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The Cincinnati Enquirer from Cincinnati, Ohio • Page 4

The Cincinnati Enquirer from Cincinnati, Ohio • Page 4

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Cincinnati, Ohio
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4
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PERIL Unseen, Unheard, Brings Tragic End To Career 'Jake" Aug. Aged Citizen Is Struck By a Traction Car, When on His Way To Ret-ative in Norwood. One of the City's Famous Char- aeters Who Figured in Big Events Before and After the Civil Warj 3ti. Aug. 1imJ yesterday afternoon 4 o'elcck at the Jrwish.HpHal.

a victim of a street car act-! dent. While cross. nc Main avenue, at the in tersection of Muvle. in Norwood, en route to the of his nephew, William Meier, of Imvii avenue.VUlie aged Cfncln- naUan wan struck by aiyrth-bound Inter-urbun traction car. Hipocly was thrown towar-I tli opiM'-it truck, and when the car wa stpicJ it wa a full length ahead Of tiie prostrate, fi-rm.

Mr. when citi-teriK reached him, unconscious. Tiie accident happenr-d at 7 a. m. At the time SerRnat AhlD and Patrolman loan, Mahonry and Backsneider, of the Korwood i nlU-e fmve.

were en route to fceadquart rs to report the o'clock relief. They aw a crowd at Maple avenue and hastened there, taking charge. When the fir citizen reached Mr. Aug bewailed to respond to Inquiries about hU condition, end It was realized that he had been injured. Joe Brown, a chauf-fur -for rr.

Frank I'erry, who has an office in the Bradford Block, opposite the toceng of the accident, saw the commotion, and upon learning that an accident had taken place it caused the policemen to take the body into the physician's office. Word was immediately to Dr. Perry's home and alo-to the ret; id a nee of Dr. Tb-mn9 Dickson. Both, responded Imme-tllately and made a thorough examination about the head, finding numerous Injuries pf the skull, indicating one or more fractures.

They stated that 'he wan probably ttyind human aid and caused a private ajnhulance to summoned. In which he was taken to the Jewish Hoepital. He never regained consciousness, llngnring until 4 oViock. when the hospital physhlans noticed tiie family that he was dead, tie was 82 years old. His Sunday Visit.

'r years it was a weekly custom on the part of Mr. Aug. who made his home at the Grand Hotel. to eat his Sunday breakfast and dinner at tiie home of his nephew, on Jjiwn avenue, and also to coddle hfs two year old crvatgrandson. William When he faffed to arrive at his racular time hi nephew became alarmed nd started inquiries.

lie soon learned of the accident and after flnft sending word other relatives In' the city, hastened to tin Jewish Hospital whrre he remained until tne end came. No Arrangements wli; be made for the funeral until the arrival of nutttf.iown fnnihni of the family, among being lus daughter, Edna Aug. the vaudeville actress, -who waa reached in New York City; another daughter, Mrs. Louise H. Meier, who was also In the metropolis: Anna CaJ-laglian, of Brooklyn.

and Mrs." Norma Wright, of College Hill." The other children of the deoeajed are the Misses Lillian and Alma Aug and four sons, Jacob. Charles. George and The deceased is also survived by six grandchildren and on great grandson. The Norwood police secured tiie following names of witnesses for Coroner Coe: C. Wegeman.

3315 Vine street; Miss Butcher, a telephone operator; Walter Willis. 4ac Main avenue. Norwood; J. C. Cornwall, of Silverton; Peter McGurrin.

22 Rois avenue, and Harvey i-Viiz, address not given. Dr. Perry beheves the excessive speed of High-Speed Eating and Wrong Food Lead to Indigestion A little thought should convince any one that right habits of, eating are of first importance. Five important points should guide the wise selection of food: Must be nourishing, Must be easily digested, Must taste good, Must work for the teeth, Must be economical meets After all the argument for and against any particular food, the question can best be solved for the individual by personal test then you'll know. "There's a Made by Podium THE JLATE JACOB AUG, SR.

THE EXQUIliER, CINCINNATI, MONDAY, NOVEMBElt 18. VJV2 to 1 'Jk I i I iKn i m- 1 Si I It I KM iFSj the Tnterurban cars through Norwood was the cause of Mr. Aug death. In speaking of the matter last evening he stated that he had called le Mayor's attention to this about three weeks ago and was' irtfornied that the officials had beon cautioned but the reprimand, heelaimed. did mt sem to be effective.

Thse cars," the Doctor said, "maintain a pee-1 of mlies an hour in goings through Xorw.od. A man of Aug's age has some right to the streets, but he has no chances as long as cais run at this rale through the principal street of the city. Kven to-night the cars are going just as fast as before the accident." Miss Butcher, night chief operator at the Kim Kxchange, who Is named as one ef the wttneses of the accident, last night iaid that she was standing too far away lo base any opinion as to the responstbKity for the avidt-nt. She said there was no otiier car in sight at the time and that Aug seemed to walk In front of the car. Motorman a mew A.

Johns was In charge of the car and the other member of the crew was Conductor Fitzgerald. The former was arrest -d Immediately after the accident on a charge of assault and released on a bond of This will he changed to manslaughter this morning when Johns surrenders in order to be docketed on the new charge. Tossed Into the Air. Edward Jennison, Z17. bf Myrtle avenue.

Walnut Hills, a colored porter at Bunnell' drugstore at (the corner of Maple and Montgomery avenues, gave this description of the accident: "About :4. I was standing outside the drugstore sweeping the sidewalk, and at the same time to Charles Burke, another colored man. who lives on McNeil avenue, Norwood, when my attention was attracted by a sudden ringing of bells. 1 turned in time to see an old man about four fet in the air and a big Interurban car rushing past. Th man fell In between the two ear tracks, alighting on his bacg.

his head falling bftckward and striking the ground. He was thrown about five f-et. I rushed out and. found him unconscious, brearhlnj? hard and his head covered with blood and blood oozing from his right ear. The car stopped about ft own length away.

I saw two officers coming to care for him. and I hurried to Dr. Perry's of fice" in the Maple Plats, and he not being there, had tha colored porter. Josenh Brown, telephone to his home. Fearlns that he would not get there quick enough.

I rushed over to Dr. Dickerson's home, and he dressed and hurried to the scene. They had carried the old man Inside, and I picked up hia-rane. hat and Sunday news paper -anu carried them Into the office. Dr.

Dickerson attended to the man's Injuries, and when Dr. Perry arrived he assist-' ed Mm. A rail was sent in for Meier's ambulance, which arrived after an hour's1 waiting. The man was unconscious when carried on a stretcher into the ambulance! The present generation has little idea of I the prominent part played, by -ake Aug in public affairs from before the Civil War! The TT erwis every requirement, Reason" for GRAPE-NUTS Cereal Pure Food Factories, re until the eany eighties. In the fifties, while the Know-Nothing agitation was at its height.

Aug was a leader of the German element living north of the canal, a territory which is still known as "Over the Rhine." Old-timers will recall the capture rf the cannon the Jackson Guard by Know-Nothings during a picnic on Jackson Hill in IK, and Its subsequent recapture by the Germans and I riel-Americans, then lurKUKiiru as iKMiie viiwniB iui (uuicvuvn. PA serious clash seemed inevitable. The I Germans and Irish-Americans had formed in battle array along the but trouble wis averted by the intercession of state offiVals. Tne German companies were mustered into the Ninth Ohio Volunteer Infantry and the Irish-Amertcans into the Tenth Ohio. Aug went with tne Ninth ilo.

In charge of the commissary department, and continued with It until the close of the war. Aug's fame, however. Is especially linked with that of Aug's Clubhouse, on Vine street, next to the Public library. Along about "To he established this clubhouse, and for in years it was It was the resort of the big men of that time. Politicians and professional men of national fame were frequent visitors.

Aug became the intimaie friend of General Lew General John A. Logan. General ted man. Durtoin Ward, Senator George Pendleton. Senator George Pugh.

Judge Samuel K. Hunt, Alex. Ferguson, Congressman "Bouncing" Banning and a hont of others of like fame and irromlnence. Aug had his friends and patrons among the politicians of both parties, and his advice was often sought. It was in his clubhouse that much of the negotiation leading to the formation of the IJheral Republican party and the nom (nation of Horace Greeley for President took Place, most of it within his knowl edge.

During the Republican corrvention that resulted In the nomination of Ruther ford B. Haves for President the manaj of James G. Blaine had thetr headquarters in this clubhouse. The secret councils of Governor Noyea and others, that resulted in the capture of Southern States and the Presidency, through Returning Boards and the overthrow of the verdict in favor of finmuH Tilden. were also held there, in issi active Democrats met there and organized the famous Duckworth Club.

Of alt these affairs and many more Jake Ang had intimate knowledge, and nothing pleased him more in late years man iu t-n the Inside stories of weighty conferences at his clubhouse that had shaped the destiny of the "country. Mr. Aug eyesight arm neanng were greatly impaired, and doubtless he had no intimation whatever of the approach of the car. Only a few weeks ago he was struck An uor. airM't knorked tknrn and nalnfully bruised.

He was laid up tor, several days. About a year ago he gave up srnokio after being devoted to tobacco for sixty odd years. Recently he would boast to friends how well he felt and how much improved was his heaitn. Yesterday morning at o'clock he HKS A SAY School Princip! Talks About Food. The Principal of a High School in a flourishing Calif, city fays "For 2i years I worked in the school with only short summer vacations.

I formed the hait of eatmg rapidly, masticated poorly, which, coupled with my sedentary work led to indigestion, liver trouble, lame back and rheumatism. "For 12 years I struggled along with this handicap to my work, seldom aid up but often a burden to myself with lameness and rheumatic pains. "Two years ago I met an old friend, a physician who noticed at once my out-of-heulth condition and who prescribed for me an exclusive diet of Grape-Nuts, milk and fruit. "I followed his instructions and in two months I felt like a new man with no more headaches, rheumatism or liver trouble, and from that time to this Grape-Nuts has been my main food foi morning and evening meals. I am stronger and healthier than I have been for years, without a trace of the old troubles.

"To all this remarkable change in health I am indebted to my wise friend and Grape-Nuts and I hope the Postum Co. will continue to manufacture this life and health giving food." Naqje given bv Postum Battle Creek, Mich. Ask any Those who have" tried Grape-Nuts know things. Look in pkgs. for the famous little book, 'The Road to Wellville." Battle Creek, Mich.

in Th Kkqciiuer office to get his paper. and appeared unusually bright and cheer ful. Misa Edna Aug. New York City, waa notified by telegram of the accident to her 4 a the r. aud In reply snt the following telegram to the Jewish Hospital: "Give fa ther every care.

Tell him he must 11 until 1 get there. Will arrive on Pennsyl vania. Monday." Jacob Aug was born of French parentage. March 5. 1631.

In Alaace-Loraine. near the border line of Germany. His father. John Jacob Aug. was a well-known college pro fessor and a linguist, having -mastered seven lajuruage.

He. at the age of 7, and his father canie to tbe fnlted states, and from New York City tbey went to the house of his grandfather, at Aug Falls, which had been named In honor of the family. Tbey resided there for a short time, and later came to Cincinnati, where the family became one of the first settlers "over the Rhine." Here the father'a knowledge of languages came in good stead. he giving private lessons and acting as tu tor to students in the schools. It was he who was one of the first to agitate the teaching of the' French language in thr high schools of the Queen City, which sue seeded -several years afterward.

Worked on the Elver. Jacob Aug attended a school taught by the late Judge Stallo. at Twelfth and Main streets. Later he determined to seek his fortune, and the Ohio River attracting he secured a position on one cf the large steam boats lying between Cincinnati and New Orleans. He quickly worked himself up In the ranks through his energy and became steward on some of the largest vessels.

It was in this capacity that he secured the training that he profited by in his later career In the restaurant business in tbe Queen City. Aug on one of his trips down the Ohio nd Mississippi struck up an acquaintance with a young printer, who later became pilot of the boat. The young man was no other than Samuel L. Clemens, who after ward was widely known as Mark Twain. Twain became one of Aug's personal friends in later life.

At the breaking out of the Civil War Aug answered the call and was appointed Quartermaster of tbe famous old Ninth Ohio Volunteer Infantry, with which he served during the long campaign. In the army he became closely acq ua Intel with General Grant and General Stedman. and the former often visited him In Cincinnati at his clubhouse. He wss near General "Bob" McCook when the latter was shot during one of the battles. After the Civil War Aug returned to Cincinnati and became Interested in the res taurant said cafe business.

About he established the clubhouse on Vine street. About he discontinued the clubhouse and became manager of the clubhouse at Coney Island, which had Just been opened. He held this place until about 1WO, when he gave his whole attention to a big com bination cafe and restaurant on Vine, above Second atreeL-and another which he opened at Third and Walnut. For over a decade Aug had led a retired life, and for the last three years had made his home at the Grand Hotel. DELINQUENCY In Insurance Division Vasue.

to cover "lnveBtlgatli Of Kentucky Said To Have Beenf director. vestlgation. Found By Inspector. Shortage of $20,000 Hinted at in Examiner's Report, WhiA Will Be Give To Governor Me- I'rewy To-Diy Attache Under Former Ctmmissioner Accused. PBI-IAI.

DISPATCH TO TVS IBBS. Frmnkfort. November lT-Cnlesa there is a changre in the plans of Stats Inspector and Examiner Bbermtm Good psater he will hand to Governor McCreary to-morrow his report on the finding tof his examination of the insurance department under former Insurance Commissioner C- W. Bell. The report, says Inspector Goodpsster, will phow that there" is a delinquency in the department under the administration of Bell ot something like A former attache is accused.

There will be no criminal charge, but vere criticism as to the administration of the affairs of the office. Former Commissioner Bell will file a re port at the same time in which he will deal witn tne report or Goodpsster. and will endeavor to lay the blame for the de linquency where, he says, it It is said there will be sensational and uireci cuarges in tne report of Bell. BelJ was in conierence yesterday and to-day with his attorney. He says he has been badly treated, am that it ia a case of misplacad confidence on his part.

Efforts have been made to clear up any delinquency, and It may be -that the names will not be used In Bell's report EEP0RT OF G00DPASTER Causes Storm of Criticism From Ken tucky Official. "fSiIAl. DI, PATCH TO Til SNQCTSKB. Frankfurt. November 17.

recently contained In a report of Inspector Sherman Good paster concerning the state relations with Dr. Fred J. Mutchler ot Bowling Green, an employee of the 8tate Board of Health, has kicked a storm. First came Dr. C.

C. Cherry. President ot the State Normal School, with the explanation that the state did not pay Mutcmer a salary ior mswork at the school, but that the money paid to Mutchler by tne state was paid over by Mutchler to the school. Now comes J. W.

Newman. Commissioner of Agriculture, who aaye that Mutchler received no salary fmm his department for lecturing at the state and county farmers' institutes, but that If Mutchler had not given the lectures the state would have been put to the expemw fL Vo a day to employ a lecturer. Commissioner Kcwmtn ssys that )lutcb ler only received his traveling expenses, i which were very meager. TWO WOMEN Are Wounded By Hagex-le in His Attempt To Kill Another. irscui, DurATca to tb-b axerrsxs.

Philsdejphla. November 17. In an effort to carry out a threat to kill Lena Strubing. 60 years old. at her home.

East Venango street, to-night, Conrad Ha-gerle Instead put two' bullets In two other persons. Elisabeth Hagerty, of the same address, being struck in the breast, and Felix Georgens in the sbdomen, The wouiwea ones were taken to the Episcopal Hospital In a serious condition, and Hagerle was captured by the police after a hot chase. -Hagerle formerly lived with the Stru bing woman, out tney separated eight snontns a to. saai ins received a let ler XTom nssene on rrMi, Bailing Be Was coming to kill ber. flhs regarded the threat joe until t-iagerie appeared and opened (Ire at those gsttaered Is the house, RAID CONTINUED FROM FIRST FACE.

liance. It was found tiTat Dent is the "whole works' of that ccmpany and that he has been working hand In clove wltn tbe operators on this side of the water, most of the ringleaders here being former pals. His office was discovered to be In a boarding house on the outsklrt of the business section of London. It was also discovered that by the aid of a number ot stenoarranhera he handled alone aStgQrthe correspondence directed to the compa Members of the gsng in jlils country used the International Bankrrs' Alliance BB a sort of "clearlne house" for the locks and bonds they had agV-ed to sell. This company was representee! having a capital stock of lkjo.ou pouifds sterling and to be the agents of the latsest bank of Europe.

When a large corporation waa the prospective victim Its entire issue oi stocks or bonds mould be turned over to the International Bankers' Alliance ot London, wbo would sdvlse the victims tnst If they srould have the same guaranteed by the American Redemption Company that it would make an effort to sell the Issue to a Paris bank at a price near par. After this had been done and several thou sand dollars advanced to cover the ex pensez of the "ParlB bank's" engine Investigation, these enncerne would And themselves "out" both the smounts paid for the "guarantee" and for the "services' of the expert, and the stocks or bonds back on their hands unsold. The American Redemption Company claimed to have a capital and surplus of HiiUJOU. and tbe Chicago Debenture Company claimed HSo.mu as capital and sun plus. The investigation at London of the International Bankers' Alliance disclosed the fact 'that It had not one cent to Its credit in any bank.

How the Trap Was Baited. The brokers and attorneys, who acted as scouts In securing "good things" In the way of promoters who had a bunch of stocks and bonds which they desired to dispose of. belted the trap for the prospective victims of the gang by steering tbem up sgalnst the American Redemption Company, the Chicago Debenture Company, the Interna tional Bankers' Alliance or one or another of two companies of the same character located In the Wt. All of these companies were recommended si being, reliable and willing to guarantee stock and bond Issues of companies, which, after investigation were found to be good The brokers would steer, to one or an other of these companies, persons who csme to them for assistance in placing stocks or bonds upon the market, while the attorneys implicated in fde scheme were generally retained by prospective Incorporators of a company to draw up the papers of Incornoratlon. The latte: after they had drawn up the articles of In corporation and had provided for a stock or bond issue, "steered'- by suggesting that he knew of a corporation which would be willing to guarantee the Issue, and that If the organisers of the new company could prevail upon the guaranty company to take over the entire Issue there would be no question of difficulty In disposing of all they naa tor sale.

After the victim had communicated with the guarantv comnanv nrf n. A 4 1 per cent of the par value of the entire be was told guarantv com pany had decided that he had a "god thing, and that they would be wlMing to guarantee the stock or bond Issue for him. The entire issue Would then be turned over to a broker to be placed on the market. wnne tne DroKer would be id. proached by the promoters for information concerning the sale of the stock.

He oro- reeds to tell them thst he has been unable to sell any of it. owing to rather "remark able" market conditions. He assures them that he feels that their stouk.wtll sell quickly as soon as market conditions change. It finally dawns upon the promoter that for some reason or another the public will not purchase his stock, else he, gets the notion that it Is not in the right oroaer a hands, and proceeds to attempt soma, other arrangement for the sale of tne Iseue. Divided the "Easy Money.

In very few Instances is it suspected that as a matter of fact the stock wss never actually guaranteed nor was It ever offered tor sale by the broker to whom it had been given for that purpose. In the mean time the "guaranty" company has turned over to the broker or attorney, as may be. half of he easy money" fK receives for conducting "an the new company and its stock or bond Issue. When the Cincinnati Federal Grand Jury took up its "probe" into the operations of the gang early In October it had summoned before It witnesses from several of the Important cities ot the country. A large num ber of these were from Chicago end surrounding cities, and their testimony re- BUlted in the return of the Indictment against the five men.

who are to be rested to-day. One of the principal witnesses was Miss Clara Kronage. of I1O6 Wade street, Cincinnati, who was a stenographer In the omce of the former Cincinnati brok ers who were indicted. It is ssld that her testimony before the grand Jury wss sensa tional in the fxtreme, as she is said to have been acquainted with the Inside de tails of the "scheme" worked by these men in this city. Investigations conducted bv Poetmaeter Inspector Griswold Into tiie bueiness of the ndlcted men developed evidence to show that the lope rations of the gang began in mts city 1 in lust.

Lrunng ineir operationa In this city a number of local men were employed by broken on commission to look up prospects in tne way of promoters of new enterprises, and. according to poBtoffice in spectors, a large numwr 01 corporations were "roped In" various amounts rang ing from $iV up. According to tiie story told the pontofflre Inspectors by Miss Kronage durme-her employment by these broker, an average of one deal was pulled off every week. She stated that she knew this from correspondence which passed betaeen the local brokerage house and the 'American Redemption Company or the Chirago De benture Company. She stated that tiie lo cal brokers received a package of money from one or the other of the two companies, representing their sliare of the swindling game, on an average of once a week, and that she frequently signed ror these express packages when she arrived st the ofijee before her employers.

jC Stenographer's Story The Americsn Redemption Company and the Chicago. Debenture Company, according to Miss Kronage. were represented as being guaranty companies by her employ-era and that the latter recommended these companies to prospective victims as being the ousiness 01 guaranteeing stocks or bonds and thus. In protecting tiie purchaser ot them from loss, make them the more desirable to the investor. She declared that these guaranty companies regularly sent to the Cincinnati brokers copies of letters which they had written to "prospects" recommended to them by he local men.

"81e staled further that these letters were written on plain paper, mailed in plain envelopes and were unsigned and that when the Cincinnati brokers communicated with either of the guaranty companies to inform, them of the status of a proapeet, tliey used the same precautions and in addition addressed mall for the -Americsn Redemption Company to" a fictitious companythe Telephone Table Company. In an Interview Miss Kronage went Into some ot the details of the operationa of Mln-yard. Kesaler and Malcolm while ahe waa tn their employ. Sneaking of their connection with the American Redemption Company, she said: We received a number of express packages containing currency frora the American Redemption Company, addressed to our eompeny. These packages did not appear to come from tbe American Redemption Company or its general manager, fictitious names being used.

Frequently, I would reacii 1 suw receipt ror an ex- press package and when mv-erooloyer ca in he would ask me if the money bad com from the Ameri "When a contract waa cloaed with a corporation to sell its stock we sent out usual-Iv from -Ki to "TO elreulara to Investors. eldom- received reolles to these circulars. We hsd one list of investors, and occasion ally took same names from Dun a or snu street'a We never received more than three replies, ail told, to my knowledge. If a reply was received we corresponded with the inquirer. Speaking of the Chicago Debenture Company and the dealings between it ani tbe local brokers.

Misa Kronage stated na on one ocraaioa ahe beard ber employer remark to some one in the office' that be had lust received HUD from bat compan as his division of the fee paid by some promotor for tbe guaranteeing of his Bloc a. She stated that later the firm quit doiatl business with the Chicago Debenture Company because it hsd not been very regular about making his remittances on business thrown to It by the local brokers. A Ficticious Campaign. She stated that after a victim had been steered np against one or another of the guaranty companies and had paid the fee required for the guaranteeing of his stork or bond issue a fictitious stock selling campaign would be begun by the local brok. ers.

Thev srould tell the victim that they were having printed WOW) or prospectuses for use in boosting the sale. when, as a matter of fact, but a few hundred would actually be printed and the greater portirn of these sent to the victim mm- self. Very little investigation was ever made by the brokers as to the enterprise of the nmrnninr althouah they would pre tend to make a very rigid examination Into the proposition. According to Miss Kronage no Investigation was ever made beyond writing to references given by the prospective victims and occasionally look ing them un In Dun or Hrausireet a. She declares that no effort was ever made by the local brokers during tiie time she wss employed by them to sell stocks or bonds which had been "guaranteeo and nlsred In their hands to be sold.

The only instance which came to ber attention where ensranteed stock WSS sold, she Bays. consisted in the sale of two shares" of the Electric Scenerv HoiJt Company for Ia this instsnc the call for the stock csme without solicitation on the part cf tbe brokers. Following the nrosecutlon. In 1010. by Federal authorities of the officers of the National Trust Company, of Waehlngton.

D. Ci. orte of whom was J. N. Huston, former Treasurer of the I'nited States.

who is now serving a sentence Imposed as a result of that prosecution, compisinu began to come In to tbe Postal Department at Washington of peculiar transactions on the part of certain brokers, which complainants alleged resulted in losses them of from 1250 to They Were not clear as to whether or not there was anything ehady" In these transactlona. but they had met with losses which they could not quite understand. Cincinnati Complaints. About the same time certain Cincinnati promoters appeared before I'nited Slates Postofflce Inspector. Morgan Griswold here and entered similar complaints sgalnst a local stock and bond broker who had offices in the First National Bank Building.

Then began a determined effort to ascertain whether or not there was anything illlaral in the operations of this broker. The literature sent from the bro ker a office through the mails was invest! gated, and after monthe' probing flea waa discovered that Pointed to wholesale operations. Along with this clew csme the tnst mere ganlsed gang at work, and that prominent men In practically every city of Importance In the country were members 01 it. Then the scheme of the operators began to unfold itseif to the Inspector, and he imme.tii.telv communicated wUh the De- nartment at Washington telling his sus riclons and suggesting that PoatofT.ee In spectors at New York. Rochester.

Buffalo. Philadelphia. Boston. Baltimore, Chicago. St.

Louis. Cleveland. Detroit- Milwaukee. Denver. San Francisco, Los Anareles and other cities Investigate certain brokers snd attorneys who seemed to be Implicated in the clever operations of the srang.

The clew picked un by Inspector un wold Indicated that promoters were being deceived by means of a "stock insurance scheme. This was presented to prospective client in varied forms, served wltn most attractive "trimmings." For Instance. promoter of a new company desires to place an Issue of stock or bonds upon the market. He ha a good proposition and he knows that if be can secure a market for the stock that his fortune is mad, He goes to a broker with the request that he plaie the stock for sale. The broker "carefully" inquires into the proposition.

snd. after a time, tells the promoter that lie thinks his proposition a good one. but rather doubts t'uat the stocks or bends, as It may be. would And a ready sale, and, if sold, would probably bring but a small sum per share. He then suggests to the promoter that be huve the stoek insured hy some reliable guaranty company, tellln him that if he would do that he would be glad to take the entire stock or bond i and dispose of it for him at the usual commission.

He points out that if he could assure prospective buyers that the stock was fully guaranteed he could be able to sell It for par or thereabouts. Working on the Victim. The broker makes the victim believe that the guaranteeing of his stock operates on the same principle as an indorsement ot a wealthy person to a note, snd that stock. which on Its merits would not seJ to ex ceed S-'a per cent of its par value, would, as soon 11 the indorsement of the guaranty company is placed upon It. be readily pur- cnased by tne investor at par.

Tola re pi sentatlon Is corroborated by the guaranty company when the victim gets Into corre spondence with them. The possibility of securing par for his stock and disposing of the entire issue at one and the same time sounds Rood to the ptomotor. and he proceeds to ask for fur ther Information relative to the proposition- He is told that he can have his etock se cured for 1 per cent of its par value. If It is a Issue he Is to pay tne guar anty company l.i. He Is told that this fee is lo cover cost of investigation.

by the guaranty company. He Is also told that the guaranty company derives Its prorit from a fund from IS per cent of tiie Issue's par value, which ia placed in the hands of a trustee for Investment to net an Income of per cent. The promotor then enters Into roricspond- ence with the guaranty company recommended by tbe broker, usually the Ameri can Redemption Company. They outline their plans on several differ ent time periods, the amount to be set aside as reserve fund depending upon the length of time the guarantee is to run I usually from "JO to 5 years, the thirtv-vesLr plan being the one most commonly ee. 1 nis requires iv per cent of tbe nee value of the stock to be paid, as the stock eoMi.

to me guaranty comnanv hien places it in the hands of a trustee mho invests in securities in such a manner as to bring sn Income of 3t, per cent, which, it Is ugureu. at me ena 01 ao years would equal the par value of the stock. The guaranty company tell, the itim in order to assist the broker in the sale of stock. It will pay 2 per cent to the hmk.e and the latter, in addit'on to this, charges the victim per cent. While for a long time the Postoffln.

in spectors suspected that there was some illegal connection between the brokar k.i Ilia BUtrani) wnilBrr, mere WSS no e-1 se watJlfcl and re-T1 dence that this was the case. A close was Kept upon tne mail sent out reived the brokers, but kt no time did the Inspectors see any communications between the two. Then the Inspectors took a new tact. They sent decoy letters to fir. which the lotsl broker had been, in communication with in an endeavor to secure evidence.

Suddenly they were aware that their nuarry waa "wise" to the fact that an -Investigation was blng made of their affairs. A little deduction convinced Inspector Griswold that the broker was communicat ing with fictitious parties. An Investigation along this line developed that, whil. brokers were communicating with lo or firms In as many cities, all of this mall landed In the offlce of either the American Redemption Company or the Chicago 1 debenture Company. The connection establialied.

the rest wss tact that A STUUCSHUS. CCNAU Crmises sag rl A-W- aroroTKirs tfrmx a La casTX EXPstESS SAaXDHs JAM. far Path, a THK Ct NAsU a. a. TO.

LML. ll Or Lecal Scents. there was correspondence between the guaranty companies and the brokers in dicated that the suspicions of the Inspectors were well founded, but another dimcuity presented Itself. This was how did tbe operators divide up the profits? No money or checks were Inclosed tn the letters which passed between them, and unless it cou'd be shown that there was a division of the profits it would be difficult to secure prosecution. Tbe solution of this problem came with aa tnveetlgatlon that waa made at tbe office of local express companies by In speetor Grbcwold.

Here it waa discovered that express packages were frequently celred by the local broker from Rochester snd Chicago. The next time an expi package Bras received for the broker, tbe officials were notified and Inspector Gris wold and Chief Inspector George F. H. Birdeyo were in hlsofflce when tbe package was delivered to him. An examination revealed tiM in the package.

Flight of a Broker. To show the care taken by the members of the gang to conceal all evidence of their transactions. It may be stated that in send lng the money package, there was no letter of transmittal. The package was labelel "personal papers." and a fictitious name waa given as consignor. The broker, when confronted with the evidence, is ssld to have ststed that It came from the American Redmeptlon Company." of Rochester.

N. T-. but refused to state what deal tne money It contained represented. The next day the broker closed up his offices in this city and quietly left the country. The confession of the Cincinnati broker led to an Investigation at Rochester.

which resorted tn the Identification of. the consignor of thla and other packages sent from there to various brokers in different cities of the country, as the general manager of the American Redemption Com nanv. Those who were steered up against the International Bankers' Alliance were rn many Instances 'stung" twice. The first "stins-" came with the payment to the American Redemntion Company of one per cent of an issue of stocks or bonds for the placing upon It of the guarantee. The second came In this vAjse: Some time after Sjfr'l nternatlonal Bank-erst Alliance had agreed to take the entire issue, the victims would be notified thst the Alliance had sold the issue at an advanced price to a bank in Parts, France, providing, after a thorough investigation, prospective purchasers sre satisfied that tbe oroDoaltlon is ss represented.

This notification was accompanied by a request for S2.UO or to cover the expense of the experts who would be employed by the! Paris bank to make the investigation. 1 ne experts would go through the form of aa investigation and always submitted a report condemning the proposition, sfter which the International Bankers' Alliance would Inclose the report in a notification to the victim that its contract to dispose of the issue is canceled, and that it would make no further effort to dispose of the stock and the entire issue is "respectfully" returned. Victims reared Exposure-It is aald that In ferreting out this gigantic scheme the Government officiate have had 'difficulty tn securing assistance from the victims of the gang. In many Instances they hsve sbeoiutely refused to give out any information for (ear that they may be called as witnesses and thug publicly acknowledge that they ha dbeen stung." Msny of them put up the pleas that to testify In such a case would Injure their business and that they could not afford to alio their trouble to become public In this wsy. While Postoffice Inspectors of practically every city of Importance In the country have assisted In gathering evidence against this gang of swindlers, those most active were Morgan Griswold.

of this city, and A. Germer and C. H. Clarahan, of Chicago. Gnswold will have charge of the ra'd to-day upon the offices of the American Redemption Company, while the Chicago c.fflcers will direct the "close In" on the Chicago Debenture Company.

According to Postofflce Inspectors the scheme worked by this gang of swindlers was concocted in the brain of Samuei Graham Bondurout, alias Samuel B. Graham, under indictment at Washington. D. for complicity in the swindling operations of the National Trust Company of Washington. The indictment against him was returned by a Federal Grand Jury In the District of Columbia at the time one was returned against J.

N. Huston, former Treasurer of the United Ststea. who was slso sn official of the trust company tn IU10L Huston was convicted. It is ssld that Graham. J.

A. Dent, now head of the International Bankers' Alliance at London, and the General Manager of the Redemption Com-. pany at Rochester, got together and de cided to work the game to the limit. They interested tne others, and within the next year they had brokers, and attorneys in practically every city tn the I'nited States contributing to their scheme and roping in the unwary. When the Washington indictment was returned against him Grahsm skipped uie.

country and located tn Toronto, Canada. It is suspected by Government omctals- that when the Cincinnati banker made bis getaway from Cincinnati tiiat he joined Graham, as went to Toronto. It appears' that Cincinnati aas probably the -moat profitable operative point in the country for the gang, as it is said that from this point it was an easy matter to i connect witu Southern corporations, which have been "plucked" In large numbers. I Among these are a number of coal mining corporations and traction lines. I STILL OH THE JOB.

rCVIAl. PISPATCS TO TB A EVQCIBCB. Xew Haven. IJunn, November 17. Rilph O.

Thompson, who eloped here five yeata uo with the former wife of Kiu McCoy, and wal later divorced from her. repeated Ills es" a pade to-day when he and handsome, brunette, mhose name was given as "Mrs. Maude Only." of New York. eie made man and wife by Frederick Knye. a Justice of the Peace.

SUMNER IS GAIKIKQ. Boston. November 17. Very Rev. Walter Taylor Sumiyr.

dean of the Cathedral 01 I PS. Peter and Paul. Chicago, who Is III In i tltls city, wss reported to-night as more of Very Rev. Fdmund Reuamanlere, dean of St. Paul'a Cathedral.

RESORTS. ItCNat-TME IS DBCEXBEK. Pine Forest In rH'MWCRVIIXE. (. c.

IK THK HKAIT OF THK pHJITII EKKf Uitf-c-aa in(r rtmorx soica iur aosulU dry, bfaithmi iirb- sVi ur.i.uBU iibst. Eiihtptn-bul Gulf Courae. Fin Horn KH HEKMUKR. COTTA6KI. TO KfcM STEAMSHIPS.

Bt mw Chanter "IsAc-onia." Ft-. for 71 dav-a. ataor ficunlo Wm-M mm Fir NatlMii sBaaik. Cincinmit. Frank i ounuinf, SsSassaajBSSsl 7 alas.

ISassijfre. J9 rWitf Tim. iti jWtiXa. Yw Turk. Uiimipuaed Luxury and Comfort iJU.

Sot. sa, mm. is LrOSLL" Jsa. 4 AROMA" Jam. SO.

Mar. IS. wntott caaasa tm (Mats STEAMSHIPS. HAMBURG AMERICAN fai 1 a. a.

0 Is tbe JV-ilMJMMi OVKK 400 SHIPS. TONS. Kl lstJ TO THK PANAMA CAN L. BFRMI li sad the erAMxH MAIN by the 8. MtM.TKk' 11:.:" tonal, leaving Nes.

York JAN. 4 ra. peb ri. march tsi-. t.

S. 8. VICTORIA LIISE JAN. la. FEU.

11. APttIL IS. IS DAY8 1145 aad U. SI Sieo and up rS sad up Alee TW CRUSE-. FROM N'KW iKI.K 1XS.

AS XSFKB. IS. iidih ntn ip Also raises te the Orient. Aisssid tha Warid. Italy and kgriw.

e-. JAMAICA, PANAMA CANAL Cabs, Hayll. Colombia, text Kiea WtrKI.V 8AII.IX.K By ether steanarre. Of saw ATLAS Ktllll t. aha St JaaaaMa, 11 to IS SMo.VO Panama Canal, IS lo 2 days, sue g-Uay SISS sad Sll B.

8. FBIM KITEL rkltURll II Tna NOVEMUKK ta. 2 r. M. Write for booklet stating cruise HAKBURG-AMERICAH 1XNK.

gl-43 BKO-lUMAT. N. T. Copyright, 1S1X. MOST EXPEDITIOUS BOLTS DIRECT VIA FISHGUARD.

LONDON PARIS BERLIN VIENNA rastas st.sssira 1b the world MAURETANIA LUSITANIA Flab guard Wee. II. a. at. 1 Liverpool Deo.

J4. p. JtT Jsa. Is, la, is. Caronia Campania Cann ama Qasenatown Fishguard LlverpsoL Per.

7. JO A.SI IHee. 14. 10 A ST Ier -1 Jan. U.

WAS Hay a. 10 A I Fo. IS. lO A.M Isf.r SL 10 JC. 1 A Mediterranean Adriatic Service Gibraltar.

Genoa. N.r Trieste. Flume. SalliDgs n.n. See ltlnrr.

ULTONIA PA.VXlL.MA CARfATl' Dec t. Feo. 12. Jsa, 11. Feb 27.

Mmr Roaad the arorld trips a. Special th- rates to Ikffrpt. "Ineia. China. Japan.

Australia. Now Zealand. South AJn. a and merits Tours in Kpaia. Vuolathne furi.

for any Tours. Agents fur Peninsular Orients! I'nited States snd Canada Now Is I' t' visit India. Writ tar Iters, (on West lrh Sr--. tun, etate ettreot. X.

oepoatt Battery. Or Vmrmi As eat a. American Line PLYMOl TH-CHBBsMN SMi-Hni THASrn.v Philadelphia Nov. i Tinea St. Louis Xv.

s. tset Atlantic Transport Line KW fOMK TO b-'IMmIBj ItlBkCT at fi I si Mlaaehaaa Nov. I M.aeoteeaa Red Star Llkt LODOS PABW. leftf an. Krcnua4 27 4 I-.

White St American 1 MS YOBS Cellle Cedrlc AlMroSI UTESrtMH lee i i la-. aWemk IV' PMriTOS-OtltOloTlivIS -miRttlM. Arabar Iw JJ J. u. MEDITERRANEAN CRUSES MEW YOBIA-KM irilA -ITAI-t ri Tbe Largest edHeevaaeam Neasaera.

AllKI.tTU' NOV. ss JIV I1H i ItllKlL JAN. SI. Ooless: Broadway. lie.

ar lee I itmi Hamilton Hotel BERMUDA Koopsrns Dcesnbr 9, 1912, for the Winter essa, after htvinf been ran- i I ovated and improve. Now York Office 319 Sth Ave Management of Wm. A BARRON ft 'Also Summsr Basset. 2 Crawford House, Crawford Note-It, N.R FRENCH LINE Ctnpafnie Generate Tranutlantique D1IUXT L4NE TO AVKE-PaKIS ifr.i.-' T.jn Pl Si. NtJCtb ftir.

too ot W. i-'-b Urano 21 1 -L Learr ij. TorlB.Nov. 2 tFrmnc inewi.u.' Bavo. Dt.

"La TUi-acrw HMrw Ikjum SPEClAls, SATURDAY SA-UNG P. OtTrr-claa CaWn Ul-l aad Ta.itJ---a im Carolio vnbr GeMMra AcKy; lit X. T. BER MUD A Ail Expeoae Tours front i Hays 1:7 Sailing every i dave ia connect. on si-- Quebec S.

Co. Tickets tnterchar.gea..:- CIBA. b.1MA1CA, PAXA.MA C.tN.lU and 01 Ber Weet India Ports Tor Particulars of an4 Rate, at THE ROt At. MAIL nlttS At Kin in SA.N IJCHOXJN' lien. K.

Klrst NiM.jnii Bark, WalnsveN. lAt.as Stlxsal lnkl u. -er asi-BteaSB-ls Tsrkel Ageal. s. vx jf Atlantic ff Service ft LONDON.

PARIS. HAMBURG. Asssrtfca Nov. ye. II A.

Jrf ir-atrsraa Nov. so. P. 11 ff Pres. braaa IXc.

J. A fS II Kate's Ass. Vie. Dec IS, II A ScAasDtsjts direct. Id cabin MEDITERRANEAN Msderra.

Ctbrwltar. Algiers, I "Saelem. ClNll.N.N.. ri.lec g. II A.

trT.eoe tonal I. Kli Jsa. II. 11 .1 it 1 11. ess tons s.

a. ririXATi okiit cm jsa. za. is a. m.

a. a. uiaBiB6.it. ss, ia a.u 'Will aes call at Alcters. rut 11 uPST IKinicc ar Line Jt Leoej? Kufc fw -o-sir.

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About The Cincinnati Enquirer Archive

Pages Available:
4,581,668
Years Available:
1841-2024