Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-09-25
ARMY OF DELEGATES SEIzE FLAGG'S CASH
Great Conservation Congress Post Office Officials Plan to
Opens at Kansas City, Hold Brokers Reserve Fund
WELC0ME0 By GOVERNOR SAID TO EXCEED 100000
Purpose Of Meeting Pointed Out Will Have File Petition
Coupled With q Warning in Bankruptcy Against Him.
PRESIDENT TAFT TO SPEAK ACCUSED SECURE BAIL
A. M Higgins the First to Get Out
Mos Import of OF Jal-Pretty Girl
Tour. In Case
Post Office Officials Plan to
Hold Brokers Reserve Fund.
SAID TO EXCEED 100000
Will Have Customers File Petition
in Bankruptcy Against Him.
ACCUSED MEN SECURE BAIL
A. M. Higgins the First to Get Out
of Jail-Pretty Girl
in Case.

NEW YORK. September 25-The post
Office authorities today took steps t.
lay their hands large sum. said
to he more than 100000 in cash, which
they believe was kept in reserve by
Jared Flagg, jr.. and others. who were
arrested Saturday charged with siolat-
ing the postal laws 10 defraud investors
Flagg and his alleged associates.
former United States Treasurer Daniel
\. Morgan. +. Tennyson Nicely. tie
former publisher and others. spent
Saturday and Sunday nights in jail. but
today the federal officers expected theA-
would produce cash for bail In spite
OF the fact that the court will require
$4,000 before releasing them.
Alvin NJ. Higgins. the lawyer. who IL
said to have been the legal adviser q
Jared Flagg. was the first Of tie
prisoners to secure his release on bail
today The ten-thousand-dollar bond
required by United States Commission
Ter Gilchrist was furnished and the
lawyer was released
Later Flagg was released on bon,i
for $4,000. given by his brother Ernest.
Joshua Brown furnished a bondsman
for $500. Brown is accused of being
one of the firms 'cappers
Petition in Bankruptcy.
To prevent the accused stock brokers
from reaching their reserve fund before
the federal authorities can get control
of it the post office inspectors prepared
to have some of iagg's customers fiie
a petition in bankruptcy against him. In
addition to $61, 900 i'm cash. which tire in
spectors declare Flagg and his partners
kept in a safe deposit box. IL i sad
that $191 900 has been received from et'--
toners since September !. indicating fa5.
magnitude of the business contributed
by investors anxious to profit hN tae
concerns offer of 80 per cent a year r.
turn.
Flagg maintains that his profits aver
aged 81 per cent, but declares that evrsy
dollar was made through legitimate STOCK
exchange transactions.
The federal officers have collected
! number of witnesses. four cf whom, they
say, nave turned over to Flags concern
as much as S0.p0 The government
charges that Flagg's scheme was To pay
customers this immense dividend for
short time after their investment, taking
| the money from the principal invested 10y
his small army of customers.
Money From Ali Directions.
Three waeonloads of books and cor
| respondence seized in Saturdays raid on
his brokerage concern are being ex-
| amned for evidence. These reveal that
money came to the firm from all parts Of
the country. BY far the largest number
outside of New York city. ii is said. live
in Bridgeport Conn.,, the home of Daniel
N. Morgan. Ithaca, y. y. is said to IL.
a close third and Franklin. Pa. next.
Flagg's plan, the government detectives
say, was to secure a Well satisfied Gus
toner in a community and treat him or
her so we'll that this customers friends
would be induced to invest their money
also.
The detectives say that the weekly
luncheons given customers at "A famous
restaurant near Flagg's offices were
strong feature of his campaign. AT these
functions no expense was spared, al
though the conversation seldom touched
on business.
A pretty nineteen-year-old girl Is said
to have played an important part IN
Flaggs financial operations and post OF
flee inspectors hope TO question her to-
day