Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-11-21
Postmaster Gen. Hitch
cock Leads Raid on
New York Brokers.
OFFICERS OF BURR
COMPANY ARRESTED
Practically All of Stocks Sold
We're in Worthless Com
panies, Officers Declare.

NEW YORK, Nov. 21.-Federal OFF,
ciais this afternoon raided the offices
occupied by Burr Brothers, corpora
ton dealing in stocks and other securf-
ties. The raid was made on warrants
charging use of the mails to defraud
investors.
Postoffice officials say that the con-
cern has sold to investors at par value
between s4o,0oO.oo0 and $4,000, 600 OF
stock in various companies, most Of
which have gone out of existence or be-
come bankrupt.
The warrants were issued by United
States Commissioner Shields and the
officers Of the corporation were ar
rested and it's books and papers
seized. The raid was planned by POST
Office inspector Warren w. Dickson,
in charge of this district, and POST
master-General Frank H. Hitchcock
and Robert S. Sharpe, chief postoffice
inspector, who came here from Wash
ington to see that it WAS carried out
successfully.
The officers arrested were Sheldon c.
Burr, president Frank H. Tobey, vice.
president, and Eugene H. Burr, secre-
tary and treasurer. Arrests are exI
pected to be made in Cleveland, Chi
cago. Los Angeles and San Francisco.
where tn corporation has extensive
offices. Postoffice officials have bean
working on the case for months Hum
dreds of complaints have been nade
against the corporation by investors.
who chage that they have been SWIM
died through false representations
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
Inspectors GET Evidence.
Before criminal action could be taken
postoffice inspectors had to secure legal
evidence as to the standing and affairs
of the various companies which the
Burr brothers We're promoting, and
which they alleged to the investors
were operating to their fullest capaci-
ty and were paying dividends This in
quiry necessitated visits by government
experts TO mines and other properties
in distant parts of the country.
After the raid Postmaster General
Hitchcock gave out an official memor-
andum concerning the Burr Brothers,
which was organized several years ago
and in 1907 was incorporated with
capital of 100000 and later Increased
to $780, The memorandum states
that among other companies the Burr
Brothers are selling the stock of the
Buick Oil Company, concern with
SIS, 100000 capital. The memorandum
further states as follows:
Postmaster Hitchcock Talks.
"They have also organized the fol-
lowing oil companies: Carolina Com
solidated capitalized at $1,000, 900;
Coalinga -Alladin, capitalized at s1,000,-
900; Kern Western. capitalized at $780,
600: New York Coalina, capitalized at
$500 600; Coalnga Crude Oil, capitalized
at 100000; Peoples Associated Oil
Company, capitalized at s1,000,e00. All
the 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 Brothers, Incorporated.
While all the companies are still in ex-
istence, none of the first four named is
doing any work at the present time
THE Burr Brothers have also or
ganized, promoted and sold the stools
in the following mining companies:
"Rawhide Tarantula, with capital
of 81 .0o0. 900; Montezuma Mining and
Smelling. with a capital of $1,000, coo;
Golden Fleece Mining, Milling and Re-
fining Company, with a capital of $780,
900. Practically the entire stock In
these companies has been sold to th@s
public, and at the present time alb
these companies have gone out of ex-
istence.
Companies Organized.
"The Burr Bros. have also organized,
promoted and sold the stock of the fol-
lowing companies:
EIlsnlere Farm of Michigan. Califor-
MIA Eucalyptus Timber Company, cap
italized at s1,000,000 and the New AM
sterdam Securities Company. with a
capital of 100000 which was later
merged with Burr Bros, Incorporated
They have also sold large amounts
Of stock in the Red Top Mining and
Leasing Company, capitalized at ST.
900 900; Long Beach. Mexico and Ar3-
zona Mining Company. capitalized at
81, SOC, 900; Nevada Goldfeld Mining.
Milling and Smelting Company capi-
talizad at S5.o00000: United Standard
Lead and Zinc, capitalized at s1.000,0eo.
Florence Consolidated Mining and
Leasing Company, capitalized at s1,00o.~
600: Round Mosntain Central Mining,
capitalized at $4,000 coo: Cohalt-Port-
age Mine Company capitalized at ST.
coo 000; British-Amerlean Copper Mines
and Smelter Company, capitalized at
S., ,00o. .000 Arizona Copper Gold Mines
Company. capitalized at sl.5on. .e90s
Searchlight Gamma Gold Mining COM
pany. capitalized at s1,9o0.V00; HoIcomu
Automatic Engine Company, capital
lied at $4,000. 900. Cottonwood Copper
Company. capitalized at 81 00a eop Al
OF these companies are az the present
time out Of existence.