With some of the water out of her food, All profits milked out, too, With little to eat and going dry, What is the poor beast to do?With some of the water out of her food,All profits milked out, too,With little to eat and going dry,What is the poor beast to do?
With some of the water out of her food,All profits milked out, too,With little to eat and going dry,What is the poor beast to do?
When Fetzer's name appeared as receiver there was dismay in the Rhodus camp. The triple combination was enough tofrighten anyone, especially where the guilty conscience was a factor. Fetzer immediately went to work. He called in his fighting aids. He told Ketcham and Wooldridge to "keep it up." When the Rhodus people began to give evasive answers before the Referee in Bankruptcy, it was a short step, with the information which had been gathered, to bring the matterbefore the Federal Grand Jury. And the indictments of the Rhoduses followed.
The investigation of the Rhodus manner of doing business showed that the shrewd manipulators of fish-worm holes and scorpion nests had not neglected the feminine element. The treasurer of the old thousand-dollar stand by hailing from the pine tree state, the Mercantile Finance Company, was Mary C. Scully, who had been with the Rhodus gang since 1894. Katherine T. Scully, a very young woman, who had recently appeared on the scene, was listed as treasurer of the good old "thousand-dollar" medium. She came into the secretaryship as a result of a shuffle of officers of the Rhodus companies, the shuffle of officials being found to be as necessary as that of the shuffled stock.
It was also found that the Rhoduses came to Chicago about 1894 and organized the Western Mutual Life Association. This company had a stormy career and was finally merged into the Illinois Life Insurance Co. The methods of the Rhoduses were severely criticised in connection with this company and all confidence in it was destroyed.
Prior to coming to Chicago, Thomas and Birch F. Rhodus operated a lottery at Denver, Colo., and in 1889 came in conflict with the Federal authorities. Indictments are on record against them and it is claimed that they used various aliases. Thomas Rhodus was convicted at Denver in November, 1889, and fined.
During the past four or five years the Mercantile Finance Co. has offered the stock of numerous mining schemes, none of which has shown any merit, but were officered and owned by the Rhoduses and their associates. The methods employed to sell stock in these enterprises were (according to bills filed in court by the persons victimized) those of the ordinary swindler, and a close study of the schemes and the manner in which they are floated leads to the conclusion that the Rhoduses are not entitled to any confidence.
At the time of going to press the Rhodus brothers are still under indictment. The tangle in their affairs seems to show conclusively that the matter will be long and bitterly fought, but the facts that have come to light make matters look very dark for the manipulators of the moss-grown stock-kiting game.
Samples of the literature secured by Wooldridge and Ketcham prove very enlightening to the general public as to the methods of the Rhodus' and kindred concerns. Here are a few of them:
"It is a rule of this company," one pamphlet of the company reads, "not to act as fiscal agent for any corporation unless this company is prominently represented in the management, so as to be able to protect the interests of our clients."
The cover of the pamphlet bears the assurance:
"Are your interests protected? They are if made through the Mercantile Finance Company. Avoid risk of loss; make certain of gain."
"Are your interests protected? They are if made through the Mercantile Finance Company. Avoid risk of loss; make certain of gain."
On another page is a list of high-class railroad stocks to the amount of $100,000 which the company is declared to be the possessor of in addition to assets in stocks, mortgage loans, cash on hand and other collateral. Careful reading of the pamphlet, however, shows that these stocks are not a part of the exchange list.
An explanation of the system, which probably will be a part of the testimony submitted to the grand jury in conjunction with the tales of luckless investors, as printed, is:
"Its plan is to create profits for its customers by aiding in the intelligent development and working of legitimate mining enterprises. Through this system its customers become careful and conservative investors. Furthermore, they are given an opportunity to participate in the vast wealth created in these industries, having at the same time such assurance against loss as would not otherwise be possible. It is a rule of this company never to handle as a fiscal agent stock in any propertyuntil after a careful and thorough examination has been made. It rejects those properties which do not come up to the high standard required. This accomplishes for the customers what the individual investor by himself, unaided, cannot afford to do, for his own investment is usually too small to justify his having this done on his own account.
"Its plan is to create profits for its customers by aiding in the intelligent development and working of legitimate mining enterprises. Through this system its customers become careful and conservative investors. Furthermore, they are given an opportunity to participate in the vast wealth created in these industries, having at the same time such assurance against loss as would not otherwise be possible. It is a rule of this company never to handle as a fiscal agent stock in any propertyuntil after a careful and thorough examination has been made. It rejects those properties which do not come up to the high standard required. This accomplishes for the customers what the individual investor by himself, unaided, cannot afford to do, for his own investment is usually too small to justify his having this done on his own account.
"The Mercantile Finance Company positively guarantees to allow its customers the privilege of exchanging any stock purchased from it for stock of any other company which may be in the said guarantee fund. Such exchange may be made and repeated as often as desired during a period of five years following the date of the original purchase."
"The Mercantile Finance Company positively guarantees to allow its customers the privilege of exchanging any stock purchased from it for stock of any other company which may be in the said guarantee fund. Such exchange may be made and repeated as often as desired during a period of five years following the date of the original purchase."
The tremendous activity of Inspector Ketcham, ably assisted by Wooldridge, has been at the bottom of the exposure of this whole abominable swindle. But this is by no means the first case in which these two men have joined hands and caused an upheaval in pseudo-financial circles.
These two men first began to work together in the famous Wild Cat Insurance raids. These raids furnish one of the most dramatic chapters in the financial history of the United States if not of the world. The Wild Cats had stolen millions of dollars. Their methods involved brutal filchings from the poor, heartless commercial brigandage and finally the running to earth and conviction of the ringleaders and promoters of the concerns. The work was all done by Wooldridge and Ketcham.
It would be improper to close the story of the great Rhodus frauds without some mention of Attorney Patrick H. O'Donnell, who, by his wise counsel and careful review of the matters submitted in evidence, materially assisted the two men who had most to do with the unearthing of the frauds.
The cheap little grafter who takes dollars, dimes, nickels and pennies from the poor, while not exactly a great financier, is one of the smoothest propositions with which secret service men and federal inspectors are confronted. His main hold is on the public press, because he operates through the seemingly innocuous want advertisement.
The statements of some advertisers may be taken literally; some should be taken with caution, and some should not be taken at all. In the postoffice department at Washington, in the files of the assistant attorney general, one may study the methods of the black sheep of the advertising fold against whom fraud orders have been issued. A fraud order is an order directed to a postmaster forbidding him to deliver letters to a certain person or concern or to cash money orders for them.
If a man swindles his neighbor without using the mails the postoffice department will not interfere with him, although the police may, but if he attempts to make Uncle Sam a party to the swindle, the old gentleman lets loose on him a horde of postoffice inspectors, who not only put a stop to the business, but frequently put the swindler himself behind the bars. The department issues year in and year out an average of one fraud order a day, and an examination of the reports of the inspectors who have investigated these cases is apt to convince one that the long-accepted estimate that there is a suckerborn every minute is much too low. The schemes most commonly employed are here set forth.
The chance to earn a few dollars a week without leaving home appeals to many women whose household duties occupy the greater part of their daylight hours. Unfortunately the work-at-home scheme catches not only the woman whose object is merely to earn a little pin money and who in many cases can afford to lose a dollar or two without suffering any hardship as a consequence, but it gathers in as well the working girl eager to add to her scanty earnings by engaging in some remunerative work at home.
The work-at-home scheme is operated in a variety of ways, but the underlying principle is the same in all cases. Sometimes the work to be done consists in embroidering doilies or in making lace, and in other cases it consists in filling in with gilt paint price tickets printed in outline. In all cases the work is described as easy, the advertisements assuring the reader that experience is unnecessary. In all cases, too, the victim is obliged to buy, from the promoters of the scheme, "materials" or a lace-making machine or some other object before she is given any work. The following description of a scheme against which a fraud order was issued last May will make clear the methods pursued by all fakers of the work-at-home class. The advertisement in this case reads as follows:
Home Work, $9 to $15; No Canvassing.$5 to $6 weekly working evenings; experience unnecessary. Inclose stamps for instructions, sample, etc. Address B. Wilson & Co., 603 Walnut street, Philadelphia, Pa.
Home Work, $9 to $15; No Canvassing.
$5 to $6 weekly working evenings; experience unnecessary. Inclose stamps for instructions, sample, etc. Address B. Wilson & Co., 603 Walnut street, Philadelphia, Pa.
To those who reply to this advertisement a circular letter is sent stating that the work required consists in filling in with bronze paint store-window price tickets printed in outline, one of which, partly filled in, is inclosed as a sample.
If you don't know just where to go Or how to do the thing that you May have in mind—or if you find That you can't rise—then advertise, A "Business Chances" ad advances Your desires to many buyers— And our Want Ads, if you use them, Bring so many—you can choose them.If you don't know just where to goOr how to do the thing that youMay have in mind—or if you findThat you can't rise—then advertise,A "Business Chances" ad advancesYour desires to many buyers—And our Want Ads, if you use them,Bring so many—you can choose them.
If you don't know just where to goOr how to do the thing that youMay have in mind—or if you findThat you can't rise—then advertise,A "Business Chances" ad advancesYour desires to many buyers—And our Want Ads, if you use them,Bring so many—you can choose them.
The circular states that the work is easily done, requires no previous experience, and that all that is necessary, is to do the work in a neat manner. Two dollars and a half a hundred is offered for tickets filled in as described, and the prospective victim is assured that she can easily gild at least 100 tickets a day. She will require an "outfit," of course,the cost of which is generously put at the remarkably low price of $1.10.
In return for her $1.10 the victim receives a handful of window tickets, a small bottle of bronze paint, and a brush for applying it—the actual value of the articles furnished, including postage, being fully covered by the extra 10 cents.
The worst is yet to come. When the woman, having parted with her money and having spent her time in filling in the handful of tickets sent her, returns them, at her own expense, she receives, not a check in payment for the work done, but a circular letter stating that her work is "unsatisfactory." She may possess the talent of a Rosa Bonheur and a department store ticket writer rolled into one, but she will never succeed in selling a cent's worth of bronzed price tickets to the fakers who sold her the "outfit." Their business is not to buy but to sell, and her fate is not to sell but to be sold. Similar to the work-at-home scheme is what may be described as the letter-writing dodge. The following is a typical advertisement of its class:
LADIES—Earn $20 per hundred writing short letters. Stamped envelope for particulars. Gem Manufacturing Company, Cassopolis, Mich.
LADIES—Earn $20 per hundred writing short letters. Stamped envelope for particulars. Gem Manufacturing Company, Cassopolis, Mich.
When the woman anxious to earn an honest penny replies to this ad. she receives the following letter:
Dear Madam:We pay at the rate of $20 per hundred or 20 cents for each letter sent us in accordance with our printed circular of instructions, and make remittances to you of all money earned by you at the end of each week. The letter which we send you to copy contains only eighty words, and can be written either with typewriter or with pen and ink, as you prefer, and you can readily see that you can write a number of letters during your leisure time each day.You do not pay us one penny for anything, except $1 for the instructions and for packing and mailing the Ideal Hoodwinkem which we send you.There is no canvassing connected with the work, and if you follow our instructions you can earn good wages from the start.
Dear Madam:
We pay at the rate of $20 per hundred or 20 cents for each letter sent us in accordance with our printed circular of instructions, and make remittances to you of all money earned by you at the end of each week. The letter which we send you to copy contains only eighty words, and can be written either with typewriter or with pen and ink, as you prefer, and you can readily see that you can write a number of letters during your leisure time each day.
You do not pay us one penny for anything, except $1 for the instructions and for packing and mailing the Ideal Hoodwinkem which we send you.
There is no canvassing connected with the work, and if you follow our instructions you can earn good wages from the start.
When the victim sends her dollar for the instructions andfor the Ideal Hoodwinkem (or whatever the name of the article the fakers are selling happens to be), she discovers that the 20 cents is not to be paid merely for writing a letter. Oh, no! The 20 cents will be paid only for such letters as induce some other woman to part with a dollar for one of "Our Ideal Hoodwinkems." The following letter, which is sent after the unsuspecting one's dollar has been safely salted down, lays bare the true inwardness of the scheme:
Dear Madam:We herewith hand you trial blanks, also copy of letter which you are to write. You are to send these letters out to ladies, and for every letter which you write and send out and which is returned to us with $1 inclosed for one of our Ideal Hoodwinkems, with your number on the letter, we will send you a cash commission of 20 cents.
Dear Madam:
We herewith hand you trial blanks, also copy of letter which you are to write. You are to send these letters out to ladies, and for every letter which you write and send out and which is returned to us with $1 inclosed for one of our Ideal Hoodwinkems, with your number on the letter, we will send you a cash commission of 20 cents.
It is needless to say that the fakers do not expect their victim to be so stupid as to send out the letters on the terms indicated. The object of the plan is accomplished when "dear madam" parts with her dollar for the letter of instructions and the Hoodwinkem, which would be dear at 10 cents.
One of the simplest and most effective schemes for hooking new "suckers" was adopted by a Dearborn street "investment" concern. This consisted in sending to a prospective victim a check for $100, made payable to some other man, and accompanied by a brief letter telling that recipient would find inclosed his weekly dividend on his investment of $1,000. Of course the marked "sucker" knew nothing of the deal, and, believing a mistake had been made would return the check and letter. He at once received in reply an apologetic letter, stating that the first letter and check had been inserted in the wrong envelope through the carelessness of a clerk, it having been the intention to mail to the recipient a circular instead of another man's check for dividends. It was enough. Ten per cent a week was not to be resisted. The "sucker" almostinvariably opened negotiations on his own initiative and was landed.
The multiplicity of these schemes led to the establishment of the "financial paper," designed, according to the publisher's statement, to guard investors against get-rich-quick frauds. To the police these papers are known as "special form papers." The editor comprises the staff. The contents consist of financial matter usually stolen from reputable journals, a formidable array of financial advertising, and, most important, "reports" on investment concerns. For a consideration the "special form" paper tells its readers that the "Cotton Mutual Investment Company" is sound and reliable. The manager of the "Cotton Mutual" buys as many copies of the paper as he wants, as it has no regular time of publication, and can be run off in any quantity at any time with the article boosting the "Cotton Mutual." The get-rich-quick manager then sees to it that the paper finds its way into the hands of his "sucker list," or list of names of persons whom he hopes to be able to induce to "invest."
Therefore, when reading want ads. in the newspapers, consider carefully the nature of the promises made. If they are too rosy, too high-flown, have nothing to do with that ad. or the man who inserted it. You may depend upon it that it is a fake. There are no great armies of persons walking about this country seeking to give away something for nothing.
Ramifications of the Bucket Shop System Revealed by Detective Clifton R. Wooldridge.
George T. Sullivan, the millionaire stock, bond, grain and cotton broker at 159-161 LaSalle street, Chicago, Illinois, was arrested May 23, 1906, with 60 inmates. Twelve patrol wagon loads of books, records and papers were seized and carted off to the Harrison Street Police Station.
Mr. Sullivan at the time had one of the finest, best-equipped offices in Chicago, which was located in the Traders' Building, opposite the Chicago Board of Trade. He occupied several floors, and they were very elaborately furnished. Part of the third floor was used as a telegraph office, where forty men were constantly at work at the telegraph keys. His private telegraph wires reached from the Atlantic to the Pacific ocean, and from the Gulf of Mexico to the British possessions in the north.
Mr. Sullivan paid to the Western Union Telegraph Company for the privilege of using their wires and services $150,000 per year.
Mr. Sullivan had 111 branch offices, located in the principal cities of the United States. Each of these branch offices evidently was equipped with all the paraphernalia used in the bucketshop, and was in charge of one of Mr. Sullivan's representatives.
Mr. Sullivan owned the entire equipments of the offices and dictated the policy and work to each manager, which had to be carried out to the letter. The following is a list of thebranch offices and locations which were operated by Mr. Sullivan:
GEORGE T. SULLIVANGEORGE T. SULLIVAN
GEORGE T. SULLIVAN
OFFICES OF GEORGE T. SULLIVAN AFTER THE RAIDOFFICES OF GEORGE T. SULLIVAN AFTER THE RAID
OFFICES OF GEORGE T. SULLIVAN AFTER THE RAID
The Sullivan letterhead gives branch offices in the following cities: Altoona, Pa., Arcola, Ill.; Aurora, Ill.; Avoca, Ia.; Boston, Mass.; Buda, Ill.; Burlington, Ia.; Cambridge, Ill.; Chicago, Ill.; Cleveland, O.; Davenport, Ia.: Decatur, Ill.; Des Moines, Ia.; Detroit, Mich.; Earlville, Ill.; Effingham, Ill.; Elkhart, Ind.; Fairfield, Ind.; Fostoria, O.; Fort Madison, Ia.: Galesburg, Ill.; Geneseo, Ill.; Gibson City, Ill.; Goshen, Ind.; Grand Rapids, Mich.; Greenville, Ill.; Grinnell, Ia.; Iowa City, Ia.; Ivesdale, Ill.; Johnstown, Pa.; Kalamazoo, Mich.; Keokuk, Ia.; Kewanee, Ill.; Lancaster, Pa.; Mansfield, Ill.; Mattoon, Ill.; Michigan City, Ind.; Milwaukee, Wis.; Monmouth, Ill.; Monticello, Ill.; Morris, Ill.; Mount Pleasant, Ia.; New Castle, Pa.; New York, N. Y.; Niles, O.; Omaha, Neb.; Peoria, Ill.; Pittsburg, Pa.; Plano, Ill.; Princeton, Ill.; Racine, Wis.; Roberts, Ill.; Saybrook, Ill.; South Bend, Ind.; Sheffield, Ill.; St. Louis, Mo.; Tolono, Ill.; Tiffin, O.; Toledo, O.; Tuscola, Ill.; Waukegan, Ill.; Wyanet, Ill.
Chicago—225 Dearborn street, National Life Building, 16 Imperial Building, 51 Dexter Building, 84 Adams street, South Chicago—9138 Commercial avenue.
Mr. Sullivan had his correspondents and solicitors in all of the leading stock, bond, grain and cotton markets of most of the foreign countries. On May 23, 1903, he was doing a business of from $300,000 to $500,000 per year. His weekly expenses ran from $15,000 to $20,000.
Mr. Sullivan advertised extensively in the leading newspapers throughout the United States and in foreign countries. Many of his advertisements would cover an entire page. These advertisements brought him many inquiries from personseither through curiosity or desire to invest, saying nothing of the cash customers secured.
SULLIVAN'S RED LETTER TIPSSULLIVAN'SRED LETTER TIPS
SULLIVAN'SRED LETTER TIPS
Mr. Sullivan made special effort to buy or acquire every mailing list to be found in the entire country which had been used by other fraudulent and get-rich-quick concerns.
It is said that he had secured over 20,000 names, which he had on his mailing list. These men were bombarded from day to day with his literature and hisred-letters, giving the forecast of the market. These letters were very ingeniously gotten up by himself and a clairvoyant fortune teller named Madame Dunbar.
His methods were absolutely devoid of even a pretense of sound business ethics, sensationalism and red ink being his only stock in trade.
The class of literature and telegrams he sent broadcast and regardless of expense is well illustrated by the following:
Telegram sent January 1, 1903, to hundreds of persons throughout the country:
"Am going to run three-cent turn in May wheat. Let me act for you heavy. I will take loss if any. Mail three-cent margin.George T. Sullivan."
"Am going to run three-cent turn in May wheat. Let me act for you heavy. I will take loss if any. Mail three-cent margin.
George T. Sullivan."
In his "Red Letter" of May 18 he makes the following statement:
"There is only one thong about this wheat, and that is, a bull market is at hand; and those who buy cannot lose, and if they buy on my advice and buy quickly, I will pay the loss if there should be any."
"There is only one thong about this wheat, and that is, a bull market is at hand; and those who buy cannot lose, and if they buy on my advice and buy quickly, I will pay the loss if there should be any."
He had four offices in Chicago aside from his main office, these being designated by him as "Exclusive Offices for Lady Speculators." When about to open one of these offices he addressed a circular letter to the wives of many prominent citizens announcing the opening of same. The first paragraph of this letter reads as follows:
"I have opened superbly appointed offices on the ground floor of the National Life Building, Room 120, where I accept accounts from ladies of $100 or upwards for marginal speculation in stocks, bonds, grain and cotton."George T. Sullivan."
"I have opened superbly appointed offices on the ground floor of the National Life Building, Room 120, where I accept accounts from ladies of $100 or upwards for marginal speculation in stocks, bonds, grain and cotton.
"George T. Sullivan."
George T. Sullivan, who frequently signs himself "Red Letter Sullivan," is by occupation a telegraph operator. He was first heard of in Boston during the year 1899 and the early part of 1900.
On May 17, 1900, Sullivan was admitted as a member of the Consolidated Stock and Petroleum Exchange of New York and under the firm name of Sullivan & Sullivan advertised extensively and had a system of wires through New England. It was noticed that his business on the exchange was very small and upon the complaint of a customer his trading methods were investigated, with the result that on the 11th of October he was adjudged guilty of obvious fraud or false pretenses and expelled from membership in the exchange. He made some threats of a suit against the exchange, but the firm of Sullivan & Sullivan failed in November and nothing was heard of him in New York. His customers and correspondents never received any statements of their accounts and Sullivan fled the state.
He seems to have come direct to Chicago, and was employed for several months by bucketshops and private-wire houses as a telegraph operator.
In the fall of 1901 he associated himself with E. F. Rowland, ostensibly to do a commission business in stocks, grain and cotton. His methods of advertising were extremely lurid, and he flooded the country with literature and letters printed in red ink. The employee, Sullivan, soon forced Rowland out of business and continued under the name of Rowland until the first of January, 1903, when by degrees he had worked the name of Sullivan into prominence and the name of Rowland had gradually been eliminated from his signs and literature.
The raid by Detective C. R. Wooldridge on the Lincoln Commission Company, a race track scheme, in the PortlandBlock, 115 Dearborn street, May 14, 1903, developed the peculiar relations between this concern and Sullivan, and the police department was somewhat astounded to find among the papers of the Lincoln Commission Company conclusive evidence, in the shape of telegrams and correspondence, proving that Sullivan's agents on his private wires were acting as the agents of the turf scheme, and that the employees and private wires of the Sullivan concern were used in common by the Lincoln Commission Company with the consent and approval of Sullivan.
More than twenty of Sullivan's agents were posting in his various offices the tips sent out by the Lincoln Commission Company and accepting bets which were transmitted over Sullivan's wires to be placed ostensibly by the Lincoln Commission Company on the horses which they tipped off as sure winners.
The mixing up of a turf scheme with a so-called grain and stock business was something new to the police, and Detective Wooldridge prosecuted the investigation, and, upon becoming fully acquainted with Sullivan's methods, concluded that he was not only running a bucketshop, but was interested in the turf scheme to a greater extent.
The evidence gathered in the raid on the Lincoln Commission Company fully established the fact. The Cook County Grand Jury was in session at the time and the evidence was presented to them. Detective Wooldridge was ordered to make a full investigation and report to them, which he did.
The Grand Jury instructed Wooldridge to lay the matter before the General Superintendent of Police, Francis O'Neill, and say: "The Grand Jury requested immediate action should be taken by the police to enforce the state law, which was being violated."
Wooldridge submitted the case to Chief O'Neill. He asked if Wooldridge had secured the necessary evidence to prove thatSullivan was conducting an illegitimate business. He was answered in the affirmative.
On the morning of May 23, 1903, ten picked detectives were secured from the Detective Bureau to accompany Wooldridge in the raid on George T. Sullivan, which turned out to be one of the largest as well as one of the most sensational raids and arrests that had occurred in Chicago for years.
Sullivan did an extensive business. The offices of the company which were raided were elaborately furnished, and there was a complete assortment of tickers, blackboards and like paraphernalia. At the time of the raid the offices were crowded, the operations on the open board and the Board of Trade being remarkably exciting. The officers who assisted Wooldridge in the raid were Detective Sergeants Howe, Mullen, Quinn, Qualey, Miskel, McLaughlin, Weber, Flint and McLane.
It was at 10 o'clock in the morning, when the largest throng of speculators can be found in the offices at 259-261 LaSalle street, opposite the Board of Trade, that Wooldridge and his men swooped down on the place and proclaimed "every one there a patron of a bucketshop and under arrest."
The wildest excitement prevailed. Telegraph operators, messenger boys, pit men and persons of every station in life were caught. Some of the traders, thinking of their wives and children, pleaded frantically for their freedom. Some attempted to force their way from the betting rooms, but, meeting with armed resistance, they desisted.
"I don't belong here," said one man, indignantly. "I only dropped in here to see a friend." His plea was unavailing.
Another man, attired in a frock coat and a silk hat, attempted to bribe one of the detectives. "I can't have it get out that I was arrested," said he. "State your price and I will give it to you gladly."
(crowd trading stocks)
He'll have to act faster, or somebody will slip between his fingers.He'll have to act faster, or somebody will slip between his fingers.
He'll have to act faster, or somebody will slip between his fingers.
The only persons allowed to escape were three women stenographers, who fled through a rear window.
Advertising matter, private correspondence, telephones, tickers, telegraph instruments and everything of consequence was seized and loaded into twelve patrol wagons and taken to the Harrison Street Police Station.
Four hundred and twenty telegraph wires were cut which connected Sullivan's bucketshops in Chicago and through the country. It took the Western Union Telegraph Company two weeks to get the wires in working order.
At the Harrison Street Police Station those arrested in the raid gave their names as follows:
G. T. Sullivan, W. D. Hart, John Conway, L. J. Hoff, Charles Barth, William Wilson, E. E. Matwell, J. A. Hogadorn, E. L. Wilson, T. N. Lamb, R. J. Brennan, Ralph Cunningham, Fred Boller, John Whitmar, E. F. Black, John A. Manley, Ernest Gerard, John Lawson, J. K. West, George Rodger, Henry Miller, J. A. Crandall, Y. R. Pearson, George Wilson, Harry Van Camp, George T. Kelly, J. P. Morgan, Joseph Cohen, Butler Coleman, Arthur McLane, George Frederick, A. L. Kramer, M. J. Franklin, Edward O'Connell, Oren Mills, W. H. Kelley, O. S. Reed, F. Foley, I. J. Kennedy, Robert Delaney, Joseph Bowers, John Black, L. Frederick, B. C. Cover, George Johnson, G. Weightman, H. C. Boder, Samuel E. Brown, Joseph Smith, C. E. Tracy, W. Jones, J. W. Kennedy, John P. Garrison, Al. Dewes, Elmer C. Huntley, T. A. Duey.
G. T. Sullivan, W. D. Hart, John Conway, L. J. Hoff, Charles Barth, William Wilson, E. E. Matwell, J. A. Hogadorn, E. L. Wilson, T. N. Lamb, R. J. Brennan, Ralph Cunningham, Fred Boller, John Whitmar, E. F. Black, John A. Manley, Ernest Gerard, John Lawson, J. K. West, George Rodger, Henry Miller, J. A. Crandall, Y. R. Pearson, George Wilson, Harry Van Camp, George T. Kelly, J. P. Morgan, Joseph Cohen, Butler Coleman, Arthur McLane, George Frederick, A. L. Kramer, M. J. Franklin, Edward O'Connell, Oren Mills, W. H. Kelley, O. S. Reed, F. Foley, I. J. Kennedy, Robert Delaney, Joseph Bowers, John Black, L. Frederick, B. C. Cover, George Johnson, G. Weightman, H. C. Boder, Samuel E. Brown, Joseph Smith, C. E. Tracy, W. Jones, J. W. Kennedy, John P. Garrison, Al. Dewes, Elmer C. Huntley, T. A. Duey.
The fact that a raid was being made became known outside the offices and in a short time several thousand persons gathered. Crowds peered through the windows and doors. The Chicago Open Board of Trade is directly across the alley in the rear of Sullivan's offices, and business there was at a standstill fora time. The traders gathered about Sullivan's offices and remained until the last prisoner had been taken away in the patrol wagon.
Sullivan himself was in his private office when the raid was made. Wooldridge broke open the door and faced the man at the desk.
"You are under arrest, Mr. Sullivan," said the detective. Sullivan grew pale and then reached his hand to the telegraph instrument which stood on the table. He started to work it.
"Stop that!" ordered Wooldridge. But Sullivan continued. Wooldridge made a leap for the trader and forced him away from the instrument. But the trader was not to be thwarted. He reached over the detective's shoulder, and again the click began. Wooldridge then seized the instrument and hurled it into the desk.
"Cut all telephone and telegraph wires," was the order given by Wooldridge, and the frenzied occupants of the place were thrown into terror. There was a mad rush for the door, but the detectives stood in the way. Every inducement was offered the policemen, but efforts failed.
Then Sullivan claimed that he had an injunction issued by Judge Elbridge Hanecy forbidding the police from raiding his place.
"I have an injunction from Judge Hanecy to stop you!" yelled Sullivan. "Show me the injunction, then," replied Wooldridge, "and I will obey it. If not, I am an officer of the court and have warrants here charging you with keeping a bucketshop and gambling house."
The injunction which Sullivan claimed to have was found by the police in one of his drawers in blank form, without any signature, together with the following letter to one of his managers:
May 19, 1903.Mr. Charles A. Warren,New York.Dear Mr. Warren:Your friend Wooldridge was in all day Monday. We hadfour detectives here all day investigating my guarantee plan, and they showed up again today and held several conversations with Miss Lorentzen before we realized who they were. It looks like they were trying to make a case.In looking up the injunction papers, find you neglected to change them to read The George T. Sullivan Company and The George T. Sullivan Elevator & Grain Co. I took them to Morris and he rehearsed them, patched them, etc., and they are now ready to play ball with.Morris is very busy and it looks as if we might need someone else on the scene of action to watch things.Hope you arrived O. K., and with best wishes, I remain,Yours very truly,George T. Sullivan.
May 19, 1903.
Mr. Charles A. Warren,New York.
Dear Mr. Warren:
Your friend Wooldridge was in all day Monday. We hadfour detectives here all day investigating my guarantee plan, and they showed up again today and held several conversations with Miss Lorentzen before we realized who they were. It looks like they were trying to make a case.
In looking up the injunction papers, find you neglected to change them to read The George T. Sullivan Company and The George T. Sullivan Elevator & Grain Co. I took them to Morris and he rehearsed them, patched them, etc., and they are now ready to play ball with.
Morris is very busy and it looks as if we might need someone else on the scene of action to watch things.
Hope you arrived O. K., and with best wishes, I remain,
Yours very truly,George T. Sullivan.
However, it was not until 11 o'clock and more than an hour after the raid had been made that Attorney Edward Morris filed the injunction bill in the Circuit Court.
The injunction was finally issued by Judge Abner Smith at 12:30 o'clock. It restrained Chief O'Neill and Detectives Hertz and Wooldridge from interfering in any way with the property contained in the offices occupied by the concern or cutting the telegraph wires leading to them. It is represented in the bill that the company has offices at 259 LaSalle street, Bush Temple of Music, 60 LaSalle street, 16 Imperial Building and 84 Adams street; but the damage had already been done.
Sullivan was practically out of business, and was being bombarded and seized by a horde of infuriated patrons who demanded their money, entrusted to him to invest. Sullivan could not return the money, as he had spent it and was bankrupt.
In Sullivan's office the detectives found great quantities of advertising matter. This matter was thoroughly gone over in the search for evidence against the grain and stock broker. Pile after pile of Sullivan's "red letter" circulars were found.
Sullivan's "red letter" was issued daily, and printed in redink. The circulars were written in a manner characteristic of all the advertisements, printed matter and correspondence to patrons.
In telegrams to patrons and the "red letters" Sullivan often made the proposition that he would make good all loss sustained by patrons while they were making purchases upon his advice.
The detectives were somewhat surprised when they saw at the top of the circular in bold, red type that "four exclusive offices for lady speculators" were being operated in Chicago, one in South Chicago and one in St. Louis. The addresses given for the Chicago offices were 225 Dearborn street, 159 LaSalle street, 260 Clark street and 84 Adams street. Women speculators of South Chicago had the opportunity of making their purchases at 9138 Commercial avenue.
Wooldridge was asked by the press what justification he had in making the raids, and by whose orders they were made. He said that he raided the Lincoln Commission Company at 115 Dearborn street, May 14, 1903, which was conducting a turf investment company, and found that George T. Sullivan was operating the same in connection with his bucketshop; that George T. Sullivan and 60 inmates were arrested, and eleven wagon loads of books, letters, papers and records taken to the Harrison Street Police Station. Wooldridge said that he had evidence to indict them on 50 charges, and he intended to deliver the goods, and he would not be pulled off by any man in the State of Illinois.
Wooldridge immediately took steps to get his evidence in shape. He called on John Hill, Jr., who had charge of the Board of Trade quotations and who was an expert on bucketshop methods.
Wooldridge, Hill and two clerks went to work gathering evidence for the trial; eleven wagon loads of books, papers, letters and records had to be gone through, which was done in the most careful, systematic manner.
They worked from 2 p. m. until 12 o'clock and the evidence gathered was placed in a vault.
After they had secured something to eat in a nearby restaurant and taken two hours' sleep, they resumed their work, which was carried on until 7 o'clock Sunday morning. This evidence which was secured was locked up in another vault for safe keeping. After they had eaten their breakfast they resumed work again and worked until 6 p. m. This evidence gathered was placed in another vault. After they had eaten their supper they resumed work again and worked until 1 o'clock Sunday night, when they succeeded in going through every scrap of paper which was seized in the raid. This evidence gathered was placed in another vault.
The placing of this evidence in different vaults was for the purpose of preventing George T. Sullivan or any of his friends from securing it on a writ of replevin.
Wooldridge slept until 5 o'clock, then went to the residence of Charles S. Deneen, State's Attorney. Arriving at his house and finding that he had not arisen from bed, Wooldridge pulled up a settee which he found on the veranda and placed it in front of his door where it would be impossible for him to get out of his house without first awaking Wooldridge.
Wooldridge laid down and went fast asleep and was found there when State's Attorney Deneen was making his departure next morning for his office. Wooldridge, upon being aroused from his sleep, told Mr. Deneen of the raid made and the evidence gathered and showed him some 10 or 15 telegrams from reputable Board of Trade men who were worth over $20,000,000 collectively. The substance of the telegrams was as follows:
"Officer Clifton R. Wooldridge: We are informed that you raided George T. Sullivan's bucketshop. You have done your duty and been criticised and assailed for doing it. My name is —— and my attorneys name is —— and we are at your service night or day, without any expense to you."
"Officer Clifton R. Wooldridge: We are informed that you raided George T. Sullivan's bucketshop. You have done your duty and been criticised and assailed for doing it. My name is —— and my attorneys name is —— and we are at your service night or day, without any expense to you."
Mr. Deneen asked Wooldridge how soon he would be readyto present his evidence to the Grand Jury. Wooldridge replied that he had two cases already prepared before he made the raid and would be ready in six hours with a number of additional cases.
Mr. Deneen told Wooldridge to accompany him to his office, which was done. He called Assistant State's Attorneys Albert C. Barnes, F. L. Barnett and Howard O. Sprogle and instructed them to assist Wooldridge in preparing the cases for the Grand Jury and give him a clean road just the minute he was ready. They were further instructed to give him all the assistance and advice he should need in the matter.
The special complaints were drawn, the telegraph wires became busy and at 10 o'clock Wooldridge and witnesses went before the Grand Jury and George T. Sullivan was indicted for keeping a bucketshop and common gaming house.
George T. Sullivan was also active from Saturday until Monday morning. He had prepared writs of replevin and warrants for larceny for Wooldridge and officers who were with him.
Wooldridge was called up over the telephone by Sullivan's friends and offered a bribe of $5,000 if he would release and turn over the books, letters and records which were seized in the raid, so Sullivan could resume business. This offer was refused by Wooldridge and the matter reported to the State's Attorney.
Sullivan then resorted to sending various friends and powerful politicians for the paraphernalia seized. Still Wooldridge turned a deaf ear to their requests and entreaties.
Wooldridge was a very busy man at the County Court Building on Monday. Before the George T. Sullivan bucketshop raid and the indictment before the Grand Jury, Wooldridge had the case of J. J. Jacobs, manager of the Montana Mining, Loan & Investment Company, which was a lottery, on trial before Judge Chetlain.
While in the courtroom he was informed by officers that theyhad a writ of replevin for the goods seized in Sullivan's bucketshop; that they also held warrants for Wooldridge and the officers who were with him, but if he would surrender the goods seized they declared the warrants would not be served and there would be no trouble.
Wooldridge called on the State's Attorney and informed him of the demand made upon him. State's Attorney Deneen called the officers in his office and told them that Wooldridge was there in attendance in the court and he would not permit the warrants to be served on him until after court adjourned. Further, he had instructed Wooldridge not to turn over any of the property.
Sullivan during the meantime had learned that there was an indictment against him by the Grand Jury and withdrew the order for serving of the warrants. He was indicted, convicted and paid a $500 fine.
After the police had secured the evidence, his books, letters and records were returned to him. He tried to start up in business again; also to get other parties interested with him who had money, but in this he failed. He was forced to refund $150,000 to his patrons who had advanced money to him to speculate in grain and stock. He expected financial assistance and hoped to resume business, but nothing materialized.
There were thousands of other creditors throughout the country who were not so fortunate in obtaining a settlement. These creditors combined and forced him into bankruptcy.
He was then cited in the United States Court for violating a federal injunction.
He quietly folded his tent at night and left Chicago without leaving his address. He was next heard of in England six months later. All traces of him were lost until, in August, 1907, at Pittsburg, Pa., he was arrested for running a bucketshop.
George T. Sullivan, of George T. Sullivan & Co., brokers,with offices in the Bijou Building, Pittsburg, and was arraigned before Magistrate F. J. Brady at Central Police Station, charged with a misdemeanor and violating a city ordinance.
The misdemeanor was based on Sullivan's doing business without being properly registered at Harrisburg, and he was charged with violating a city ordinance for running a brokerage office without taking out a city license. He was held, for court in $1,000 bail on the misdemeanor charge and was fined $25 on the other.
George T. Sullivan, the Napoleon of frenzied finance, cut a large figure in Chicago. From a telegraph operator in the pool rooms and bucketshops at a salary of $18 per week, he acquired enough in the short space of two years to own and operate the largest bucketshop in the United States.
He soared high in the money circles, but at last was brought crashing to the earth, a financial wreck. He was convicted of keeping a bucketshop and gambling house. He went bankrupt, hounded to death by his creditors, many of whom he had wrecked.
He was cited to appear in the United States Court for violating an injunction, and warrants had been sworn out by the postal authorities for using the mails to defraud the public.
He took his freight from Chicago to new fields of pasture. Wine, women and high financing brought his downfall.