Adams County news. [volume] (Ritzville, Wash.) 1898-1906, 1902-05-07
Sensation ON WALL STREET
BIG sw1NDIE Is DEVELOPED.
Many Banks and Bankers Over the
Country Were Fleeeed By Webb
Meyer Syndicnte-Many Millions
Lost-Wnrrants 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. H. Vanderbilt, is interested,
and whose stocks broke in such an
amazing way recently. The order of
arrest was issued upon an affidavit
made by Wall street operator. who
claimed to have been fleeced 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 1t Is al
legged that 60 banks In different parts
of the country have been swindled out
Of more than 100000 by stock man
ipulations and the total loss at stake
is placed at from $5.000,000 to $40.
100000.
In an affldavit now in Browns pos
session it Is charged Webb lent his
name to the scheme and many other
we'll known men are mentioned In con.
nection with 1t. 1t was stated private
detectives have been shadowing mem.
oers of the syndicate for months and
hat the lawyers have a mass Of most
astounding information.
The affidavit sets forth that the
| TatN 20 10 iuo
Ion for floating securities. 1t is al
legged the syndicate employed dunn.
niles to negotiate for the purchase of
large blocks of stock. The dummies
would deposit a 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
part of the syndicate and which would
report favorably on them.
Brokerage firms were organized fol
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
.em of private wires was established
10 all pricipal cities to facilitate the
purchase of stock by customers.
1t was asserted that Justice Gieger
ch Of the supreme court had issued
the warrant. He could not be found
% verify the statement until late
when he said:
$50 far as l can remember the state
ments which have been made are true
md the quotation of the affidavit is
correct, though 1t must be remembered
hat have a great many papers tC
leal with In the course of day-oi
IN hour-and without having them al
hand cannot be too certain as to what
hey contain. The order Of arrest was
made only for one man. although
had signed four"
The affidavit, 1t Is alleged. men
Toned a number of banks located In
his city, Boston, Philadelphia. Wash
ington, Chicago and other cities which
ire alleged to have made loans or
some of the stocks.
1t is stated positively that DR.. Webb
ls not charged with any offense in con
nection with the application for the
warrant, or that he received any bene
1t from the alleged fraudulent trans
actions.
Webb Resigns.
Joseph. Hoadley, president Of the In
:ernational Power company, has re
ceived letter from DR.. Seward Webb