Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-11-22
New York Brokers Are Charged with
Misuse of the Mails.
INVESTORS MAKE COMPLAINTS
People Promised Enormous Profits
Fail to Receive Them.
HITCHCOCK MAKES
Postmaster General Says II
stocks I'm OH ana Copper CO..
pHnies to Amount of over
Forty millions.

NEW YORK. Nov. 2tEFederal officers
this afternoon relded the offices occupied
BY Burr Bros, a corporation dealing IN
stocks and other securities. The raid was
made on warrants charging the use OF
the mails to defraud investors. Postoffice
officials say the concern has sold 20 in
vestors at par value between fi0Oo0OQo and
so 100000 worth Of stock in yariOus COM
panies, most Of which have gope out OF
existence or become bankrupt
The warrants were issued BY United
States Commissioner Shields End officers
of the corporation were arrested and it's
books and papers seized, The raid was
planned by Postoffice Inspector Warren
w. Dickson. in charge Of the district, and
Postmaster General Frank II. Hitchcock
and Robert s. Harp, chief postoffice in
spector. who came here from Washington
to see that It was carried out successfully.
The officers arrested were Sheldon c.
Burr, president, Frank II. Tobey, vice
president, and Eugene II. Burr, secretary
and treasurer. Arrests are expected to be
made in Cleveland, Chicago Los Angeles
and San Francisco, where the corporation
has extensive offices.
Hundreds of Complaints.
Postoffice officials have been working
on the case for months. Hundreds Of
complaints have been made by investors
who charge they have been swlndled
through false representations made con-
cerning the profits that were being real
ized 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 memoran-
dunn concerning the Burr Bros. which
1907 was Incorporated with a capital Of
100000, later increased to S6OO.OOO The
memorandum states that among other
companies, the Burr Bros. are selling
the stock of the Buick OIL company. a
concern with S5OoO,oOO capital The memo
randum further STATES: = ~
They have also organized the following
oil companies: Carolina. Consolidated, cap
italiEed at S1OO0,OOO: Coalinga Alladin cap
telized at 100000; Kern-Western, capital
lied at fI5O,OO0; New York Coalinga capt.
lied at $500 900; Coalinga Crude OIL. capi-
talized at 100000; Peoples Associated OIL
company, capitalized at $1OOO.OOO."
All stock Sold.
All stock in these companies has been
sold except a portion OF the two first
named and the greater portion of the.
money has evidently gone into the hands
OF Burr Bros, Incorporated. While the
companies are still in existence. none save
the first four named is doing any work at
the present time.
THE Burr Bros. have also organized
promoted and sold the stock in the follow
ing mine companies:
"Rawhide Tarantula, capitalized at ST.
100000
'Montezuma Mining and Smelling, capt.
talized at S1,OOO,OOO
Golden Fleece Mining Milling and Refin-
ing company, capital $4,000
Practically the entire stock in these
companies has been sold to the public, and
at the present time all have gone out Of
existence.
"The Burr Bros. have also organized
promoted and sold the stock Of the follow
ing companies:
"1llsmere Farm Of Michigan.
California Eucalyptus Timber company,
capitalized at Sl,OOO,OOO and the New Am
sterdam Securities company, capital $1,000
| other Companies Promoted.
4 They have also sold large amounts Of
stock in the Red Top Mining and Leasing
company, capital 81 10000
] Long Beach, Mexico & Arizona Mining
company capital S,5OO.OOO.
Nevada Gold Field Mining, Milling and
Smelling company, capital S5,0O0OO0.
! United Standard Lead and Zinc, capital
81. 10000
Florence Consolidated Mining and Leas,
ling company, capital S.Oo0.00O.
sheldon c. Burr, Eugene H. Burr and
T. Harry Tobey are the only members of
the firm ia New York at the present time. ''
1 The three officials OF the company, Presi-
dent Burr Secretary e. H. Burr and Vice
President TObey, were arraigned before
Commissioner Shields and held In 5000
bail each The date for the examination
OF the three prisoners win be determined
later. Pending the furnishing Of bail the
officials OF the company were placed in tn,
prisoners pen
other officials alleged TO be connected
with the Burr Bros in the west and OF
the Pacific coast are c, Fl. Tobey and e
Wesley Preston.