The free lance. (Fredericksburg, Va.) 1885-1926, 1910-11-24
A HUGE SNINDLE.
S5O.OOO.0OO Fraud in
Stocks Alleged.
SOLD WORTHLESS SHARES
Postmaster General Directs Raid in
New York and Arrests Three.
Big Dividends Promised, but
None Paid.


New York. Nov. 22.-Federal ON
cials raided the Offices occupied by
Burr Brothers, a corporation dealing In
stocks and other securities.
The raid was made on warrants
charging the use OF the mails to de
fraud investors.
Postofice officials say that the con
cern has sold to investors at par value
between s4O,OOO,OOO and s5O,OOO,OOO OF
stock in various companies. most oil
which have gone out OF existence or
become bankrupt, and none in a sin
Ele instance paying the dividends held
out In the promises OF the concern.
The raid was planned by Warren w
Dickson. postofice inspector, in charge
Of the New York district, and Post
master General Frank Hitchcock and
Robert A. Sharpe, chief postofice in
spector. who came here from Washing
ton to see that 1t was carried out sue
cessfully.
The officers arrested we're: Sheldon
c. Burr president; F. Harry Tobey
vice president. and Eugene II. Burr
secretary and treasurer.
Each Held In $4,000 Bail.
The three officials OF the company
arrested were arraigned before Com
missioner Shields and held in $4,000
bail each. Pending the furnishing OF
bail they were sent to jail.
Hundreds OF complaints have been
made against the corporation by In
vestors. who charge that they have
been swindled through false represen
tAtlons made to them concerning the
profits that we're being realized by
those who put their money into the
various oil, timber, copper. lead, zinc
and gold companies.
After the raid Postmaster General
Hitchcock gave out an official memo
randum concerning Burr Brothers
The firm was organized several years
ago and In 1907 was incorporated with
a capital OF 100000 and later increas
Cd 10 S3O0. 900. The memorandum sayi
that among other companies the Burr
Brothers are selling the stock Of the
Buick oil company. a concern with
t5,O00,0O0 capital
The memorandum further states as
follows:
They have also organized the fol
lowing oil companies: Carolina Con
solidated. capitalized at sl000.000;
Coalinga Alladin. capitalized at $1,000,
900: Kern Western, capitalized al
$3.50. 900: New -Coallnga. capital
lied at 100000; Coalinga Crude Oil
capitalized at 100000; Peoples Asso
ciated Oil company, capitalized at ST.,
100000.
"All the stock in these companies
has been sold except part of the two
first named. While all the companies
are still In existence. none save the
first four named is doing any work al
the present time.
Companies Out Of Existence.
"The Burr Brothers have also organ
lied, promoted and sold the stock In
the following mining companies: Raw
hide Tarantula, with a capital Of 81,
100000; Montezuma Mining and
Smelling, with a capital Of S1,OOO,0O0;
Golden Fleece Mining, Milling and Re
anlng company, with capital OF $500,
900.
Practically the entire stock In the
companies has been sold to the public
and at the present time all these com
panies have gone out of existence.
They have also sold large amounts
OF stock in the Red Top Mining and
Leasing company capitalized at 81.
100000; Long Beach, Mexico, and Ari
sona Mining company, capitalized al
1880, 900; Nevada Goldfeld Mining
and Smelling company, capitalized al
$4,000 900; United Standard Lead and
Zinc, capitalized at sl,0OOOOO; Flor
ence Consolidated Mining and Leasing
company, capitalized at S1,O0O,OOO;
Round Mountain Central Mining. capi
tallzed at $l,OOO,O0O; Cobalt-Portage
Mine company, capitalized at $1,000,
900; British-American Copper Nine:
and Smelter company, capitalized a
$4,000, 900; Arizona Copper Mines com
pany, capitalized at s1,500,OOO; Search
light Gamma Gold Mining company
capitalized at 100000; Holcomb Au
tomato Engine company, capitalized
at $1,000, 900; Cottonwood Copper com
pany, capitalized at s1,O00OOO.
"All OF these companies are at thu
present time out Of existence.
"They also sold the stock Of the
Vitak company, a s1,OOO,OOO corpora
ton, which is now In the hands OF
receiver, and they are at the presen
time also engaged in the sale OF lot
in Lincoln, N. j.
Made s4o,ooo,ooo Sales.
"It can safely be said that they have
sold stock at par value from $4,000,
900 to $5O,OOO,OOO in the various com
panies: have an extensive suite OF OF
fees In the Flat Iron building. In New
York, and at times have had Offices II
Cleveland, Chicago. Los Angeles and
San Francisco.
"In every instance they have prom
ised large dividends on the stock sold
in addition TO an increase in the value
of the stock. but not in a single cast
have any of the companies paid any
dividends, and. as stated above, practl
eally all OF them have been complete
failures"
The entire corps of cadets at the
VIRGINIA Military Institute has beer