Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-02-03
RICHNrONDERs LOST MONEY.
The Fort Smith Rent Purchase Fund
the Cause.

A number Of Richmond people have lost
money in the last few months by sub
scribing to the American Investors Com
pany, Of New York. the agent for the
Fort Smith Rent-Purchase Fund" two
Of whose managers-G. Percival Stewart
and d. J. Pierce-are under arrest I'm New
York.
A local society was founded here some
time last summer Mr.. II. j. MCGOWAN
was made president, Mr.. Joseph Heppert
vice-president, Mr. c. W. Clement secre-
tary and treasurer, and Mr.. Isaac Digs
counsel The scheme was somewhat COM
plicated but quite attractive, as it pro-
posed to lend members money TO start IN
business the sum advanced 10 be repaid
in monthly instruments. The gentlemen
at the head OF the local society worked
up good membership, thinking the
scheme a good one.
But they We're disilusiOned when an at
tempt was made to borrow. Not cent
could be gotten. Not a cent has ever
been gotten. Efforts TO get back the
amounts paid in have been fruitless. The
Law and Equity Court has decided lhat
the local organization is responsible as
a society, though its members are not as
individuals, to subscribers for the amounts
that they have paid in.
Stewart. who was at the head of the
parent organization, was in Richmond
last year. lie is a man Of good address,
and apparently Of good business quail
ties. lie said there were branch So
cieties in Lynchburg and Hampton.
ARREST OF THE TWO MEN.
The New York Journal, telling Of the
arrest of Stewart and Pierce, says:
&C. Percival Stewart and ID. j. Pierce,
managers Of TIE American Investors
! Company. which occupies nearly the
| whole third floor Of the Potter building,
| were arrested at noon to-day by Deputy
| United-States- AIarshals Mccartney Bin
CERT, and Keller, on a charge Of using
/ the mails for fraudulent purposes.
! 1.-THE arrests were made on bench war
| rants issued by Judge John ii. Rogers,
Of the United States District Court for the
Western District of Arkansas. They are
based on indictments found by the Fede-
raj grand jury for that district.
'oThe prisoners were arraigned before
| United-States-Co Commissioner Alexander
and upon consent Of Distrlct-Attorhey
Rurnett were paroled in tho custody OF
their counsel until tomorrow morning
William =. Stewart. Jr., another member
Of the investment company, who was in
| dicted with the other two by the Arkan-
sas grand jury, was not present Wnen
the deputy marshals made the arrest, pu'
the counsel for the two prisoners prom
ised that he would be produced tomorrow
morning.
INDICTED IN ARKANSAS.
"Tbe complaint on which the inGict
mont ia found was made by James X
parnes. Ii recites that the American
Investors Company. is the agent Of a pre-
tended society or fund called the 'tor
smith Rent-Purchase Fund, ana mas use
the mails for the purposes OF FRAUD. I'M
scheme Of the company, as outlined IN 'n
complaint, was TO send circulars throusi
the mail to persons in Arkansas sla'll
that the receivers Of these letters "oul
take shares in the Fort smith Reh'-fuI
chase Fund. and pay in advance 10 IN
Arooricon investors Company lively
, rnonthlv payments Of dues, the latter
, nored company would purchase for thei
MOT of ground in Fort Smith, ana cree
r q house thereon. II the Investor dld no
, desire to own a house and lot in TOT
= smith the Investors Company promise
= 10 advance money 10 establish INN l.
I bueiness. the money so advanced 10 u
repaid in monthly payments.
I DECLARES IT LEGITIMATE.
e .epbilin CARPENTER is counsel Tor IN
4 Investment Company. He said TINS after
I noon that the business transacted by IN
+, corononv was strictly legitimate IN ever
! way. ..,. 90, T., r,ro
e ,.iso,ca II L. main offices in rlis city
( Roston. Philadelphia, and San Francisco
q and local agents in other cites through
{ out the country
e. THE amounts subscribed by hlchhoh
men will aggregate $5VO or Sl0v'