Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-11-29
HIGH FINANCE IN CHICAGO
Nephew of Nelson Morris swindIeS
Bankers out of s250.OOO by
EIitInE Bogus Drafts.

CHICAGO, Nov. &-Samuel n. Hoff-
heimer, a nephew of Nelson Morris, the
millionaire packer, was arrested here to-
night charged with having swindled S. W.
Strauss & Co. mortgage brokers at ia La
Sale street. out Of S256,0OO Being unable
to furnish bonds, fixed at S15OOCO by Justice
Cochrane, who issued the warrants for his
arrest, Honheimer was taken to the Cook
county Jail.
The alleged swindie operated by Hofr
heimer extends over a period of eighteen
months. His relations with the Morris
family, it is said, made 1t possible for Hoff-
heimer to carry 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. it Is alleged he went to
S. w Strauss & Co and explained that he
was buying large quantities of cottonseed
and cottonseed hulls which he disposed of
to Nelson Norris & Co. IN order TO carry
on the business, il is alleged that he ex-
planned that large amount of money was
necessary to make up the drafts which
were made daily upon him for the feed and
TO take up the bills Of lading made with
the shipments. He. It Is said. requested s.
w. Strauss & co. TO finance the deals.
which they agreed to do
From that time on, It is alleged, Hofr-
heimer delivered to Strauss & Co. daily
lists of carloads 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
purchase from S. w. Strauss & Co.. and at
the same time he would deliver to the bank
ers draft on Nelson Morris & Co for the
amount which he had informed them he
D ~ ia
The draft taken by the bankers was de-
posted by their bank in the usual course
Of their business.
At the beginning. according to the bank
ers, Hoffheimer carried 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 S15O,OO0 a 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 when he bought the supposed feed,
| Hoffheimer took up the drafts which he
! gave to s. w. Strauss & Co against Nelson
( Morris & 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 a small gain each
! day on the use of the bankers money.
/ knowledge Of the drafts did not reach the
packing company until November /. when
I Nelson Morris accidentally discovered one
check while it was in the bank at the
/ stock yards. An investigation followed and
! Hoffheimcr is alleged to have made a com
plete confession to Strauss of his opera
/ fnr ole I,a
/ he had been carrying on the scheme which
| had made him a living and at the close
had NOTED him s256OO0, the amount of the
! check received from the banking concern,
to take care of the days business Hon-
lieinAar~sicrlarsz he jas ,iy .tre-S.lJnsS In
/ investments. He viii he given a hearing
before Justice Cochrane December 5.