The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-11-25
THOUSANDS Of VICTIMS
Gigantic Swindling Operations of
New York Man.
HE PAID BIG INTEREST
DEPOSITS FROM $4,000 TO S4o,-
600 DAILY.
Lured Into the Scheme By Visions of
Quick Riches, Dividends of 10
Per Cent Week Being Promised
Police Declare These Promises
Were Kept-Remarkable Case.

thousands OF persons in Brooklyn under
promise of paving dividends of 10 per
cent a week. or $40 per cent per annum,
and Cecil Leslie, his secretary, We're
indicted by the Kings county grand
jury. Bench warrants were issued for
the arrest of these two men. but up TO
quite late hour tonight neither had
been found. the police saying that they
had disappeared in the afternoon.
Tonight the police raided the prem
ises occupied by the Franklin syndi-
cate on Floyd street. There was a
great crowd of people around the build
ing, and the police surrounded it. In
spector 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. Nine
thousand dollars more We're found in
the possession of Annie Cory, an en-
ployee.
Miller began the Franklin syndicate
in a very small way, locating 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 that for the
poorer people. He claimed that by in
side tips on the stock market he was
able to reap large and quick profits.
of which he was willing to pay large
percentage to his clients. He paid the
interest on the principal each week and
his business increased.
Stories of Big Dividends.
Within the past few months ne adj
vertised extensively and in all parts of
Brooklyn could be found men who
could tell wonderful stories of the week
ly dividends. 1t is said that within the
last week Miller has received deposits
of hundreds of people, aggregating
daily amount of from $4,000 to $4,000.
1t is easy to see. under these circum-
stances, how the FRANKLIN syndicate
could readily pay out 10 per cent of
this week and still make money.
Not only were the people living
within the limits of Greater New York
large depositors with the Franklin
try contributed the earnings of scores
of their residents to swell the wealth
of the syndicate. The mail delivery
daily at MilIer's office amounted to
about three wagon loads. and most of
the letters contained money.
Miller had a. faculty of displaying a
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 subscriptions, and it is i'm
possible to even estimate where the
"endless chain would have ended.
Was an Endless Chain.
The principle of the endless chain as
developed by Miller depended upon the
fact that his old customers brought
him additional moneys and were allow
ed a commission of per cent upon all
moneys thus invested. Those who
were drawing this income of per cent
became walking advertisements for the
Franklin syndicate.
Rev. DIR. Meredith of Brooklyn, for
mer pastor of Miller, complained to the
Brooklyn police that the man was ruin
ing half of the young men of his con-
gregation. Miller was formerly men,
Der of Dr. Meredith's church. and in
this way became acquainted with men
belonging to the Sunday school and
congregation.
The police official to whom DR.. Mere
dith complained is said to have told the
reporters investigating Miller and his
operations:
IF you can catch Miller, you will
be the smoothest man in this town
never saw anything like it. l have
Investigated the complaint made by
Miller's former pastor, for Miller had
been expelled from the church to which
he belonged, and l find that his state
ment that half of the young men and
half of the young women in the con-
gregation are in the Franklin syndi-
cate is true. But not one can find who
is willing to make a complaint against
the man or his methods. Would you
make a complaint yourself II you were
getting the 10 per cent a week, for
Miller certainly pays it out every week
according to the promise contained in
his contract.
And Police Officers, Too.
Besides" continued the police Of
fetal, Il don't know that | would be
able to bring about the arrest of the
man provided / could get complaint.
Most of my patrolmen, my inspectors
and detectives seem to be in it, and
I am thinking seriously of going in it
next week myself, he concluded, with
a laugh.
But nine-tenths of Miller's patrons,
affected by the money making fever.
were in the habit of turning around
and reinvesting the 10 per cent interest,
or in other words, pyramiding their
gains.
One of Miller's patrons who invested
500 Immediately turned around and
re-invested the 10 per cent allowed him
at the end of the first week, making
a balance of $40 to his credit. The
next he received interest on both prin-
cipal and interest. thus giving him
balance to his credit of 1921. 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
s.. 029 All this from the original in
vestment of $780,
Inasmuch as Miller absolutely refused
to carry accounts of more than $1,000
this customer was compelled to rein
vest in the names of other members
of his family. At the time of Miller's
arrest he said that he had over $4,000
in the syndicate. all from the original
investment of 500.
This policy of reinvesting in the name
of other members of the family was
carried on to large extent among the
poorer classes in Brooklyn. One of the
police captains in Brooklyn said that
he knew of family consisting of six
teen members which had 800 invested
for each member of the family. and
the interest was paid on all of the six
teen claims regularly every week
Tales Of Monte Cristo.
On Tuesday of this week Miller is
said to have taken in $4,000 and paid
out 531. O00 The confidential represent
tative of one of the banks who visited
Miller's office about this time. said that
he never saw so much money scattered
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