The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1900-03-06
FRAUDULENT USE OF THE MAILS.
Chicago Board OF Trade Men Indicted
for Bucket-Shopping.

Chicago, March Three prominent
members Of the Chicago board Of trade
were this afternoon arrested by the
federal authorities on the charge Of
''bucketshopping." Those taken into
custody are James Nicol. first vice
president of the board of trade; Henry
o. Parker, of the firm of II. o. Parker
& CO., Who was first vice president OF
h board Immediately preceding Nj
col, and Calvin A. Whyland. president
Of the firm Of G. A. Whyland & Co.
All of them are charged with using the
mails to defraud, II connection wit
the firm OF McLain Brothers
Charles r. and Albert o McLain.
members Of the board OF trade, but
who announced their retirement from
business several months ago. were in
dicted by the federal grand jury today
charged with fraudulent use Of the
mails, with carrying on a business in
the nature Of "bucketshopping' and
defrauding correspondents in several
states. Their case will be called in
the United States district court, March
10th.
had hardly learned the news OF the in
dictment Of the McLain brothers.
when three deputy marshals 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
bonds in the sum of 5000 C They
were then released to appear in our
on or before March 10th to plead to
the charges preferred against them.
The three men were indicted for al
legged collision with the McLain broth
ers in a swindling scheme. and bench
warrants were at once issued for their
arrest Dv .Jnlpe kOhlSaat.
All three defendants are we'll known
on the board and their business meth
DDS ave heretofore been unquestion-
ed. They have all been in the commits
sion business for years and have es-
tablished a large coutry trade. The
charges against Messrs. Whyland, Nj
col and Parker are somewhat second
airy to those against the McLainS and
it is said a failure to convict the latter
will result in the release of the others.
1t is claimed by the postal authori-
ties that while the McLainS carried on
the active correspondence, which is
said to have been in the nature OF
bucketshopping, the other brokers per-
mitted their names to be used and
made the frauds possible. All five
men were indicted jointly, though only
three counts were returned against
Parker. Whyland and Nicol, while
six unit were given against the 9TH
erS.
The true bil1' charges in substance
that the five men devised a scheme to
induce correspondents in several states
to send their money for dealing in fu-
ture delivery in grains and provisions;
that they converted this money to
their own use, without purchasing or
selling on the board as they a agreed
and hat they sent their correspond
ems falsely written reports Of purchas-
es and sales, purporting to show the
price at which, and the persons to
whom the sales were made.
This active correspondence is alleg-
ed to have been carried on by the Nc
Iains, but, in order to make their pur-
chaSeS and sales appear bona fde, they
had to use the names of certain repu-
table board of trade embers 1t is
said the names of the other three de-
PENDANTS were permitted to be used in
these statements. 1t is said that for
this collision with the McLain broth
ers, the other brokers in the agreement
were allowed part of the proceeds as
commissions. 1t is claimed that Why
land, Parker and Nicol allowed their
names to be used in this connection,
so as to deceive the correspondents
into the belief that the deals were
bona fide. Nicol and Parker have both
been regarded as pronounced antago-
nists OF the bucketShop. Nicol is a
member of the room committee, and
while neither is corrected with the
mi which has the bucketshop
matter in hand, both have been looked
upon as leaders in the movement to
suppress this irregular form of trad
ing.