Los Angeles herald., 1909-10-24
BAR MAILS TO
LOCAL BROKER
BAN PLACED ON GUARANTEE
SECURITIES COMPANY
Or. ]. Byron Sloane Remembered for
Arrest on Charge of Fraud in
Michigan and other
Troubles
tBy Associated Press.l

WASHINGTON, Oct. ga scheme
for selling or buying stocks on the
instaliment plan has been put under
the ban by the postoffice department
by the issuance of so-called fraud
ORDER against the Guarantee Securl-
ties company at Los Angeles, Cal
According to allegations of postof-
flee inspectors, the company was en-
gagged in the purchase and sale of
stocks for people not having suffi-
Client capital to pay the necessary
money outright. Payment of the
stock was accepted on the installment
plan. Delivery of the stock was ad-
vertised to be made when all Install
ments were paid. 1t was represented
in the advertisement that the stock
would be purchased at prevailing mar
ket prices and held until the receipt OF
the last installment.
1t is alleged by the inspectors that no
attempt was made to purchase the
stock ordered, although money of the
purchaser was retained. If the market
In the stock ordered declined the stock
would be delivered to the purchaser
when the last installment was paid, put
not otherwise. The inspectors alleged
that the concern was without finan-
cial stability.
August 26, 1908, DR.. ]. Byron Sloane,
who figures now as local manager OF
the Guarantee Securities company with
offices in the chamber of commerce
building, In taking advantage of mis-
take was arrested here because OF al
legged sharp practice in bookkeeping at
the Citizens National bank, Where ne
had a small account. DR.. Sloane at
that time was confined in Jail few
days, but at his examination, october
ho gatonaoHn6 In nhtqiOinQ his llD-
erty through technical error, the case
being tried before Justice Selph.
Sloane was said to have deposited q
personal check in the Citizens Natlonal
bank, the check being for $7O0, which
was placed to his credit on the state
ment by Sloane that the check was
good. A short time later the check was
returned from st. Louis BANK that
hank having refused to honor 1t.
At the time, it was said, and is still
maintained by officials of the bank that
a mistake was made by credlt1ng
Sloane's account with $500 instead or
deducting that amount for the check.
1t is alleged that Sloane was quick 10
perceive the mistake, drawing out $l4O0.
The check was later honored by an
eastern bank. which nevertheless still
left deficit against Sloane of $700.
This was the second arrest of Sloane
since his arrival in Los Angeles, ne
having been arrested in February, 1908,
charged with selling worthless mining
stock in Michigan.
1t is stated by physicians at the re-
ceiving hospital that Sloane attempted
to commit suicide during his first in
carceration in the city jail In Los An
geles.
On the first charge Sloane succeeded
in obtaining his release by habeas cur
pus proceedings.
DR.. Sloane formerly lived at 263O
Western avenue, but left that place two
months ago, and efforts to locate his
place of residence last night were un-
availing.
1t is alleged that DR.. Sloane has in
Cured a large number of debts during
his stay in Los Angeles, but all at
tempts to CLEAN information from the
postoffice inspectors last night were
futile, as the inspector who worked up
the case against the Guarantee Securi-
ties company, of which Sloane is the
manager is in Iowa on business.