The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-04-21
ANOTHER
SKIN CAME
Comes to Grief and Pro.
m0terS Fled to
Europe.
FRAUD ORDER ISSUED FOR
UBERo PLANTATION CO.

How the Postoffice Department Put
a Fraudulent Investment Company
Out of Business--The Promises and
the Realty.
Washington, April 1S.-William d.
Owen, former member Of congress
from Indiana, former secretary OF
state of Indiana and former minister
of the gospel, organizer and promoter
OF the Ubero Plantation Co., of lndi-
ana, the Mexican Coffee & Rubber Co.
of Indiana, the Ubero Plantation Co.
of Boston and the Consolidated Ubero
Plantation Co., also of Boston, has fed
to Europe and thousands Of investors
in the stocks and bonds of the COM
papies are holding the sack. The sack
10 empty.
These facts are set forth in mem
orandum of the attorney general for
the postofIice department, accompany
ing fraud order, which was issued
today against the two Boston con-
Germs. 1t is also stated that Arthur
w. Stedman and Frederick G. Hood,
two men prominent in Boston busi-
ness and social circles, the former
president and the latter vice president
OF the Consolidated Ubero Co., are
likewise absent in Europe at this
juncture. U. z. Wiley Of Indiana, at
present judge of the Indiana appellate
court, is named as the treasurer Of
this company.
Owen embarked in his Mexican
plantation scheme shortly after retir-
ing from the Office of secretary OF
state of Indiana in 1898. He first or
gan'zed the Ubero Co., in which In
diana people were largely interested.
That company has not been investi-
gated by the department, however,
the inquiry being confined to the two
Boston concerns. owen and Borges
crsa hizcG the UEero Tlantation Co.
Gon!inally for the development of a
coffee and rubber plantation of 3,00J
ntres, which the company was to pu"-
chase from the L. Fuerta Co., Owen
aud Borges constituting the La Puerta
Co. The price was i75O,00O for this
land, and while over 100000 was paid
l.; the La Puer:a Co., the Ubero Co
never became possessed Of title.
The stock in the company was put
ON the market on the monthly install
ment plan. Extensive advertising was
done and it was represented that the
company was making sufficient money
while developing the property to pay
annual dividends of 10 per cent. Such
dividends were paid, but the depart
mental investigation disclosed that
they were fake dividends, paid from
the funds of the investors, that there
had been practically no development
of the property and no returns war
ranting the dividends. Representatives
of the company who appeared at the
hearing before the attorney general
acknowledged that the funds of the
investors had been fraudulently in
fuced, misappropriated and dissipated,
but stated, In defense, that the direc-
tors of the company, as well as the in
yestors, had been deceived by Owen,
who had entire charge of the affairs
Of the Company and who, since the
craSh, had fed to Europe.
Ttmboldened by their success with
this company Owen and Borges next
organized the Consolidated Ubero
Plantation, Co., issued bonds to the
lmopnt of $2,5O0,0OO and sold both
bonds and stock on monthly pay
peiits. This company was to develop
t,O00 acres of Mexican lands, which II
WAS to purchase through the Tropical
Bureties Go. (owen and Borges again)
from the Mexican Coffee & Rubber
d., an Indiana concern. The latter
rompany was capitalized at but $780,