The Montgomery advertiser., 1905-11-29
SPINDLE OF BANKS
SAMUEL W. HoFFHEIMER CLEARS
 S250,0O0.
Nenbev of Nelson Morris, the Millfcn- aire Packer, by a Complicated
 system, Makes . Big Sum of Money.

Chicago Nov 2S.-Samuel w. Hon- heimer, a nephew of Nelson Morris. the millionaire packer, was arrested nere tonight charged with having swindied S. W. Straus & Co., mortgage bankers 114 LaSalle Street, out of $256,0OV Be- ing unable to furnish sl5O.ooo oono fixed by Justice Cochrane, who issued the warrants for his arrest, Honheimer was taken to jail.
 The alleged swindle operated by Hoffheimer is a complicated affair and extends back over period of eigh- teen months The fact of his family relations with the Morris family. it is said, made 1t possible for Hoffheimer to carry out the scheme for such a long period without detection.
 Two ' ears ago while the young man was carrying on a small commission business in buying and selling cattle feed, it Is alleged he went to Straus 6 Co. and explained that he was buying large quantities of cotton seed and cotton seed hulls which he disposed of to Nelson. Morris & Co. In order to carry out the business, it Is alleged that he explained that a large amount of money was necessary to take up the drafts which were made daily upon him for the feed and to take up the bills of lading made with the ship ments.
 Agreed to Finance Deals.
 He, it is said. requested Straus X Co., to finance the deals, which they agreed to do.
 From that time on it is alleged, Hoff- heimer delivered lists to Straus & Go. daily of car loads of cattle feed which he said he had bought from various concerns and had sold to Nelson Morris & Co. He would obtain checks for the amount of his purchases from Straus & Co. and at the same time he would deliver to the bankers a draft on Nell son Morris & Go. for the amount for which he had informed them he had sold the feed to the packing company.
 The draft taken by the bankers was deposited in their banks in the usual course of their business. At the be- ginning. according to the bankers, Hoffheimer carried on only small sales, but the amounts of the transac- tions grew so that sales to Nelson Nor ris & Go. as represented by Hoffheimer, amounted to more than s150,000 a day.
 Until the first of this month the sup posed sales continued and then it was learned. 1t 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 supposed feed, Hoff- heimer took up the drafts which he gave to s. W. Strauss & Co., against Nelson Morris & Co.
 Made Gain Each Day.
 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 checks given him by the bankers each following day. making a small gain each day on the use of the bankers money
 Knowledge of the drafts did got reach the packing company until No vember 1 when Nelson. Morris & Co accidentally discovered one while it was in the bank at the stock yards Ar investigation followed and Hoffheimer Is alleged to have made a complete confession to Strauss t& Co. of his oper. ations, admitting that for eighteen months he had been carrying on the scheme which had made him a livins and at the close had netted him $256,. 000. the amount of the check received from the banking concern to take care of the days business.
 After q months effort to recover the money which 1t Is alleged Hoffheime, declared he had lost in investments Straus & Go. had him arrested tonisht Hoffheimer will be given a hearing be fore Justice Cochrane December B.