The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-08-03

reported to have caused a loss
10 It's customers.
-Four employees of the for
mer firm, which had offices at
91I Merchants Bank building,
were sought for questioning
by federal as well as state Of
ficerS.
Louis r. Markun. administrator
Of the estate OF Milton ID. Ullman,
head Of the firm brought the mat
ter to the attention of the federal
inspectors.
After a visit to the cOmpany's
Offices. 4. c. Garrigus. Indianapolis
postal inspector. said that ne would
communicate with his sUperlors IN
an effort 10 determine whether the
federal government would take &C
ton I'm me probe of the case.
He said If 1t IS shown that a living
company official was involved IN
federal violation that a case might
be m5de. but that where only an
cmpIove Was involved that ne
feared no charges could be brought
The administrator said that fur
niture in the offices of the firm.
valued az $3.50. was the sole known
asset Of a company that IN 1888
1894 dld a stock business of S6l7.lO9
with IA customers throughout
small Indiana. Kentucky and Ohio
cities.
Probe Asked in 1892
Herbert +. Wilson. Marion cOun-
N. prosecutor. when Informed of the
alleged Vaccinations Of the COM
pany. said that action might be
taken under the state securities act.
T.. NJ. Ovcrley. manager Of the
Better Business Bureau Of Indian
anOHs pointed out today. however.
that his bureau has made efforts to
have the firm investigated by the
state securities commission since
late IN 1892 and early in 1888. but
without avail.
Mr.. Overley alleged that the
firms operations were those Of a
-Sell-and-SwitCh" stock brokerage.
Customers were solicited over the
phone. Stock was purchased for
them. he charges. and then the Gus
toners were kept so in debt with the
firm that they were forced TO sell
the stock and switch TO another
stock
Both MI Ovcrlev and Mr. Mar
kun we're unable to find any SeCUr-
tiles or listing of the purchase of
the stocks IN the company's safe.
safe Broken Open
Brokerage houses IN Chicago and
New York reported the firms &C
counts closed
Nj. Markun said the safe was
broken open by a lOcksmith in the
presence of an emplOye OF the state
securities commission.
No securities or stock purchase
books were found.
a branch office Of the firm in
Tcrre Hautc was empty OF furniture.
It Is charged by Nir Overley. when
an INVESTIGATION was made in that
CITY.
Governor Paul y. McNutt was APP
pealed 10 by Mr. Overley as far
back as the summer Of 1888 and a
probe was not started. according TO
Mr. Overley. until in July this year
Nr Ullman. the FIRMS head. died
July II at Methodist hospital. Mr..
Msrkun said.
Financial statement Denied
Mr. ONeiu demanded a financial
statement from the company short
Is before Mr.. Ullman's death. 1t
was not submitted
William ONeiI. Indiana securities
commissioner. vacatiOning at French
Lick. Ind said that complaints had
been received against the company
in 1888 but that they involved out
of-State customers and that inveS-
tIeatious were made.
He asserted that the firm hao
fled the necessary bond and shown
the required financial condition TO
BE- licensed as a dealer in securities.
Each time We had a complaint
against the company We took il up
with Mr. Ullman and the firm set
tied NTH the customer Mr.. ONeiu
said
SS6.S21 Lost in Year
We have not ended our probe.
What We would Ike 10 know is
where the books on stock purchases
can be found We also wish to know
II the stock Is shown in some brok-
erage cOmpanys ledger or IS IN
safety deposit box
Letters written by Mr. Overley 10
customers revealed a loss Of $50 32l
IN the year Of I9S3-Is34 10 them.
Mr.. Oyerley pointed out that
forty-four Of the al customers were
followers from the year 1888 and as
a consequence estimated that the
total losses since the firm began op-
Grafton IN October. 1882. might
reach $3.50 600 Of customers money.
The customers list found IN the
firms safe shows transactions rang
ing as hieh as so 900 10 SIS 900.
Doctors. business men and widows
we're purchasers Of the stock on a
margin basis. Greencsstle. Green
deld Winchester. Gary. Spicelsnd.
Bsrcersylre. Lebanon and numerous
other Indiana cities are represented
IN the customers lists.