The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-04-25
BARRED FROM MAILS
Fraud Order Against Mexican Planta-
ton Concerns-SeycTal Millions
Missing-Prominent Men in the
Concern.

hth III tnt
Concern.
Fraud orders have been issued l..
the ~rostoffice department against the
Ubero Plantation Company. of Boston
and the Consolidated Ubero Plantation
Company, also Of Boston. William d..
Owns, former member of Congress
from Indiana, former secretary of sIa;e
CT Indiana, and minister of the gospel
said 10 be the chef pormoter of ihc
panies, has gone TO Europe, and thous.
ands of investors in the stocks ana
bonds Of the company are awaiting de-
velOIments.
1t as also stated that Arthur W. Stei-
man and Frederick c. Hood, two Eien
prominent in Boston business and So
clai circles, The formsr president an@
the latter vice president o. the Con.
SChtale9 b.To Company, are likewise
absent IN Europe. Judge L. L. Wiley
OF indiana, Appellate Court, is nalnet
as NE treasurer Of this company.
The investigation was conducted by
the pOstofhce department through In
SDectOr Shaw, one of the Oldest AMI
best experienced secret service men ia
the employ of the government. William
=. owen IS said to have been the PRIME
mover and presumably chief beneficial
~. Frederick E. BOrges, another In
dlanlan, was Owens partner in the
deals. How murn money was secured
from the public by the schemes of these
men is a matter Of conjecture with the
department officials, but it is under.
stood to Ave been at least 81 900 600,
II possibly two or three times that
AMOUNT.
HOPELESS INVESTORS.
There is little prospect of any sat
isfaction to the investors, as it is stat
ed It the Office of the attorney general
for the postoffice department that
Owen and Borges undoubtedly acted on
excellent legal advice in framing their
schemes, and that it is a question
whether they can be reached through
civil or criminal action. Borges is said
to have remained in Boston.
Owen embarked in his Mexican Plan
tation scheme shortly after retiring
from the office of secretary of state in
Indiana in 1898. He first organized a
IIAIIDdhy sS lie ODSIo. III "1lClI
Indiana people were largely interested.
1t 1eld out alluring promises of i'm
mediate returns on the investmen,
The transactions of that company lay
not been investigated by the depart
ment however, the inquiry being con-
fined tc the two Boston concerns, with
which Gwen entered upon a wider
sphere of activity. He and Borges first
o~ror;.al fh1 IFha-o DIortsor y,.n
pany, of Boston, and interested promi-
nent BOstonians. The plan proposed
iH the prospectus was the development
CT Il coffee and rubber plantation of
5000 acres which the company was tc
purchase from the La Puerta Company.
Owen and Borges constituting the "a
PaeCta Company. The Cbero Company
was to pay $3.50 900 for this land, and
il is alleged that evidence shows tina.
more than $300,00 was paid to the La
PuerIa Company. but that the Ubcro
Company never became possessed OF
the title to a single acre.
DIVIDENDS OUT OF PRINCIPAL
The stock in the company was put
on he market on the monthly install
menL plan. Extensive advertising was
done, and it was represented that the
company was making sufficient money
while developing the property 10 pay
dividends Of 10 per cent. annually
such dividends were paid but the in
vestigdtion disclosed, il is alleged. that
they were dividends paid out of me
principal. Representatives OF the COM
pany who appeared at the hearing be-
fore the attorney general acknowledged
mat the funds of the investors had
been fraudulently solicited. misappro-
priarcd and dissipated. but stated. in
defense. that the directors of the COM
pany, as well as the investors, mad
been deceived BY Owen, who had en-
tire charge Of the affairs of the com
pany and who, since the crash, had
o n 10 Europe.
Em5oldened By their success with
this company, Owen n Borges nsyt
organized the Consolidated Ubero Plan
tation Company, issued bonds 10 the
amount Of $500. 900. and sold both
bonds and stock on monthly payments
This company was to develop $500
acres Of Mexican lands. which ii was 10
purchase through the tropical Sessir-
ties Company tOwen and Borges again,
from the Mexican Coffee and Rubber
Company, an Indiana concern. The lat
ter company was capitalized at $50 Or.
and the Consolidated Company was 10
pay 1t 100000 for property said CT be
worth not over 1 1000 or $4,000. of
the COCO acres Of land 2,733 are stiil
virgin forest, LOST are alleged TO b
valueless and only 1885 have BEEN
planted, nothing having resulted from