Accounts in banks in Chicago and other cities were opened and then exchanges of checks were made among them. Only the over-boldness of their operations caused their downfall.
An instance of their methods would be the following: The Federal Trust Company, one of their "paper" concerns, would deposit a check in a Chicago bank made by the Keystone Structure Cleaning Company of Philadelphia, another of their alleged firms. The check would be sent east for collection, and in a few days it would be returned marked "No funds."
Offer Bond in a Settlement.
Meanwhile the trust company had checked against its account, to which the Keystone Structure Cleaning Company's check had been credited. When the check was returned from the eastern bank the Chicago bank would notify the Federal Trust Company of the non-payment of it. The Chicago firm would then offer explanation and apologies and give a 5 per cent to concerns that cashed the checks.
When they came back, the men who got the money were shocked beyond measure and at once offered stock and bonds of twice the face value of the money involved as security. This quieted the fears and enabled the schemers to go on.
Five Men Are Arrested by Detectives Wooldridge and Barry.
Five men were arrested by Detectives Wooldridge and Barry, charged with operating twelve concerns. The Commercial National Bank was one of the victims. The men arrested are as follows:
- Chester A. Broughn, broker, 218 LaSalle street.
- S. L. Cunningham, 56 years old. 1009 West Jackson boulevard.
- C. F. McGuire, 40 years old, arrested at the Great Northern Hotel.
- George F. Johnston, 36 years old, arrested at 185 Dearborn St.
- Alvin A. Hessley, 48 years old, arrested at 185 Dearborn St.
Tool Tells Truth—Usher of Church in Crime Cloud.
At the age of 50 years, S. L. Cunningham, vestryman and Sunday School teacher and chief usher in the Jackson Boulevard Christian Church, has come to the conclusion that he is "just an old fool, after all."