New-York tribune., 1910-12-16
CHICAGO BUCKETSHOP RA|D|
Federal Officials SWoop Down on
Capital Investment Company.
ALSO CLEAN OUT BRANCHES
Firm with Many Branches Said
To Be Last Place of the Sort
East of Denver.

Chicago. Dec 15.-United States Secret
Service officials raided the offices Of the
Capital Investment Company to-day. The
main Office and four of its branches were
visited and papers and records confiscated.
Sidmon Nellie is said by federal officers to
be the chief owner of the company. He is
believed to be in Florida.
Charles F. De Woody. head of the local
secret service OF the Department of Justice,
had charge of the raiders. who swept into
the Rookery building, in the heart of the
financial district. just at noon and created
considerable excitement
A warrant has been obtained for the ar
rest of Nellie by the government officials
AS soon as the contents of the office had
been taken a telegraph dispatch from
Aurora and one from Joliet, both in Illi-
nois, announced that simultaneous raids
there had been successful, many papers and
records being seized. The firm is said to
have thirty-three branches in the Middle
West and to have done an extensive busi-
ness in the buying and selling of stocks.
Thirty policemen and fifteen special
agents of the Department of Justice made
the raid. Telephone and telegraph tnstru-
mentS were torn out, blackboards and
books were piled in heaps TO be removed to
the Federal Building. The concern occu-
pied nearly one-quarter of the floor, and
about fifty clerks and managers. hard at
work when the raiders appeared, were ar
rested. Several loads OF the prisoners
were hauled away through the gathered
crowds coming from the financial district
at the noon hour, and were divided among
three police stations to facilitate their
being booked" on charges filed by the
federal officials
Besides the Rookery Building office. the
following alleged bucketshops were raided:
F. J. Holzaphel, No. 255 Fifth avenue:
Campbell &, Co, Postal Telegraph Building:
Murphy & CO., No. 90 Lasalle street, ana
Sanderson & Co., No. 335, the Rookery
Building.
Although the offices other than the So
called main offices, were doing business
ostensibly as Individual concerns, the gov
ernment officials charge that they were IN
reality branch offices of the main concern
Among the prisoners taken was r. H
Nellie a brother OF Sidmon Nellie
Those raided outside the city are M. J.
Mason &, Co., Joliet. Ill, and j. l.. Dickes
G. Co, Aurora. Ill. Telegranls received hers
to-day say federal agent left Jackson
Vile, Fla, to arrest Nellie
This marks about the end of the So
called bucketshop' raids said Mr.. De-
Woody, after the raids This was about
the last large concern suspected. This
company had branches in Illinois. Indiana,
Iowa, Michigan, Wisconsin, Ohio, Missouri
and other states. The branches went by
different names, but they received their
quotations from the main office.
Federal agents tonight prepared to swoop
down early tomorrow upon twenty-sx
branches OF The company scattered through
eight Middle Western states. Action to-
morrow. il is said. will be taken in the
following cities: Milwaukee. Racine and
Green Bay, Wis; Detroit, Grand Rapids.
Kalamazoo and Lansing, Mich; Davenport.
and Atuscatine. Iowa: Rockford, Elgin,
Monmouth. Galesburg, East st. Louis, Bel
videre and De Kalb, ILL.,. indianapolis, An
derson, Kokomo, Muncie and Lafayette,
Ind, and Louisville, Cincinnati and ST.
Louis.
According TO agents OF the Department of
Justice the Capital Investment Company
controlled 5,C99 miles of leased wires to sup
pIv these branches with news of the New
York stock market and was doing bust
ness of more than s10Oa0,9eo annually. 1t
is said that on one ten point break in the
market the concern netted S6Oo,WO in
single day. The government alleges that
the llEIn dealt Will lio t0SbciiiViS va "a
Of heads | win; tails you lose.
Federal agents say that the company con-
treIled two fast New York wires which
were beating the ticker with regular
market quotations by from three 10 five
minutes With this advance information
the men in charge of the company's Offices
would decide If orders would be filed. The
government charges that the concern
Bought no stocks outright. but took COM
mission on all orders and then played the
longs" against the shorts.
Although operated at a loss six months
in the year. because of its extended wire
service and many branches, the concern
is said to have been a big payer at the
end of the year. It has recently been deal
ing heavily in cotton
This concern is a successor 10 the ham
nond Elevator Company. which did Dig
aucketshop business for Il number of years
The principal offices of tie elevator COM
pany were in Hammond, Ind until the
oneration of such a concern III that state
VAS made a felony. The Hammond Ele-
vator Company was then dissolved ana
the Capital Investment Company was OF
eanized under the laws of Illinois.
Among the warrants that have not been
served in connection with the case are
those for Sidmon McRie and William X
tIolliean. of New York, and William j.
tJovd. district traffic manager tor the
Western Union Telegraph Company IN
Chicago. 1t is expected that seventeen
more arrests will be made here.
washington, Dec. 15.-Attorney Genera
1,-,o,,ersham when he learned of the RAD
ON the Capital Investment Company IN
chicago to-day, declared he believed the
last ..bucletshop'' east of Denver had been
nut out of business
,-T rHTJ hCuTp CAGE