The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1904-01-06
GOLD NINE FRAUDS
lager Brothers, Well Knows
Mine Promoters, Arrested.
CHARGE IS USING NAILS TO DEFRlUD

POstomoe Inspector Makes Complaint
and Says Circulars Sent Through
Mails Are AIIuring Advertise-
nents Full OF False PretenseS.
CHICAGO, Jan. Crank lager and
John jaeger, well known throughout the
United States as mining stockholders
and promoters, were arrested here on
the complaint OF Postofiice Inspector
William Ketcham on the charge OF
using the mails in a scheme to defraud.
The arrests were ordered by the gov
eminent officials after an inquiry had
been made into the business methods
of the Model Gold Mining company and
the jaeger Oil company, Of which con-
Germs Frank jaeger Is president and
treasurer and John JRger secretary.
Upward OF 100000 is involved in the
case, and the federal authorities de-
clare that sensational revelations will
be made when the prisoners are ar
raigned in court.
The brothers were taken before Unit
ed States Commissioner Foote, and they
were released on bail. At the request
of Frank jaeger, who said he intended
leaving Chicago few hours later with
a party Of stockholders to attend the
annual meeting Of the company at Pres
colt, Ariz, Commissioner Foote cOntin-
ued the hearing Of the cases to Jan. Is.
According to the federal authorities,
the following mines and oil wells are
included in the lists Of those fraudu-
lently misrepresented In advertising
matter sent through the mails; McCabe
Model Wolftone, American Gold and
Copper, Jessie Helen No. 8, Gold Bug,
Sink to Rise, North Model, Alta, Ne
Kinley, Helen No. 2, Copper Queen,
Liberty Bell, Bruce, Monopolis, Heron,
Pachelor, Tom Reed, Copper Crown,
Belmont, lager oil company, Model OIL
company, SmOkeless Briquette compa-
ny and Standard Briquette company.
Inspector Ketcham said.
'These men have been using the mails
to make representations about all the
properties. the only one OF which our
Investigations show which had made
money was the McCabe mine, near
Prescott, Arl1. The government claims
that the resources and profits have been
fctitiously increased and that the gen
eral expense account which should
have been charged against profits. has
been enormously set forth in alluring
advertisement matter sent through the
mails for the purpose Of making Il good
showing for the company. We charge
that sales OF stock ON the strength Of
this advertising matter have been made
entirely under false pretenses The gov
ernment's position is that there was an
impairment Of capital to the amount OF
SST32I and that the representations
show that the property operated by the
Model Gold Mining company was $780,
800 worse Off than the management rep
resented to stockholders at its annual
meeting in 1902"
President Frank lager said:
THE arrest Of myself and my brother
is purely spite work. A couple of dis
satisfied stockholders wished to disrupt
the company. We have made no mis-
representations, and we will bring
heavy damage suits against somebody"
The booklet issued by the Model Gold
Mining company lists the officers and
directors Of the concern as follows:
President and treasurer, Frank lager:
vice president, Charles G. Schroeder.
secretary, John jaeger; directors. Frank
jaeger Chicago; Charles c. Schroeder.
Elmhuyst ILL.,; John lager, Chicago;
Klaus II. Loptien Sycamore, III.