The Paducah sun. [volume] (Paducah, Ky.) 1898-1906, 1905-11-30
Young HOffheimer, Millionaire
Nephew, Arrested.
Charged With Having SwindIcd :. w
Strauss & Co., Bankers, Out of
Large sum.
BOND OF si5o,ooo is FINED UP


Hoffheimer. nephew of Nelson Mor-
ris. the millionaire packer, was ar
rested here charged with having
swindled S. W. Straus & Co., bankers,
ia La Sale street, out of $256,000.
Being unable TO furnish S150,O00
bonds, fixed by Justice Cochrane, who
issued the warrants for his arrest,
Hoheimer was taken to Jail.
The alleged swindle operated by
and extends back over period of
eighteen months The fact of his fam
lily relations with the Morris family,
IL is saiG. made 1t possible for Hoff-
heimer to garry out the scheme for
such a long period without detection.
Two years ago, while the young man
was carrying on a small commission
business in buying and selling cattle
feed, II is alleged he went to Straus
& Co. and explained that he was buy
ing large quantities of cottonseed
and cottonseed bulls, which he dis
posed of to Nelson Morris & Co. In
order to carry out the business it is
alleged that he explained that large
amount of money was necessary to
take up the drafts which were made
daily on him for the feed and to take
mp the bills of lading made with the
shipments. He, it is said, requested S.
w. Straus & Co. to finance the deal,
which they agreed to do.
From that THE on, it is said. Hoff-
keimer delivered lists to Straus &
Co. daily of carloads of cattle feed
which he said he had bought from va
rious concerns, and had sold TO Mel
son, Morris & Co. He would obtain
checks for the amount of his pur-
chases from S. w. Straus & Co. and
at the same time he would deliver to
the bankers draft on Nelson, Nor
ris & Co. for the amount for which
he had informed them he had sold
the feed to the packing company. The
drafts taken by bankers were depos-
tied in their banks in the usual course
of their business. At the beginning,
according to the bankers, Hoffhei-
mer carried on only small sales, but
the amounts of the transactions grew
so that sales to Nelson, Morris & Co.,
as reported by Hoffheimer, amounted
to more than 100000 day.
Until the first of this month the
supposed sales continued, and then it
was learned, it is said, that all the
sales were fictitious
Instead of taking up the drafts
which he had said were made out
against him when he bought the sup
posed feed, Hoffheimer took up the
drafts which he gave to s. w. Straus
& Co. In that way he continued from
day to day increasing his supposed
sales and taking up the larger drafts
against the packing company with
the larger check, given him by the
bankers each following day. making
small gain each day on the use of
the bankers money, knowledge of
the drafts did not reach the packers
until Nov. l when Nelson, Morris &
Co. accidentally discovered one
check while It was in the bank at the
stock yards.
An investigation followed and
Hoffheimer is said to have made
complete confession to Straus of his
MISUNDERSTANDING that for IS
months he had been carrying on the
scheme. which had made him liy
ing, and at the close had netted him
$256,0O0. the amount of the check
received from the banking concern to
take care of the days business.
After a months effort to recover
the money, which is alleged Hoffhei-
mer declared he had lost in invest
ments, straus & Co. had him arrest
ed.