Gold bricks of speculation, A study of speculation and its counterfeits, and an exposé of the methods of bucketshops and "get-rich-quick" swindles

Front matter

Class Hix_£CLi5

Book._ \\l

Copyright N°

PART I. The CouNTfiRFEiT OF Speculation

CHAPTER L

The various phases of the bucketshop evil; how and why it is an insidious, dishonest and destructive gambhng game, depressing values of agricultural products and curtailing legitimate speculation ; avarice and ignorance responsible for the existence of bucketshops which thrive in spite of condemnatory statutes and court decisions.

CHAPTER n.

Bucketshop methods, as explained by evidence and decisions in case of Board of Trade of City of Chicago vs. The Christie- Street Commission Co. (a bucketshop) ; by C C. Christie, "king of the bucketshop-keepers in the West "; and by correspondence showing how the "sucker" is induced to send his money to the bucketshop.

CHAPTER HL

My experiences with William Rodman Hennig, bucketshop-keeper, showing how far the accomplished confidence man will carry a " bluflf " and the tremendous influence which he can purchase with his ill-gotten gains, rendering it practically impossible to either break up his swindling game or to bring about his punishment.

viii TABLE OF CONTENTS

PART 11.

"Get-Rich-Quick'' and Investment Swindles.

CHAPTER I. Introductory, -'- - - - - - 93

How the mania to '' get-rich-quick " destroys ordinary caution ; the absurdity of the swindler's offers to make money for the pubHc; warning's and exposes do not check the swindles ; enormous losses borne by the people and how the funds are spent.

CHAPTER 11.

The E. S. Dean Co. Swindle, - - - _ 102

Showing the expert circular writer's mission ; the way money can be " lost " ; the convenient mercantile agency ; how the " faker " is subject to blackmail, and how the innocent insist on being fleeced.

CHAPTER III. History of the Eranklin Syndicate, - - 130

Which demonstrates that the more ridiculous and unreasonable a scheme is, the larger the number of would-be investors it attracts ; that swindlers are in turn duped and robbed by their accessories ; and in which the question arises : '' Is the ' sucker ' a product of the rural districts or of the great cities ? "

CHAPTER IV. Advance Information Bureaus and Brokers, - 140

Showing how sharpers pretend to have knowledge for sale and how apparently sane persons try to buy this knowledge (for $5 or $10 per week) which would be worth millions annually if it were iDUt five minutes ahead of the public's information.

CHAPTER V. Advisory and Discretionary Brokers, - - 143

How the " faker '' with an " absolutely safe system of speculation " will manage an account for a small percentage of the winnings,-

TABLE OF CONTENTS ix

and how it is possible for him to make his '' system " safe for himself and fifty per cent of his dupes.

Chapter VI

" Pools," " Syndicates," " Combinations," " Mu- TUALS," Etc., - - - - - -150

The old and thoroughly tried system of getting the people's money by claiming to form co-operative pools, to operate a never- failing method of speculation ; the promoter claims the wisdom of Solomon ; the dupe gets only wisdom in return for his money,

CHAPTER Vn.

Floating THE Stock OF Corporations, - - 155

How the public and prominent citizens are duped by " promoters "; literary efforts of circular writers ; impossible promises and guaranteed dividends ; attacking savings banks and conservative investments.

CHAPTER Vin.

Turf Swindles; or, ''Playing the Races" and " BooKMAKiNG " BY Proxy, - - - - 183

How the race-track gambler, following a calling condemned by statute, succeeds in getting funds from " suckers " ; vast sums squandered by the gullible public, first in gambling on the honesty of professed gamblers, and secondly in gambling on the gamblers' ability to win money at gambling.

PART in.

The Tools of the Swindlers.

CHAPTER L " Pake " Trade Journals, - - - - - 193

How pretended financial journals boost swindling schemes; how they aid turf swindles ; Richard Oliver's methods exposed ; how men of his class are aided by reputable looking, but fraudulent trade journals.

X TABLE OF CONTENTS

The bucketshop and " get-rich-quick " brokers' httle book, which explains how to make money; when dissected by an expert, its plausible statements are shown to be absurd falsehoods ; the career of a St. Louis booklet.

CHAPTER HI.

How persons, who, by answering the " faker's " advertisement and thereby indicating a desire to '' invest," become objects of interest ; their names and addresses constitute a list, valuable for its possibilities.

CHAPTER IV.

The " Fake " Mercantile Agency and Other References, ------- 285

Misleading the public by referring to Mercantile Agencies and Commercial Bureaus established to sell laudatory reports, regardless of facts ; two agencies exposed ; copies of their reports ; the truth as to persons reported upon.

CHAPTER V.

'' Fake " Banks and Bankers and How References AND Financial Reports Are Sold, - 297

Banks and trust companies as aids to swindlers ; selling bank references ; issuing '' fake " checks on a " fake " bank ; short life of a Chicago '' bank '' which advertised to sell references ; the mining exchanse as a side issue.

CHAPTER VI.

The '' Convenient " Stock Exchange, - - 312

Establishing a stock exchange for the purpose of protecting bucketshop and " get-rich-quick " swindlers ; an expose of the methods of members of the Consolidated Stock Exchange of Philadelphia ; what they think of themselves.

TABLE OP CONTENTS xi

PART IV.

Exchanges and Speculation.

CHAPTER I. General Ignorance of Exchange Methods, - 339

Exchange methods misunderstood and the reason therefor ; all future-delivery transactions similar ; public confused by the criticisms of persons with only a superficial knowledge of Exchange methods ; enormous volume of farm products marketed through members of the Chicago Board of Trade.

CHAPTER II. Commercial Exchanges, ----- 346

Why Exchanges are established ; brief history of Chicago Board of Trade ; rules to protect the public ; value of strict discipline as demonstrated by increased business, value of privilege of membership and self-respect of members.