The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-04
Former Newark Concern Is
Said TO Have Sold
VaIueIeSS Stock.
CAPITALIZED AT S. ,OOtI
Postal Officials Bar 1t From Use
Of Mail, Alleging That 100000,
Worth of Shares in Undevel.
Oped Franklin Furnace
Mines Were Issued.

g
BY the barring OF the New Jer sey
Mineral Company from the use Of the
mails it became kno Wn yesterday t hat
, the concern, which We formally loca ted
in the Union building &, Clinton str eet,
this city, and is now located at 35 Wall
street, New York city. is considered a
fraudulent concern by the ppSal au-
I thorities, who have ordered frat all
mail addressed TO the company be
marked Fraudulent and RETURNED to
the sender.
The New Jersey Mineral c, ,mpaly.
which represented that 1t owned valu-
able zinc deposits in the State pr New
Jersey, is declared to be operi tting a
scheme for Containing money by means
of false and fraudulent pretense $. rep
reservations and promises. in violation
Of law
According to the official memoranda.
In his case, the New Jersey Mineral,
Company sold nearly $500, 600 worth Of
the stock to the public in the last two
Z years; its properties are practically
valueless, it has never paid any div,
idends. and the none collected on.
stock has beer paid out in salaries to
officers and in the work OF exploitation
for the purpose of selling more stock.
The official history of the case began
on August %, 1906, when United StatHj
District Attorney Vreeland lodged "a
complaint with the Postoffice Depart
ment officials that the New Jersey MI n
4al Company was using certain fal Sc
Representations TO sell its stock nd
was seemingly conducting a scheme TO
dehaud. Upon the complaint of the
Unity States attorney the case was n
yestis ,ated py inspectors and the ISIS ue
of a fraud order recommended in II MS
city. MAT was i'll November a We ar
ago.
The OH GERS of the company. AMONG
them Arth ur L. Richards, president; N
ward l.. Va w Orden, who was then Wit; e-
president, md the company's attorn ey,
We uschenk, made an appe ar
ance, with Ii le result that the legal ad-
wiser Of the / hostnaSter-General report
cd that he WIS moi satisfied that the
business was fraudulent" Accordingly
the fraud ord,sr was withhheTh. The
case was thus cbsed for the time.
Later another complaint a made
against the comp oy Henry 3. War
der. an attorney of New YoriL and
Robert II. Mecca ter, -Attorney-Generai
Of New JERSEY. Warder and
submitted IL number of mat
tiers tending to show that the New Jer-
sey Mineral Company was nothing but
a stocx-selling prop osition land, that
many false and seemingly inter ftional
MISREPRESENTATION were being made"
BY il. The case was reopened.
on October s last the company was
cited to show cause why a fraud order
should net be issued and etpbe 20
was set for the hearing. AT the re-
uuest OK counsel for he company the
hearing was continued until October
81. AT the conclusion of the hearing,
counsel for the defend ant asked for
thirty days in which to file a written
/, of the case. He got until
November IS.
The New Jersey Mine ,al Company
was Incorporated under the laws of
New Jersey early in NOV 'ember, 1905,
with an authorized capt. nj stock of
$4,000 900, divided into s0,0tW shares OF
the par value of $25 each. The offices
of the were IN this city until
the spring of this year when they
moved to 35 Wall street, New YORK
city. where they are now. The prin-
cipal promoter of the scheme. accord
ing to the official memoranda made
public Yesterday, is Arthur l.. Orchards
who lives at 81 Wheeler street, West
Orange and George H. Beverly was
secretary. Upon the organization OF
-the corporation there was bought IRON
q and d. ID. Munson, of Franklin
Furnace, a. tract of AS acres of land
at hat place that theretofors had been
used only for agricultural purposes
This tract lies about one-haaf to one
mile from the zine mines of the New
Jersey Zinc Company, and this prox-
sn ity.' tho official memorandum reads,
has peer one of the chief means useo
! 10 deceive investors to believe h a
zinc deposits exist on the New Jersey
Mineral Company's land"
The sale of Jersey Mineral stock to
athe public commenced, as far as Is
known. in the late spring or early sum-
mer of 1906. and was continued up to
the time of the department ihvestga-
lion. Most of this stock was sold for
1880 cash and Sic on the time payment
plan, 1t is admitted by Richards mat