Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-28
PHILADELPHIANs VICTIMIZED.
Three More -Rich-Quick Firms Close
Their Doors.

hSA& OOoAS.
A dispatch from Philadelphia saws: By
the stupendous operations of the Storey
Cotton Company, the Provident Investment
Bureau and several subsidiary concerns. all
of which formed a ''get-rich-quick'' syndi-
cate, spreading it's tentacles clear across
the country. Philadelphians alone have be-
come poorer to the extent of more than a
million dollars.
With the failure of three other get-rIch
quick concerns yesterday, 1t is estimated
that the losses will aggregate $4,000, coo
more within the confines of Philadelphia
alone. When the losses to the country at
large are added up the sum will be ap-
palling.
The three concerns which closed their
doors yesterday were Leslie, Morris & Co.,
F. Norton Phillips and Crimson Scott &
Co. All these concerns are affiliated. the
postal inspectors say, with the Storey Cot
ton Company and the Provident Investment
Bureau. Each had access to the others
mailing lists and are alleged to have worked
their dupes in harmony.
The offices failed to open yesterday and
the news spread rapidly. Immediately
showing about the doors. Men We're ours
Ing wildly and women weeping
They've got thousand of my money"
said one DID, white-haired woman. 1T
mortgaged my little home to give 1t to
them"
Most of the dupes were widows and feeble
old men, who expected to live for the rest
of their lives on the fabulous profits prom
iSed by the companies.
The three concerns that closed their doors
were links in the endless chain that was
worked by the syndicate all over the coun-
try, and from which the Storey Company
and Provident Bureau took the cream.
Each of the three firms are alleged to
have offered AZ per cent month to their
investors, and the golden hue was brighter
than even that at the headquarters Of the
syndicate.
Five more concerns Of the syndicate have
been placed under surveillance by the pos
tai inspectors. All are in this CITY, conduct
all their business through the mails, offer
fabulous profits and have an immense pa
tronage throughout the country. Before
the whole tale is told it will be found that
the public is being mulcted out of millions
upon millions of dollars.
Leslie Morris & Co., F. Norton Phillips
and Crimson, Scott & Co. closed their doors
of their own accord. Then every one of
Co. occupied offices in the bourse They
are incorporated under the laws of the Dis
trict of Columbia and claim capital stock
of $100, 600 paid in.
There is little trick that is played with
corporations chartered under laws of the
District of Columbia. Under these laws
which are made by Congress, the charter Is
known as franchise. This franchise is
supposed to have some value. The scheme
in Incorporating a company in the District
is therefore very frequently made in this
wise:
The incorporators prepare the papers and
name their officers. II the proposed cap
ital stock Is S100.co0. somebody will pay in
500 in good money. The schemers will
then put in their charter or franchise.
valuing 1t at 500. 900. and 10 and beholdi
the assertion goes forth that the capital Of
100000 Is fully paid, when. as matter of
fact, only $100 In real money has been paid
into the treasury. That y the way they
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