Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-01-06
UNDER FRAUD CHARGE
PROMINENT CHICAGO MINING
BROKERS ARRESTED.
Accused of Using the Mails to Misrep-
resent Properties to Pros
pective Investors.

A dispatch from Chicago yesterday says:
Frank lager and John lager. well known
throughout the United States as mining
stock brokers and promoters, were arrested
this afternoon on the complaint of Post Of
flee Inspector VIM. M. 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
jaeger Oil Company, Of which concerns
Frank jaeger is president and treasurer
and John jaeger secretary. Upward of
$500, 600 is involved in the case. and the fed
eral authorities declare that sensational
revelations will be made when the prison
ers are arraigned in court
The brothers were taken before United
States Commissioner Foote, where their
bonds We're fixed at 5000 each. 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 al Prescott, Ariz., Commits
sioner Foote continued the hearing of the
cases to January 10.
According to the federal officers the fol-
lowing mines and oil wells are included In
the lists of those fraudulently misrepre-
scented in advertising matter sent through
the mails: McCabe Model Wolftone, Ameri-
can gold and copper, Jessie Helen, NO. q,
Gold Bug, Sink Toriz. North Model, Alta,
Mckinley. Heien No. 2, Copper Queen, Lib
erty Bell, Bruce. Monopols. Heron. Bach
elor Tom Reed. Copper Crown Belmont.
lager Oil Company. Model Oil Company,
Smokeless Briquette Company, Standard
BriQuette Company.
Inspector Ketcham said today that he did
not make the claim that the properties are
of no value, but that the representations
to the earnings of the properties are
fraudulent. The inspector added:
These men have been using the mails to
make representations about all the proper
ties, the only one Of which our 1nVeStiga-
tons showed which had made money was
the McCabe mine, near Prescott, Ariz. The
government claims that the resources and
profits have been fictitiously increased, and
that the general expense account, which
should have been charged against profits,
has been enormously set forth in all urging
advertisement matter sent through the
mails 3or the purpose of making good
showing for the company. We charge that
sales of stock on the strength Of this ad-
vertising matter have been made entirely
under false pretenses The government s
position Is that there was an impairment of
capital to the amount of $S7,327, and that
the representations show that the property
operated by the Model Gold Mining Com
pany was $3.50. $50 worse off than the man
agement represented to stockholders at its
annual meeting in 1902.
President Frank jaeger said:
THE arrest of myself and my brother is
purely spitework. A couple of dissatisfied
stockholders wished to disrupt the COM
pany. We have made no misrepresenta-
tons, and we will bring heavy damage
suits against somebody's"
The booklet issued by the Model Gold
Mining Company lists the officers and di-
rectors Of the concern as follows: President
and treasurer, Frank lager; vice president
Charles G. Schneider: secretary, John
jaeger; directors, Frank jaeger, Chicago;
Charles G. Schneider, Elmhurst, ILL.,; John
lager, Chicago; Klaus II. Loptien, Syca-
more, Ill. ~ tEo