Part 30

The disaster was brought about by the appointment of a committee by the Missouri legislature to investigate the "get-rich-quick" situation. St. Louis had become the haven of every conceivable class of swindlers, who swarmed there in such numbers that the legislature deemed it wise to look into the matter. What motive inspired it to take this action was a mystery. Sufficient, however, to observe that when it came to following out its own recommendation to pass laws that would drive the "get-rich-quick" companies of all kinds out of the state something stopped the legislation.

The investigation of the "get-rich-quick" concerns in Missouri by the State Senate Committee resulted in an elaborate report, which was presented March 3, 1903. This report had the following to say of the turf investment companies:

"These institutions are of modern origin. The pioneer in this field, especially in this state, seems to have been E. J. Arnold & Co. Then followed Ryan & Co., the International, The Christian Syndicate, Brolaski, Thomas Walsh, Maxim-Gay and others.

"These concerns were presumably prosperous until the examination which was begun by the grand jury, instigated by the circuit attorney of St. Louis, Hon. Joseph W. Folk, and your present committee. When the crash came, company after company closed its doors or refused to pay back to depositors on demand, and upon examination of these companies, we found them to be mere shells, with little or no money or available assets on hand, and the millions of dollars handled by them either paid out in dividends, squandered and gambled away on race tracks, or absorbed by the officers and managers of the said companies.

"The evidence discloses the fact that E. J. Arnold is supposed to be in Mexico, the books of said company being in the hands of the grand jury. So far as the search under legal process has developed, no assets of Arnold & Co., except a stock farm and stock thereon, office furniture and fixtures, and a few hundred dollars in cash, were found.

"Ryan & Company claim that they have on hand $200,000, which has been attached and garnisheed, in the hands of the depositories, and the same process has been used to take possession of the real estate holdings and other personal property.

"George A. Dice, inspector of the postoffice, in charge of the St. Louis department, testified that he had made an examination of E. J. Arnold & Co. and John J. Ryan & Co., and that on their showing Arnold & Co. had on hand $160,000 more assets than their liabilities; that two different examinations of these concerns were made by him and his deputies, and that in the last report of November and December, 1902, his report to the department recommended that they be cited to appear before the department and answer as to their liability for criminal use of the mails, and that so far as his report went they were notified that there was a case pending against them; that the ruling of the department was not in accordance with his recommendation; that from the evidence it appears that the department at Washington, by some process or other unknown to your committee, overruled the recommendations of the inspector, dismissed the cases pending against these companies, and they were allowed to proceed with their process of absorbing the people's money. Had the department at Washington acted promptly and properly upon the recommendation of the inspector, millions of dollars would have been saved to the people of the State of Missouri and other states.

"In order to protect the people who are attracted by the fair promises and the payment of extraordinary profits or dividends, and to prohibit the improper and vicious misapplication and absorption of the money of the people who confide in the representation of investment companies, your committee recommends that a law be passed which will prohibit the doing of business by said turf investment companies or other like institutions in this state."

If one should moralize on the turf swindles it would only be to repeat the old story--avarice. Nothing else explains why they are permitted to flourish and rob, and then a newspaper story and no more.

Justice, blind and decrepit, is unable to scale the insurmountable barrier of the swindlers' "bank roll." But there is still hope, for from Washington we hear from day to day that another boodler has been landed in the grand jury net--thanks to President Roosevelt, who, if he knew all, would do more.

When the last paragraph was written the finale had not been reached. But the strong arm of the federal government has at last been felt and the turf investment companies are no more. It is impossible for even the veriest sucker to be taken in by them any more, and their literature would be barred from the mails in an instant. It is all over with the turf investment companies. "_Requiescat in pace._" May they rest in peace.

FAKE DRUG VENDORS.

A MOST DANGEROUS FORM OF RASCALITY.

Drugs Worth $30,000 Seized.

War on Makers of Imitations of Medicines Begun by the Chicago Police in Charge of Detective Clifton R. Wooldridge.

In all the history of fraud, imposture and graft, there is no story to parallel that of the "fake drug clique." There is no means of finding out how many thousands of lives are annually sacrificed in consequence of its nefarious practices, and the strong arm of the law while it can reach out and prevent further crime, can not call back to life those who have been offered up on the altar of greed.

Sensational raids made in the effort to clear Chicago of its numerous "Fake" patent medicine concerns, occurred on the morning of Nov. 29, 1904.

The raids followed a long conference between Chief of Police Francis O'Neill and Col. James E. Stuart, Chief Inspector of Chicago Postal Department, and for the first time in the history of the city, the Federal and City forces worked in unison. They decided that Chicago should be cleared of "Fake" Patent Medicine Concerns which for years had been using the mails to defraud hundreds of thousands of sick and weak persons.

George G. Kimball, U. S. Inspector of Mails, and Detective Clifton R. Wooldridge were assigned to gather the evidence and prepare the cases for prosecution. The work was no easy task. Both officers went about the work of gathering the evidence in a thoroughly systematic manner.

Inspector Kimball discovered the mails were employed extensively by the agents in disposing of their spurious drugs. Investigation proved that large orders were sent to small suburban towns and cities weekly. The correspondence, circulars and goods were secured.

The breaking up of the drug ring, however, was a delicate task. It was strongly backed financially, and it was aided and abetted, throughout the United States, by political rings galore. Chicago was the headquarters, and it was natural that to the police department of this city, ever-famed for its hatred of "grafts" big and little, should fall the lot of exterminating the traffic.

Detective Wooldridge gathered the information in Chicago, the names of the firms, location and the men who owned them.

The men are charged with making and selling a spurious preparation of aristol, a product made in Germany, and valued as a substitute for iodoform. Their products were represented as genuine, were said to differ from those handled by the wholesale drug trade, only in the fact that they were imported from Canada and England instead of from Germany.

Here are a few of the things discovered in the course of the investigation by Detective C. R. Wooldridge. The statements are printed from an interview with the great detective.

"As we have progressed the work has broadened and grown to proportions never anticipated at the start. Among the goods seized were found boxes, the labels of which bore the chemical name and formula of trional, and which gave an exact description of the chemical and physical properties of trional and the medicinal indications of this drug.

"On examination it was found that these boxes contained pure acetanilid. The dosage of drugs recommended upon the label was fifteen to twenty grains, and it was stated 'that night sweats of phthisis are promptly arrested by eight grains."

"I am informed that it is within the professional knowledge of every druggist as well as every physician that the substitution, grain for grain, of acetanilid, for trional, is a most reprehensible fraud, which might cause the death of the patient to whom the drug was administered.

"As indicating the commercial fraud connected with this substitution, it should be stated that the price charged for this drug by the defendants in this case, as shown by the price list, was 95 cents per ounce, commercial value of acetanilid is one and one half cents per ounce.

"But by far the largest fraud found was in the counterfeit label business. There were 2,400 metal caps for bottles stamped with the name of a Swiss manufacturer. There were also labels purporting to be German or Swiss labels. A number of half filled bottles, waiting for the adulterants, showed conclusively the use to which these labels were to be put.

"We were fortunate enough to find certain cards and bills in this place indicating that the makers of these metal caps and labels had never been nearer Switzerland or Germany than Clark and Harrison streets. Acting upon this information we secured evidence that these articles were made in Chicago and never imported.

"These entire preparations including the mixing, boxing, labeling and placing upon the market was done by these parties here in Chicago, and the goods, much of it undoubtedly, placed in the hands of innocent purchasers, who were deceived by the external appearance of genuineness, into purchasing the adulterated and fraudulent goods, without analysis or investigation of any kind.

"The great public, the individuals who use these drugs when prescribed by their physician, are themselves in total ignorance of the fact, not only that they have defrauded and cheated, but perhaps placed in jeopardy of their lives.

"There were found among these boxes seized, certain receptacles which bore labels stating that aristol was contained therein. On examination by reputable chemists at the Columbus Laboratories, the powder in these boxes was found to be fullers earth, colored with oxide of iron, not containing a single trace of aristol. The aristol, which was quoted on the price lists as 'equal to Bayer's' was sold at 80 cents per ounce, at which almost a ton of fullers earth and oxide of iron could be purchased.

"The evidence was procured and chemical tests made which proved the presence of alien matter in the prescriptions which called for pure drugs. In nearly 20 per cent of the samples obtained there was not even a trace of the drug called for in the prescription; Acetanilid as a substitute for trional-aristol, which is an antiseptic wash much used by surgeons.

"Prescriptions were sent to 139 druggists signed by Dr. J. Scott Brown, calling for pure aristol. Dr. J. A. Wesener of the Columbus Laboratories conducted the tests.

WHAT THE TEST SHOWED.

(The results) Dr. Wesener showed the following:

23 prescriptions No trace of aristol 66 prescriptions 80 per cent impurity 10 prescriptions 20 per cent impurity 9 prescriptions 10 per cent impurity 31 prescriptions pure

"Druggists have been misled into purchasing this substitute for aristol by unscrupulous salesmen, who have palmed off on them a substance which in many cases is nothing more than 'fuller's earth,' said Dr. Wesener. This stuff was sold to them cheap.

"The druggist can have no excuse for selling this stuff, which is injurious, because it is an easy matter for him to test it to find out whether it is aristol or not. Aristol is soluble in either, and makes a dark brown solution. Some of the powder which we have obtained on these prescriptions is not soluble at all. We have not completed the chemical analysis of all the precipitates, but those which we have tried consist of chalk mixed with an iron oxide to give it the color, or some other mineral substance."

The two leading imitations are as follows: Spurious preparation of aristol, and an imitation of triethylate which is a substitute for trional.

Aristol sells at $1.85 an ounce and triethylate retails at $1.50 an ounce. The cost of manufacturing the two imitations is about 2 cents an ounce.

DANGER TO THE PATIENT.

"The adulteration of aristol is liable to be fraught with serious consequences to the patient. It is extremely dangerous to introduce a mineral substance into an open wound, and many surgeons who have used this adulterated antiseptic, having bought it in good faith for the pure drug, have been at a loss to know why the wounds have suppurated. It is possible this adulterated drug may have caused numberless cases of blood poison with consequent loss of life."

HASTENED McKINLEY'S DEATH.

It is even whispered that one of the products sold by this gang as a counterfeit of a standard article hastened the death of President William McKinley. The story goes that when the physicians sent to the nearest drug store for a certain kind of medicine they were given a substance which resembled it in every way but which was spurious. It is said the drug had exactly the opposite effect upon the president from what the doctors had reason to suppose it would have. Some there are who even declare that the application of the genuine article at that critical time would have saved the life of William McKinley.

Otta G. Stoltz, druggist at 60 Rush street, Chicago, Ill., assisted by his porter, manufactured the spurious drugs in his basement for E. A. Kuehmsted.

In manufacturing the standard remedy of aristol, he used fifty per cent of various ingredients, and fifty per cent of rosin. It was called "Thymistol, manufactured by the Mexican Chemical Company," and substituted for aristol. There was no such a company in Mexico. The goods, boxes and labels were made in Chicago, Illinois, and the stuff was sold to the druggists for one half the price of the genuine aristol.

The gang was ostensibly engaged in selling to the retail drug trade infringements of a large number of patented drugs, manufactured in Germany. Their products were represented to be genuine, differing from those handled by the legitimate wholesale drug trade only in the fact that they were imported by them direct from Canada and England, thereby evading payment of royalty to the American patentees. As a matter of fact, the peddlers used the cry of monopoly under the patents merely as a pretext for ingratiating themselves with the retail druggists, and then foisted upon them many adulterated and spurious imitations of the imported preparations. The drugs imitated are standard medical preparations, dispensed on physician's prescription by every retail pharmacist. These remedies are in so general use that at least one-half the prescriptions written by physicians call for one or other of them.

LETTER FROM EDWARD A. KUEHMSTED, THE PRINCIPAL DEALER IN SPURIOUS DRUGS; IT IS SELF-EXPLANATORY.

Chicago, Ill., July 24, 1902.

MR. M. R. ZAEGEL. Sheboygan, Wis.

My Dear Mr. Zaegel:

Although I have been selling bogus Phenacetine and a lot of other bogus goods for over three years. I have never had the pleasure of selling you any of them. I should very much like to do so, and feel that I can give you satisfaction both in goods and prices.

Some time ago I perfected arrangements to get my supplies direct from Europe, where the supply is not so limited as in Canada, and I can do much better in price.

The enclosed list gives my complete line. All items with prices attached I have in stock and can supply without delay. Other items are continually arriving.

The prices I have made you are, I think, exceptionally low, and I trust they will induce you to give me a trial. Express charges I prepay. Trusting I may be favored with your valued orders, I am,

Very respectfully, EDWARD A. KUEHMSTED.

6323 Ingleside Ave., Chicago, Ill.

THE STATE LAWS COVERING THE FRAUDULENT ADULTERATION OF DRUGS AND MEDICINES FOR THE PURPOSE OF SALE, READS AS FOLLOWS.

"Section 10, Chapter 38 of Hurd's Revised Statutes of Illinois for 1903. Whoever fraudulently adulterates, for the purpose of sale, any drug or medicine, or sells or offers or keeps for sale any fraudulently adulterated drug or medicine, knowing the same to be adulterated, shall be confined in the County Jail not exceeding one year, or fined not exceeding $1,000, and such adulterated drugs and medicines shall be forfeited and destroyed."

After the great mass of evidence had been gathered it was submitted to the Chief of Police, Francis O'Neill, who instructed Detective Clifton R. Wooldridge to lay the matter before John K. Prindiville, Justice of Peace, and if he would issue warrants to go ahead and search the premises and make arrest.

Desk Sergeant Mike White looked upon as an expert by the police Department drew the complaints and warrants which were duly signed and a detail of 20 picked men was assigned to Detective Wooldridge with instructions to go ahead, and on Oct. 29, 1904, they were divided into four squads and they swooped down on the five Medicine concerns at one time without giving them any warning.

The following is a list of the parties arrested:

W. G. Nay, alias S. B. Soper, 1452 Fulton street; over $2,000 worth of spurious stuff seized. Nay and wife arrested.

Burtis B. M'Cann, alias George A. Barton, 6113 Madison avenue, $2,500 worth of stuff seized. McCann arrested.

J. J. Dean, 6123 Ellis avenue; $5,000 worth of spurious medicines seized; Dean and wife arrested.

J. N. Levy, 359 Dearborn street; $500 worth seized.

Edward A. Kuehmsted, 6323 Ingleside avenue, and Isabella Kuehmsted were arrested; over $12,000 worth of spurious drugs were seized by Detective Clifton R. Wooldridge, Sergeant William M. McGrath, Sergeant Thomas Fitzpatrick, Officers Terence N. Kelly, Mathew J. Reilly, Michael O'Neill, Thomas Ready, Michael McGuire, August C. Dolan, Patrick Quinn, Thomas Daly, Bernard Conway.

V. Goldberg, a partner of Edward Kuehmsted, appeared on the scene and tried to prevent the officers from taking the goods. He was locked up on the charge of disorderly conduct and on the following morning entered a plea of guilty before Justice John R. Caverly and was fined $1 and cost. John G. Campbell, alleged attorney for Edward A. Kuehmsted, appeared upon the scene and tried to force his way into the house while the drug was being removed. He also tried to prevent the officers from taking the drugs and threatened to whip them, pulled his coat off and assaulted Detective Wooldridge. He too was sent to the Harrison Street Station and locked up.

The prisoners arrested in the raid were sent to the Harrison Street Police Station together with eleven wagonloads of drugs seized, which were valued at $30,000.

Upon the arrival of the prisoners and the drugs, a United States warrant was served upon them, charging the defendants with using the mails to defraud, also a duces tecum subpoena was served for the drugs seized in the raid to be brought into the United States court forthwith, was served upon Detective Wooldridge, and other officers by United States Marshal.

The two ex-convicts were Levy, who was also known under the aliases of Charles Meyers, R. Waldron, and R. Cassat and George Edwards. Under the latter name he served a year in Joliet. Hass was the other ex-convict. His Sing Sing number was B 5574. Yet under the administration of the law under the justice shop system these men, who sold chalk and water mixed with idorn oxides for an antiseptic, finally managed to get out of the clutches of the law on a compromise adjudication, concerning which the State's Attorney alone knew the details.

Then the insolent vendors of fake drugs thought they saw a chance to get back at the officers of the law. They found a nice little loop-hole in the fact that when the raids were made a few chemicals, which were not contraband had been seized, in the rush and scurry of the raid.

Therefore a suit was brought against Detective Clifton R. Wooldridge, Charles M. Carr, editor of the N. A. R. D. Notes, a police publication, Henry D. Morton, Chief of Police Francis O'Neill, the Farbenfabriken Co. and Wooten. The suit called for heavy damages. After going over the evidence the court of first resort awarded damages of $1.00. Rather than be put to the cost of an appeal this $1.00 was paid by the defendants.

But the business of vending fake drugs in the city of Chicago had been broken up and the city made unsafe for this most detestable class of swindlers, who prey upon the sick and wounded and endanger human life by the sale of their nostrums. "It was worth $1.00 to put the rascally crew out of business," said Detective Wooldridge afterward in discussing the matter. "It is surely worth a dollar to a man to know that he has been instrumental in saving thousands of human lives." And there the matter rested.

BUCKET-SHOP.

Every day the American people squander $100,000 in fictitious speculation in grain.

There are 1,000 bucket shops operating in the United States at this time, their geographical distribution marked by the boundaries of the country.

For each of these 1,000 shops an average of $100 a day gross income is necessary to meet its expenses, chief of which are for wire and ticker service and blackboard writers.

Thus, in order that 1,000 of these shops may live and remain open, they must have $100 a day each, which, in a year of 300 days, means an income of $300,000,000 annually. Many of these bucket shops fail for lack of money, while others "fail" in order that they may keep the money of the investor. While $100,000 a day as the losses of the people in the illegitimate speculation in grain is very conservative, one must add another $100,000 a day as tribute which the gullible pay to the fake "get-rich-quick" and kindred sharper concerns of the country.

"SPECULATION" AN UNMEANING TERM.

Yet with this $100,000 a day going into the hopper of frenzied speculation of all kinds, Bradstreet's for the year 1907 showed business failures from speculation as one-eighth of 1 per cent of the total failures of the country.

Whatever may be Bradstreet's definition of the word "speculation," as used in his lists, the word to the average business man who knows whereof he talks is as unmeaning as any other in the business dictionary. Suppose a man somewhere in a country town loses money in any speculative venture anywhere under the sun. If it is a few dollars only, he may not speak of it at all. If it is enough to embarrass him, perhaps he may have to speak. Under these circumstances the best possible thing to do is to explain that he lost it "on the Chicago Board of Trade." If he has no credit at stake in the matter, and is sore, he may yell murder over his losses "on the board." But hundreds of such men have lost their money in bucket shops, and scores of them have lost it at poker or some other gambling game.

"BOARD OF TRADE" FALSELY BLAMED.