New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-27
An ALLEGED GIGANTIC SHINDLE.
SURPRISING STATEMENTS SWORN TO BY THE GOV
ERNMENTs WITNESSES in THE TRIAL OF
HENRY L. HAUPT. At BUTTE. MONT

SURPRISING STATEMENTS SWORN TO BY THE GOV
ERNMENTs WITNESSES IN THE TRIAL OF
HENRY L. HAUPT. AT BUTTE. MONT.
Chicago March GA dispatch to morning paper
from Butte Mont. says that Henry L. Haupt,
president of the Montana Mining, Loan and Invest
ment Company is on trial In the United states
Court there n charge of sending non-mallaD.e
matter through the postoice. The testimony nitro
duced yesterday developed a gigantic swlndling
scheme in which many prominent men are inno-
Gently involved. The company asserts that II mas
paid-up capital stock of Sl2VO0oO and It's STOCK Is
valued at Sl20 a share. il was organized in January
1892 and has been doing an extensive business
since then. On the representation. so the Govern
ment's witnesses said that he intended to organize
a legitimate mining company Haupt induced John
T. Richards present Governor Of the state; eX-
County Treasurer H. c. Kess.er 7. y. Largey, H.
G. Walton. NJ L. Holland and c. J. Stevenson, al
prominent and wealthy mining men, TO join
With the names OF these incorporators he then
went to all the banks. and secured permission to
use their names as references A dozen worthless
mining claims were located by him. II was aLeged
and decided to the COMPANY In consideTauoh OF s SV
out circulars al the world 1t Is further aliesea
na the soa sF stock s SS on
meut plan. issuing certificates at 81 each; one
month. and the purchaser OF each certificate was
entitled 10 apply for loan in any sum under sloo0 @
The of the COMPANY were said to meet ever!
month and apporion $4,000 among the borrowers
person securing ,oan was required 70 give q note W
for the amount payable in 1872 without interest m or
security and when the purchaser had l2o ceTtlh-
Gates he was entitled to share OF stock; Inc re-
ifcates was supposed to so into Office expenses and
the development OF the companys mines
The testimony at the trial YESTERDAY shower ina ina
Haupt was the sole manager OF the concern ana
cs al wbae as 5e housh he
and induce others TO purchase eertSs,es % h
When the ncorporators and the banks learned OF the
nature OF the company they drew out OF IT, and the
trustees withdrew the stock from the market; hut
Haupt selected trustees and continued ms op-
sveeei 20 be worth not over 5000 Haup: has Offices
In London New-York. Chicago. 81 Louis san frah-
cisco and other large cities
Tho Ney-York Office Of the Montana Mining.
Loan and Investment Company is in a small room
on the third floor Of No Il Union Square where
untu a few months ago. hourshlng business was
carried on. About a year ago Postofhce inspector
| Shopp under the direction OF Chief Inspector John
E. Ashe. OF this city. became a specula;or in the
great mining scheme Of the company. on visiting
| the company's Office in Union Square ne found
| Charles c. Nye surrounded by attractive maps ana
lithographs OF the various alleged valuable mines
| OF the company. and heap OF papers ana pros
pectuses. He learned that the stock OF the conl,
! pany was sold on the monthly ins;anent plan, ana
! for the sum Of 81 he purchased stock certificate
with a face value ot Sloe
! Mir shopu said yesterday that Nye represented
himself 10 be the general manager or the company;
which owned valuable mines in Montana and had
offices In various large cities. and named Henry l.
Haupt as the president. The Inspector discoVerfd
| that while the company conducted all its corre-
sponGence BY all Il invariably its certificates
Of stock by express thus evading personal respon;
originally been declared fraud by the Postofiice
Department on August l3; 1892. but managed 10 get
that order revoked. but Inspector Shops TWO re-
! cent reports TO the department AZ Washington re-
suited in another fraud order being issued agains;
sstant Attorney-Cieneral. which order prohibited
! the delivery Of any registered mail or the payment
OF any money orders Issued 10 any representative
/ OF he cornDsnV