The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-07
Circulation of False Statements to
Affect Values One Way or the Other
Denounced as Criminal.
FOUR OF THE MEN ARRESTED
AN ALLEGED STOCKHOLDERS IN THE
RAPID TRANSIT COMPANY,
Editor of the Wall-Street Review
the Number-The Alleged Scheme.

grand jury which has been investigating
Brooklyn Rapid Transit matters for the
past month to-day brought in present
ment before Justice Fursman in the crim-
inal term of the Supreme Court, together
with indictments against six men, making
them in part responsible for the false re-
ports that had been circulated about
Brooklyn Rapid Transit, with a resulting
depression of the stock. The men indicted
are:
ALFRED r. GOSLYN,, who was ar
rested in Philadelphia.
HARRY ]. ALEXANDER, an advertising
agent, arrested here.
CHARLES T. DAVIS. editor of the WALL
Street Review, arrested in this city.
EUGENE l.. PACKER, arrested here.
T. ALLEN. an alleged stockholder of the
Brooklyn Rapid Transit Company.
- BOGART. said to be Goslyn's private
secretary.
The presentment of the grand jury inti-
mates that there are others implicated in
the circulation of false reports, although
sufficient proof against them has not been
submitted to the jury.
Davis was arraigned on three indict-
ments. two alleging felony and one mis-
demeanor. and was held in $11,0O0 bail.
Packer was held in $4,000 on two indict-
was held in $1,000 bail on three indictments
charging felony and conspiracy. Goslyn
has not yet been brought to this city from
Philadelphia. Alexander and Davis were
committed to the Tombs, being unable to
furnish bond.
The presentment recounts the means by
which the market price of Brooklyn Rapid
Transit stock was depressed last summer,
specifying paid advertisements in news
papers here and in Boston and In circulars
sent through the mails, predicting heavy
declines because cf tho alleged bad physi-
cal and financial condition of the company
These statements. it is further said in the
presentment, was also disseminated orally
and by telegraph and telephone, the result
being a heavy decline in which innocent
holders of the stock were unable to pro-
tect themselves, and so "saw their property
depreciate day by day." The presentment
continues: 'Tn our opinion these deliberate
and long-continued attacks emanated from
several sources, but from their very nature.
namely. from anonymous circulars and
word Of mouth rumors, it has been impos-
sible for this grand jury in every case to
trace these rumors to their authors"
1t is further added by the presentment:
1.-The statements referred to are not put
forth as mere expressions Of opinion, but
purport to be based on accurate inside in
formation, and in numerous instances on
downright statements of facts which are
false and known to be false by the pub
fishers and disseminators thereof. We have
TO legal evidence of guilty participation by
individuals other than as shown by the
indictments we have found, but we believe
it our duty to call to the attention Of the
court and the community this new and
peculiar danger to the financial world and
to emphasize the fact that the circulation
Of false statements, rumors and intelligence
to affect the value of stocks and securities
is equally criminal. whether the object be
to enhance or depress the prices of the Sc
curities affected. A realization that de-
lection and punishment will surely follow
will be the best means of suppressing the
insidious crimes which threaten not only
the interests Of specific Individuals. but
also the general welfare Of the commu-
nifty"
The warrant for the arrest of Davis was
issued on the charge of a violation of the
penal code relating to the circulation of
false rumors regarding public funds. Davis
says he has no connection with the case
at all. Davis will be arraigned on three
indictments. two alleging felony and one
misdemeanor. He pleaded not guilty to all
and he was held in $1,000 bail. 5000 on each
Of the felony indictments and $1,000 on the
misdemeanor charge.
Bail was not furnished and he was COM
mitted TO the Tombs.
Packer pleaded not guilty to the two in
dictments charging misdemeanor. He was
held in s., 900 ball. which was furnished.
t