The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-06
OVER 100000 INVOLVED
IN A SENSATIONAL CASE
AGAINST TWO BROTHERS
Frank and John jaeger, Mining
Stock Brokers and Promo
terS, Arrested.
BOTH ARE, WELL KNOWN
Accused by Postofice Inspector of
Using the Mails to Defraud
Charge Denied.

CHICAGO, Jan. 5.-Frank Jager and John
lager. we'll known throughout the United
States as mining stock brokers and pro-
moters, were arrested this afternoon on the
complaint of Postoffice Inspector William
NJ. Ketcham on the charge of using the
mails in scheme TO defraud.
The arrests were ordered by the govern
ment officials after an inquiry had been
made into the business methods of the Model
Gold Mining Company and the Jager Oil
Company, of which concerns Frank jaeger is
president and treasurer and John Jager sec
retary. Upwards of $500 900 is involved in
the case and the federal authorities declare
that sensational revelations will be made
when the prisoners are arraigned in court.
The brothers were taken before United
States Commissioner Foote, where their
bonds were fixed at $1,000 each, and they
were released on bail. At the request of
Frank jaeger who said he intended leaving
Chicago a few hours later with a party of
stockholders to attend the annual meeting
of the company at Prescott A. T., Commits
siOner FoOte continued the hearing of the
cases TO Jan. 10.
According to the federal officers, the fol-
lowing mines and oil wells are included in
the lists of those fraudulently misrepresent-
ed in advertising matter sent through the
mails: McCabe, Model Wolf Tone. Amer
lean Gold and Copper. Jessie Helen, No. g.;
Gold Bug, Sink-to-R Rise, North Model. Alta
Mckinley, Helen, No. 2; Copper Queen, Lib
erty Bell, Bruce. MonOpons, Heron, Bach
elor, Tom Reed, Copper Crown. Belmont,
lager Oil Company. Model Oil Company.
Smokeless Briquette Company. Standard
Briquette Company.
INSPECTORS STATEMENT.
Inspector Ketcham said to-day that he
did not make the claim that the properties
are of value. but that the representa-
tions as to the earnings of the properties
are fraudulent. The inspector said: Those
men have been using the mails to make
representations about all the properties. the
only one of which our investigation showed
which made Nancy, was the McCabe mine
near Prescott. a. T. The government
claims that the resources and profits have
been fctitiously increased and that the
general expense account which should have
been charged against profits has been er-
rOneOusly set forth in alluring advertise
ment matter through the mails for the
purpose of ma king good showing for the
company. We charge that sales of stock
on the strength of this advertising matter
have been made entirely under false pre-
lenses. The governments position is that
there was an impairment of capital 10 the
amount of $S7 1927, and that the representa-
tiOns show that the property operated by
the Model Gold Mining Company was $780,
$50 worse off than the management repre-
sented to stockholders at its annual meet
ing In 1902
President Frank Jager said: The arrest
of myself and my brother is purely spite
work couple of dissatisfied stockholders
wished to disrupt the company. We have
made no misrepresentation and we will
bring heavy damage suits against some
body"
The booklet issued by the Model Gold
Mining Company lists the officers and di-
/ rectors of the concern follows: Presi-
! dent and treasurer, Frank Jager; vice pres
/ ident Charles c. Schreiber; secretary John
/ Jager: directors: Frank Jager, Chicago
! Charles @. Schneider. Elmhurst ILL.,, John
/ lager, Chicago, Klaus II. Loption, Syra-
i cuSe Ill.