The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-02
Accused of DevisinE a Plan to Mis-
lead Customers as to Their Deal
ings ON the Board of Trade.
PLACED UNDER HEAVY BONDS
TO APPEAR IN THE UNITED STATES
DISTRICT COURT MARCH 10.
Secretary of a Louisvil1e Hardware
Firm Punished for Alleged Is
sue of q False Label.

CHICAGO, March I-Tnree prominent
members of the Chicago Board of Trade
were this afternoon arrested by the federal
authorities on the charge of ''bucket shop
ping" The men taken into custody are:
James Nicol. first vice president Of the
Board of Trade; Henry o. Parker, who was
first vice president Of the board immediate
ly preceding Nicol, and Calvin A. Why
land, president Of the firm of G. A. Why
land & Co. All of them are charged with
using the mails to defraud, in connection
with the firm of McLain Brothers.
Charles r. and Albert o. McLain. men,
bers of the Board of Trade, but who an
nounced their retirement from business
several months ago, were indicted by the
federal grand jury to-day charged with
fraudulent use of the mails with carrying
on a business in the nature or bucket
shopping and defrauding correspondents
in several States. Their case will be called
in the United States District Court March
10.
The brokers on the Board of Trade had
hardly learned the news of the indictment
of the McLain brothers when three deputy
n,arshals walked in and placed the three
other members under arrest. The prisoners
were taken before Judge Kohlsaat in the
United States District Court and gave
bond in the sum of 5000 each. They were
then released to appear in court on or be-
fore March 10 to plead to the charges pre-
ferred against them. The three men were
indicted for alleged collusion with the Nc
Lain Brothers in swindling scheme. and
bench warrants were at once issued for
All three defendants are well known On
the board and their business methods have
heretofore been unquestioned. They have
all been in the commission business for
years and have established large coun-
try trade. Calvin A. Whyland is presi-
dent of the firm of c. A Whyland & Co.
Henry o. Parker is of the firm of H. o.
Parker & Co. The charges against Messrs.
Whyland, Nicol and Parker are somewhat
secondary to those against the McLains,
and 1t is said a failure to convict the lat
ter will result in the release of the others.
1t is claimed by the postal authorities that
while the McLains carried on the active
correspondence. which is said to have been
In the nature of bucket shopping, the other
brokers permitted their names to be used
were indicted jointly. though only three
counts were returned against Parker. Why
land and Nicol. while six counts were
given against the others.
The true blll'' charges in substance that
five men devised a scheme to induce corre-
spondents in several States to send their
money for dealing In future delivery in
grains and provisions; that they converted
this money to their own use without pur-
chasing or selling on the board as they had
agreed, and that they sent their corre-
spondents false written reports of pur-
chases and sales, purporting to show the
prices at which and the persons to whom
the sales were made. This active corre-
spondence is alleged to have been carried
by the McLains. but. in order to make
their purchases and sales appear bona fide,
they had to use the names Of certain repu-
table Board of Trade members. 1t is said
the names Of the other three defendants
were permitted to be used in these state
ments. 1t is said that for this collusion
with the McLain Brothers the other
brokers in the agreement were allowed part
OF the proceeds as commission. 1t is
claimed that Whyland, Parker and Nicola
were wanted that their names might be
used in this connection so as to deceive the
correspondents in the belief that the deals
were bona fide. The names and dates used
in the indictment against the latter three
men are: F. A Hyke, Lourvne, Mimi, July
Z and Is, 1899. and A. j. Rogers, Salem Ia,
Aug. %, 1899.
Nicola and Parker have both been re-
bucket shop Nicola is a member of the
room committee, and, while neither is con-
nected with the committee which has the
bucket shop matter in hand, both have
been looked upon as leaders in the move
ment to suppress this irregular form Of
trading.