The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-03-02
WHOLESALE FRAUD CHARGED.
PROMINENT CHICAGOIANs INDICT-
ED BY GRAND JURY.

Three Leading Board of Trade Mcm-
bers Charged, in Conjunction with
the McLains, with Using the Mails
to Defraud-AIIeged That 1heir
Names Were Used by the McLains
With Their Consent, to Work Il
Bucket Shop Scheme.
Chicago, March Three prominent
members of the Chicago Board of Trade
were this afternoon arrested by the fed
eral authorities on the charge Of "bucket
shopping"
The men taken into custody are James
Nicol, first vice president of the Board
Of Trade; Henry o. Parker, of the firm
of Fl. o. Parker & Co., who was first
vice president of the board Immediately
preceding Nicol, and Calvin A. Whyland
pres,den of the firm Of c. A Whyland &
Co.
All of the men are charged with using
the mails to defraud. In connection with
the firm of McLain Brothers.
Charles r. and Albert o. McLain, mem
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 carry
ing on a business in the nature of bucket
shopping and defrauding correspondents
in several states. Their case viii be called
in the United States District Court
March 10.
Arrested ON the Board
The brokers on the Board of Trade had
hardly learned the news of the Indictment
of the McLain brothers, when three dep
uty marshals walked In and placed the
three other members under arrest. The
prisoners were taken before Judge Kohl
saat in the United States District Court
and gave bonds in the sum of 5000 each
They were then released to appear in court
on or before March 10 to plead 10 the
charges preferred against them
The three men were indicted for alleged
collusion with the McLain brothers in
swindling scheme, and bench warrants
were at once issued for their arrest by
Judge Kohlsaat.
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 a large
country trade. The charges against
Messrs. Whyland, Nicol and Parker are
somewhat secondary to those against the
McLains, and 1t is said a failure to con-
Wet the latter will result in the release
of the others. IT Is claimed by the postal
authorities that while the McLains car
ried on the active correspondence which
is said to. have been in the nature of
bucketshopplng the other brokers permit
ted their names to be used and made fl1e
fiUa NOR ind df1f
ed jointly, though only three counts were
returned against Parker, Whyland and
Nicol, while six counts were given against
the others.
What the Charges Are.
The true bill' charges in substance
that the five men devised scheme to in
duce correspondents in several states 10
send their money for dealing in future de-
livery in grains and provisions; that they
converted this money to their own use
without purchasing or selling on the
board as they had agreed and that they
sent their correspondents false written re-
ports of purchases and sales, purporting
TO show the price at which and the per-
sons to whom the sales were made.
This active correspondence is alleged to
have been carried on by the McLains, but
in order to make their purchases and sales
appear bona fide, they had to use the
names of certain reputable. Board of
Trade members. 1t is said the names of
the other three defendants were permitted
to be used in these statements.
1t is said that for Sollusion with the
McLain brothers, the other brokers in the
agreement were allowed part of the pro-
ceeds as commissions. 1t is claimed that
Whyland, Parker & 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 re-
garded as pronounced antagonists of the
bucket shop. Nicol is a member of the
Room Committee, and while neither is
connected 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