The investigation of the Rhodus manner of doing business showed that the shrewd manipulators of fish-worm holes and scorpion nests had not neglected the feminine element. The treasurer of the old thousand-dollar stand by hailing from the pine tree state, the Mercantile Finance Company, was Mary C. Scully, who had been with the Rhodus gang since 1894. Katherine T. Scully, a very young woman, who had recently appeared on the scene, was listed as treasurer of the good old "thousand-dollar" medium. She came into the secretaryship as a result of a shuffle of officers of the Rhodus companies, the shuffle of officials being found to be as necessary as that of the shuffled stock.
It was also found that the Rhoduses came to Chicago about 1894 and organized the Western Mutual Life Association. This company had a stormy career and was finally merged into the Illinois Life Insurance Co. The methods of the Rhoduses were severely criticised in connection with this company and all confidence in it was destroyed.
Prior to coming to Chicago, Thomas and Birch F. Rhodus operated a lottery at Denver, Colo., and in 1889 came in conflict with the Federal authorities. Indictments are on record against them and it is claimed that they used various aliases. Thomas Rhodus was convicted at Denver in November, 1889, and fined.
During the past four or five years the Mercantile Finance Co. has offered the stock of numerous mining schemes, none of which has shown any merit, but were officered and owned by the Rhoduses and their associates. The methods employed to sell stock in these enterprises were (according to bills filed in court by the persons victimized) those of the ordinary swindler, and a close study of the schemes and the manner in which they are floated leads to the conclusion that the Rhoduses are not entitled to any confidence.
At the time of going to press the Rhodus brothers are still under indictment. The tangle in their affairs seems to show conclusively that the matter will be long and bitterly fought, but the facts that have come to light make matters look very dark for the manipulators of the moss-grown stock-kiting game.
Samples of the literature secured by Wooldridge and Ketcham prove very enlightening to the general public as to the methods of the Rhodus' and kindred concerns. Here are a few of them:
"It is a rule of this company," one pamphlet of the company reads, "not to act as fiscal agent for any corporation unless this company is prominently represented in the management, so as to be able to protect the interests of our clients."
Assurance Given Investors.
The cover of the pamphlet bears the assurance: