FLEECING RICH MEN FOR A LIVING.

Gisborne Times, Volume XXVII, Issue 2628, 9 October 1909, Page 4 (Supplement)

FLEECING RICH MEN FOR A LIVING.

THE METHODS OF CITY BLACKMAILERS.

By a writer in “Tit Bite.”

The late Cecil Rhodes once stated to the present writer that it cost him upwards of £2,000 a year “to keep people quiot” in the City of London. By this tho South African sate.sman did not moan that he had anything to conceal, but that he would rather spend this amount annually than have the trouble and annoyance which he knew would be caused him if he did not accede to the requests for money that were' made to him on one pretext or another whenever he visited this country. That the City to-day is a veritable hot-bed of what is nothing more or less than blackmail is notorious to all who have any dealings there, and there is not a financier of any eminence who could not tell some queer tales of the demands that are constantly made upon his purse by those who consider that they have some claim upon his consideration and generosity, and who are determined to do him as much harm as they possibly can unless their .demands are promptly complied with’.

PAPERS THAT PAY WELL

Of late years those engaged in this profitable business of blackmail have found it of the greatest advantage to have some sort of a newspaper behind them, and tlie number of these socalled “newspapers” that spring up in the large cities of England and America every yhar, flourish for a time, and then disappear is surprising. They have, of course, but little bona fide circulation and no one attaches any importance to what they may say. However, they pay, and pay well, since practically every item that appears in them is charged heavily against those concerned, who pay without a murmur.

Tho formation of a new company is their great opportunity. Unless tho promoters agree to publish their full prospectus in those ephemeral sheets at extravagant prices, the company ancl themselves are assailed with all the powerful invective of which those who run these papers are capable. Every device, no matter how unscrupulous, is resorted to to discredit the company in the eyes of the investing, public, and care is taken that their remarks shall reach just those people who, while knowing little or nothing of the ins and outs of the City, are tlie most likely to subscribe to the company. It is a well-known fact, by the way, that tho late Mr Whitaker Wright attributed the beginning of his troubles to an illadvised quarrel with the editor of one of these obscure journals, which has been forgotten long ago. At times these blackmailers fly for very high game, and are no't content with shares or a few pounds. During the present year a man well known on tlie Stoek Exchange, arid a director oi one of our leading ioint-stock banks, had an experience that he is not likely to forget for some time to come. A DEMAND FOR £5,000.

He was in big. office one morning when a man, immaculately dressed and obviously of good education, was shown in with a lottef> of introduction from a prominent member of the Hon&e of Lords. Asked his business, he coolly asked for a loan of £5,000. Of course, this demand was promptly refused, and the caller then made vague threats ot what would happen if the money was not forthcoming. In tlie end he was ordered out of the office, and the banker thought that tho incident was at an end. In this, however, he was greatly mistaken. In the course of a few days the most scandalous rumors concerning him and his position were flying about tho City, and even His private "life was vigorously assailed. Of course, there was not a single word of truth in those statements, but, strong as his position was, and is, he commenced to feel their damaging effect. He at once consulted his solicitor on the matter, but he received little consolation. For one

king; it was quite impossible to trace these rumors to the man who had called upon him, since he had covered his tracks much too cleverlv for this. “Send for the chap,” said the solicitor in effect. “Tell him you have reconsidered tho matter, and lend him the money on the best security you can gel out of him. It will pay you far better in the end. Though much against the grain, this advice was taken, and-the banker lent the money. Needless to add, the adverse rumors subsided just as quickly as they commenced.

SHARK AND HUNTING CROP. It is not financiers alone who are dragged into the nets of these snaths: Anyone who has the least connection with the City is likewise attacked. Some years ago a young society lady, since dead, took to dabbling in Stock Exchange speculation, and on the whole did rather well. Her husband was a soldier, and he was too much taken up by his military duties to be aware of this. , The fact came to the ears of one of the most notorious characters that ever visited Shorter’s Court, and he proceeded to avail himself of the knowledge. He got into touch with' the lady and, trading upon her ignorance, actually made her believe that by entering into these transactions without the consent of her husband she had brought herself within the reach of the criminal law. So far did ho terrify her' that she gladly paid him the money he demanded as the price of his silence, and agreed with his suggestion that, in order to safeguard herself for the future, she should speculate in his name. As might have been expected, she soon found that she was losing rapidly, and that such funds as she possessed were vanishing under the “expert guidance” of her new adviser, who put on the screw more tightly week by week. At length, almost in despair, she made a clean breast of the whole affair to her husband. The sequel was almost dramatic in its justice. The shark received a politely-worded note from the lady asking him to call upon'her at a certain hour, and, of course, he kept the appointment. In place of his victim, however, he found her stalwart husband awaiting him in company with one of the best-known juniors of the Criminal 'Bar. Worse still, there was a business-like hunting cropv ominously 'isplayed on a table elose at hand. Over what subsequently took place it •'s much kinder to draw a veil. Suifice it to say that the shark was missing from his usual haunts for some time, and lie was never known to interfere again with the speculations of ladies with muscular husbands.