Los Angeles herald., 1910-11-22
CABINET OFFICER
MAKES BIC RAID
Firm Charged with $50,000,00O
Fraud Said to HaveAad
Offices Here
CALIFORNIA CONCERNS NAMED
Get-Rich- Quick Operators Said to
Have FIeeCed People Out
of $10o,00o,OO0
CALIFORNIA CONCERNS NAMED
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and held in $4,000 bail each. The gov
ernnlent charges the firm sold between
S40.00O.O0O and $50, 900 Of mining and
oil stock worth little or nothing.
Charles L. Vaughan, a director of the
Continental Wireless Telegraph and
Telephone company, incorporated In
ARIZONA, was taken in the second raid
and held in $4,000 bail. Inspectors say
his company sold stock amounting 70
at least S1,000.000 which has brought
no return to investors. Vaughan is
treasurer of the Columbia Finance COM
pany, which acts as fiscal agent OF the
Continental company, and had charge
of the Continental office In this city.
Both raids today are further evidence
that the government in Its warfare
against alleged interstate swindlers
means business, and no longer VIII be
content with Issuing fraud orders deny
inc them tha use of the mail, but will
press for convictions Of the criminal
After the raid Postmaster General
Hitchcock gave out memorandum
Concerning the Burr Brothers company,
which was organized several years ago
and in 1907 was incorporated with a
capital of 100000, later increased 10
The memorandum states that among
other companies the Burr Brothers are
selling the stock of the Buick OIL COM
pany, q concern with $5.OOo,0O0 capital
The memorandum further states:
COMPANIES INVOLVED
''They have also organized the fol-
lowing oil companies Carolina Consol-
idated, capitalized at $1OO0,000; Goa
linga Ailadin, capitalized at $1,000, 600;
ern-Western, capitalized at $750.0OO;
New York-Coalinga, capitalized at
100000; Coalingo Crude Oil. capital,
lied at 100000; Peoples Associated OH
company, capitalized at $l,OoO.oO0.
"All the stock in these companies mas
been sold except a portion of the hrst
named two, and the greater portion OF
the money evidently has gone into the
hands of Burr Bros. inc.
"While all the companies are still In
existence. none save the hrst lour
named is doing any work at the pres
ent time.
''The Burr brothers have also organ
lied. promoted and sold the stock In
the following mining companies
"Rawhide Tarantula, capitalized at
$1,Oo0.O00. e.,.,..
company, capitalized at 81 100000.
"Golden Fleece Mining. Milling and
Refining company, capitalized at S60O'-
600.
"Practically the entire stock in these
companies has Leen sold to the public
and at the present lliiiO eAh AiSSNS 5NA1S
out of business.
"The Burr brothers have also organ
ized. promoted and sold the stock or
the following companies:
"ElIesmere Farm of Michigan.
california Eucalyptus Timber COM
pany, capitalized at $1,ooo'OOo, ana tne
New Amsterdam Securities company,
with a capital of 100000, which was
later merged with the Burr brothers,
Inc.
SELL STOCK IN CONCERNS
..Thev have also sold large amounts
of stock in the Red Top Mining and
Leasing company, capital $1,O0O,oOo.
"Iong Beach, Mexico and Arizona
Mining company, capital $l,50O,UOO.
Nevada Goldfield Mining, Milling
and Smelling company, capital s5,-
100000.
capital s1,O0O000.
@Florence Consolidated Mining and
Leasing company, capital $1,0Oo.OO0.
"Round Mountain Central mining,
capital $1,000,000
"Cobalt Portage company, capltai
$1,000,000.
"British- Copper Mines and
Smelling company capital $5,000,O0o.
"Arizona Copper Gold mines, capital
"searchlight Gamma Gold Mining
company, capital $1,00O,000.
"Holcomb Automatic Engine COM
pany, capital $5,00O,000.
cottonwood Copper company, capi-
tai $1,000,000.
"All of these companies are out OF
existence.
"They have sold stock in the Happy
Jack Mining and Development COM
pany, capital 100000.
yukon Basin Gold Dredging COM
MANY canital 81. 600. 900
"Toledo, Wabash & st. Louis railroad,
capital $6,000,00O.
dChicago-N New York Electric Air Line
railroad, capital $2,000,000, in connec-
ton with the Cooperative Construc-
tion company, capital $1,000,000. The
latter named companies are in exis-
tence at the present time. They also
sold the stock of the Vitak company,
q $1,O00000 corporation which is now
in the hands of a receiver. and they
now are also engaged in the sale of
lots in Lincoln, N. j.
"It can safely be said they have sold
stock at par value from $40,OOO,000 to
$50,000,000 in the various companies;
have an extensive suite of offices in
the Flatiron building in this city and
at times have had offices in Cleveland,
Chicago, Los Angeles and San Fran
cisco. Arrests are expected in Cleve-
land, Chicago, Los Angeles and San
Francisco, where the corporation has
extensive offices.
sLEUTHs BEGIN CAMPAIGN
The present campaign began some
months ago and has resulted in the
arrest of Louis A. Celia of st. Louis
and his associates, charged with
operating a string Of bucketshops; the
officers of the United Wireless COM
pany, of the Ell Progresso Banana COM
pany, of the United Exchange OF Chi
cago, of the ee1-NIiller cotton firm OF
Corinth, Miss, and of more than sixty
other firms in all parts of the country.
Postmaster General Hitchcock estf-
mates the public has been fieeced out
of at least $100,000000 by get-rich-quick
concerns in the last five years; but he
says their heyday has gone. He said
today that other arrests, involving cor
porations that has sought investors
throughout the country, were expected
shortly.
"The arrest today by postofhce in
spectors of the principals in two i'm
portant companies, Burr Bros, with
offices in the Flatiron building. and the