Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-03-04
JAPANESE LURED
BY PROMISE or
HUGE RETURNS
BROKERS' PATRONS ASSURED
OF VAST PROFITS
cLlTTERlNe APPEALS ISSUED TO
WAGE WORKERS
Native Leaders Finally Grow Sus-
acknowledgement Follows and
Results in Most UnfaVor-
able Report

with him for investment ii. ID. Brown
succeeded in attracting a large num-
Der of ignorant Japanese to place with
hirn sums of money which. IN the ae-
gregate, amount to $4,000, it is said
By reason of the large number OF
Japanese who Invested" money with
the firm of H. D. Brown, which claims
to be in the stock brokerage business
the Japanese leaders in the city pc
came suspicious when it was known
there was nearly $4,000 of the money
of their countrymen in the hands OF
the firm for investment" After
consultation the matter was placed IN
the hands of the japanese Business
Mems association. This association
comprises the more intelligent class Oh
orientals in Los Angeles and Its op-
ject is to protect its fellow countrymen
from nefarious schemes and to ADVISE
them in matters which pertain to their
welfare and advancement
In a Japanese daily, called the Ruff
Shimpo CLOS Angeles News) it was
found the firm carried the following
advertisement, which. translated, reads
in substance as follows:
"The business of our company is
that of broker of the stock market,
Wall street, New York, which pos
sesseS such great influence as 10 a1Iect
the wealth of the world. We deal with
any amount of capital over $500.
Money invested by you will be used
in the most profitable way in the daily
market and as we make report OF the
accounts daily you can see and un-
derstand very clearly there is no
chance to worry and be uneasy about
it, Moreover, if you desire the repay
ment of the capital the money will be
refunded at any time, except holidays,
with dividends, at one days notice
an order to accommodate our Gus
toners we viii pay dividends every
Saturday afternoon.
I'm spite of the fact that during the
past two years we had a very dull
season and all stocks went down con-
siderably the company stood well
against all adVersities, as all know.
Since the election of Mr.. Taft as
president has greatly enhanced the
price of stock it is in very favorable
condition, as is to be easily judged
from the big dividends we are paying
our patrons every week.
"The company will explain all about
the stock market. You are welcome
whether you invest or not. We will
send our agents when desired
Harry ID. Brown, investment secur-
tiles, New York stocks and bonds for
investments. Phones: Main 1870 Home
FS659. 311-313-314 Union Trust
building, Los Angeles"
Many Customers Attracted
Because of the glowing statements
in the advertisement, the lower classes
of Japanese cooks, walters, porters and
clerks called on the firm and were
given such a roseate account of the re-
turns to be made from investments
with this company that many were in
duced to deposit money with the
broker.
Japanese who have placed money
with the broker for investment say
that Mr. Brown, the supposed principal
of the firm, told them he had a private
wire from Slauson Junction direct to
Wall street. New York, and that he
had facilities for getting news of great
value to possible investors. He said
he would pay dividends of approx
mately Sc a week on each 800 invested.
The Japanese Business Mems asso-
citation made a slight investigation and
then decided to call in the services of
a detective. Accordingly the Hurst
detective agency in the p. E building
was employed to conduct an examina-
ton of the firm and it's methods of
transacting business, Mr.. Hurst him
self took personal charge of the case
and also put two shadows on Brown
himself
The matter came to the attention of
The Herald and it started an investi-
cation of its own and learned that
many statements said to have been
made by the brokerage firm We're in
consistent. For instance. Mr.. Brown
claimed he paid the telegraph COM
panies about $400 a month for tele-
graphic tolls, but when pinned down
by Herald representatives he admit
ted he did not pay the companies d.
rect, but paid a commission house with
which he is said to have done bust
ness.
At Slauson Junction, in a building
outside of the city limits, Is situated
the Central stock exchange. This ex-
change, it is said, has its principal Of
fees in San Francisco. In answer to
a query over the telephone, The Her
aid was informed Tuesday afternoon
that Mr.. Brown had no financial con-
nection with the firm, but was merely
a trader with it. as were many others,
and that he seemed to have large
clientele for whom he is supposed to
have purchased stock.
No Wire of His Own
Mr. Brown, when interviewed by
Herald representatives, talked freely,
insisting he was conducting a legit;-
mate business. At the same time he
said he could pay dividends, and did
pay them, as high as SIS and Sc week
on each 500 of invested money. He
admitted, when closely questioned,
that he did not have a wire of his own,
but said that the firm with which he
did business had and he claimed 10
be paying the $500 in telegraphic tolls,
With Mr.. Brown at the time of his
interview was Fred Spring. a lawyer,
who, Mr.. Brown said, was in his en-
ploy. Attorney Spring, when asked
whether he thought the firm could pay
such large dividends as Brown claimed,
said he knew it could and he knew
also that the business of H. D. Brown
was being conducted in an honest and
businesslike manner, as otherwise he
would not have anything to do with it,
Mr. Hurst began his investigation
February 23, and after two
days work submitted TO the Japanese
Mems association the follow
ing report under date of February "a:
Japanese Business Association, Los
Angeles:
IT was called to the office Of the jap
anese Business association by Mr.. Ko-
mai Saturday, February 20, and in
formed that one Harry ID. Brown, with
ofiices at 81, 312 and 314 Union Trust