The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-01
100000 GOLDFlELD SWTNDLE,
AND THEY'RE AFTER DIR. j. GRANT
LYMAN FOR 1T.
oldneid Filing Up with Investors who
say They Have Been Caugh I'm the
Game-secretary OF the Company
Arrested -Lym man mas LEFT the Camp.

Game-Seeretary OF the Company
GoLDFIELD, New, Nov. SO.-A mining
stock swindle from which DIR. j. Grant
Lyman Of New York is declared to have
realized $500 ,OOO within thirty days, was
uncovered here to-day by the arrest Of
L. H. Lattimer, his secretary, and by a
statement made by Sheriff Brady that he
has wired instructions to the Chief Of Police
at Pasadena, Cal, to a%pprehend Lyman.
Creditors from the East in numbers
have been arriving in Goldfield for the
last two days bent on recovering from
Lyman large amount due for unpaid
drafts with stock attached. and the losses
of individual brokers throughout the u
try vary from 50 1000 in the instance Of a
Milwaukee man to s23, 900 in the case of
one Far West broker in San FIR ~ancisoo.
Salt Lake, Chicago, Milwaukee and New
York lave been the victims Of a fictitious
market on a stock promoted by Lyman and
rugged by him in 80 def a ann as to
cozen some Of the best known and shrewdest
brokers IN the Union.
Lyman came TO Goldfeld about two
months ago when the Greenwster copper
boom had just started and Immediately
pulled out in an automobile for Death
Valley. Within three days be returned and
over the name Of the Union Securities
Company announced the Incorporation Of
the Boston Greenwater Copper Company,
publicly stating tina the property had cost
$500 900 and that $500 900 had been offered
him for it, that Augustus Heinze had sub
scribed for 31OO, 900 worth of stock, that
400 900 shares were taken by copper mining
experts in Butte and that the Mayor of
Butte was a director of the copper COM
pany.
These announcements he made in the
Goldield prints and in advertisements
which appeared in the large cities. At the
time he telegraphed to mining stock brokers
throughout the Union offering them stock
in the corporation at 37H cents Per share
on their guarantee that they would not
dispose of sa me at less than IS.
These kilograms said thai John S. Cook,
who ls a partner Of United States Senate
Nixon and George Wingfield, Goldfeld
~millionaires, in the ownership Of the John
S. Cook d Co. bank, was president OF
the Union Securities Company. Brokers
throughout the country accepted these
options and Immediately commenced to
place the stock among their riends and
customers. As soon as all these orders were
filed the man announced that the issue
had been oversubscribed by half a million
shares.
Having MIXED the public, he then began
70 haHIlA FhA hEOH nra Hn ahfnnA1 In-Rn
blocks of stock to ~confederates in New
York, Chicago, Salt Lake and San Fran
cisco, and instructed them to offer the stock
to these brokers at so cents per share.
Coincidentally he telegraphed each and
every n OF the brokers, offering them
90 cents a share for all the Boston Green
water Copper they could deliver.
The brokers eagerly gobbled up all the
Boston Greenwater offered at 60, then they
attached the stock TO drafts and shipped
it 10 the Union Securities Company here in
Goldheld. As fast as the stock arrived
payment was refused on one ground or
another.
Each broker thinking that ne was the only
one affected and that there must be some
error with an institution that had John 9.
Cook at the head refusing its drafts, COM
menced correspondence and exposure was
in this way delayed.
On Monday Lyman, apparently convinced
that the jig was up, left town announcing
that he was threatened with pneumonia
and was going to San Francisco for medical
treatment. Yesterday he was located at
Hotel Green at Pasadena.
To-day warrants were sworn out for his
arrest and for the arrest of +. II. Latimer,
secretary of the Union Securities Company,
by B. H. Scheftels, a Chicago broker, whose
loss Of about 1900 is said to be less than
the average.
Lsttimer was promptly spprehended and
the police seized the office files Of the COM
pany as evidence. Sheriff Bradley tele-
graphed Immediately after the warrant
was sworn out to the chief Of police of Pasa-
dena to apprehend Lyman.
Lyman was formerly the owner OF a rae
ing stable in New York. He was expelled
from the New York Stock Exchange in 1890
after the exposure of his connection with the
International Zinc swindle. He placed
large lines of advertising OF the Union Sc
curties Company through Tillman OF
Boston. He owes newspapers upward Of
$3.50. 900. The mining stock was sold in
hundreds Of cities, but had no merit. IL
Ia estimated that Lyman got away with
ssO0, 600. He fed the city. but is now To-
Gated. The Governor has been asked TO
extradite him. Latimer was arrested here.