Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1905-04-21
BRATTLEBORO LOCAL NEWS
100000 IN SCHEME
Investors Are Now Wondering
Where Their Money Has Gone

Ubero Rubber Companies, Which Held
out an Allurlna Bait, Denied Use Of
Malls-5rattleboro People Hit.
The post office department issued a
fraud order Monday denying the use Of
the mails to the Ubero Plantation COM
pany and the Consolidated Ubero Planta-
ton companies of Boston. 1t is alleged
that these concerns have sold stock and
bonds to a total value of $500, 900 to
$2,OOO,0OO. In its official advertisements,
the Consolidated Ubero Plantations COM
pany pretended to be growers Of rubber,
coffee, pine-apples, oranges, lemons, grape
fruit and all tropical fruits and products,
with the. principal business offices in the
Fiske building, at SO State street, Boston.
Its land, at Tehuantepec, Mexico. was
said to have dark, fertile soil to a depth
of Is feet, in which all the products en-
umerated above could be grown at enor-
nous profit. Rubber should be the chief
product, but while this was growing all
the other byproducts could be cultivated
in sufficient quantity TO pay six per cent.
dividend on the investments at the very
start. Such dividends have been paid.
AS an investment it appealed strongly to
the people Of New England Money flowed
into the Golfers in streams, for, besides
looking feasible on it's face, the PROPOSE
ton was backed by such influential men
Of finance as NJ. b. Nebeker. who was
secretary OF the United States treasury
during the Harrison administration; Judge
U. T. Wiley Of the supreme court Of
Indiana; ]. c. Daley former secretary
Of state Of Indiana Arthur w. Stedman
of Boston and Frederick c. Hood, treas
urer OF the Hood Rubber company OF Bos-
ton.
=
condition which was regarded as start
ling. Inspector Snow says that instead OF
there being rich crop Of tropical fruits
growing in a deep soil, preparatory for
the rubber crop, only about $14O0 worth Of
corn has been secured on the alleged
rubber plantation, and the coffee which
was claimed and sold as the product OF
that soil was bought from a coffee house
in New York. Mr.. Snow says that the
indications are that the promoters have
pocketed the proceeds from the sales OF
stock and bonds instead Of investing any
Of it, as was claimed, in the improvement
Of the plantation.
With this evidence in it's possession the
post Office department gave the COM
panies notice to appear in Washington
last Monday to show cause why a fraud
order should not be issued against them.
Inspector Snow went there for the gov
| eminent, and two Boston lawyers went
to look after legal rights Of the companies
and to oppose the issuance OF the fraud
orders. The hearing was held before the
assistant attorney general for the post
office department.
Former Congressman w ID. Owens of
Indiana is said to be the originator Of the
scheme. 1t was started about seven
| years ago, with a number OF small COM
panies, and in 1902 is OF these companies
were consolidated into the Consolidated
Ubero Plantations company.
William D. Owen, formerly a mem l,er
OF Congress from Indiana and later sec
rotary OF state, and F. Z. Borges, for
merly of Logansport, but now OF Boston
| are pointed out as primarily responsible
for the schemes. 1t was announced that
"a small monthly investment in Ubero in.
| sures an income for life"
1t was further represented that the com.
pany owned 5000 acres Of land in Mexico
from which il received a deed from tn,
| Mexican government These represen.
tations," the departments order reads
Are all fraudulent as the company die
not own its plantation there, nor does 4
own ii now.
The fraudulent character of the enter
prise is most clearly seen in the payment
which have been made OF alleged divi
dends OF ten per cent. but not from tn
sale Of crops. The payment Of thes
dividends has been the chief means b,
| Whlch new investors have been secured
The stock and bonds were sold all owe
New England. former Brattleboro DO,
was district manager of the concerns, an,
1t Is known that he interested people II
Brattleboro, St. Johnsbury and probabl
elsewhere in this state to invest in tn
seemingly attractive securities. 1t Is un
derstood that the Vermont investors wer
not hard hit" their purchases being &
sums of $500 to $4,000, but 1t is probabl
| NH int
the scheme from this state would consti
| tute large sum