The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-20
BIG BLINK CHARGED
WITH GREAT FRAUD
LAWSON ATTACKS
GOTHAM CONCERN
He Says National City Banks
President Helped Engineer
Amalgamated Deal. :
Special to The Journal.

Special to The Journal. ~
New York, May 20.-Thomas w. Law
son accuses Henry H. Rogers and James
Stillman, president of the National City
bank, Of fraud in allotting the shares
Of the Amalgamated Copper. company
the installment of "Frenzied Finance
printed in the June number of Every
body's Magazine, issued today.
Charge Based on Banks "Ad.'
The charge is based upon the adver.
tisements Of the Amalgamated Copper
company and Of the National City bank
of New York, Of which Mr.. Stillman
is president. According to Mr.. Law
sons article: ~ .......
"The terms Of these advertisements
subscriptions for the stock of the Anal
gamated Copper company must be made
to the National City bank, and bound
the bank to accept subscriptions pre-
scented in compliance Herewith. In fact,
they constitute legal contract binding
the National City bank, an institution
doing business under the national bank
ing laws Of the United States, to allot
to every subscriber whose subscription
ate part Of the entire $50, 900 shares Of
the capital stock of the corporation, his
proportionate share being the ratio his
subscription bore to the entire sub
scription received at the National City
bank before IL noon of Thursday, May
"a, 1899. On receipt of official Motif
cation. from the National City bank
that he had been allott ed 20 per cent
Of his subscription, or one share IN
every. FIVE subscribed for, the subscriber
had a right to think he knew that the
u To ho hpln
five times $75, 900, O0o-$s75, 900 ,000-or
| Ave times 100000 shares 900
shares; and that before noon. May 4,
! the National City bank had in hand GER
titled checks to the amount Of $751;
.'Terms Not Complied With
The terms of this contract, asserts
| Mr.. Lawson, were not complied win.
Subscribers to the Amalgamated - ne
says, were allotted only one-third offthe
amount Of stock they were entitled It! e y. TO.
81 other words the total subscript
I did not. amount in fact, says, MI. Law
! son. 10 ANYTHING like the amount on the
1 basia OF which the aiIotmenta were
i made. He gives the figures % FOL lows:
- ,rh he ACTUAL Amount of II e. ubserlips
i tions received on or before noon, May
I4, 1899, .at The National City hank was
hut. $ISa, OCT 300, An dthe amount Of
4 the per cent certified checks received
lin the institution up to noon was only
/ $6,603,375, or SIS per. share on a total
,Iof 1896, 675 shares. 3..,
HThe meaning Of this is that every
Legitimate subscriber--and 1 except the
millions Of subscriptions which the
bank decided were illegitimate and re
jected, as they had perfect right tc
do under, their contract with the pub
llic-was defrauded of two shares OF
each three to which he was entitled
Before me as I write is the original al
1.-The --- subscribers, which I propos,
to print later as part Of this Indictment
showing that the figures are exactly a
I have stated ).
l. 49,. A Bogus Subscription.
"To bring about the proportion whic
, Mr.. Rogers .wanted,'' continues Nj
Lawson. - bogus subscription of =
TO rsix times the unallotted balance wa
put in by him, and this is where tn
: fraud was committed. The Nations
City bank was in duty bound to proteeS
: the public from any such bogus sui
scription, and to see that fair treatme1
\ was. accorded to all subscribers. Ye
z
bogus subscription to be put in, eleve
) hours after the bids had been opene'
: It utterly failed to comply with tn
5 conditions of its advertisement, and we
: thus direct party to the fraud pc
s petrated by its president and Mr.. Ro.
: ers. The exact amount Of the bogr
! subscription could not be decided unit
: the exact figures Of the subscription
!. had been compiled. Within the ne1
. few days it was ascertained that tt
. genuine subscriptions totaled $132,067
: 800, upon which an allotment of, OF
J: share in five, or $26, 4l3:5 500 Of stock
: together, was made to the public.
81 2" In this way the conspirators secure
$ from the public $26,413, 800 Of the orr
!. iinal cost, $39, 100000, and yet retaine
s over $48, 500 900, Of the authorized stoe
4 Of $75,000,00O. In other words the pu
8: lie paid two-thirds of the purcha
. price, and the conspirators retaine
i nearly two-thirds Of the property"
: Says It's Cup to Government.
/. Mr. Lawson says it is up to the go
s eminent to prove or disprove his stat
. ments. He says
81 Mr.. Lawson s Formula.
. In an open letter calling the ate
:. ton. Of the press to his charge Of erin
3 against Mr.. Rogers and Mr.. Stillma
. Mr.. Lawson gives what he calls h
s "Frenzied Finance Formula, al
i mentions Remedy to follow 500
s in the following:
!. M0RCKN Nc p0NTTEE'C