7565. Bank of North America (New Orleans, LA)

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GET-RICH-QUICKSCHEMES GREATER NEW YORK SEEMINGLY TEEMING WITH SWINDLES. Arrest of Louis Gourdain on the Charge of Violating the Banking Code-White's Bureau" Closed. NEW YORK, Nov. 28.-Louis Gourdain, who has a banking office in the Metropolitan Life Insurance building at No. 1 Madison avenue, and is alleged to have a scheme similar to that of the Franklin Syndicate, with which William F. Miller was connected, was arrested to-day on the order of Chief Devery. He was arraigned in Police Court on a charge of swindling and of violating the banking code. The magistrate fixed the bail at $10,000 and remanded Gourdain. Captain Price, who made the charge against Gourdain, when asked who he had captured in the offices where he found Gourdain, replied: "I got the whole company." In reply to a question as to who composed the company, he said: "That man (indicating Gourdain), his plug hat, a $5 note and a satchel full of fake papers." According to a statement by Chief Devery after the arrest of Gourdain, the man had opened the so-called Imperial National Bank in partnership with a D. M. Slocum. They came from New Orleans. He said that in 1892 Gourdain was connected with a Louisiana lottery scheme, which was suppressed. He then engaged in business under the name of J. H. Lumbard & Co., and was again suppressed. He then engaged in business successively under the name of D. M. Slocum, L. C. Stewart, C. V. Louis and R. Jackson, each business being suppressed, one after another. Later Gourdain was behind the Bank of North America in New Orleans, which failed. Then he started the Fire and Marine Insurance Company, which failed. Gourdain was then arrested in New Orleans on a lottery charge, but he escaped imprisonment on the plea of insanity. He is also said to have been arrested in Kansas City. Gourdain said to-day: "The men who are associated with me are D. M. Slocum, formerly With the First National Bank of Port Townsend, Wash., and G. M. McCurdy, of Detroit. Both men are now in the West buying out banks." According to the Herald, another "get-richquick" concern has been closed. White's Bureau, in the Cotton Exchange, stopped doing business on Monday, while the promoters of the firm are missing. Some $200,000 belonging to depositors is yet to be accounted for. The business of this bureau extended all over the United States, although it had only occupied its quarters in the Cotton Exchange for two months. W hite's Bureau was in many respects similar to the Franklin Syndicate. It offered tremendous dividends to depositors. It professed to be legitimate and to be an old established concern. It professed to have the strongest kind of recommendations from banks and bankers, and paid out "dividends" to depositors. Finally its backers took alarm and disappeared. ALLURING CIRCULARS. White's Bureau was operated by two young men who went under the name of Hyman. One of them gave the name of C. H. Hyman, and he is understood to have been C. H. White, whose bureau the concern purported to be. The offices are handsomely furnished and are partitioned off into smaller rooms. Many typewriters were employed, and when the business was first established an enormous quantity of letters and circulars was sent forth. The firm, in some of its advertisements in newspapers all over the country, promised that White's scheme would make money for anybody who would send his cash on to New York. The advertisements were as alluring as green goods circulars. The police say they believe White's Bureau was affiliated in some way with the Franklin Syndicate, and they are looking for the promoters of the concern. John R. Agnew, whose connection with the Washington Syndicate in Green Point, Brooklyn, led to his arrest yesterday, was up for arraignment to-day in a Brooklyn Police Court. In the absence of the district attorney the magistrate would not fix bail. Edward Nourney, a bookkeeper, who, as alleged, handled the prisoner's records, was placed on the stand with a view to ascertaining what the financial status of the concern has been and what assets were left, but no information of importance was gleaned from him. William F. Miller, who conducted the Franklin Syndicate in Brooklyn, has not yet been arrested, the so-called drag nets of the police evidently being out of order. The police have not the faintest idea where Miller is. The Franklin Syndicate safe, which was locked up by Miller the last thing before he took flight, was opened by a locksmith to-day in a Brooklyn police station. In it was found 190 shares of Brooklyn Rapid Transit stock and a few worthless scraps of paper. There was not a penny of cash and nothing of value except the stock. A majority of it had been purchased at 88% and the remainder at 88½. Postmaster Wilson, of Brooklyn, has received an order from the postmaster general directing him to return, SO far as possible, to the senders all letters addressed to the syndicate. About 1,500 pieces of mail, including over $12,000 worth of money orders, have accumulated since Saturday. Hubert G. Taylor, who was appointed receiver of the syndicate, has asked to be relieved of the appointment on the ground that he does not like to have his name associated in the public mind with that of Miller and his unsavory supporters. Involuntary bankruptcy proceedings against the syndicate were instituted in the United States Court to-day before Judge Thomas by attorneys representing depositors whose claim aggregates over $30,000. They allege in their petition that a large part of the syndicate's property has been concealed with intent to defraud creditors. These bankruptcy proceedings, it is said, will take precedence over all other claims filed against the syndicate. The police to-night arrested Chas. D. Hughes, forty-three years old, said to be a "get-richquick" banker, at his office, 69 Wall street. A patrol wogan was sent to Hughes's office, and It carried a load of books and papers to police headquarters. It is said to-night that since July, 1898. 500 complaints against Hughes have been lodged with the police, one by Delia Cooney, servant. who said she lost $1,400 brought him, and another woman who says she lost $600. The concern Hughes ran is called the "Hughes Investment Company. A man named Packer figured as the president. In April, 1897, a Charles Hughes was said to be a partner in the "Open Board of Brokers, a bucket shop closed by the police. Mr. Hughes came to New York