The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-07-11
PROMISES VAST
WEALTH, But
CAN'T DIG $50
Congo Lumber Company Is Ac-
cused of Fraud by a
Stock Holder
Profit of S77O,OOO,OOO Is Held
Out as Lure to Those Seek
ing Easy Money

ing Easy Money
timber on an area of AZ. 500 acres of
valuable mahogany timber land located
on the Hucunaque river on the isthmus
OF Panama. He had become suspicious
OF these stupendous figures, he said,
and inquired Of friends who informed
him that he had been swindled.
The police advised Moore that they
could do nothing unless he could show
that his money had been secured under
false pretenses.
Il went back to the Offices in the
Humboldt bank building" said Moore
last night. and asked Campbell. who
had sold ne the stock, to buy it back
81 1t were so valuable, but he would
not do It, / told him that they had
swindled me, and he said that il 1 came
in there and gave up my money with
out having looked over the ground I
ought 10 suffer. He said he would
buy my stock back may be next fail.
but that he did not have the $50 handy
just then. Yet he signs himself capt.
talist on the circular. I know now
that I was swindled by these men, and
] am going TO prosecute them. They
told me they had thousands Of feet
OF timber on the way here. but I know
they have not ] am going to take
this UP with the head Of the police and
see II can not get some satisfaction"
CampbeII's Hay Data
AT the beautifully furnished Offices
OF the company in the Humboldt bank
building c. E. Campbell, president of.
the concern. was seen yesterday and
asked concerning the charges OF Moore,
as well as the s77o,01S,oo0 in profits
snd the principally Of land
Campbell remembered Moore with re-
gret, but displayed a very hazy kuowl-
edge Of the affairs OF the concern and
the manner in which the 427, 500 acres
Of land had been acquired on the 18TH
mus He also related a very interest
ing method OF dividing the stock OF
corporation in such a way that the pub
Tic VIII pay the bills. He stated that
372, 600 acres Of the land claimed by
the corporation was held under an ir-
revOcable concession from a former
president Of the republic OF Panama.
but did not remember the name of the
president. nor could ne show any deed
or other evidence Of any title. he
admitted that the company had never
even had the land which il claims sur
TeTed- and that II dad not know how
much land there was IN the tract al
though very accurate figures. 3eS.64O
acres. are set forth IN the prospectus.
Finally Campbell admitted that he him
self had never been on the isthmus. and
consequently had never had any knowI-
edge OF whether there wes a foot OF
timber there or not He relied entirely
for his information on L. C AlIis. who
claims 10 have received the concession
originally. but does not know from
whom. The officials claim that the con
eession was made to them in 1905.
Unable to Show Title
DO you not know that the land Ia TVS
n Panama were changed prior to 1905.
and that since that time there have
been none Of these immense conces-
sions Of land?' Campbell was asked
Well. this was by one Of the presi-
dents. but ] DO not know which one.
our attorney down there told as it was
al right, so we took the papers and
have gone ahead"
In relation TO the remainder of the
land. $4,000 acres Campbell claimed
that he personally had purchased il for
cash from various owners who hold n
under an old grant from the king OF
spain. but could only remember the
name OF one OF the land owners. a man
named Estrada Campbell admitted
that not one dollar had been paid for
the $4,000 acre tract. to which no title
could be shown.
The president admitted that after the
corporation had been formed under the
laws OF Arizona in February. 1903. he
and his associate. Allis had voted
themselves 2.O00. 900 shares of the Cant
tai stock and had subsequently given
20 another associate, F. n Cornell a
block Of 100000 shares In return for
this stock he admitted they turned
over 10 the corporation the hay title
they held TO the immense tract of land
and commenced TO prepare literature
and stock certificates for public dis
tributlon.
According to Campbelrs own state
ments not a dollars worth Of work has
been done on the property up to the
present time. although 100. 900 shares
OF the remaining 100000 have been dis
posed or 10 the public since October at
prices ranging from Is to 80 cents.
During all OF that time, however. the
president and secretary. who have been
devoting their brains and hnesse to the
management OF affairs, have been
drawing salary.
Simplest Thing in World
Next comes the s770.013. 600 net profit
10 be made from the timber on the land
Why. it's the simplest thing in the
world. For instance. II a man buys
something for 500 900 and sells IT for
$40. 213. 900 he makes a net profit OF
$40 $4,000. Does he not? That is
plain But that is the only explanation
advanced for the figures in the prospec-
tus.
Campbell himself says that the money
which viii be used to develop the lands
must be realized from the sale Of stock.
and as only 500. 600 shares were left In
the treasury after the promoters had
voted themselves all they wanted. the
most that can be realized at 80 cents
a share a fictitious price fixed by the
officers. is s240 600.
From this total must be taken the 90
per cent offered TO anyone who will dis
pose OF a share of stock for the concern.
With what remains after the various
deductions for commissions. officers
salaries. rent for nicely furnished Of
fees and incidentals the limitless for
ests of mahogany are going TO be cut
o. Il c-11 81 Of 1 . ~