New-York tribune., 1909-04-03
CHARGE $15O,OOO FRAUD
GEORGE L. MK4Y CON-
: P4NY OFFICERS HELD.
Brokers Sad to Hare Sold Stock IN
abandoned Mire and Mythical
Coal Property.

George L. Mckay of No. 4S4 Convent avenue
and Charles r. Colby. of No. 592 Convent ave-
nue., brokers and officers of the George L. Nc
Kay Company. with offices at No. 90 Broad
street, were arrested late yesterday by Lieu
tenants McConville and Nelson and Postoffice
inspector Elmer l.. Kincaid charges of hav
Ing fraudulently used the mails to advertise
and sell stocks in coal and mining companies
which the government and police authorities say
are worthless
The two brokers placed in cells at Po-
lice Headquarters. and additional charge of
grand larceny lodged against them. They
viii be arraigned before United States Commits
sioner Shields this morning The police say the
frauds charged against Mckay will foot up to
about $l50.000 and that there thirty com
plants against him
Assistant United States Attorney Ruckner
has had hundreds of complaints against Nc
Kay. according to Inspector Klncaid. some of
the complaints being dated as far back No
vember, 1907. Mckay said everything would
out all right
According to Inspector Kncaid warrants
charging the fraudulent use of the mails will
be served Mckay and Colby when they are
arragned to-day
One charge against Mckay. according to In
spector Kincaid. is that he sold the stock of
Alaska after the property had been abandoned.
The Island Bay Mining Company of Alaska
the given to the property at Valdez.
Alaska. which was abandoned in July, 1907. and
for which in November Of the same year.
cordng to the police. Mckay sold stock George
L. Mckay & Co. had offices in Chicago and
Indianapolis
on June 21 1907. the gov@nment charges.
Mckay sent the following telegram TO DR. f. T.
Griffith at Valdez, Alaska:
Stop work knights Island Say nothing.
Take men t. Land Lock. Make deals until
arrive
SOME MONEY REFUNDED
The telegram was sent from Chicago accord
ing TO the government inspector and shortly
after Mckay and J. Kreis, of the nrm Of Charles
Kreis bankers. of No. 263 La Sale avenue Chi
cago. who said TO be partners of Mckay,
went to Valdez met DR. Griffith who advised
that the mines be abandoned as they were
worthless. and returned after abandoning the
property II is charged that after this Mckay
continued 10 advertise for sale and sold. stock
of the Island Bay Mining Company of Alaska
The Krels firm refunded some Of the money
paid in for stock before the property was
given up.
William Hughes. OF Indian Orchard, H. and
]. f. Lane, former County Clerk OF Macomb
III. are given by Inspector Kimcaid as com
plainants in the governments case against
Mckay.
The Chisna Consolidated Mining Company
and the Equity Mines Syndicate coal mine
proposition four miles from Coaldale New.
also said by Inspector Kincaid to he COM
panies in which Mckay has been Interested
Inspector Kincaid said last night that w s.
Myton. OF Amityvile. Long Island. who made
a trip TO the CoaIdaIe section wrote TO the gov
ernment agents here that he had talked with
men familiar with the country there and that
they had told him they never heard OF the prop
erty described the Equity Mines Syndicate
The inspector has copy OF an advertising
pamphlet said to have beer issued by Mckay
for the sale Of the stocks he handled and II was
the sending Of this pamphlet. The Shareholder"
through the mails that led TO McKays arrest
According to the advertisement of the Equity
Mines Syndicate in the paper p W. Dalton
General Electric Company. Schenectady" ap-
pears as president. and Henry Lincoln Case
of No. 341 West 5Sth street New York City"
vce-presldent Mckay is director of this
company. Other names appearing in the ad-
vertisement James MacMartin chief engi-
neer. Delaware Hudson Railroad. Albany:
w r story, General Electric Company. Of
Schenectady" and j. f. Lane x-County Clerk
Macomb H."
TRANSFERS OF STOCK
The stock book of the Island Bay Mining Com
pany. 1t Is said, shows large transfers of stock
to Mckay and a described by Inspector
Kincai1 as Augustus J. Hess Whc was arrested
some time ago in Philadelphia and IS out on
bail. according to Inspector Kincaid. Hess left
the Mckay company on January /. 1908.
Inspector KIncaid said that NJ b. Allen post
master at Honesdale. Penn. interested in a
railroad scheme which Mckay about to
bring cut but said that the postmaster
drawn into II in innocence.
When the detectives arrested Mckay and
Colby they also talked with who said he
was George A Mari. director Of the company
and member of the firm. Mari told Inspector
Kincaid that he had been putting money into
the firms business. At first Mari expressed his
Willingness to give bail for the prisoners, but
after talking with the detectives and the in
spector decided he would not. Mari told In
spector Kincaid that he might lose upward of
5000
Mckay came 10 New York in 1903 from Ia
coma. Wash.
Henry Lincoln Case, an instructor Of singing
said last night at his home, No 347 West 5Sth
street that he was vice president of the Equity
Mines Syndicate from January l. 1908 to Janu-
arv l. 1909 He said he resigned the first Of the
wear and received a letter from the other men,
bers of the syndicate accepting his resignation
on February % He said he knew little of the
company's affairs having attended only three
meetings during the year. Mr.. Case said he
held 1000 shares of the syndicate sock 1t )
cents share and 1000 shares of the stock of
the Chisna mines az - cents a share. He said
he understood Mckay and Colby had turned the