Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-11-16
CAUGHT BY THE BAIT.
The Glittering inducements Held Out
by a Loan Institution
LURES MANY VICTIMS TO THE NET.
Officers of the Granite State ProVident
Association
IN JAIL FOR CONSPIRACY TO DEFRAUD

Gentlemen, we had some people here be-
fore who were apparently transacting SIM
liar business to yours, and they are now IN
the workhouse. Your business may be leglt-
innate, but we propose to test it in order to
protect our citizens"
That's the way Inspector McAleese ad-
dressed three well-dressed men yesterday
afternoon as he ordered their removal to the
county Jail to await hearing before Police
Magistrate McKenna on Monday on a
charge of conspiracy to defraud.
The prisoners are the local agents OF the
Granite State Provident Association OF
Manchester, N. H. They are Superintend-
ent H. P. Kimberly, Assistant Superintend-
ent Charles NJ. Eggleston and Bookkeeper
Robert S. Snyder, and they were arrested at
their Offices, Nos. 531 and 533 Wood street.
Forseveral weeks past complaints have been
made to Inspector McAleese of the manner
In which the local officials of the Granite
State Provident Association were conduct
ing their business, and finally they came so
thick and fast that the Inspector determined
to put stop to the operations of the con-
Germ.
| CHARGED WITH CONSPIRACY.
Yesterday Robert McAnderson, of No.
15O Caldwell street; Mary France. washer
woman of No. 81 South Fourteenth street,
and Mrs. Mary Barnmiller, the wife of a
molder, of No. 101 Knox street, Southside,
went before Police Magistrate McKenna
and charged the prisoners with conspiracy
to defraud. The complainants had PAID
from $40 to $40 apiece into the association,
and not receiving any return therefor, had
become disguised with the concern.
The prospectus of the association holds
out a glittering bait. The officers are:
President, Joseph c. Moore, President Of
the Peoples Fire Insurance Company,
Manchester; Vice President, G. Percival
Stewart, President Lowey Printing and
Stationery Company, New York; Secretary,
E. Z. BurliBgame, Manchester; Treasurer,
Hiram D. Upton, Treasurer of the New
Hampshire Trust Company, Manchester;
Trustees, in addition to the above. Hon.
Elv V. Brewster, Vice President of the
Dover National Bank and President OF the
Dover Gas Light Company, Dover; Hon. 5,
NJ. Bernard, Supreme Solicitor Knights OF
the Golden Rule, Louisville; G. Loring
Pierce, NJ. D., New York; Hon. D. NJ.
Shapleigh, town clerk, Kittery, Me-; Philip
ing, New York.
1.-THE purpose of the association" as
stated in its prospectus, els to encourage
industry and frugalIty, and to promote
thrift and economy among its members by
providing a medium through which their
savings may be invested so as to yield the
largest return consistent with absolute
safety. This association was chartered by
special act Of the Legislature of New
Hampshire, with IA of the most prominent
and influential men of the State as charter
members"
BIG PROFITS ON PAPER,
The plan of operations, as outlined, is the
selling of shares of par value of 5000 at 81
per month for eight years. Thus. when the
investor has paid in 500 he receives 5000.
On the other hand if man desires to
purchase property he invests in shares of
par value of % per cent more than the cost
of the property, but no loan is made until
the shareholder has paid dues on the shares
for six months. This is where the fraud is
alleged to have occurred.
The three complainants, together with
John Moreland, of Knox street and Pine
alley, Allegheny; II. Howell, Copeland
street, Allegheny; John Elk, North Dallas
street, East End Anna Dill and Gibson
Graf, Smiths way, Mt. Washington; S. L.
P. Kunkle, Rolla street, Allegheny, and
George Barker, Bigelow street, purchased
shares and paid dues for six months, expect
ing to receive loan to the amount of so per
cent of their holdings at the expiration of
that period.
When the loans were due the purchasers
OF shares called upon Superintendent Kim
berly to make a settlement. Then they
were informed that the arrangements were
made by Mr.. Kimberly's predecessor. and
that the present superintendent had no
knowledge of the circumstances nor of the
location of the man who had attended to the
affair. This was cold comfort for the people
who had paid their money for nothing, and
they put the case into the hands OF Inspector
McAleese.
AN UNSATISFACTORY EXPLANATION.
The Inspector sent Detectives Shore and
Coulson to the association Office, and the
men were taken to City Hall. Superintend-
ent Kimberly was closely questioned by the
Inspector, but failed to yield any important
information. He did not know where his
predecessor had gone. but thought he was
| in New York or New Orleans. He pro-
tested that the business was perfectly
| legitimate, but failed to suggest any means
by which the victims could secure the re-
turn of the money they had paid into the
| association.
The men were then sent to Jail to await a
hearing on Monday. On the way Assistant
Superintendent Eggleston pulled out big
roll of bills, and counting out 81 900, handed
| it to Detective Robinson and asked him to
secure bail for him. Robinson told Eggleston
that he could not do business that way
that the bail would have to be secured BY
Allegheny county real estate.
Inspector McAleese believes this case
will prove to be similar to that of the
Capital Building and Loan Association of
| North America, six of whose agents are
now in the Allegheny County Workhouse
serving sentences for conspiracy. The
Granite State Association has agencies all
over the country, and is undoubtedly doing
large business. The Pittsburg agents, to
inspire confidence among persons who were
| dubious about investing, instructed them to
make their payments to local financial
institution of undoubted standing. While
the latter received the payments and gave
receipts therefor, they were merely acting as
sub-agents, and had no interest in the con-
cern, nor gave any guarantee as to the
reliability of the Granite State Association.
A GENERAL MOVING AROUND.
From tie manner in which the company
operated here, Detective Shore, who worked
up the case, and Inspector McAleese, who
directed the proceedings, are inclined to be-
lieve that there must be a general moving
around of super1ntendents every six months,
lust before the time when the association
will be called upon to make good its prom
ises to loan money. In this manner the su-
perintendents could place all the blame for
the non-fulfillment of contracts upon their
predecessors. On the other hand, Superin-