The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-03-26
HAUPT'S L0ANING PLAN
Uncle Sam Looking Into a Butte Phil
anthrOpiC Scheme.
MONEY WITHOUT THE ASKING
inside Facts of the Montana Min
inR' Loan and Investment Com
pany Coming to Light-Ear-
marks of a Lottery.

proprietor and promoter of the Montan
Mlning, Loan d Investment compan,
Sas pat on trial this morning before
Jury In the United States court under n
indictment charging him with sendin
non-mailable matter through the mail,
tue non-nailable matter CONSISTING of n
alleged monthly statement of his com
pany WHICH, the indictment states. was
scheme to obtain money under false pre
lenses and by fraud. The jury selecte,
was composed of Sam Ayotte, w. Moves
oswald tayram, O. Cheverer, u. Juben
yiile' I. D. Harrington, j. p. Eagan, S. L
Eriichett. Frank Barry, II. j. McWhirter
I. W. Lane and j. Bath
Assistant District Attorney Shelton soi,
tne government would introduce evidence
10 prove that Haupt conceived and orpa N,
Ized MS scheme January, 1892, and IN.
corporated the COMPANY. In order =,
OBTAIN the necessary signatures to a
certlncate OF incorporation he went TO a
NUMBER oil prominent men and told them
tha' ne was about to organize a Legitimate
INNING company and by that represen.
tatlon obtained the names of a humber
OF influential men. He then went 10
various banks aud by n similar represent
tatlon, secured permission to use them g
reference, upon the strength of the
prominent names attached to his certifi :
cafe OF Incorporation. Under the laws of
tue state three trustees are required to
conduct the affairs of a corporation for
,ne Irst three months, and 10 get around
'nis Haupt made more MISREPRESENTATION
ana induced more prominent men TO no.
cept the Office of trustees although they
nave never had anything to do with tho
concern since. About the time of the in
corporation Haupt proceeded to take up
aoout a dozen mining claims some
distance from Butte in his own
name, some of which claims are abso:
suteiy worthless and others cannot he
found at all. He decided these mining
claims to the company in consideration
OF FLU IN cash and the entire capital stock
OF IVo,oOO shares. His next move was to
SEND out circulars concerning his scheme
In which he referred to the prominent
people connected with the incornoration
referred to the banks and named w. A.
oIark az bro. s bank as the company's de-
posltory. He placed his capital stock nj
Sl2,OOO,OOO and claimed that il was ali
palu up, and said that the par value of the
STOCK was $40 share. He proposed 10
issue monthly 10000 certificates of stool
valued at 81 per share, or in other words !
sen STOCK In the company on the INSTALL |
ment plan at III month. A purchaser of |
a certificate could apply for q loan i'm anv |
sum below $4,000, and OH the Goth of eoch |
month the trustees" of the comnanv
would meet and decide tho amounts TO he
loaned" TO each applicant. The promise |
should be "loaned' each month and S35
w should go toward the expenses of the
olllce.. and $4,000 toward the 'simprove-
ment' and "development", of the com
SI snooe extensive mines. Out of the
Loans" and tho lucky annIicapJ
was supposed to give his note
TO the company for the amount "bor-
rowed," the note to be without security or
interest and made payable in 1912 If
me investor continued his monthly in
Vestments of 81 until he had 120 certifi-
rates he was entitled to a full paid nm
share OF capital stock, but the certificates |
would have to be in the same series Tho |
company claimed to have offices i'm Butte. :
Z nIcago, New York and London. In large |
quantities the certificates were offered ot
ne rate of 60 for $50. Haupt's agents i'm
inherent parts of the country have been
'rrested at different times on the CHARGE {
II running lotteries, but that charge could i
lot be made to stick, and Haunt took adj a
ssnLage OF II TO quote newspaper reports !
u the trials TO show that his scheme was /
ot lottery. In the monthly statement r
men is made part of the Indictment ;
iaupt quoted an alleged dispatch which | D
ppeared' in the Butte Miner, CLAIMING t
nat the postmaster general had said that C
g could find no law against Haunt,s II
,heme, and he quoted that paper as en- a
orsing his plan. Mr.. Shelton said tho o
overnment would show that the most s.
iaster general never said any such thing n
nd that on tho contrary no had given u
'deEs that no mail should be delivered
Haupt or his company. Mr.. Shelton C,
ia ne would show that Haupt, himself | p
as the only board of trustees'' that evnr Ii
ct on the 10Th of the month and that no j;
I'D list of the different certificates sold. L
at he would take this list and look il II
Ter and If no found town like 90
naha, Winnipeg or Los Angeles. where I
thohght he should have "larger crop 90
suckers" as he himself Put il. he would ca
lect some person in these towns and w
axe him a loan" The agent i'm ia
csc towns would then publish - CO
the world and the result wouIJ he de
larger crop of suckers, but NO 81
pre- loans" would be made in those nc
aces. No note was ever REQUIRED Nv
taken from the lucky borrower" all
: shelton said that not over a few humid Fe
dollars had ever been expended on all
.company's alleged mines, and he to
uld show that the claims of the com m'
ny we're false and fraudulent as TO irs 81
oital stock. false as to its pronertv. pa
Sc as TO ITS claim of loaning money and
sc anu deceptive IN every statement | rec
attorney also said il would he shown | a I
! the bankers of Butte called on Haunt pa
demanded TO know by wha. authority of
useu their names IN connection with ne:
irauauient scheme and he then AMI thr
re admitted that he secured their Wa
ny lAlSe reDro Spnfa- | $40
! but said he had a scheme nov tn, ma
IA not be reached by the lottery law. sch
shelton said that if the prosecution -
wed all this he expected a verdict of
ty.
gorge Haldorn, one of HauDt's ot,o--
$. replied TO Mr.. Shelton but confined n;
self IN telling the jury what the law az
as 1t concerned the indictment on
ch Haupt was 10 be tried. lie said
the prosecution would not be per-
ted 10 prove everything Mr.. Sbeito,
promised 10 prove because he did nos q
q II proper under the nature of the in
nent. Ii was evident from Mr.. Hal.
S ;alk that the defense would RELY
rely upon law technlcalities.
iilip L. Carr, mailing clerk in the
e posioiiice, was the first witness for
government and testified that he had
instructed to stop all mail coming 10
pr ana sent by him: The clerks kept
u and on the % of August, 1872. one
lOmba. brought 4 package of I,.,tors