The Lewiston teller. (Lewiston, Idaho) 1900-1905, 1902-05-08
SENSATION ON WALL Street
BIG SWINDLE IS DEVELOPED.
Many BasAs aad Bankeru Over the
Country Were FleeceA ~ Webb
Meyer Syndicate-Many Millions
AOsl-Warraats for Arrest Are
lssWed.

rest was issued by Supreme Court JUS
tice Giegerich for q member of the SO
called Webb-Meyer syndicate. In which
DIR. 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 afhdavtt
made by a Wall street operator. who
claimed to have been feeced by the
syndicate. and further afildavits by
members OF the syndicate employees
and OF various Rrms 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 1t Ii al
legged that 60 banks In different parts
OF tho country have been swindled out
of more than 81 900. 900 by stock man
ipulations and the total loss at stake
Is placed at from $5.O0O.000 to SO.
100000
In an AFFIDAVIT now in Browns pos
session II is charged Webb lent his
name to the scheme and many other
well known men are mentioned In con-
nection with It, II was stated private
detectives have been shadOwing mem
hers of the syndicate for months and
that the lawyers have = mass Of most
astounding Information.
The affldavit sets forth that the
Webb-Meyer syndicate Is an Organiza-
tion for floating securities. II 10 al
legged the syndicate employed dunn
mites 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 supp0sitious GUS
toners. the AFFIDAVIT continues. would
refer when making such transactions
tn other supposedly responsible bust
ness houses. which were In reality
part of the syndicate and which would
report favorAbly ON them.
Brokerage firms were organised for
the purpose OF washing" sales. The
country was flooded. the afYidavit con-
tiuues. with letters advising the pur-
chase of syndicate stocks and sys-
tenn Of private wires was established
to al pricipal cities to facilitate the
purchase Of stock by customers.
II 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:
$50 far ~ can remember the state
ments which have been made are true
and the quotation Of the anidavit ID
correct. though It must be remembered
that I have . great many papers to
deal with In the course Of day-of
an hour--and without having them u
hand cannot be too certain a. to what
they contain. The order q arrest waa
made only for one man. although
had aligned four
The afldavit. Il II alleged. mon
toned Z number OF banks located In
this city. Roston, Philadelphia. Wash
ington. Chicago and other cities which
are alleged to have made loans on
some Of the stocks.
II 10 stated positively that DR.. Webt
u mot charged with any offense In con
nection with the application for the
warrant, or that he received any bene
at from the alleged fraudulent trans
actions.
Webb Rsslens.
Joseph Hoadley. president OF the In
ternational Power company. has re
.ceived letter from DR.. Seward Webb
rendering his resignation a membe
OF the board Of directors. Mr.. HOadle,
said the resignation would be accept
ed.