The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-06-12
YOUNG NAPOLEON FRAZER.
EDGAR CRAY OF THE U. s. l.. 6 L. COM
PAM IS WILLIAM u. GRAZ, FORGER.

Formerly "a Clerk. Frazer Now Owns tho
whole Concern and secs Millions In It
Alleged Securities for 81, a SO 900 II c ped
Upon mn Original Investment or sA q. 900
in Tax Tities-Tho Water sites Exist
OnIy on Paper. nnd tho Investment Com
pnny Hasn't Even tho Pnper-where the
Holland Trust Con- p any Comes In-Grny.
Smoked Out by Tho sun. is Going
Abroad-A Very Interesting story.
II was sunset In Wall street yesterday for On
old NAPOLEON Of finance. and sunrise for n new
ono. Edgar Gray general factotum OF the
United States Land and Investment Company,
and chief agent in its scheme to unload $780,
600 Of trust certificates" upon conservative
investors" was fully identified as William f.
Gray. who twenty years ago was one Of the
most noted and successful forgers in the coun-
try. and before the close OF business hours tho
severance OF his connection with the invest
mont company and his contemplated early de-
pRrture for tho other sido Of the ocean were an
nounced. At the same time Rudolph Gordon
Frazer appeared above the financial horizon as
the originator developer, and manager Of ono
OF the most picturesque bits Of high and lofty
financial tumbling that has amused the street
since Horny S. Ives. in his moro extensive but
not more ingenious way. used to pawn rail-
road with his left hand for money to buy an-
other one with his right.
The advertising by play that had diversified
the effort OF the investment COR pany to mako
Rmarket for its certificates had attracted no.
tice in financial circles only for its comical
features until TIE Sun yesterday morning In
It's exclusive story. called attention to tho ap-
parently wildcat nature Of the scheme. and to
the fact that the principal man in 1t appeared
to be- the noted forEer, Vim. Z. Gray, sailing
under an altered name. Information on the
subject had been hard to obtain tho previous
day. but once the bars we're let down BY THE
Suns story it came in from every direction.
1t was astonishing what lot OF people in
and around Wall street had come in contact at
one time or another with Gray and his invest
ment company and equally astonishing that
up to this time no one seemed to have been
bitten by him. Gray has been dickering with
tho stock OF the concern OF which he formerly
held q controlling interest, for three or four
years. and the present is only one of several
schemes for getting somebody to put up good
money on securities backed by it. Two years
ago he tried to float an issue Of Sl000,000 six
per cent. twenty year mortgage collateral trust
water bonds" OF tho investment company.
which were said to be secured by $2500.O 900 OF
the bonds and stock of the San Luis Rey Flume
Company. At that time the company issued an
elaborate prospectus setting forth the attrac-
tons OF California water rights as n security
for investments ard named the Chase Nation
a Bank as banker for the concern. the Mercan-
tile Trust Company as trustee and Hoadly.
Lauterbach & johnson as attorneys. Tho
Chase Bank promptly repudiated all connec-
ton with the concern and ordered Its name re-
moved from the circulars. At the office OF
Hoadly. LRuterbach & johnson 1t was said
yesterday that the use OF the name OF that firm
was unauthorized. and that Gray had offered
some business to the firm two years ngo which
had after examination. been refused Except
that the firm had had nothing to do with the
investment company or with GRAY. and know
nothing OF 1t or him.
At the office OF the Mercantile Trust Com
pany this statement was made:
I've were, in 1887, trustee for tho San Luis
Rey Flume Company. and we consented to act
as trustee for the United States Land and In
vestment Company. but no bonds were ever
issued under the latter agreement"
After this scheme had fallen through Gray
spent a year or so longer in tinkering with the
stock and bonds trying to fix them up in shape
in which they would 60, but he gradually got
hard up. and In the course OF time parted with
great deal OF his stock for whatever trile he
could get for 1t. He still remained, however.
until Yesterday tho conspicuous man in the
concern and abe apparent general manager OF
all the schemes to float it.
Meantime tho relations OF the investment
company. and OF the flume company had be-
come complicated with as varied and interest
ing an assortment OF litigation as ever fell to
the lot Of pair OF unfortunate corporations.
The controlling interest in the stock OF tho in
vestment company camo by some means into
the hands OF Rudolph Gordon Frazer, ut that
time a humble clerk in the office. but n young
man. nevertheless. with n soul full OF conf
dence in himself and In the Gulibility OF the
Investing public. and this is the condition in
which the concern now Is. according to the
story OF Mr.. Frazer himself. as told yesterday
afternoon to Sun reporter. Mr.. Frazer spoke
with that freedom and unreserve which always
marks your true Napoleon. and his manner
was as conlding. Ingenious, and plausible.
He verified his statements by documents as no
went along. with oil the exactness and preci-
zion OF Henry s. Ives telling how he was
going TO pay for one railroad by buying
another.
In the first place. according to Mr.. Frazer.
the United States Land and Investment Com
panywas originally organized for the purpose
OF taking advantage OF somebody out in Cen
tire county, Pa, who had himself made it a
practice to take advantage OF others BY going
around 10 tax sales and buying up for song
the title of lands which he believed contained
coal and iron. and upon which the owners had
allowed the taxes TO fall into arrears Some
body had got tho tip TINT the railroad was 60
ing TO DO run near to certain lands to which
the Pennsylvanian had thus ACQUIRED a title
near Bellefonte in that State. The investment
company was organized to take advantage Of
that tip. and get from the Pounsylvauian
for less than the real value tho lands which he
had picked up at tax salos for still pettler
sums. In all, so Mr.. Frazer says. only $4,000
In money were paid to the Pennsyvanan for his
title to sixteen lots Of land aGGreGating several
thousand acres. There were thrown in, TO
boot. Job lot OF securities Of the Investment
Company, and Mr. Frazer alleges that the
Pennsylvania proceeded to get hunk" on
the deal by unloading those securities upon
some conservative investor" for 100000.
While waiting for the railroad tho invest
ment company made enough OF a pretence OF
developing tho property to form basis for an
attempt to float an issue Of 81. 900, 000 OF bonds
In nllItL., Lln Il All lAn .ta,l. = L..-I