The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1902-05-09
sensation ON WALL Street.
BIG SWINDLE Is DEVELOPED.
Many Banks and Bankers over the
Country Were FIeeced by Webb
Meyer Syndicate-Many Millions
LOst-Warrnnts for Arrest Are
Issued.

New York, May 5.-An order of ar
rest was issued by Supreme Court JUS
tice Giegerich for member of the so
called Webb-Meyer syndicate, in which
DR.. Seward Webb, son in law of the
late W. II. Vanderbilt, is interested,
and whose stocks broke in such an
amazing way recently. The order of
arrest was issued upon an affidavit
made by a Wall street operator, who
claimed to have been fieeced by the
syndicate, and further affidavits by
members of the syndicate employees
and of various firms who alleged they
knew secrets of the syndicate.
Pierre M. Brown of 1872 Broadway
is the lawyer in the case. From infor-
nation in Browns possession it is al
legged that go banks in different parts
of the country have been swindled out
Of more than 81 100000 by stock man
ipulations and the total loss at stake
is placed at from 100000 to So,
100000.
In an affidavit now in Browns pos
session it is charged Webb lent his
name to the scheme and many other
well known men are mentioned in con-
nectiOn with it. 1t was stated private
detectives have been shadowing mem
bers of the syndicate for months and
that the lawyers have a mass of most
astounding information.
The affidavit sets forth that the
WebbMeyer syndicate is an organiza-
ton for floating securities. 1t is al
legged the syndicate employed dunn
mics to negotiate for the purchase of
large blocks of stock. The dummies
would deposit margin on the pur-
chase and the brokers would buy
stocks outright from the syndicate.
paying the difference between the &C
tual syndicate price and the margin
deposited on account of the supposed
customers. These suppositious Gus
toners, the affidavit continues, would
refer when making such transactions
to other supposedly responsible bust
ness houses, which were in reality
report favorably on them.
Brokerage firms were organized for
the purpose of washing" sales. The
country was flooded, the affidavit con
tiuues, with letters advising the pur-
chase of syndicate stocks and a sys-
tenn of private wires was established
to all pricipal cities to facilitate the
purchase of stock by customers.
1t was asserted that Justice Gieger-
ich of the supreme court had issued
the warrant He could not be found
to verify the statement until late
when he said;
so far as | can remember the state
ments which have been made are true
and the quotation of the affidavit is
correct, though it must be remembered
that ! have a great many papers tC
deal with in the course of a day-ot
an hour-and without having them a
hand cannot be too certain as to wha
they contain. The order of arrest was
made only for one man, although
had signed four"
The affidavit, it is alleged, men
toned a number of banks located il
this city. Boston, Philadelphia, Wash
ington, Chicago and other cities which
are alleged to have made loans oil
some of the stocks.
1t is stated positively that DR.. Web
is not charged with any offense in cor
nection with the application for tn
warrant, or that he received any bent
fit from the alleged fraudulent trans
actions.