New-York tribune., 1901-07-31
ALLEGED POSTAL FRAUD.
NAME OF G. II. PHILLIPS THOUGHT TO
HAVE BEEN USED WITH DIS
HONEST INTENT.
IBY TELEGRAPH TO THE rRIsUxE.i

Chicago, July 30.-George H. Phillips, the corn
operator. and the other members OF his firm
were astonshed by the contents OF their mail
this morning. Inquiries from bankers in Mime
sofa, Indiana and elsewhere revealed what is
thought to be one of the boldest frauds ever
undertaken in the name Of a well-known oper-
ator. Persons operating Phillips & Co.,
giving their address No. Wall-st.. New
York, have flooded the country with con-
hdential circular to bankers. These circulars
refer to "our Mr.. Phillips" and his successful
corn deals of the last year. Each circular has
attached to it fac simile copy of a statement
IN a Chicago paper telling of the distribution of
profits of S1.O00.0OO on the Phillips May deal.
IN which three hundred customers shared profits
on 100000 bushels. After giving the impress
sion that George H. Phillips is the Phillips of
the Wall-st. company. the proposition is made
to allow bankers to join in a September corn
pool by contributing $1,000 each to addi-
tional 100000 fund which is 10 be raised.
Scores of letters from suspicious recipients of
this circular were received yesterday and to-
day by Mr.. Phillips. After Mr.. Phillips had
read half dozen like communications he
called upon the postal officials and placed the
case in their hands. They believe they viii find
the persons responsible for the circular without
trouble. To convict them of using the mails
for fraudulent purposes may be another and
more difficult matter. In case there is a man
named Phillips connected with the NewYOrk
concern, he may be able to set that up
A clew which Mr.. Phillips gave TO the postal
secret service is believed to be a good one.
During his recent visit 10 New-York he was
called upon by two men, who represented them
selves to be agents of Daniel G.. Reid, a we'll
known capitalist. One of these men said he was
Mr.. Reid's secretary and that his employer de-
sired to be fully informed as to the situation In
corn, that he might make heavy investments
through Mr. PhlIips's firm. The visitors called
just as Mr.. Phillips was preparing to leave New
York but he sat down and talked to them for
an hour. He gave them much information. he
says After his callers had departed Mr.. Phil
lips noticed that the card left by Mr.. Reds al
legged agent was printed, not engraved This.
however. did not make him suspicious. The
card given to the postal inspectors to-day,
and before tomorrow agents of the government
in New-York will know something about Phil
lips & Co, No Wal-st., and whether or not
they are connected with the case. George H.
Phillips. when seen, was unable TO tell TO what
extent this fraud on his name had been worked
1t was said at No. Wall-st. yesterday that
Phillips & Co" had disappeared after a short
stay in the building. young man who said his
name was Phillips hired office room from one OF
the tenants of the building last Thursday and be-
gan to send out circulars. He was busy for day
or so and then just he was ready TO receive
replies circulars there was an order 70 stop
his mail. Then the young man disappeared