The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-12-07

NEW YORK. Dec. Tn the de
velopment OF the game OF renting out
securities OF no market value. to be
used as collateral by the rentors. FOL
loans, the examination OF the e1ects
OF Samuel NJ. Biddison. now In the
Tombs. charged with forgery. has dis
closed n scheme OF marvellous ramif
cations, In which a large majority Of
the most notorious bond and note
swindlers have played part, and
hundreds OF reputable business houses
have been bled.
Assistant District-Attorney Kindle
berber, assisted by Detectives Nelson
and McConoille, who arrested Biddi
son, at No. 1l6 Nassau-st, began an
examination of the truckload OF papers
seized In Biddison's Office.
They had not completed the ex
animation but established by the
documentary evidence alone that:
Biddison was the central figure In
| the Central Coal. Lumber and Con
struction Company, which protested
to own a first lien on 10000 acres OF
land In Wisconsin, near Green Bay,
and owned lands, unincumbered, de-
scribed as existing In Missouri, Michi-
gan, Virginia, Tennessee and Georgia
That bond and stock certificates
were printed and used solely for rem
tai purposes to spectators who Dor
rowed money on them.
That the names OF the company's
officers, with one exception. were
| fictitious.
Could Not Find Property.
That the property alleged to be
owned could not be located, and that
Biddison was in constant communica
ton by letter with scores OF persons
who have been convicted of crime OF
who have been indicted, or who have
been charged with swindling by
means OF forged deeds and various
forms of forged conveyances.
The most interesting discovery were
the deeds and abstract of title to the
Sandy River tract in Kentucky, held
or professed TO be held by Ellen Peck
the aged confidence operator, who as
Eliza Knight" swindled Norman &
Wilson, of New York, out Of $4,000.
The tract Is described as consisting
of 1000 900 acres, and the faded docu
ments-whose genuineness Is yet &c
be tested-attest that the land was
conveyed by Gov. Monroe In 1925. The
last conveyance was In 1892, when the
| title was vested In Amelia Schilling
| by Eliza Knight" now seventy years
old, and awaiting what Will probably
F, be her last trial.
The close business relations between
Biddison and the old confidence queen
as shown in the mass Of correspond
ence, siregarded by the district-attor
ney as most important and he believes
will be followed by series OF amaz
ing revelations.
Important as It may be, the Ellen
Peck Is only one OF two score complex
transactions in which bonds and
stocks of corporations that had no ex
istence, or II existing represented nc
real property, were used to produce
money on a renting system. the rate
OF which one-quarter of one per cent
month.
Main stem Of Scheme.
The main stem OF the scheme was
the Central Coal, Lumber and Con
struction Company, whose prospectus
] set forth that IL was Incorporated I'm
| DER the laws Oh tue DiSlIlCt Vi COium
bia with a capitalization OF 100000
stock and a bond Issue OF 100000
FIRST mortgage gold coupon 5 pei
cent bonds OF the denomination oil
81 900 each. II was announced that
these bonds bore interest annually
with the right TO redeem any time
after three months at S1.100 with In
terest.
THE purposes Of the company is &c
buy bonds. timber, coal. mining. mill
ing and to do a general lumber and
timber business. The company is doine
a prosperous business and meeting the
interest in the bonds and paying a di
vidend OF 5 to Z per cent on the CAPT
tai stock. The company Is close cor
poration and no stock ever has beer
offered for sale.
The bonds are listed on the New
York Curb at 81 1-2 to SO, and on the
Boston market at SS TO 49,"
This was signed G. p. Wilcox, Gen
eral Manager, Room No. 1905, No. IL,
Nassau-st." No such person ever hal
been seen In the ONCE by investors
and according to Assistant District
Attorney Kindleberger, Wilcox" is {
myth.
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