The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-02-27
A SUDDEN WEALTH CONCERN
Combination investment Company Made
Bright Promises. >.


Bright Promises.
Hammond's recent indictment in Chicago
is the result of the operations of the
Combination Investment company of
which he was president. This company
operated for nearly five months in 1899
and in that time accumulated some $780,
900. Besides Hammond as president its
officers were Justus G. Coates, secretary
and treasurer, and William J. Gallagher,
vice president. Their system was to adj
vertise throughout the United States and
Canada a pamphlet called Dollars and
Sense It held out alluring prospects
of making STAT per year on each 500.
Correspondence was started and in may
cases this resulted in the victim sending
anywhere from $25 to $500 or $500 and
sometimes much larger sums to be in
vested in wheat or corn pools. Profits
were to be received in semi-monthly
dividends, and these came regularly until
the concern went up. Careful 1nvest1ga-
ton fails to reveal any investments &C
tually made in wheat or corn or anything
else. -
The corporation was organized in July,
1899, and went up In December of, the
same year with several thousand custom
ers on the books. and credited with an
aggregate Of about 100000. On Friday,
Dec. l., and Saturday, the I'd, $4,000 of
| the corporations money, practically be-
| longing to the creditors, was drawn from
the Royal Trust Company bank by julius
G.. Coates, treasurer, and on the follow
| ing Monday morning w illiam J.2Gallagher;s
| the vice president, through John 3. Brady,
| his attorney, filed bile for a receiver
| which was granted and the assets taken,
amounting to $4,000. The speed with
| which the corporatd TONS assets had been
| reduced and the fact that Hammond left
the. community imm ediately, seemed to
| indicate that there was some understand
] ing and $4,000 was the bone left for the
creditors to fight over while the benefl-
4 Charles of the concern got under cover
| John F. O'DOnnell was made receiver
under Gallagher's bill and O'Donnell &
Brady became the receivers attorneys.
Patrick O'Donnell Of the firm, and at the
time public administrator, appointed by
/ the governor, is John f. t&O'DonnelIs
brother and James Brady, also of the
n firm, is brother of John B. Brady.
Some Of the creditors, not satisfied with
4 this combination, carried the investment
company into the United States court
Il through bankruptcy proceedings and then
started a fight to get possession OF the
assets and books of the company In the
4 hands of John F. O'Donnell. The Title
and Trust company was appointed re-
ceiver in bankruptcy and obtained four
ledgers, some letter press copy books and
miscellaneous papers, but cash books and
other books of the concern were never re-
ceived by them. Coates. when inter-
viewed, recently, said: "The company
kept a complete set of books, but DO
not know anything of their whereabouts"
i Just when these books disappeared, and
whether before or after the first receiver
took possession is what Hoyt King an at
torney, of Chicago, who has been conduct
ing an investigation, will be interested to
know.
When a final rounding UP of claims of
the different creditors was begun it was
found that most Of them were represented
by attorneys connected directly or lndl-
rectly with the defunct concern or O'Don-
nell & Bradys office. John B. Brady
represented great many, Werner &.
/ Toolen, connected with O'Donnen
| Brady's Office at that time, represented
T Others and Ward B. Sawyer, who did
most Of Patrick O'Donnell's public admin
| istrator's work in the probate court, rep
| resented still others. Many of the credit
| ors who placed their claims with still an
| other friendly agency, never heard from
! | their claims, although dividends amount.
ing to cents on the dollar were paid.
Subsequent developments threw {
strange light on. the relations of these diff
ferent participants in the closing up O.
? the Combination Investment company
s Last summer William J. Gallagher, 1t:
8 former vice president was sentenced t.
) the penitentiary for two years Tor com
? ulicity in a jury bribing conspiracy cas-
? with John F. O'Donnell, the former re
ceiver and the members of the. firm O
O'Donnell & Brady, his attorneys. al
were found guilty.
The criminal records Of Cook county
to have attended the details OF boOkkeep
, ing for the busted company, alread
e stands charged in two indictments wit
:, operating confidence game and con
i spiracy to obtain money by false pre-
= lenses.