The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-22
HELD
IN BAIL FOR
GRAND JURY
CONTINUED from First Page,

that Paine at one time drew the lar
gest check ever taken from the New
York Stock Exchange in one day and
naturally made enemies. The inference
was that the enemies were behind the
movement to Dust Paine from business
in tins city.
Detective Sergeant Tuite brought the
case for the police. He told his side
of the story in a few minutes, explain
ing that hi went to Paine's office and
asked him about the manner of con-
Quoting his business. offering all of
the circulars and letters seized by him
and the explanations offered by Paine.
Tuite's story was clear n concise.
He said that much of his evidence
against Paine would be submitted to
the Grand Jury, and would not be
brought out at the examination, as he
did not wish 1t known until the proper
time. Tulte declared that in the
various circulars and statements made
to him by Paine that the police had a
strong case.
Judge Howell, after examining the
papers closely and asking several ques-
lions from Lawyer Lum, was satisfied
that the police had easily made a case,
and decided to hold Paine in $4,000 for
$500
the Grand Jury.
No examination In the police court
was as bitterly fought as that of Paine.
Lum insisted that Paine did a perfect
ly legitimate business and that his cir
culars and papers had been passed
upon by some of the best counsel in
the United States, and they agreed
that he was doing a legitimate busi-
ness, according to Lawyer Lum.
Tuite old his side of the story first.
He said that on last Friday he went
to the office of Paine, in Market street,
and picked up several circulars and
asked explanations. One of the let
ters was to the effect that Paine had
taken 10 per cent. profit on certain
railroad stocks and was "long" on the
stock again. Asked what stock that
was, Tuite declared that Paine said 1t
was Chesapeake and Ohio. Tuite went
on to say that Paine told him that he
had obtained this information while
riding with President Stevens, of the
Chesapeake and Ohio, four years ago.
Tuite declared hat it was on this in
formation thai the circular or letter
was issued.
Another paper In the form of a cir
| CIldT WAS SUBMITTED ny IdiACs inns
circular bore the business address of
J. Overton Paine, and was quite
lengthy. 1t spoke in glowing terms Of
some valuable information Mr.. Paine
had obtained at a big cost to him. One
paragraph spoke of a certain low
priced railroad stock which would in
crease from 60 to 100 points in value in
a year.
Another circular submitted by Tuite was
in relation to a joint stock trading account
in which Paine claimed to put In an
amount equal to that of his customer. In
big type at the bottom of this circular it
was announced that no account would be
opened less thai 500. Tuite's contention
was that Paine did not nave the informa-
ton he printed and that his information
was valueless. as 1t was received four
years ago and that the stock had not any
part of the advancing that Paine claimed
for II.
Attorney Lum went into detail about the
injustice done to Paine. He contended
that Paine's information was correct II
every detail, and that there was no EVIL
dsnce to show that any money was OBJ
tanned under false pretenses. Judge Howell
told Lum that the complaint charged
Paine with attempting to defraud and die
not state that he had obtained any money
There is a great injustice done Mr.
Paine in this whole matter" insisted hi
counsel. MIR. Paine has made many en-
emies since his connection with the New
York Stock Exchange" went on Lum, zane
surely a man who drew the largest cheel
ever made out In one day on the market
must have some people, especially those
who paid him the money. bitter. There Is
something behind all this. The newspapers
have called Mr.. Paine a ~'tipster' and we
contend that he Is no 'tipster' but a mar
with valuable information rightly obtained
who is willing to sell part of 1t TO the
people,
Judge Howell here interrupted Lum. say
ing that Paine's scheme was a simple one,
handing Lum a circular to read.
1T is really too technical for me to
read and explain" said Lum.
IT don't agree with Mr.. Lum that it is
technical said Tulte; the whole thing
is quite simple to me-"
Lum went on to argue at some length
that no money was asked in the circular
and therefore there was no attempt even
to defraud.
what does this paragraph here meanT'
asked Judge Howell, referring to one
which spoke about Joining me In opening
an account then referring to the bottom
of the circular, which spoke Of 500, a pay
ment of 500 before the account could be
opened.
Lum explained that a contract must hrst
be signed by a customer and then If he
agrees to open a joint trading account ne
must put up 800. This is no blind pig
DEAL said Lum, to which Judge Howeil
replied that 1t looked very much like a
blind deal TO him.
"He evades the real point of the whole
natter declared Tuite as soon as ne
could get a chance to speak. The real
point is has he got this stock he claims
to nave in the letter here?'
'rHe certainly has" said Lum, and 1t Is
NJ, X. and t." meaning Missouri, Kansas
and Texas.
well, that contradicts the statement he
first made to me that it was Chesapeake
and Ohio" said Tuite in reply. III his
information is correct that he obtained, as
he admits, three or four years G on the
other stock went ON Tuite, that the
stock would advance from 60 to 100 points
in a year, why has 1t not done so?"
A. long argument followed as TO recent
railroad earnings, and the question was
never answered.
Lawyer Lum submitted extracts from
newspapers several years ago showing
| that Paine had made considerable money
In b.. r.. T. deals. "a few years ago Mr..
Paine objected TO newspaper statements
as being false" declared Tuite; yet l
think they are nearer true than those
which you are exhibiting"
lawyer Lum asked Judge Howell to dis
miss the complaint, saying that the ac-
cused is going to continue his business,
and 10 tho police found ANYTHING Illegal