they alleged, possessed.
| For instance, at the outbreak of the Span
ish-American war 1t was claimed that Mil
| Ter made immense profits out of the Cuban
bonds, and, despite the fact that these
lite form of investment with financiers
since that time, they succeeded in making
| thousands of the poor people in Brooklyn
believe the story. Later it was announced
! that Miller was in with a senatorial clique
| at Washington from whom he received tips
| on the market, and that he used this ad-
vance information for the benefit of his
! syndicate. Still another story, extensively
! circulated, was the statement that he had
| recently made % per cent. profit in sim
| gle day on a transcontinental railway
| stock speculation, this despite the fact
| that since Miller commenced his opera
! tions no transcontinental railway stock
has moved up or down 2s points.
LIKE A MONTE CARLO TABLE.
On Tuesday of this week, just before
charges OF libel were preferred against Mil
! Ter, he Is said 10 have taken in $4,000 and
/ paid out SCI 900. The confidential represent
ative of one of the banks who visited Mil
! ler's office about this time said he never
! saw 50 much money scattered around loose
/ in his life. He said that 1t 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 greeupacks
/ which poured in upon him, and empty bar
/ rels were brought up from the basement
of the building in which he operated. and
! thousand and tens of thousands of dollars
! were dumped into these barrels by the en-
! plcyes and clerks employed by Miller in