The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-03-02
ARREST or THREE
CHICAGO BROKERS
Prominent Members of the
Board of Trade.
CHARGED WITH FRAUD
HOW SHEEP" OUTSIDE CHICA'
GO WERE FLEECED.
SENT MONEY TO OPERATE IN FUTURES
These Men With Two Others Who Used lhel'
Names to Make the Operations Appear
Legitimate, Diverted the Funds
to Their Own Use.

Chicago H.. March 1.-Ihree promI-
nent members Of the Chicago Board OF
Trade were this afternoon arrested by
the Federal 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 III. o. Parker
x Co, who was first vice president Of
the board Immediately preceding Nicol,
and Calvin A. Whyland, president of
the firm of G. y. Whyland x Co. All
OF them are charged with using the mails
TO defraud. i'll connection with the firm
of McIain Brothers.
Charles K. and Albert o. McIIain
members Of the Board of Trade, but
who. announced their retirement from
business several months ago, We're in
dicted by the Federal Grand Jury to-
day, charged with fraudulent use OF the
mails. with carrying on a. business in
the nature of bucket shopping and de-
frauding correspondents in several
States. Their case viii be called in
the United States District Court March
10th.
The brokers on the Board of Trade
had hardly learned the news of the in
dictment of the McLain brothers when
placed the three other members under
arrest. The prisoners We're taken before
Judge Kohlsatt in the United States Dis
trict Court and gave bonds in the sum
OF $1,000 each. They were then re-
leased To appear in, court on or before
March 10th TO rlead TO the charges pre-
ferred against them.
The three men were indicted for al
legged collision with the McLain brothers
in n swindling scheme, and bench war
rants were ut once issued for their ar
rest by Judge kohlsatI.
All three defendants are we'll known
on the board, and their . Isiness meth
DDS have h.setofore been tlnquestioned.
They have all been in the commission
business for yeals and nave established
large country trade. The charges
against Messrs Whyland. Nicol and
Parker are somewhat secondary 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 claim.
ed by the postal authorities that while
the McLains carried on the active cor
respondence which is said 10 have been
in the nature of bucket shopping, the
other brokers' permitted their name 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 counts were given against the
others. The true bili'' charges in sub
stance that the FIVE men devised Il
scheme to induce correspondents in sew
eral States to send their money for deal
ing in future delivery in grains and
provisions; that they converted this
money to their own use without rtlr-
chasing or selling on the board as they
had agreed and that they sent their cor
respondents false written reports of pur-
chases and sales, purporting to show the
price at which and the PERSONS to whom
the sales were made.
This active correspondence is alleged
10 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 We're per-
mitted TO be used in these statements.
1t is said that for this collision with the
McLain brothers. the other brokers in
the agreement were allowed part of the
proceeds as commissions. 1t is claimed
that Whyland. Parker and Nicol allowed
their names to be used i'll this connec-
ton, so as To deceive the correspondents
into the belief that the deals We're bona
fidc. Nicol and Parker have both been
regarded 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 movement to suppress this rregu-
lar form of trading.