Los Angeles herald., 1909-03-07

outfit of trimmers. He says so him.
self. He calls it scalping the market
| It looks good to everybody that sizes
up the dividend end of it.
Cashier Optimistic
II. r. zimmerman, cashier for Harry
D. Brown, says the firm has no diff
Guilty in earning the dividend of Sc .
week on each hundred dollars invested
/ He invited a Herald man to get In
i While the money was coming freely
from Wall street ITS just like find
ing it," said Mr.. thinner.
More like taking candy from chill
/ dren," suggested The Herald man.
1--WE got $500 in the bank I'll put up
against the money you put in," said
MIR. thinner.
why don't you invest it with your
boss and draw down SIS more per week
to add to your salary as cashier for
Mr. Brown" was asked. But Mr.. zim-
mer had no ready reply.
The young man admitted it was Sc
we're on Wall street. but said most of
the money he paid over to his Japanese
clients came from lambs shorn for
the benefit of the little brown men OH
the Pacific coast.
when the supply of lambs is ex-
hausted, l suppose Harry Brown will
sail right in with his scalp the mar
ket process and trim Ryan, Morgan.
the Belmonts, Archbold, and maybe
John d. ?" was asked.
II don't know" replied thinner. "All
I know is we are making those divi-
dends. And the small traders like those
Japs are only a small portion of our
customers. We don't care for the JapS.
Why, eleven of them have already
Withdrawn their accounts with us. We
don't care for their trade"
why did you constantly advertise
for more trade among the japanese
until the Ruff Shimpo exposed the
game?"
II don't know. That was Mr.. Browns
business" replied the loyal cashier.
Any way you look at it, this is going
to be a terrible thing for Wall street.
Detective Makes Report
The Japanese Business Mems asso-
citation employed a detective to inves-
tigate Browns business connections
and report on mis- methods. According
to Detective l. S. Hurst's report, any
one who entrusts money with Brown
assumes a grave loss.
One portion of Detective Hurst's re-
port reads:
On Wednesday. February a. < called at
Browns office at 10 a. m. He was very anx-
ious to have me put some money in his hands
he could make me 5000 before noon and $500 be-
fore night. 1 told him that when 1 came to
giving my money into the hands of a stranger
| wanted better references that he had given
me, and asked him for bank references He
said that he banked with the Day and Night
bank and with the Los Angeles Trust company.
and referred me to these two Institutions but
said that his daily balances was not large.
that sometimes the balance would be $40 900
and sometimes would run as low at 800. ex-
planning that he made money by using it. not
by leaving 1t in the bank. 1 went to the Los
Angeles Trust company and was informed that
Brown carried account there in the name
of H. D. Brown & Co. and that he checked
out every night all the money he had in the
bank excepting possibly a few dollars. He
supposed by them to be conducting a very
precarious business.
In view of what has been learned, 1 do not
hesitate to say that any one entrustng money
the first place, you have to trust explicitly to
the honesty of the man. and in the second
place, TO his good Judgment, both Of which are
very questionable. His advertisement in the
japanese paper. according to the translation
furnished me- is in some vital particulars alb
solutely false. 1 have been unable to confirm
his claim that he has a private wire to New
York. and if he had, that fact would add little
to his financial responsibility. 1t is my opin-
ion that he is not conducting an honest bust
ness. and it is very doubtful if the people that
have entrusted money with him would be able
to get back what they are already out
JdHduCSC @dSPiSiOdo
NJ. Suzuki, manager of the japanese
Business Mems association, said:
Brown tells our boys he has direct
wire to Wall street from Slauson
junction. Brown has been making pay
ments to the boys each week, but we
fear that when he gets more boys
money he will leave the city. He takes
500 from the boys and pays them
back from So to Sc a week. We real
ize that he cannot always pay such big
interest. L am given to understand
that he leaves no money in the bank
overnight, but takes it all out each
day before the bank closes. He could
leave with all the boys money at any
time, and they would be unable to do
anything about it.
although 1 am not just certain how
much money the Japanese boys have
invested with Brown, 1 believe the
amount is more than 900. We do not
want to stir this thing up, because we
do not want Brown to get away. 1
believe Brown has a couple of Jap
anese boys working for him who get
the boys to invest their money with
him."
Brown Makes Statement
The following is a statement issued
by Mr.. Brown regarding the stories in
the Ruff Shimpo and The Herald:
Under caption of Japanese Lured by Prom
Use of Huge Returns" a three column article
appeared in The Herald of Thursday last, max
ing attack me and my business methods.
This article is a Misrepresentation of the facts
FOR which The Herald Is ia no wise to blame,
its publication being based upon the statement
made by the japanese daily newspaper called
the Ruff Shmpo.
As to the motive for this attack it is In
splred wholly by the Japanese bankers Of this
city, because Of the fact that number among
my clients more or less of their countrymen
who have drawn their funds from these banks
for the purpose of making investments
through me. Naturally the withdrawal of these
funds has concerned and angered the Japanese
bankers. The direct cause of the attack, how
ever, was due to my refusal TO make such
Japanese banks my depository, and the articles
which appeared in their daily newspapers fol-
lowed upon my notification to their representa-
tives that I could not and would not for a
entertain such proposition.
Failing to make the arrangement with me to
deposit funds in the Japanese banks, the Ruff
Shmpo, the Japanese newspaper above men,
toned, contained articles questioning my bust
ness methods and insinuating that the same
We're not legitimate. To deal specifically witf
the charges made by tho Japanese daily papet
and subsequently appearing in the Los Ange-
les Herald, l will say, first that l at no time
claimed that my office had direct wires with
Wall street, but l clearly stated and am fully
pi pared to prove that the house through which
! conduct my business has wire stock quota
tons from New York and other stock centers,
and 1 respectfully refer you to Mr.. Miller,
superintendent Of the Western Union Tele-
graph company of this city, for confirmation
of this fact I have never claimed to have
any financial connection with the central stock
exchange, the house through which l do busi-
ness other than as a broker operating through
It, and making such financial settlements with
it az are involved in the regular course Of
business. and l refer any one to this exchange
for proof that ! have at all times met my OBJ
lis atons fairly and fully. 1t Is true that do
Lou Iu1a anil in h lie
city for the very simple reason that we
constantly investing and reinvesting our funds
in the same manner all stock brokerage
concerns making settlement regularly with our