The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-11-08
MANY PROMINENT MEN
INVOLVED IN SWINDLE
Plain Robbery cf the Public Is Hidden
Behind Plans for Development of
Mythical Gold Mines In
Various Localities.


.sThe most stupendous fraud ever oper-
ated in America" according to Chief
Postoffice Inspector w. s. Mayer, was
brought to a sudden halt today by fed
eral authorities raiding the offices of
George w. Emanuel & Co., 576 Fifth
avenue.
Those arrested were Louis A. Price
and ]. Walter Labaree. who is now
connected with the Quibdo Gold Dredg
ing company of No. 66 Broadway.
Emanuel narrowly escaped arrest by
taking flight for Mexico half hour
before the raid was made.
Late tonight Cranston Thomas, sup
posed to be one of the moving spirits
in the concern, was taken at his home
in Brooklyn.
The operations of the men now un-
der arrest are believed to form a vast
swindling web, the meshes of which
extend over this entire country. Mexico
and part of South America.
Millions of dollars are believed to
have already been secured by this
galaxy of talent, while the modest
goal at which they aimed was $152,000,-
900 from the pockets of the public.
Biggest on Record.
"The Mississippi Bubble of John
Law is only the work of an amateur
in comparison with it," said Inspector
Elmer L. Kincaid, who conducted the
raid. 1T is the most dangerous get
rich quick scheme ever unearthed.
Had it remained unchecked 1t would
have compared with the Standard Oil
is magnitude"
The names of the men involved in
the arrests of today include several
prominent financiers aud two well
known bucket shop operators, who have
previously been the object of a police
search
A recent extension of the plans OF.
these men includes the formation of
several mushroom companies which
now never will see the light of day.
The mother company is the "Old Re
liable" Mutual Trust company of Mex
leo, and under the care of George W.
Emanuel & Co., was organized by
Louis A. Price and ]. Walter Labaree.
These men were the principals in
sensational bucket shop failure four
years ago amounting to nearly half
million dollars. After that fasco
Labaree temporarily disappeared from
view.
Affinity on the Scene.
Prince again came into notice year
ago, when his affinity threatened to sue
him for 100000 because he had gone back
to his wife, He maintained headquarters
fIe nf tfffaaf nal a
Co., but Labaree recently moved from
there to the offices of the Quibdo Gold
Dredging company.
This intimate connection of the former
conferee of Prince with the Qubdo COM
pany has also caused the authorities to
demand an accounting from that firm. Its
officers are John A. Drake, president;
]. b. Elwell, vice president, and A. r.
Manice, treasu
Drake who is now abroad is well
known as the brother-in-law of Theodore
p. Shonts, d. p. Shonts, associate to John
w. Gates, and one of tho prominent turf
men of the country.
Elwell is the American authority ON
bridge whist and teacher of prominent
New York society women Manice lis of
the firm of Z. A. Manice & Co. of New
York. Fl. s. Pray, the Boston capitalist,
and Henry w. Granger, the engineer, are
also prominent names In the directorate.
The Mexican Mutual Trust is entrenched
behind well-known names but whether
they are those of decoys or participants
in the fraud has not been revealed.
The president is Gen. De la Paz Alvarez
of the Mexican army. The vice president
is Juan Amiga and the secretary is Lisen-
dro Maldonado, prominent Mexican at
torneys.
Well Planned Raid.
The raid today was most carefully
planned and was the climax of an in
vestigation extending over a year. A spe-
cial trip to Mexico was made by Inspec-
tor Frank M. Hamilton to investigate the
claims of the Mexican Mutual Trust
company as to its holdings.
Today a long cipher dispatch was re-
ceived from Inspector Hamilton by Chief
Inspector Mayer and the word was given
by Assistant United States District At
torney Dorr to go ahead. The arrests
followed.
Hundreds Of checks and thousands OF
letters from customers were found in the
offices of the concern. The books of the
company, however, showing the list of
those believed to be swindled We're in
heavy steel safe. the keys of which the
prisoners declared could not be found.
The fraud perpetrated by the Mutual
Trust company of Mexico in their plan of
operation was one Of the most daring
every conceived. In the first place there
are no trust Companies in Mexico under
the law. In the second place they took
for the name of their property that of
the well-known Mexican mine, the DOS
Estrellas, but for their purpose moved it,
on paper, from one portion of the coun-
try to another
Shady Business.
In the third place person by the name
of Lorenzo B. Speyer, doing a banking
business of a shady character in Mexico,
was discovered by the promoters and
their glowing prospectuses, trading upon
this name. gave the impression that
the well-known viking concern Of
speyer & Co., New York;, was behind the
enterprise.
The am aunt of money received in lieu
of the gold embossed stock certificates
already amounts to hundreds of thousands
of dollars The bait of the Mutual Turst