The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-09-24
Former United States
IreasurerM organPris-
oner in Tombs.
SEVEN OTHERS
UNDER ARREST
They Are Charged With Coma
Quoting Get-Rich-Quick Syn
dictate and Mulcting Victims
of More Than Million
Dollars-Old Miller
Scheme Revamped.
Especial to The Times-Dispatoh.l

New York September 2a.-Jared
Flasg, Daniel N. Morgan. former
Treasurer of the United states: 8. Ten
nyson Neeley, VINO hH, figured in sew.
eral big financial collapses. and FIVE of
their associates including clergy
man. are sleeping in the Tombs prison
to -night as Federal prisoners. They
were arrested in raid on F'lasg's
magnificent suite of offices in the TIL
den Building, where he was operating
81 per cent. year stock brokerage
syndicate. Since the syndicate began
operations its receipts are alleged to
have been S1,5o0,00O or more.
Flagg himself was held in $4,000
bail. and Morgan and Neeley in 10000
each The United States attorneys
office announced that it would accepts
nothing but gilt-edged security for
ball. and as result the prisoners
could not secure their freedom.
Papers Arc Seized.
Immediately after the prisoners had
been put behind bars Post-Ofice In
spector Kinkaid returned to the raided
Offices and sent dozen patrol wagons
loaded to the brin with books. letters.
files. letter copy-books and every scrsn
of paper down to the post-ofFce. They
were busy for hours cleaning out the
place. while enormous crowds blocked
police reserves had to be called out
In a big frame was found United
States one-dollar note, signed by Nor
gan when he was United States Treas
urer .and resigned with recent date.
| This and othes United States notes
were designed to show the standing or
FlagS's associate, Morgan. who had
also supplied the concern with sam
pies of his writing done with the pen
W shn he.j etc
sand million dollars worth of United
States notes while government Treas
urer."
In addition numerous letters written
to FlaSg by various women were found
indicating that he had a great weak
ness for the fair sex. One letter was
found from woman who several
years ago stabbed him, and all OF
them addressed him in the most afreo-
tionate terms Chicago woman in
vited him TO make his home with her
| whenever in that city.
Leads TO Downfall.
II WAS in fact, his weakness In this
decision that led finally to FlaEg's
downfall The government succeeded
in getting very good looking young
| woman In the goou Sraces OF the CON
Germ. She first posed as wealthy wo-
man from Kansas, who had plenty OF
money to invest.
According to Inspector Kinkaid, th,s
young woman appealed SO strongly to
Flags that he finally confessed that he
was deeply interested in her Medley
saw the young woman. and. it is al
legged. become Interested also with thu
result that falling out between the
two men is sad TO have resulted Az
! time progressed they no longer treat
ed her as prospective victim but
instead as Il ward In wicked city.
and each promised her she would ba
| very wealthy kinkaid asserts that
tho admissions made by Flag and
Medley TO this young woman as TO their
business methods will play an import
ant part in the case.
Stories are told or vino suppers IN
which principals in the FlagE organt-
cation entertained the women EMPLOYEE
and to-day 1t was learned that tba
prohts OF the concern had been so,
enormous that Flagg felt 1t incumbent
upon MN every Saturday afternoon to
take his entire office STAN OF thirty
eight persons. largely women, to tho
care BeauN Art. waere Luoullus-lil
reastS were enjoyed.
Woman Starts the Case.
Post-Ofice Inspector Dixon sta,.d
! tonight that his attention had drsr
peen directed TO the Flagg concern
through visit paid him by Miss
LiiiiaH dippS Keys. She told him OF
what Wonderful success F'lagg was
having Thereupon an investigation
was begun After they had been at
work short time. f. Tennyson Neeley
walked into Post-Oftice Inspector Dix
ons office one day and said that no
represented several OF Flagg's GUS
toners who wanted to know what rha
government had against Flag. In
stead of giving Medley any Informal
ton, Dixon began Questioning him.
! Dixon asked him why. IL the Flagg
syndicate was good for 53 per cent a
year Morgan and Rockefeller didn't
get into IT.
We'll, II we were to let in one or
two of those big fellows. we would
have to freeze out our small custom
ers who have made our success pos
sible," he replied.
Morgan. who was treasurer of the
concern. 1t IS alleged, made the asser-
ton thar he had 100000 of his own
money invested The inspectors found
out that he was receiving a sum each
week for the use of his name.
Several prominent people invested
tens OF thousands of dollars. and three
was learned that many priests had
In all it is estimated that at the pres
emit tima Flagg has or Is supposed to
! have. si.Eo0,oo0 Of customers money
I In his care.
! The Old Miller Game.
I'VE find that FIngs was working
nothing but Il REPLICA of the old 20
( per cent. Miller syndicate game. ex-
cept that nv showine HIS customcrS
3 Just per cenr a week. their sus.