New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-05-04
ARREST FOR A, L, MEYER
ORDER ISSUED BY JUSTICE
GIEGERICH.
FRAUD CHARGED IN CIVIL ACTION IN
CONNECTION WITH MANIPULATION
OF STOCKS OF WEBB-MEYER
SYNDICATE.
SYNDICATE.

SYNDICATE.
The rumOr current on Friday afternoon that
legal proceedings were impending against one or
more of the prominent members of the so-calIed
'Webb-Meyer syndicate was substantiated yes
terday when il became known that Justice
Giegerich. sitting iE chambers. had issued
order of arrest for Arthur l. Meyer in a civil
action afidavits alleging fraud
Meyer was at his Office, in the observation-disclosures
Building, during the morning until about
O'Clock, when he went out TO luncheon He did
not return. and it was said that he had gone
uptown, but later in the afternoon il under
stood that he had started for Long Branch.
where he has a summer home Private detec-
tives and deputy sheriff. armed with a war
rant of arrest. waited for hours yesterday for
Mr.. Meyer to come back guarding both exits
of the building. but in vain, 1t was learned late
at night that Mr.. Meyer was not in Long
Branch. and he could not be found at his home
uptown
The order of arrest was issued by Justice
Giegerich yesterday before noon, on the appIics-
ton of Pierre NJ. Brown lawyer. of No 192
Broadway, who acting attorney for sew
eraI banks. The application for the order Of ar
rest was supported by several af1davits. in
which four persons were named as members OF
syndicate that had been engaged in fictitious
sales of stock II was alleged in the affidavits
that these wash sales OF stock were for the
purpose OF deceiving real buyers OF stocks. Gre
ating fictitious value for stocks thus maufpU-
lated. and enabling the syndicate TO secure
loans on stocks of little valve. One Of the afi-
davits in the case describes the operations OF
the syndicate. They are given substantially
follows:
Selling stocks 10 the public by improperly
spread tips and alleged information.
Procuring loans from banking institutions
throughout the country on stocks having nc
ttiOUs values.
Procuring the purchase of stocks by means OF
alleged customers furnished to various stock
brokerage houses throughout the country The
said customers would deposit on margin with the
brokers "a small proportion of the purchase price
of the stocks and these brokers would immedi-
ately buy for their supposed customers account
the stocks required. paying the SynCicate'S agents
the full price thereof these brokers advancing
the difference from their own funds between
such purchase price and the amount of margin
deposited with them by their supposed Gus.
toners
Thus. 1t is alleged. the public was induced 70
buy stocks under false IMPRESSION as TO their
value and the banks were induced To loan
money on the stocks and stockholders were in
duced 10 deal in the stocks with fictitious Gus
toners The method by which wash sales Of
the stocks were brought about is described
follows:
Orders would be given to several brokers 70
sell the stocks at given figures. and orders
would simultaneously be given 10 other brokers'
10 buy these stocks, SO that the purchases by
the last lot would be made from the first In
this manner prices were reported OF supposed
sales. the sale and purchases being made. all of
them, for the same people, 10 Wit. the Syndi-
Tb-ss suppOsft:ous customers would refer
when making such transactions. 10 other sup
posedly responsible houses. which were in real
i,y a part of the syndicate. and which would
report favOraby on them.
brokerage firms were organized for the pur-
pose of washing the sales. The country was
flooded. the affidavit continues. with letters ad-
vising the purchase of the syndicate stocks. and
private system. of private wires estab-
Iish-d - all principal cities. 70 facilitate the
purchase Of the stocks by customers
The names of the stocks alleged TO have been
manipulated in this described manner are given
as Storage Power. St Lawrence and Adirondack.
Dominion Securities. Hackensack Meadows
North American Lumber and Pulp Company and
Rutland Railroad preferred
Although the affidavits were drawn with the
apparent intention of securing orders Of arrest
directed against four persons, Justice Giegerich
issued order of arrest only in the case Of
Mr.. Meyer. He said later that upon reading the
affidavits it did not appear necessary TO order
the arrest of other persons named in the afa-
davits. The name of DR.. W. Seward Webb was
not among those mentioned as members OF the
syndicate.
II said that the order CT arrest issued by
Justice GiegeriCh was given TO Deputy Sheriff
Terry to serve The deputy would not admit
last evening that he had received the order. and
he said he was not searching for Mr.. Meyer.
but he admitted that he had been in Wall Street
in the afternoon. At the house Of Mr. Meyer
in this city it said positively last night that
he was in Long Branch. If Mr.. Meyer was any
where in New-Jersey he out of the jurisdic-
tion of the court in civil proceeding. and there
fore could not be arrested 1t was believed last
night that attempt would be made to serve
the order Of arrest until tomorrow.
In the offices of OffenbaCh & Moore. and the
connecting offices of the several Webb-Meyer
concerns principals and employees alike had
peTturbed air. There was much scurryins 10
and fro, and from time To time members OF
other Stock Exchange houses arrived for hrief
conferences with Ofenbach Moore Arthur
l. Meyer was asked in the morning: Is every
thing all right?'
Il hope So he answered
You have plenty of cash for Monday" was
asked.
Il hope so." was Mr.. Meyers answer. 1T
looks very encouraging
Benjamin P. Moore. of Onenbach Moore,
in talking with the reporters at about Haon.