Twenty Years a Detective in the Wickedest City in the WorldWooldridge, Clifton R. (Clifton Rodman)
History
Twenty Years a Detective in the Wickedest City in the World
Wooldridge, Clifton R. (Clifton Rodman)
Crime -- Illinois -- Chicago; Police -- Illinois -- Chicago
This was paid, according to Wisner's complaint, and Todd & Company
undertook to deposit the money with another underwriting company.
Then, he asserts, the bond issue was never made, and Todd & Company
failed to repay the $1,500.
The firm conducts a banking, brokerage and underwriting business at
room 803, 112 Dearborn street.
DID HEAVY BUSINESS.
Rare oriental rugs, the most costly tables and chairs, and elaborate
grandfather clocks, together with an amazing amount of polished brass
work and plate glass, were found in each of the imposing offices
raided by the deputy marshals.
The Central States Underwriting & Guarantee Company did a business
commensurate with the costly environment. The books of the concern
show that from February 1, 1903, to August 5, 1906, 643 corporations
throughout the United States paid money to the Central States concern,
and the aggregate amount paid was $340,000.
[Illustration: AT LAST!]
Advertisements were placed in all the leading papers throughout the
country, circulars were distributed broadcast with propositions
that capital could be obtained for corporations and manufacturing
enterprises by addressing this company.
The officers of corporations replying to these advertisements would be
asked to call at the Chicago offices of the companies.
The brokers acquainted with the scheme would then introduce the
corporation officials to alleged capitalists who represented they had
available capital to finance business propositions, and would buy the
underwritten stock, provided the corporation officers would have them
underwritten by responsible guarantee companies.
It is asserted that these alleged capitalists would then advise that
the work be done by the Central States Underwriting & Guarantee
Company, the American Corporation & Securities Company, or the
National Stock & Guarantee Company of San Francisco.
SCHEME OF THE COMPANY.
The brokers in the alleged fraudulent transactions would represent
to the proposed victim that they would get no returns for their work
unless they actually sold the stocks, and that they would be content
with a commission of from one-half to 1 per cent on such stock as
they sold. They assured the victims that there could be no doubt that
the stock underwritten would be sold, as the capitalists to whom the
victims had been introduced would be certain to buy them.
The brokers would then take the men seeking the underwriting to the
offices of the guarantee companies and arrange for guaranteeing the
bonds on payment of a fee of 1 per cent of the amount of underwriting.
The men arrested never entered into a proposition on which less
than $100,000 was involved, and that they, in some cases, obtained
$5,000,000 worth of stock to underwrite.
Public-domain text, read in full here on John Shaqi.
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