Milford chronicle., 1910-11-25
Federal Authorities Raid Offices
and Arrest Firm
HUGE FRAUDS ALLEGED

/ u'tVNlHu u4 DuAl bAbtuciai III -Nt
York, a corporation dealing in stock
and other securities.
The raid was made on warrant
charging the use OF the mails to de
fraud investors.
Postotfce officials say that the con
cern has sold to investors at par yalu,
between S40,00O,00O and O,0O0,0O o
stock in various companies most o
which have gone out Of existence oI
become bankrupt, and none in a sin
gle instance paying the dividends hell
out in the promises Of the concern.
The raid was planned by Warren W
Dickson. postoftice inspector, in charge
OF the New York district, and Post
master General Frank Hitchcock ani
Robert A. Sharpe, chief postoffice in
/ spector, who came to New York from
] Washington TO see that it was carried
I out successfully.
The officers arrested were: 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 s20,00e
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
tations made to them concerning the
profits that were 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.
q capital Of 100000 and later increas-
ed to 100000 The memorandum SAYS
that among other companies the Bur
Brothers are selling the stock Of the
Buick Oil company, a concern with
$5,OO0,OOO capital
The memorandum further states as
follows:
They have also organized the fol
lowing oil companies: Carolina Con
solidated, capitalized at $1O00.0o0; |
Coalinga Alladin, capitalized at $1,000
600; KeTn-Western, capitalized a
S75O.00O; New York-Coalinga. capita
ized 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 at
the present time.
Companies Out of Existence.
"The Burr Brothers have also organ
ized, promoted and sold the stock in
the following mining companies: Raw
hide TarantuIa. with capital Of ST.,
100000; Montezuma Mining and
with a capital of 81 100000;
Golden Fleece Mining, Milling and Re
hning company. with a capital OF $780,
600.
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 ST.
1000; Long Beach, Mexico. and Ari
zona Mining company, capitalized al
81, 100000; Nevada Goldfied Mining
and Smelling company. capitalized al
s5.O0O,000; United Standard Lead and
Zinc. capitalized at s1.OOOOOO; Flor
once Consolidated Mining and d4eas.n
capitalized at sl000,0Q0 !
Round Mountain Central Mining, capi
-alized at $1,0O0.O0O: Cobalt Portage
Mine company. capitalized at $1,000
300; British-American Copper Mines
md Smelter company, capitalized al
IS, 900, 900; Arizona Copper Mines com
Dany. capitalized at $500 900; Search
light Gamma Gold Mining company,
capitalized at s1,OOO.OOO; Holcomb Au-
omatic Engine company, capitalized
It $4,000. 900; Cottonwood Copper com
pany. capitalized at $1,000. 900.
''All of these companies are at the
present time out of existence.
They also sold the stock OF the
yitak company. a s1,OOO,OOO corpora
ion, which is now in the hands of q
eceiver. and they are at the present
ime also engaged in the sale of lots
n Lincoln. n J.
Made s4o,ooo,o0o Sales.
''It can safely be said that they have
old stock at par value from 100000
90 to S5O,OOO,0OO in the various com
,anies; have an extensive suite Of Of
Ices in the Flat Iron building in New
york, and at times have had Offices in
cleveland. Chicago, Los Angeles and
ian Francisco.
In every instance they have prom
sed large dividends on the stock sold,
! addition to an increase in the value
( the stock but not in a single case
ave any of the companies paid any
ividends, and, as stated above, practi-
ally all of them have been complete
aiIures."
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