THE BANKERS' AND BROKERS' GIFT ENTERPRISE.
During the winter of 1867-68, a swindler or set of swindlers opened an office in the lower part of Broadway, under the title of "The Bankers' and Brokers' Gift Enterprise." The affair was ostensibly managed by the firm of Clark, Webster & Co. As many thousand persons were victimized by these villains, it is possible that some of our readers may be able to vouch for the statements contained in the following extract concerning the affair, from the Missouri Republican, published in St. Louis.
For some months, certain papers, both in the East and West, have been displaying an enormously large advertisement, of the Bankers' and Merchants' First Grand Presentation Enterprise, to be commenced on Thursday, October 24th, and continued for 'one hundred and fifty days from the date of commencement, at the rate of ten thousand tickets per day.' The scheme was a magnificent one; every ticket holder was entitled to such a premium as would fully insure him against loss—that is, he would draw a prize equal to the money invested, minus five per cent., and would run a risk of winning an enormous prize, of which there were several 'on the bills.'
Of course this spread like wild-fire, the cholera, or yellow fever; hundreds, who should have possessed some discretion, sent their dollars to Clark, Webster & Co., 62 Broadway, New York, expecting to realize handsome fortunes. How they supposed that the proprietors could ever give such premiums, we cannot say; but certain it is they did, and hundreds and thousands have been most fearfully victimized; how, will be easily explained.
The enormous prizes were not in money; they were stocks, and the like, in fancy companies, somewhere—where, we do not know; where a nominal half a million would not be worth half a dollar.
But it was not in the dollar paid for the original ticket that the chief swindle lay. Nearly every man drew a 'prize' and was at once notified, on receiving the sum of five per cent. of the value, it would be forwarded; and as the nature of the prize was not stated, but only its nominal value in money, thousands of persons have, doubtless, sent the five per cent., and will continue to send it, and receive in exchange some worthless oil stock, or a similar valueless piece of paper.
Even in this city, where the people should read the daily papers, and be posted in such swindles, a large number have been victimized, two of whom have furnished us with their experiences, which we give below:
The first is a young man, the son of a well-known politician in this city, but who requests us to suppress his name. A few days since he received the following note:
'You are hereby notified that one of your tickets has drawn a prize valued at two hundred dollars. Five per cent. on this amount will be ten dollars. This amount of assessed per centage must, in all cases, be sent on receipt of this notice, with directions by what express you wish the prize sent. Yours, very respectfully, 'CLARK, WEBSTER & CO.'
The young man, 'green' as he must have been to invest a dollar in the swindling concern of the fictitious Clark, Webster & Co., was yet too sharp to send the ten dollars without an investigation, and accordingly went to a friend, a well-known banker of this city, and requested him to correspond with reliable parties in New York, and ascertain the responsibility of the parties, and, on doing so, Mr. Davis received the following reply:
'Office of Gwynne & Day, No. 7 New Street,
'New York, Nov. 12, 1867.
'Messrs.——& Co., Cincinnati, Ohio:
'Gentlemen: We have received your favor of the 9th, with enclosure as stated.
'In regard to the prize drawn by————, we went to Clark, Webster & Co., to see about it. The prize consists of two hundred shares in the Sand River Petroleum Company. We did not get it, as we do not know the market value of the stock (and probably never will). We enclose it to you, as we do not think it is worth ten dollars.
'Yours respectfully,
"'GWYNNE & DAY.'"
Another correspondent tells his story as follows:
CINCINNATI, November 15.
Messrs. Editors: Last summer I was foolish enough to place sufficient confidence in an advertisement of a "Grand Presentation Enterprise of Merchants and Bankers of New York," that appeared in a Cincinnati paper a number of times, as to invest one dollar in a ticket. The prizes consisted of greenbacks, diamonds, watches, sewing machines, etc., to be drawn October 24. A few weeks afterward I received a letter in which I was requested to act as their agent in this city, for the sale of their tickets, promising, in consideration thereof—in case my ticket drew a blank—they would insure me a handsome present. But I did not bite this time. Two or three other circulars were sent me after this; one announcing the postponement of the drawing, to enable them to dispose of all their tickets; another postponement was announced in September, because their 'agents had sold more tickets than were issued, so that now they were compelled to increase the number of tickets from 1,300,000 to 1,500,000.' All this was announced in staring capitals.
In the latter part of October another circular was received, announcing the commencement of a drawing on October 24th, and that it would take two or three months to complete it, as they could draw and register but 10,000 per day; and also informing the 'lucky' ones, that upon being notified that their ticket had drawn a prize, they were to remit immediately five per cent. of the value of the prize, if under $500, and ten per cent. if over $500; the money obtained in this way was to be used to meet the extra expense incurred in printing the additional tickets and in their distribution.
Soon after this I was notified my ticket had drawn a prize, valued at $200, and I must remit them five per cent. of this within ten days, or forfeit the prize. I wrote to a friend of mine in New York, to call at 62 Broadway, and ascertain if such a firm as Clark, Webster & Co.—the firm name signed to the circular—held forth there, and, if so, to present my ticket, and claim the prize.
He called, as requested, and writes me that there is no such firm there. The 'Merchants' and Bankers' Grand Presentation Enterprise' is a grand swindle, carried on by one Hill, who has been arrested a number of times for swindling the public in this manner, but has, so far, by the aid of money, freely used, managed to keep out of the Penitentiary. When my friend presented the ticket, and demanded the two hundred dollar prize, they offered him stock in an oil well out West, which (well) is all a myth. So I concluded to retain the percentage, and forfeit the 'prize.' In one of the circulars it is announced that a second 'grand distribution' will take place this winter, and I make this matter public that none of your readers may be deceived. "ALMOST A VICTIM."
Complaints from the victims of this infamous swindle, became so numerous, that the police authorities seized the premises of Clark, Webster & Co., and all their books and papers. These last comprised six truck loads, and contained printed or written directories of every city and town in the Union. No such persons as Clark, Webster & Co., could be found. A man calling himself William M. Elias, claimed to be the owner of the books and papers, and endeavored to regain possession of them by legal process. The Police Commissioners, knowing what use he intended to make of them, refused to surrender them, and gave bonds. Elias was arraigned before the Tombs Police Court, on a charge of swindling, by some of his victims. The Court room was full of those who had suffered by the grand lottery. The proceedings amounted to nothing, and as the man left the Court room, he was followed by the excited crowd, and severely pelted with snow balls, until the police came to his assistance.
[Illustration: A Gift Enterprise Swindler Snowballed by his Victims.]
Messrs. Reade & Co., who profess to do business at No. 6 Clinton Hall, Astor Place, are extensive swindlers. The police have made rigid searches for them several times. They have arrested the clerks and managers, but have failed to discover the principals, who, doubtless, have no real existence.